Case study: paying off credit card debt. (Australian.)

[truman47]

Hello, well after posting on here about if I should get a consolidation loan or not to pay off my credit card debt, I was told to do a case study. I haven't followed the usual method of doing a case study because many of the items normally listed such as tax and retirement-land are irrelevant.  I have my employer super annuation paid every week so I've just included my net take home weekly income after tax and child support.

So anyway here are a couple of notes and relevant information. I live alone in a rented property and have no assets other than my car.

1. Not sure how accurate some of these Expenses are until I can find some sort of app similar to Mint that works in Oz. 
2. I own my car so expenses shown are fuel, rego, maintenance and insurance. 
3. I have a company mobile phone and no landline. (Which is why I sort of justified Apple Music and Netflix for the kids to use.
4. The consolidation loan was 7 years at 13.99% and $65 a week repayments but would have wiped out all of my credit card debt so freed up some more money.
5. I've added my income and expenses as 1 attachment and my credit card details as another. 

Thanks in advance for the advice.

Edit: credit card 1 consists of 3 different interest free purchases of varying lengths.  So I have shown their amounts and the dates the interest free period expires, with the largest amount of $5655.91 expiring on the 23/05/18. The other 2 smaller amounts should be paid off before they expire.

[ElleFiji]

I've seen Australians attract more Australians around here by putting [Australia] in the post title (you can edit in the first post).
It helps, because as a Canadian I have no clue if $36 is the price of a single coffee, and judging you on it would deprive you of your single Friday morning joy. Here, $36 would buy many coffees, and I would suggest $6 would let you buy your way out of bed Friday AND still allow a social one or two with friends, freeing up lots of money for debt

[Laura33]

What exactly does the "interest free" mean?  Here in the US, that usually means "we will give you 12-18 months interest free, but if you do not pay off the entire balance by the end of that time, we will charge you all of the interest back to Day 1." 

In other words, it is a very different situation if you have a "true" interest-free period on those two cards, or if you need to get those entire balances paid off before the regular rate kicks in.

Generally speaking, though, this is truly a debt emergency -- I don't know whether your specific rates are low or high for Oz, but it is flatly impossible to get ahead when you are paying 25% interest on anything.  I would throw all available money at those cards -- coffees, entertainment, etc., it's all gone until this ridiculous debt is as well.

[truman47]

I've seen Australians attract more Australians around here by putting [Australia] in the post title (you can edit in the first post).
It helps, because as a Canadian I have no clue if $36 is the price of a single coffee, and judging you on it would deprive you of your single Friday morning joy. Here, $36 would buy many coffees, and I would suggest $6 would let you buy your way out of bed Friday AND still allow a social one or two with friends, freeing up lots of money for debt

Thanks for the Australian tip.  $36 for coffee is per week, it's 6 coffees at $6 a coffee. But it's probably more like 3-4 coffees that I buy

[ElleFiji]

I've seen Australians attract more Australians around here by putting [Australia] in the post title (you can edit in the first post).
It helps, because as a Canadian I have no clue if $36 is the price of a single coffee, and judging you on it would deprive you of your single Friday morning joy. Here, $36 would buy many coffees, and I would suggest $6 would let you buy your way out of bed Friday AND still allow a social one or two with friends, freeing up lots of money for debt

Thanks for the Australian tip.  $36 for coffee is per week, it's 6 coffees at $6 a coffee. But it's probably more like 3-4 coffees that I buy

Wonderful update. Now I can correctly advise you that I authorise 2/week, and have just freed up $24/week for you to pay off debt. Be warned....others will try to take all your fancy coffee away, but I am eating brownies for breakfast, so I don't think I should judge too harshly

[truman47]

What exactly does the "interest free" mean?  Here in the US, that usually means "we will give you 12-18 months interest free, but if you do not pay off the entire balance by the end of that time, we will charge you all of the interest back to Day 1." 

You don't get charged interest back to day 1. But you are charged interest on the remaining balance. Which is why I considered a consolidation loan at 13.99%. However someone In the other thread did say I should maybe wait until the interest free periods expire and get a loan for what's left.
Or another option is maybe to get a loan for the two cards that aren't interest free, card 2 and card 3?? What do you think?

