Our Debt Free Journey

Our Not-So-Good-Very-Bad Day

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I have a confession.

For those of you who are familiar with the Dave Ramsey program, it’s pretty much a prerequisite to cut up your credit cards before you start the Baby Steps and to spit-swear you will never, ever, ever abuse debt again… Ever!

Well, we are officially in the naughty corner.

We did a very bad thing.

No doubt I will fill a few paragraphs with suave arguments of why, this one time, it was totally and utterly unavoidable.  But the truth is we cheated and we know it.

The question now remains ~  What are we going to do about it?

To fill you in:

July was an ambitious month.  We needed to save $9,813.86 by the 28th July to pay out our leased cars.  It’s either that or hand them back.  Our pre-Dave solution was to get another personal loan for the difference, or trade in and continue leasing.  But now that we have seen the light, neither of those are an option.

So the task was set.  Save just shy of $10k in 4 months.  People told us we were crazy ~ That’s impossible!

In our haste to achieve the impossible, we made one very BIG budget blunder.  We forgot to include our car registration and insurance costs, also due 28th July.

Granted they are included in our salary packaging – but, we pay them first and then get reimbursed from our car leasing company.  In the past we just chucked them on the credit card and then waited for the check to come back.  No big deal.

This year it was a big deal.  We have come so close to achieving our goal.  In fact, we have the $9,813.86 to pay out our cars.  But we don’t have the money to pay registration and insurances, which are also due the same day.

So we did the unthinkable.  We paid on the credit card.

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.

.

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The shame and the guilt is real, people.

Although we immediately sent in our receipts for reimbursement and will have the payments go directly back onto the credit card, it still feels wrong.

Seeing our credit card balance go UP this month is heart breaking.

The Lesson Learnt

As of next month, we will be adding a new budget line ~ Car Maintenance Sinking Fund.

Needless to say, it will include registration and insurance for 2017.

Live and Learn xx

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