Monday, 26 October 2015

Digging out of Debt... 4 months on...

It has been 4 months since I opened up about how we are digging ourselves out of debt. As I was reviewing the last few months, I realised a couple of things. I am going to be open and honest about it all, so don't call me crazy ;)

Since June we have reduced our debt by slaying the Consumer loan on my sewing machine. We paid it off in July and it was an amazing feeling, having it gone. I am in fact awaiting an interest rebate from the company, as their system crashed and couldn't tell me how much interest should have been deducted from the payout figure. The other part of our debt, the school fees has been slowly dissolving. I had originally said that we would have most of it paid out by the end of the year, but circumstances have changed and we really need to pay them out before the end of the year, as our kids are moving schools in the new year. This last factor has also had it's own financial complications, but are short term. It just meant that there was less to pay onto the old debt this month.

Out of the $13,499.76 we had to left to pay of our debts, we have officially paid off $10,329.80 since January. This leaves us with $3170 to pay by the middle of December. We are guaranteed to pay off another $1400.00, leaving us with $1770 to find in our budget before the end of the year. This is of course a miracle happens ( and I firmly believe in them!)

We have had a couple of Murphy's drain most of our Emergency fund in the last month as well, so we are looking to build that back up again. I have been very slack with YNAB, and stopped budgeting on paper (or app) due to what a friend of mine called "Debt payoff Burnout". I felt like I hit a wall with the debt payoff. We are so close to paying it out and just want it gone, so that we can start fresh.

I am giving us a break with YNAB, as much as I LOVE it, until we have cleared the last of the debt. I think that we will have a new lease on life and be able to work towards our other goals, once we have no consumer debt to worry about.

Our first goal in 2016 will be to rebuild the emergency fund, followed by creating a one month income buffer. Once both of those are achieved we can start saving for our family holiday and kitchen renovations( I told you I was goal oriented!). All of this will be done whilst building up our budget categories for the big expenses that come up over the course of the year.


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