[truman47]

I've seen Australians attract more Australians around here by putting [Australia] in the post title (you can edit in the first post).
It helps, because as a Canadian I have no clue if $36 is the price of a single coffee, and judging you on it would deprive you of your single Friday morning joy. Here, $36 would buy many coffees, and I would suggest $6 would let you buy your way out of bed Friday AND still allow a social one or two with friends, freeing up lots of money for debt

Thanks for the Australian tip.  $36 for coffee is per week, it's 6 coffees at $6 a coffee. But it's probably more like 3-4 coffees that I buy

Wonderful update. Now I can correctly advise you that I authorise 2/week, and have just freed up $24/week for you to pay off debt. Be warned....others will try to take all your fancy coffee away, but I am eating brownies for breakfast, so I don't think I should judge too harshly

Thank you for that. 2 a week it is then.  I'll just have to decide what 2 days..lol. To be honest the instant coffee at work isn't too bad so I should just start having that. 

[Laura33]

What exactly does the "interest free" mean?  Here in the US, that usually means "we will give you 12-18 months interest free, but if you do not pay off the entire balance by the end of that time, we will charge you all of the interest back to Day 1." 

You don't get charged interest back to day 1. But you are charged interest on the remaining balance. Which is why I considered a consolidation loan at 13.99%. However someone In the other thread did say I should maybe wait until the interest free periods expire and get a loan for what's left.
Or another option is maybe to get a loan for the two cards that aren't interest free, card 2 and card 3?? What do you think?

Honestly, I am not a fan of paying off debt with more debt, because how can you know that you have made the permanent changes to your lifestyle and spending habits to avoid running the debt back up?

I'm also not sure when your loan 1 interest-free runs out, as you have 2017 and 2018 dates listed -- do you start paying that 24% interest this year or next? 

FWIW, I don't see much value in consolidating right now -- the larger loan says it is already at 13.99, and the other one is under $1K.  I would decrease payments on everything else to the minimum required, cut back all the extras, and focus on knocking out that little loan in no more than two months (and then rolling that payment into the next loan on the list). 

If you want to consolidate, it makes more sense to wait until the end of your interest-free period.

[Lady SA]

I wouldn't consolidate, for the exact reasons Laura mentioned.

I know you say your expenses aren't totally accurate because Oz doesn't have mint, but if they are relatively accurate it looks like you have a couple hundred left over that you can throw at your debt. You need to eliminate your debt and free up your cash flow, and I would hit the debt hard because you are in hair-on-fire territory.

In this order:
1. you say you have a weekly income of $1172 and expenses (inc current cc payments) of $1092, leaving you an extra $80 every week (0r $300 per month) to throw at debt. I would cancel the cable (go without football for the year at least, sorry, debt comes first), netflix, music, cut down on coffee and do basic stuff to keep food costs down. How many people are you feeding on $400/mo? If its just you and EOW kids, you are vastly overpaying for food and need to cut that down immediately. Basically, do what you can to free up extra cash in your budget to put extra toward paying off the ccs.Cutting out the fat for a year should give you another $100 per month, for a total of $400 extra for debt. Figure out something else for the kids to do while they are there, as getting yourself in good financial shape benefits them more than tv and music does. Find fun free things or activities to do during their visits to keep them occupied.
2. Throw ALL extra money at cc #3 @ 21%. Currently it is conveniently the highest interest rate (correct me if I'm reading the stuff about cc#1 wrong) AND the lowest balance, so relatively soon you should have that down to $0 and can roll the payment you were putting toward it to the next cc. Getting rid of one bill frees up more money toward the rest of your bills.
3. After cc #3 is taken care of, then put the rolled payment toward cc #1, I think. I'm not quite understanding how you've broken out the into on cc #1 and I can't tell if it is currently generating interest or not.
4. Then roll the super payment from cc#1 to cc#2
5. Then with all other ccs paid off, roll again to pay off the last cc#4

Then once all cc debt is paid off, you can start saving that large payment amount because you've learned to live well without all the extras :)

That doesn't address the root cause of what got you into debt in the first place, however. Was it living above your means? Unforeseen unemployment? CC debt is a symptom of an underlying behavioral problem, not the actual problem itself. The only way to make sure you don't get yourself into this kind of debt again is to address how you got there in the first place and take steps to prevent it.

[truman47]

Thanks for the replies, to clarify a few points.

