Tuesday, 1 July 2008

The Ugly Truth - Day 305

The Ugly Truth


  • Personal Loan: -$21,600
  • Credit Card 1: -$6,680
  • Credit Card 2: -$8,657
  • Credit Card 3: -$5,597
  • Credit Card 4: -$11,000
  • Credit Card 5: (paid in full)
  • Credit Card 6: -$900 So close!
  • Credit Card 7: (paid in full)


  • Emergency Fund: +$2,010 – Sorted!
  • Car Fund (Maintenance & Registration): +$252
  • Short Term Goal Fund: +$1,004 (Current goal is new bedroom furniture)
  • Home Deposit Fund ($60,000 Goal): +$1,004
  • UK Tour Fund ($10,000 Goal): +$502

Total: -$54,434
Debt reduced from last month: +$3,646 – check it out!
Debt reduced from Sep 2007: +$2,338 – YAY!

Now you may not have noticed but there’s a dramatic change to my numbers this month, in more ways than one. Who doesn't love an annual bonus?

First, I'm back under $56,772 (the amount of debt I had when I started this blog). Woohoo!

Second, and more importantly (to me anyway), I’m no longer reporting my debt total by including my Emergency, Car and Short Term goal amounts in the final number, and it’s still less than when I started, plus there’s money in the bank! If I did run the numbers using the old way, the numbers would look even better still, but wouldn't be clearly outlining my situation.

I have $4,772 in available cash should I need it, but it’s all allocated for a purpose (other than the emergency fund of course), so I don’t think it will be going anywhere other than where it’s supposed to.

I’m really re-energised about improving my finances after making such a dent this month, my next target is that pesky $900 on Credit Card 6, I want it gone by August 1. I did waver about making a double payment on my personal loan this month, but it’s got the highest interest rate so felt it was worth waiting the extra month to pay off Credit Card 6.

Roll on payday – and my payrise!

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  1. Way to go girl!!!!
    It is such a great feeling when the numbers are going down, you really feel your making some headway.

  2. Thanks Lisa, it's been a long time coming, but I really think I've got a roll happening repayment wise now.

  3. I don't mean to rain on your parade, but shouldn't you be concentrating on paying off those bills rather then saving for new bedroom furniture and a vacation?

    I can understand having an emergency fund and money set aside for your car when you need it, but when your that much in debt, especially on high interest credit cards, you really have to prioritize things in your life.

    Leisure activities aren't needed to live, neither is new furniture even if the old stuff is falling apart. Really, all you need is a bed in there anyways.

    It might be tough not having the things you want, but so is living in debt for the rest of your life.

  4. Wow that's amazing! I hope I can decrease my debt as well this year. Good luck! Keep it up!

  5. @jesse - thanks for your thoughts, and welcome! I'll take the rain, we can always use it here in Autralia! :-)

    Paying of my debt is important to me, but it's not the only thing that's important to me.

    I'm not a ‘gazelle focused, do nothing but pay off debt and eat beans’ person. I need a solution that I can stick to consistently, or I’ll just go off the rails and end up in more debt.

    I'll have all my debt paid off by May 2010, which has always been my plan, even with the other things I want to do between now and then.

    The things that I no longer do that wasted money, and the pay increases I’ve received in the last 12 months have allowed me to do both.

    @fragileheart - Welcome and thanks for your kind words!

    I think a lot of us are looking to reduce our debts these days, as interest rates go up, and food and petrol are becoming more expensive.

    I'd suggest chipping away at one debt at a time and it will all be gone eventually.

  6. Anonymous3/7/08 16:28

    Excellent dd..you'll soon get there :)

  7. I can velieve my eyes... it's a shocking amount... but you are doing well.
    What is your plan? When you plan to be debt free?
    Why don't you join commission junction (affiliate programme)...put some ads on your blog and few widgets to earn money...

    Why don't you talk to banks, credit unions and put your debt on one card...you'll save by paying less charges....

    Good luck!

  8. Great job on paying off your debt! I noticed your emergency cash is over $2,000. What is your emergency cash savings goal?

  9. Hey, just found your blog today. Looks like you're struggling through the same things I am (and blogging about the same thing too)

    I really like how you have the debt summary laid out and I think I might copy it on my site (though I don't have as many debts as you, I just have a few big ones)

    Check out my blog at

    maybe you can give me some advice from anything I've overlooked because it seems like you've been at this awhile and I'm just starting!


  10. Your numbers are looking awesome and are heading in the right direction.
    You keep on doing what is obviously working for you. Having an emergency fund, saving for life's pleasures AND becoming debt free all at once...sounds wonderful to me.
    I'm with you on this one!
    See you on the debt free boat in 2010. Sound's like there'll be a few of us on it. Yeehah! :)

  11. Great work. How is the Australian economy? Similar to the problems we are having in the US? It's hard for anyone here to improve their financial situation right now.

  12. Rick Vaughn5/7/08 14:12

    Nice job!

    Must be nice to have two "emergency funds" so to speak. Anyway, in business that has cash is a good business. You must be on the right track.

  13. Awesome job! You are making great progress.

  14. Anonymous7/7/08 14:26

    Your doing terrific ... and you know what? I agree with you on your "living a life" at the same time your are reducing your debt. It's just like healthy eating - it's all about portion control. Plus life is just too short to not have a little fun, too! Good job on working it in a way that works for you!!

  15. I like all the plus signs on the balances! good job on the savings, and debt reduction.

  16. Good luck getting rid of that $900 cc bill! :)

  17. It sounds like you are making some pretty good progress.

    I came across your site while reading some debt blogs and I was wondering if you were interested in exchanging links. I have my own debt blog that I started up recently.

  18. @Dana & Co. – yep, it’s a big amount all right, especially considering none of it is ‘good’ debt, its all credit cards and a personal loan. My goal is to be debt free by May 2010, and I’m still on track for that date – touch wood!

    @Scott – my initial goal for my emergency fund is $2000, so I’ve got there which is a great comfort. Ultimately, once I’m debt free I’d like a $15,000 emergency fund.

    @Jesse – thanks for you comments and welcome! I’ll head over to your blog today & check it out! There’s a lot of us in this situation, that’s why blogging is so great, you see you’re not alone in your situation, and can learn from those who have gone before and become debt free!

    @Indebtedness – Maybe we should arrange a 2010 meet up to celebrate being debt free! :-)

    @DineometerDeb – The Australian economy is strongly influenced by the American one unfortunately, so the effects of your credit crunch have hit us too. Our interest rates are going up, as are our petrol and food prices. We also have the added joy of very expensive housing prices, and a rental shortage in our capital cities, so it’s an interesting time financially at the moment.

    Being debt free makes a huge difference to how you’re able to live, and there’s never been a better time to try & get ourselves debt free.

    @SavingDiva – Welcome back! I’m determined to have a good news story for you all this month about that Card, even if it’s two minute noodles (Ramen) for the rest of the month! *lol*

    @Chris – thanks, and welcome! I’ll be over to check out your blog!

  19. Great planning! I certainly believe that you can clear off all your debts by May 2010 and at the same time still enjoying those things between now and then. I can see your focus on putting aside the money and not using them on other purposes other than the one you set for yourself. More power to you!

  20. Anonymous4/5/09 22:22

    This has given me great inspiration. Great work.