Getting Out of Debt Part 1

Debt flat out sucks. There is no pretty picture for being in debt. Sure, I’ve heard the arguments for school loans and the mortgage and how they are “good” debt because of the tax write offs, but honestly, no debt it really good debt. I know right now this is a huge blogging thing and sure guess I am getting on the band wagon. The other posts I’ve read about this issue all have different things some good and some just grate.

**Please Note that numbers referred to here on out, aren’t specific but close to them. This is being done at Hubby’s request.**

Here is the budget as it sits:

Hubby’s Check (salary) 3500
Tara’s Average  (hourly) 1800
Morgate 1800
Daycare 420
Capitol One 200
Student Loans 120
Comcast 67
Netflix 10
Webhosting 8
Utilities (water, house gas, Electricity) 170
Garbage 23
Car Gas 250
Car Insurance 180
Food 600
Vacation 40
Cellphone 110
Escape 280
Tires/house 200
Tara’s 100
US Bank 200
House Loan 225
Income 5300
Expence 4943
Balance Unallocated 357

Yes, my budget is mostly, or at least ideally, set up to be independent of my income. Why? Well for several reasons. 1) Save my income and take nice vacations. 2) Save my income for a new house or big project. 3) Buy the more expensive things in life without going into debt, again. In reality it isn’t perfect. There are parts of my income that we have to have at this point.

Those little things we have to have it for are:
1) Daycare. I went back to work after Baby B because I emotionally and intellectually need to work. I don’t work for the money. Would love to be paid for quality and quantity and not hourly, but that is different issue. I work for the focus that it gives me. I work for the interaction with others and the challenges and problem solving that it gives. But, this requires daycare and daycare isn’t cheap! So to work, I pay daycare. If I made less money such that I would bring nothing home after daycare costs, I would stop working.

2) My car 🙂 I had a car that was working okay. Not perfect but not shitty either. However, as I drive 40ish miles round trip to work I needed a better car. I also needed a better car to parent in as it was small. So, when the time and opportunity arose to trade it in and get me something different, we did. I still have a car payment though and I feel compelled to pay for it myself, so I work.

3) Get out of debt faster! Being in debt annoys me. After the car wreck in 2013 I paid off my student loans with the settlement and a car loan that I had at that time. So really it’s not that bad for debt in our house. It just annoys me that we have it, but its life and sometimes not avoidable.

So back to my budget. My budget is as specific as possible but not always correct. We also have two checking accounts. One is where the debit cards all connect too and the other is the billing account. This billing account is where all the bills get paid from. I love that the two are separate! I love that my bill money is safely away from my debit card so it can’t get spent by accident; I am human and not perfect. So what does a budget have to do with getting out of debt? Everything!

With a budget you can see where your money is going and what money you really do have to spend. It keeps you in check and keeps you honest. To get out of debt you have to have a budget. Without a budget, you won’t make headway against your debt as you won’t see it as clearly as you do with a budget. Next we will look at my debt **rounded numbers** and the two common methods to paying off debt side by side.


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