1. I don't have cable.  I pay $95 a month for my internet connection which I need to log into work at home from time to time and use it to watch and stream Tv shows etc. I can't get cheaper without then paying for a landline I don't need or want. (my internet is high speed via an antenna dish pointed to a main tower, look up lightning broadband for those Aussies who are interested)

2. The AFL live app at $4 a week is used by me and my sons to watch games that are only broadcast on foxtel. Without it I would be paying $60 a month for foxtel so I think $16 a month is a good compromise.

3. My children and I all use Netflix and Apple Music.  It is a gift to them so I'm reluctant to just go and cancel it on them. When they come over we can watch movies on Netflix instead of going to the movies so I justify the savings there.  It's a coffee a week each so I'm happy to cancel the coffees instead but think keeping these and the afl app is worth the expense to give them something to do.  Please tell me if you think this is wrong in your opinion?

4. My over spending is just bad habits and spending beyond my means.  I'm not a good saver and I spend it when I get it and more.  I dont know how to fix it or I would. 
2 years ago I got made redundant and got a $35k payout. I found a job 2 weeks later so used that money to pay off all my debts and I was debt free. But I smoked a packet of cigs a day and that cost me over $730 a month.  I had $12k left but blew it all and then racked up my cc back to $6k.
Mum paid that out but since then I've managed to bring it back up to $2700 (it's Credit card 2).

I quit smoking January last year and it was the best thing I could have done. But the damage is done.

I've found an app that synchs with my bank accounts so have set that up to get a better idea of spending. 

[nnls]

An app like mint in Australia would be moneybrilliant or pocketbook

Can you buy the AFL app cheaper if you buy it for 3 months or even a year?

[Anatidae V]

Awesome that you're doing stuff with the kids, have quit smoking (massive props!) and are willing to cut back on the coffees.

$100/month for groceries may be able to cut down a bit, but I'm not sure how big your kids are (could be heading towards bottomless pit ages!).

My concern is you've got a big bucket for "entertainment". You don't need to list out for us what that is, but you do need to know for yourself exactly what that includes and start working out how to eliminate that spending while you need to chuck that money on your credit cards. For instance, if it's beers out after work, drink a water or single soft drink instead (if the social aspect is important to be maintained). Or buy your alcohol from the bottle shop and drink at home with mates instead :)

I know it's small, but can you cut Netflix and get the kids excited about whatever movie's playing on free to air tv that week? And swap Apple Music for free radio or Pandora? Just until you've paid off the debt. Tell the kids why, make it a learning experience, and get them involved with a little celebration when you pay off a certain sized chunk or each card (homemade popcorn and pizza?).

Edit: also, not sure where you are, but your gas and electric charges look high to me. We spend about $90/month on electricity and $60/month on gas, averaged over the year. Any habits you can change there to improve?

[Sydneystache]

Agree that your Entertainment is something you need to look at.  FWIW I would cut it out altogether. You have Apple and Netflix costing you so much less so what's in the Entertainment category? Congrats on cutting back on the coffee and quitting smoking.

If you can't pay off your credit cards, I would consolidate into a personal loan after the interest free period then cut the credit cards. No temptation. And pay off your mum first.

No champagne on a beer budget.

[truman47]

An app like mint in Australia would be moneybrilliant or pocketbook

Can you buy the AFL app cheaper if you buy it for 3 months or even a year?

Thanks for that will check them out.  I checked today and I'm actually paying $14.99 a month for it. So cheaper than I first thought. 

[truman47]

Awesome that you're doing stuff with the kids, have quit smoking (massive props!) and are willing to cut back on the coffees.

$100/month for groceries may be able to cut down a bit, but I'm not sure how big your kids are (could be heading towards bottomless pit ages!).

My concern is you've got a big bucket for "entertainment". You don't need to list out for us what that is, but you do need to know for yourself exactly what that includes and start working out how to eliminate that spending while you need to chuck that money on your credit cards. For instance, if it's beers out after work, drink a water or single soft drink instead (if the social aspect is important to be maintained). Or buy your alcohol from the bottle shop and drink at home with mates instead :)

I know it's small, but can you cut Netflix and get the kids excited about whatever movie's playing on free to air tv that week? And swap Apple Music for free radio or Pandora? Just until you've paid off the debt. Tell the kids why, make it a learning experience, and get them involved with a little celebration when you pay off a certain sized chunk or each card (homemade popcorn and pizza?).

Edit: also, not sure where you are, but your gas and electric charges look high to me. We spend about $90/month on electricity and $60/month on gas, averaged over the year. Any habits you can change there to improve?

