The Ugly Truth
- Personal Loan - $23622
- Credit Card 1 - $4993
- Credit Card2 - $7685
- Credit Card 3 - $6496
- Credit Card 4 - $7094
- Credit Card 5 - (paid in full)
- Credit Card 6 - $4024
- Credit Card 7 - $3043
- Emergency Fund - $0
- Savings - $0
Debt reduced from last month = $1023 going backwards…
Debt reduced from Sep 2007 = $185 higher than when I started
As expected, October was a complete shocker. I’m actually in more debt than when I kicked things off in September.
I’m looking forward to this month being a lot more productive and making some decent impact on my debts, with serious snowballing to be done. I have two weeks worth of rent to add first thing tomorrow, plus I've got expense claims coming through as well.
I’m confident this won’t happen again. I won’t let it.
I'm pulling for you to reduce your debt big time this month.
ReplyDeleteGood Luck. I'll be reading.
Thanks JW.
ReplyDeleteSeeing the numbers go up this month was annoying and painful, but I know November will be fantastic.
I'm confident I'll get things back on track going into December.
Sadly, from what I can see, your debt is going to sky-rocket a lot more with Christmas coming up. My own suggestion, and this worked for a colleague of mine a few years ago who was in the same debt trap, would be to do the following:
ReplyDelete1. Destroy all of your credit cards. Cut them up - get rid of the opportunity to use them. Contact the provider to cancel them. Pay them off with the statement or online.
2. Get a lower-interest consolidation loan from a bank or credit union and pay all of your other debts off in one go. That way you then have only one debt to manage and the interest payments are a lot less.
3. Learn to live a "credit-free" lifestyle. Don't buy things you cannot afford. If you need something, lay-by it at the store. You can make your regular payments and then take it home once it is fully paid for.
The only way you will reduce your debt is to seriously change your habits and lifestyle. I've lived debt-free for 18 years now. I don't have all the things I want, but I also don't have the weight of debts hanging over my head. The only time I would consider going into debt would be for the purchase of a major item such as a car or house. But never for anything minor such as electrical goods, clothing or groceries.
Good luck in your mission. Cheers.
Thanks for your thoughtful comment sea eagle, and welcome.
ReplyDeleteI'm not sure a bank would give me a consolidation loan at this stage, also their interest rates are actually higher than my cards!
I truly believe last month was a glitch due to a large unplanned expense and no emergency funds.
It's really given me a determination to sort this out once and for all and to never have this happen again.
I've also had a substantial pay rise & set up a workable budget since then so I don't need to use my cards any more.
I felt like I'd been to confession after posting my 'awful truth' (not that I've ever been to confession!)it's kind of a relief to share it.
ReplyDeletesoon you'll be posting how much you've paid off. good luck for November.
I know what you mean louise, there's something cathartic about being honest with yourself and the world.
ReplyDeleteI've even told a few people in my real life how much debt I've got and what I'm trying to do about it too now.