Saturday, April 30, 2011

Debt Slashing

2011 has been a pretty good year so far for us with paying off debts. Even though most of the debts were paid out with my claim money and with selling the 2nd car, it has shown us we've come along way from where we were 2 years ago... or even 1 year ago.

Every time we'd have money whether it was a loan increase, or paying out a debt which free'd up more money we would do something to the house... new windows, doors, kitchen, bathroom, the list is never ending, and as a result we were drowning in debt.

Last year when we knew the amount of the claim, straight away we thought about a deck/new blinds/carport. Then I thought well what do I want more out of life? Keep working at a job that makes me miserable, barely see my kids, have a messy and stressful household, but on the up side have a deck, OR, Quit work, use the money to pay out debts, have a happier, calmer household and eventually SAVE for the deck? Well, you know which I chose :)

So the amount we've paid out so far is as follows:

Joint Mastercard:

Limit: 4000
Balance: 3962.45
Current Limit: 500
Current Balance: 0
Actions Taken: Completely paid out the debt and lowered it to the lowest possible limit.

Hubby's Mastercard:

Limit: 8500
Balance: 5673.77
Current Limit: 2000
Current Balance: 0
Actions Taken: Paid off all interest bearing debt, Lowered limit to 2000, then recently paid off the interest free debt. Will cancel card when hubby gets a chance.

My Credit Card:

Limit: 2750
Balance: 790
Current Limit: 0
Current Balance: 0
Actions Taken: Paid out balance in full, Cancelled and cut up the card

Grand Total: 10516.22 :)

Here's what it looks like now :)

We Have a Legal Debt from hubby's teenage days with a balance of 860. We've contacted them and offered a lump sum payment of 40% and for the rest of the debt to be waived, to our surprise and joy, they agreed. We have until the end of May to come up with the $350, or the balance remains at $860.

There's 4 more debts remaining after this legal debt has been paid out, but I won't give figures just yet.

Computer: Has about 17 months remaining
Car has 4 years remaining
Mortgage 2 which is a small mortgage which was a few debts consolidated
Mortgage 1 is the main mortgage and still has a while to go lol

We're very pleased with how far we've come and can't wait til that car loan it gone, that's next on our hit list :) :)

(we aren't paying out the computer debt early as it's a tax thing for hubbys work)


  1. Great work on paying your debt. Our tax is up to the roof as my husband owns his own business and getting on top of it is really hard to do when we have other debts aswell. I too am going to start really fixing up our finances. Think I need to do my own blog about it, it is such a huge task.

  2. Fantastic work ... I love how your credit cards look now!

  3. Sorry to hear about your business tax Sam, it must be so stressful having ur own debts to worry about, plus the business tax aswell. Yeh do a post about it, I look forward to reading it. It's hard to keep on track with paying off debts, but its a little easier when you have others to help you along the way :)

    Thanks Sammy, me too :)