The $100 a week on grocerys was a rough estimate but I will see what that comes out as when I start using an app to track my spending.  My sons are 17 and 14 so eat a lot..lol. I can and do watch a lot of Tv shows and movies streamed through an add on called Exodus on Kodi on my Apple TV that doesn't cost me anything.  But the kids and my partner use Netflix when they are at their own houses so I didnt want to cut it off.  Likewise with Apple Music.  If I cut it off they will lose all their songs etc.

I'm in Melbourne and my last power bill was only $100 for 2 months but my gas bill was $200 for 2 months.  I don't know why as I hadn't even started using the heater until this week. But in summer when I use the aircon the power bill can be $300 so I averaged it out at about $100 a month for both.
I don't know how your gas bill is so cheap.  I suppose you dont use a gas heater much in WA. (I lived in Broome for 18 years)

[Anatidae V]

Awesome that you're doing stuff with the kids, have quit smoking (massive props!) and are willing to cut back on the coffees.

$100/month for groceries may be able to cut down a bit, but I'm not sure how big your kids are (could be heading towards bottomless pit ages!).

My concern is you've got a big bucket for "entertainment". You don't need to list out for us what that is, but you do need to know for yourself exactly what that includes and start working out how to eliminate that spending while you need to chuck that money on your credit cards. For instance, if it's beers out after work, drink a water or single soft drink instead (if the social aspect is important to be maintained). Or buy your alcohol from the bottle shop and drink at home with mates instead :)

I know it's small, but can you cut Netflix and get the kids excited about whatever movie's playing on free to air tv that week? And swap Apple Music for free radio or Pandora? Just until you've paid off the debt. Tell the kids why, make it a learning experience, and get them involved with a little celebration when you pay off a certain sized chunk or each card (homemade popcorn and pizza?).

Edit: also, not sure where you are, but your gas and electric charges look high to me. We spend about $90/month on electricity and $60/month on gas, averaged over the year. Any habits you can change there to improve?

The $100 a week on grocerys was a rough estimate but I will see what that comes out as when I start using an app to track my spending.  My sons are 17 and 14 so eat a lot..lol. I can and do watch a lot of Tv shows and movies streamed through an add on called Exodus on Kodi on my Apple TV that doesn't cost me anything.  But the kids and my partner use Netflix when they are at their own houses so I didnt want to cut it off.  Likewise with Apple Music.  If I cut it off they will lose all their songs etc.

I'm in Melbourne and my last power bill was only $100 for 2 months but my gas bill was $200 for 2 months.  I don't know why as I hadn't even started using the heater until this week. But in summer when I use the aircon the power bill can be $300 so I averaged it out at about $100 a month for both.
I don't know how your gas bill is so cheap.  I suppose you dont use a gas heater much in WA. (I lived in Broome for 18 years)

With a 14yo and 17yo, I think you're doing great with the groceries!

Perth and the South West is a lot colder than Broome, we use our heater a lot between June & September. Our stove and hot water are gas as well. But with teenagers, maybe they're taking long hot showers?

Sounds like your best place to cut back is on the big "entertainment" budget :) your kids might be old enough to pay for Apple music etc out of pocket money or part time jobs as well.

[truman47]

Agree that your Entertainment is something you need to look at.  FWIW I would cut it out altogether. You have Apple and Netflix costing you so much less so what's in the Entertainment category? Congrats on cutting back on the coffee and quitting smoking.

If you can't pay off your credit cards, I would consolidate into a personal loan after the interest free period then cut the credit cards. No temptation. And pay off your mum first.

No champagne on a beer budget.

Entertainment is basically what me and my partner do on weekends.  Like going to the footy last week to watch The  Sainters flog GWS. (Sorry had to throw that in seeing where your from..lol)
We go to the football for just about every home game.  2 tickets cost around $100 then there's food $20 and a couple of beers $20.  Or we might go out for dinner or to a comedy show or something.
I don't go to the pub drinking with mates or anything like that.  And the entertainment amount was also just an average until I get the figures in via an app. 

[truman47]

Awesome that you're doing stuff with the kids, have quit smoking (massive props!) and are willing to cut back on the coffees.

$100/month for groceries may be able to cut down a bit, but I'm not sure how big your kids are (could be heading towards bottomless pit ages!).

