Have you ever had a truly frightening financial moment? Where you are merrily travelling along in life then think, hmmm I wonder how much all those bills are if I add them up? Then horror ensues when the total is revealed. Yes? Then you know exactly what I am going through.
I am not even overly horrified of the monthly bills, I mean my husband and I make decent wages, but the debt I do worry about. I guess I have rationalised that we CAN afford it, that it is manageable debt, everyone had credit debt, that we will pay it off. Here's the thing ...we haven't. And have more debt now then we have every had in a decade together.
We started out as a one wage, no mortgage , no debt family. Now we have morphed into a two wage, two mortgage, debt loving family of four. Where the idea to save for something has become a thing of the past and see-want-buy has become the norm. Sound like we are horrendous consumerists, doesn't it? But in truth we are no different from anyone else...except we want to change it!
We are doing the snowball method, paying minimums on everything and tackling the smallest balance first then rolling through the list. We are including our mortgages. I will have to update the amounts in a couple of days as, embarrassingly, I am estimating two of the debts - I know I know but I will find them out!!!
Here's the list -
Student debt - $1803
Credit card 1 - $5578.41
Credit card 2 - $8123.99 interest free so that's something? (Updated: my estimate was only $76 out)
Car. - $19061.64, paying off over 4 years this is another estimate
Mortgage 1 - $241464.63, this is our home
Mortgage 2. - $109712.65 this is our investment house
Total is $ 385744.32
Update: Car loan turned out to be $20160. Ouch.
Total is now and final at $386842.68