2
2008
Documenting My Debt
I’m all set up and ready to go. This post was surprisingly difficult to write because I have never in my life done a budget (despite being college educated) or documented my finances.
From the couple of books that I have read, and the abundance of amazing and inspiring blogs I have read, I think it would be a good idea to really get honest with myself and document here and now all my debts and get real about the hole that I am in. So here goes…
My Debt:
Credit Card Debt: €12950
Personal High Interest Loan: €4994 (10.0% interest rate I believe)
Credit Union Loan €15700 (1% on remaining loan balance I think)
Holiday Loan: €1800
Total Debt: €35444
My Assets
Current Assets:
€12000 Car
€2000 Laptop
€7000 Credit Union Shares
My Income
€1500 a month
€200 - €500 Bonus
My Expenses
Rent €200 a month
Food €200 a month
Social €300 a month
Fuel €100 a month
Internet Acess €50 a month
Phone €20 a month
Smokes €225 a month
Loan repayments €900 a month
I am sure there is much more, I guess my education is an asset too and I suppose I have assets (and expenses) that I don’t even know about yet because this is all so new to me. I am going to try and keep this as honest and true as possible. I would like to keep this blog hidden from my family and friends and perhaps show them next year how far I have come.
One final point. Just documenting my ciggarette expenses every month has given me a real shock. That is $2700 a year I could be putting toward a house or pushing down my debt instead of using to shorten my life. I feel a little sick and need to come up with a plan to eliminate this expense altogether. Wish me luck.
I think you’ll be pleasantly surprised at how blogging helps you stay focused on your plans to repay your debt.
Best wishes on becoming debt free as soon as possible and also on giving up the cigarettes!
Hi Lynnae, thanks for stopping by. I really appreciate the advice. Simply blogging about it has made me see how much worse my finances are than I thought.
Thanks for your best wishes too although I think stopping smoking will be tougher than getting debt free!
This is the part of getting my finances in order that always throws me for a loop. I absolutely dread sitting down and putting it on paper.
Youv’e done a good job documenting your finances for your first time. Keep it up - it gets easier and more enjoyable once you start paying down your debt.
Hi Lisa, sorry it has taken so long to respond. I totally agree, it’s so hard and time consuming. For some reason, I hate doing numbers on a computer, I much prefer to write them down but then I always get sidetracked.
AndyS, thanks! I am really looking forward to paying it down (and have already… update to come) but it’s very down heartening not being able to do my “Normal” things with my money. Oh well, it has to be done!
Keeping it up. Its not nice to see the whole debt picture but at least this way you know what you are up against and can make plans accordingly. As with the cigarettes its always the small things that seem to cost the most because you just don’t notice the money going.
best of luck
This is so brave of you and so excellent. I am currently on the plan where you pay off the highest debts first and work your way down, adding the payment from the paid off debts to the next one on the list. So far I’ve paid off one card and my car, and am about to pay off two more department store cards this month and close them, which will leave me with two major credit cards and that’s all. I still want to pay them off too. It is taking longer than I want, but going faster than I expected. Keep at it, you’ll be so glad. Thanks for sharing this, it is truly awesome of you.
Wow, thanks Pam! That means a lot. Congratulations to you too. I am so surprised at eh encouragement so far.
I have subscribed to your blog. I’ll keep an eye out!
Try smoking Nat Sherman’s. They don’t have any additives, so they aren’t addictive in the same way as regular smokes. Their motto is “Smoke less. Smoke better.” You can find them at any tobacco shop. In the movie The Insider, Russell Crowe’s character says that cigarettes are a nicotine delivery device. The movie was based on a true story. If you smoke pure tobacco, you won’t smoke as much.