We were recently so inspired by The Budget Mom – how she paid off over $25 000 of credit card debt off within 4 months, that we started believing we could too.

As you’ve probably already read, we were in serious credit-card debt by the time our second child was around, and it took us a good two years to get back on our feet. But over the last year or so, we’ve fallen back in to the habit using credit cards as a crutch in certain situations, and we’re so done with this. We have officially taken up the challenge to get rid of our credit card debt by the end of January 2019.

That’s 16 weeks.

We’re not disclosing the exact amount (yet) but I will let you know it’s more than my husband’s current salary. For almost three months. Jip. I know. It’s a rand or two…

Not only is this a huge challenge, but it require A LOT of planning and A BUTT-LOAD of sacrifices. And you’re right, we probably would have been able to do it much easier over a 12-month period and not have to cut down on our budget so drastically. But we have decided to bite the bullet (hard) for 4 months, instead of chipping away at debt and interest etc over a longer period of time.

So how are we able to pay off almost 3 month’s worth of income in 4 months?

Our debt-free plan:

Cutting my budget in half

Budget Cuts

We are cutting out every and all luxury that we can actually survive without. Showmax and Netflix: OUT. Our SweepSouth services: OUT. (Crying a little on the inside) Gardening Services: OUT. Entertainment budget: NON-EXISTENT. Kids’ snacks: CUT by 3/4

Budget Adjustments

Internet stays, as we both need it for our work. My husband’s phone contract expires in a month, so he is cancelling his contract and going prepaid for the next few months. Having my hair done was a big decision for me, but we’ve compromised to stretching the appointments out so at least half the money could be saved. (Can you say #greyhair!!??) I’ve also compiled a list of baby items etc that we will not needing anymore and can sell on Gumtree. Our car insurance premiums have been adjusted so we pay a couple hundred less.

Extra Income

We have also budgeted for our bonus at the end of the year, so that goes directly into this debt-project. Also, aside from my husband’s day job, he is also a web-developer and has created amazing websites for big brands. Any extra projects also goes into paying off our debt. (Click here if you need a website, e-commerce store set-up, assistance on your current website or a quote on a complete overhaul – he’ll be more than happy to help you!)

TinyGiantStudios Logo

Spending Changes

Now, if you’ve calculated, these 16 weeks fall over Christmas time. We do celebrate Christmas, but we tend to make the focus on Jesus, and less about the gifts. This year, we will be making gifts and creating edible gifts instead of buying new ones. Spending time and loving each other will be our focus this holiday season. We want to limit spending in every aspect, and luckily both sides of the family has welcomed this idea with arms wide open.

It’s with great excitement that we start this journey today.

We will be posting our updates as we cross each milestone, so you can follow and be inspired alongside us. Measurable debt barometer

Please don’t hesitate to ask any questions you might have – we want to be very transparent about this process. This is part of the accountability.

And we hope you are motivated to make some serious budget-cuts and debt payments as well.

 

Love,

Simone

8 replies
  1. Marilize
    Marilize says:

    HUGE hats off to you! You are encouraging & inspiring! I need to put on my big girl panties & tighten our budget, too. This was the last little nudge I needed 🙂

    Reply
  2. Lizanne
    Lizanne says:

    We need to do this too. I think I need to talk to the husband… ours is actually just to pay off a fairly small loan and our car… and then save. But the idea is the same.

    Reply
    • Simone
      Simone says:

      The small loans are still little sharks with interest-teeth. Paying it off over a shorter period might make you stretch your bucks to the last little bit, but in the long run, it will give you more financial freedom!

      Reply
    • Simone
      Simone says:

      Thanks Coco, I will pass the information on.
      We looked at the paying off the smallest debt first, (or putting 70% of our allocated money into that first) and then secondly the one with the highest interest rates. As soon as the smallest one is paid off, that 70% goes into the next debt. (And so forth, and so forth..)

      Reply

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