Hey IMs.
I'm not sure if I'm looking for advice (though it's very welcome) more so than having a vent about my situation. My partner and I earn about $ 1400 a week, sounds like a decent amount right? But when we pay $500 in rent $300 on car loans, $5000 credit card debt, $100 a week daycare fees... it feels like we're left with nothing the day after pay day. We've sat down and done a budget and as it is we hardly cover everything we need to... I'm working towards a promotion next year when both kids are at school which will be about $400 a week more and we are going to see a financial advisor soon but I'm already pretty frugal as it is. I shop for our family of 8 ( including 2 big dogs and 2 cats ) for $150 a fortnight. I buy things second hand ect. I'm just at such a loss :( I'm normally a super positive person. I'd tell someone I'm my situation to be thankful for all they have because to someone less fortunate we are ''rich' I'm not sure what I'm asking. I just need some positivity thrown my way.
Edit: Thank you everyone for your lovely replies! I'm feeling so much better after reading your comments. I'm starting to see the light at the end of the tunnel. My partner and I have set ourselves a 5 year plan...
1st year. fingers crossed for my promotion and pay off my car and credit cards.
2nd year. I'm going to study beauty theropy and offer treatments from home and mobile. ( something I've always wanted to do ) While working. My partner will also be looking for a different job.
3rd year. Pay an extra cash towards partners car loan and savings for a house.
4th year. Hopefully have my partners car paid out
5th year. Buy a house and get married :)
5 Replies
Can you tackle that credit card debt first? It's costing you at least 25% interest. Stop using it and put every spare cent there first. The other things that cost with zero benefit are alcohol, cigarettes, takeaway lunches/drinks and coffee.
We stopped buying barista coffee and saved $20 a day - that's $5000 a year - your whole CC debt! My hubby's fags and tradie hot-box lunches were costing $700 month - that's $8400 a year - a whole family holiday - he didn't believe me till I printed the bank statements week after week and showed him. It's scary where the $ disappear... We also reviewed our health insurance and swapped providers - saved $100 month and got better rebates for the same cover elsewhere.
Sounds like you're on the right path :)
Can you find a cheaper rental? Can you get a loan to pay out your credit card and then that may lower your repayments significantly, no buying takeout, can you downsize your cars or call up the bank and organise a longer repayment of a lower amount for your car loans. I hope you guys can work something out. Sometimes we have to just compromise until the hard stuff is done and paid for and then life will get easier eventually. For 5 years I was you whilst I paid off my car. Now that it's paid off life is easier. I'm also happy just to keep the car I have and not upgrade until the thing starts falling apart like my old one did.
Yep life is expensive. Pets cost a fortune. Those car loans seem to be the killer for you. Imagine if you traded down and could be $300 a week (or a fortnight?) better off!
You could smash the debt and be in a much different spot.
I forgot the positives - but you seem to have your feet on the ground. People struggle worse than you , ive been there and you know what i was struggling for... a decent rental i can call home without feeling the need to move again. A place the kids could have a dog. A decent car that wasn't on its last legs about to cark it at any point. A little free money, time without stress of debt.
So all in all, you have that, youre winning.
300 a week on car loans is a huge amount. Is there a chance you could sell them, pay out the loan, if any money left over use to buy cheaper cars? Then take out a loan for the remainder at hopefully a much lower repayment rate. We have done this. And while we don't have really "nice" cars we are in a much better financial position.
Count yourself lucky. That's my husbands fortnightly income and he's supporting 4 adults 2kids and a dog.