Debt, Debt and more Debt!

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So first of all we know Debt is a Bad thing, but we also were never really taught the rules of Money, we grew up in a society thinking we could have it all, even if it wasn’t our money. We have government debts and 3 credit cards plus we owe money to a family member and we have nothing really to show for any of it, however we are now well on the way to becoming debt free except for our house within 4 years. This is how we are doing it.

We live a reasonably simple life, however we are smokers which in itself is a crazy expensive thing, we both wish to give it up but if you are a smoker you will know how hard this is, so we have gone without other things instead, if we do give it up in the near future it will mean that we can pay off our debt a lot sooner but for now we are doing well.


We have both been on government pensions in the past decade and for certain reasons we were over payed to the tune of almost $40,000 and therefore we have to pay it back, this is fine but it takes time, we are on a regular weekly schedule to have this payed back in the next 4 years and we have stayed on track with this for almost 6 months.

I have 3 credit cards in my name, however the spending was not only me, yes I made a stupid mistake getting them in the first place and living beyond our means at the time but we all have to learn somehow.

So the credit cards are $4000, $5500 and $8000 totaling $17,000.


We sold our second car and paid $3000 off our first card ($5500) as this was the highest interest, once we paid that one off we went onto our second highest interest card ($4000), we actually just paid that off 2 weeks ago, Yippee!

So now we are on to our 3rd card and our largest ($8000) however we had been paying monthly minimums so the opening balance is $7500, we have just this week been able to pay a huge $800 on this card due to me working overtime hours.

Now we are down to $6700 in debt from the original $17,000 in just 4 short months, we have to give ourselves a pat on the back for that. Plus we have $1550 in savings for the balance of our house deposit as we go for finance again November 9th.

The reason we had to wait to go for finance is that they need to see at least 6 months of regular payments to our government debt and we need to bring our total debts under the 10% allowable debt threshold for getting a mortgage, we are on track for this.

We have also paid off approx $3500 off our government debt in this last 4 months. Woo Hoo!

In our next post we will tell you all the ways we managed to pay off such a lot in such a short time.

Seeya GAM

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