My name is Blake and I’m an idiot. I am 28 years old, have $120k+ of debt with zero actual assets.
Bam! That’s hard to actually admit. But I intend to fix this over the next few years and thought a blog might help me be accountable and to maybe help someone else in a similar situation find inspiration.
Here is a breakdown.
- Car loan 10k
- Rent to buy home contract (only way I could see of getting a home in my credit score situation.) $70k plus $100 per week in rent until it’s paid off.
- $39k in a debt consolidation agreement part ix.
I am behind in payments on almost all of this – except the home.
I am on $120k per year leaving me about 7k after tax a month.
- Child support -$1160
- Rent to buy -$650
- Debt part ix -$1015
- Car loan -$360
- My leftover amount covers bills, groceries and silly purchases.
I am going to fix this so I am living below my means but not becoming a penny pinching sob story.
Here is the plan.
The next few months will be tough.
- Minimising my expenses
- Pay the overdue accounts back up to date.
- Close any unnecessary bank accounts and only run 2 accounts (a transaction account and a savings account)
- All while saving 20% of my take home pay for the start of an emergency fund (I’ll be aiming for 3 months of take home pay for it so $21k)(this will also be a long term goal)
Once I make it through the next few months I will reassess and create further goals.
So join me on my journey to reverse my mistakes and feel free to get in contact to give me tips, share your stories or ideas.