How to Get Out of Debt: Step One

How to Get Out of Debt: Step One

Debt, How to Get Out of Debt, My story
  This is the first in a series of posts called How to Get Out of Debt. It details the specific realisations, steps, and behaviour changes that have seen me begin my journey to become debt-free. At the end of 2015, I had bottomed out with around $60,000 in debt. I currently pay about 60% of my income towards my debt, and have paid off around $16,000 at the time of this post. Needless to say, I’m not a professional, and this is my personal experience only. Without exaggeration, I could probably count on one hand the number of times I looked at a credit card statement before I turned 28. And I certainly didn’t log into my internet banking to seek out the information myself. The only time I’d look at…
Read More
How Did I Get Into Debt?

How Did I Get Into Debt?

Debt, My story
  I’ve been in debt for my entire adult life. I honestly don’t remember a time before the heavy weight of debt settled down into my gut. It’s been so long now that trying to remember life before debt is like trying to remember a film I saw once twelve years ago, even though wasn’t really paying attention while it was playing. I got my first credit card a few weeks after my 18th birthday and have had one (usually maxed out) ever since – my 30th is in three weeks. Why did I get a credit card? I couldn’t even tell you anymore. It probably had something to do with the big, vast realisation that I had become an adult, and I could. There was probably some important item…
Read More
Can I Pay off $44k of Debt in One Year?

Can I Pay off $44k of Debt in One Year?

Debt, My story
  Alright. So. Forty four grand in one year. Is this even possible? After a lot of tweaking to the ol’ budgetrino, I’ve got my living expenses down to roughly $21,000 a year. This means I need to earn about $65,000 after tax in the next 12 months, which is roughly $85,000 before tax. Full disclosure, that’s a fair bit more than I currently earn. But let’s go with it for argument’s sake. The thing is that if I’m earning that kind of money, I’ll have to pay about $5,500 toward my HECS debt (in Australia the government fronts us the money to go to university and we pay it back with our tax, on a sliding scale based on our income). So that’s a sizable step backwards. One could recoup that…
Read More
A Financial Shitshow

A Financial Shitshow

Debt, My story
  Simply put, my finances are a shitshow. Always have been. And not that long ago, I’d have followed that up with “always will be.” But they won’t always will be! I’m turning things around. I made a lot of bad decisions and even more bad purchases and they spat me out, two years ago, in sixty thousand dollars of debt. Sixty. Thousand. I repeat it because it’s so insane, such a comically large amount of debt to have that I still can’t quite convince my brain to take it in. Up until recently this was almost twice my annual salary. And because I earned so little my debt was increasing every year, with no signs of slowing down. At 28 years of age with a pretty fricking bleak future,…
Read More