Hello debt, I hate you.


I loathe being in debt up to my eyeballs in credit cards.

I love reading about others who have managed to pay off their credit card debt.

Which is what basically inspired me to start this blog.

So to start of with lets have the numbers please!

Citibank: $5,788.54

Westpac: $6,802.60

ANZ: $4,734.53

American Express: $3,319.79

TOTAL DEBT: $20,645.46

I have decided to pay off the Citibank card first because I seem to be paying about $160 in interest (although that may be because I got my statements, they charged me for statements! WTF!) So anyways, thats getting targeted.

Now the problem is, I also get paid a pittance. Roughly $750 a week, net. Okay its not really a pittance, but its not much either. Or it could be a pitttance and I’m just ignorant, whatever. Anyways, I’ve calculated it. I pay about $1500 over 5 weeks, which equates to about 40% of my net salary.

Reading other blogs about this, most people have about 20% and “anything extra” going into their target debt. So this got me thinking, is my 40% too high? Am I not giving myself not enough flexibility? I still save about 9% into my emergency fund. I’m aiming for $1800, currently it’s at about $400.  After rent, money I allocate to paying bills, and public transport costs it leaves me with about $60 a week to play with. I can usually make that $60 stretch, and sometimes if I have any leftover it goes into another account which is the gift account. Basically to buy gifts and stuff for people. Which currently sits at $60-ish. I’m hoping to get that up to about a hundred-ish before August where I have to buy at least one present.

Not too sure how often I’ll update this. Maybe daily for a while (I love looking/playing/fiddling with my budget) and maybe I’ll link to all the other blogs I’ve found that deal with this stuff.

But all in all, life is good… and getting better.

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4 responses to “Hello debt, I hate you.

  1. That’s a nice $10k reduction in debt in just a year!

    I pay over 60% of my net income to my debt. Any extra money I make or find goes to my debt. I guess it’s called a “zero-based” budget by fancy personal finance people. My checking account should have close to nothing in it at the end of the month, after every penny is dumped into credit card debt. I do keep an emergency fund like you, though.

    Check out a free debt reduction Excel spreadsheet from Vertex24. It’ll help you with the avalanche process you’re currently pursuing: http://www.vertex42.com/Calculators/debt-reduction-calculator.html (I’m not paid to promote them – just sharing tools that work for me.)

    Good luck,
    In debt, skinny, short with bad teeth

    • I found it! It got chucked into the spam comment folder for some odd reason, and it only turned up now. And wow 60%? Fan. Tastic. Another word broken up by your personal finance blogging awesomeness. Will the carnage ever end!?!?!?!

  2. We eat a lot of Spam where I’m from, that’s probably why.

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