I’m in my mid 30’s, married and have a 2-year-old. Over probably the last decade I have accumulated debt and buried my head in the sand and not confronted it. This is now at 44k and my wife has no idea.
I have recently had the lightbulb moment and realised it needs to change and started taking action such as moving to 0% interest and stopping ALL credit card payments. but since confronting the issue I cant sleep and its taking over my every thought. The breakdown is like this
Bank loan – $7000 outstanding, $200 a month repayment
Credit Card 1 – $6600 outstanding, $170 a month repayment, 0% interest until December 2023
Credit Card 2 – $4750 outstanding – $100 a month repayment – occurring about $50 interest a month
Credit Card 3 – $9000 outstanding – $150 repayment a month, 0% interest until Jan 2024
Credit Card 4 – $2000 outstanding – $50 repayment a month
Credit Card 5 – $4500 a month – $115 repayment per month – 0% until Feb 2023
Total -$33,850 – repayments per month $800
Income – I earn $2180 after CPF deduction
I also pay $900 a month into our joint account to pay for the mortgage and bills, my wife works part-time and covers the food.
At the end of the month I will be left with around $300 but always have things crop up so this quickly goes.
Please let me know if I am doing the correct things in going to interest-free credit cards as much as possible. I can also see there’s an option to borrow money against my mortgage, doing this will mean I could borrow $34k and pay around $580 per month and be fully paid off in 5 years, is this a good idea? it will be less interest overall as I am unable to put all my debt onto interest-free.
Thank you so much.
Here are what netizens think:
- If you want your marriage to continue, firstly I would recommend you sit down and told your wife the situation. Hopefully as a couple she may be able to get you out the hole quicker.
- The first step is probably stop spending…