It’s one thing to reduce spending, and save the dollars that you would others be frittering away on useless crap, but there comes a time when more needs to happen. When paying off your debt (or attempting to), every dollar counts, but the faster you can pay it off, the cheaper your debt becomes due to the lesser amount of interest you accrue. So, with this in mind, we decided to do what we could to make a few extra bucks, and hopefully get this debt paid off by the end of this year.
Knowledge is power!
Or, at least, that’s something I think I might have heard somewhere….?
So, if knowledge is power, then it makes sense to arm myself with knowledge with regards to finance. Let’s be honest, if I knew anything worth knowing about finance, we wouldn’t be in debt. So I figure it’s about time I began to learn and understand what is going on.
For my birthday last year - 29th August for those who wish to get me a present! – my Wife allowed me to get SKY TV installed. In New Zealand, our version of “cable” is called SKY. If we want sports, movie, or documentary channels, we need to purchase SKY TV.
We had just moved into a rental, and discovered that our new location meant no TV reception was available due to our location in a valley. If we wanted to watch TV, our only option was to pay a monthly subscription to SKY TV.
t’s been a while since I last wrote about our debt journey. Mainly due to the fact that the Christmas period in New Zealand coincides with summer holidays, so between the kids being off school, and spending time outside in the sun, I’ve hardly had a moment to stop and write.
Let me start by saying something I have said before. Paying off debt is hard!
During December, we placed a number of items for sale so we could put some more money towards our debt. Along with this, we decided not to purchase any Christmas presents for people as a way to save money.
We sold my guitar ($550), car ($300), and a number of other items. All together, we raised around $900 that we had planned to put straight towards our debt.
Essentially, this blog title says it all.
Abbey and I decided that if we were to really make a proper go at getting rid of our debt, some tough decisions were going to need to be made. One of these decisions that we made was that, this year, we were not going to buy any Christmas presents for anyone, except for our children.
In our first blogpost, titled "So, what's this all about anyway", I briefly discussed our credit card debt. For those who missed it, and would prefer not to click the link above, essentially, there was a bank here in New Zealand that was offering a credit card with a 0% interest rate for the first 6 months. We we in the process of selling our house and we thought that we would sell it before the 6 months was up, and we would use the profit of the house sale to pay off the credit card.
We were wrong
So far, all of our blog posts have been about things we are doing to cut down on expenses. Cutting down your expenses is a vital part of paying off your debt, as you simply can't make any kind of a dent in your debts until you stop spending and free up some money to use to help pay it off with.
But today, we start discussions on some things we are now doing to actively get more money to put towards the debts.
We recently moved from Hamilton, NZ to Wellington, NZ. We have moved back home, as we are originally from Wellington, and life has been great since making the move. Not that life wasn't great while living in Hamilton, but you know what I mean.
Today we received an amazing message from one of our Hamilton friends
As mentioned in our last post, we recently took our family to a soccer match in Wellington. Sometimes when going to events in the city, it’s not all that practical to take public transport, but parking is a little bit of a nightmare, and is quite expensive. We decided to drive in to the event, and we had the option of parking at my parent’s house, and walk the 2km’s to the stadium, or to pay for parking and basically step out of the car and into our seat.
4.7% of debt paid off
David & Abbey Cross live in Wellington, NZ. Parents to 3 children, they are in the process of attempting to pay off their debt.
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