My concern is you've got a big bucket for "entertainment". You don't need to list out for us what that is, but you do need to know for yourself exactly what that includes and start working out how to eliminate that spending while you need to chuck that money on your credit cards. For instance, if it's beers out after work, drink a water or single soft drink instead (if the social aspect is important to be maintained). Or buy your alcohol from the bottle shop and drink at home with mates instead :)

I know it's small, but can you cut Netflix and get the kids excited about whatever movie's playing on free to air tv that week? And swap Apple Music for free radio or Pandora? Just until you've paid off the debt. Tell the kids why, make it a learning experience, and get them involved with a little celebration when you pay off a certain sized chunk or each card (homemade popcorn and pizza?).

Edit: also, not sure where you are, but your gas and electric charges look high to me. We spend about $90/month on electricity and $60/month on gas, averaged over the year. Any habits you can change there to improve?

The $100 a week on grocerys was a rough estimate but I will see what that comes out as when I start using an app to track my spending.  My sons are 17 and 14 so eat a lot..lol. I can and do watch a lot of Tv shows and movies streamed through an add on called Exodus on Kodi on my Apple TV that doesn't cost me anything.  But the kids and my partner use Netflix when they are at their own houses so I didnt want to cut it off.  Likewise with Apple Music.  If I cut it off they will lose all their songs etc.

I'm in Melbourne and my last power bill was only $100 for 2 months but my gas bill was $200 for 2 months.  I don't know why as I hadn't even started using the heater until this week. But in summer when I use the aircon the power bill can be $300 so I averaged it out at about $100 a month for both.
I don't know how your gas bill is so cheap.  I suppose you dont use a gas heater much in WA. (I lived in Broome for 18 years)

With a 14yo and 17yo, I think you're doing great with the groceries!

Perth and the South West is a lot colder than Broome, we use our heater a lot between June & September. Our stove and hot water are gas as well. But with teenagers, maybe they're taking long hot showers?

Sounds like your best place to cut back is on the big "entertainment" budget :) your kids might be old enough to pay for Apple music etc out of pocket money or part time jobs as well.

I really have to look at my gas and why it's costing me so much. I've started using the ducted heating so it's going to be much higher and I thought it was just because gas had climbed in price the last year or so.  Only my eldest son c0mes here at least once a week and he doesn't have a long shower. The other son just comes every now and again.  It's why I think I really need to get a smaller place to rent.  One that's cheaper in rent and that costs less to heat and cool. 

[former player]

Congratulations on the changes you've made so far.

I think the big thing left for you to think about is the footy - this is the biggest gain left on your expenses.  Are you paying for your girlfriend's ticket and food and beer?  Every week?  Please think about the following 1) she pays her own ticket, beer and expenses - you get the same entertainment for half the money.  2) You cut out the food and/or beer.  3) You go every other week and watch together on TV the other week.  You can do any or all of these for a limited period - tell your girlfriend you have a credit card you need to pay off this month - or turn them into your "new normal".

 You could get credit card 3 gone altogether, for ever, in less than 2 months.  Then you need to pay off the first small amount on credit card 1 which starts earning 24% interest in July this year.  After that, I'd go to credit card 2, also knocking off the small third amount on credit card 1 just before expires in November this year.

By the end of the year that leaves you paying off a small remaining amount on credit card 2 at 13% and with credit cards 1 and 4 starting to earn interest in Feb and May 2018.  So at the start of 2018, look at alternative sources of free or cheap credit to switch those debts to.  By the start of next year you will have paid off a significant proportion of your current debts and qualify for much better offers.

My other suggestion for you is: can you increase your income?  Does your lease allow you to AirBnB?  Can you pick up overtime or casual out of hours work or get a side-gig going?  If you can bring in extra income to throw at those debts you will see them decrease even faster.

Good luck.

[Sydneystache]

Agree that your Entertainment is something you need to look at.  FWIW I would cut it out altogether. You have Apple and Netflix costing you so much less so what's in the Entertainment category? Congrats on cutting back on the coffee and quitting smoking.

If you can't pay off your credit cards, I would consolidate into a personal loan after the interest free period then cut the credit cards. No temptation. And pay off your mum first.

No champagne on a beer budget.

Entertainment is basically what me and my partner do on weekends.  Like going to the footy last week to watch The  Sainters flog GWS. (Sorry had to throw that in seeing where your from..lol)
We go to the football for just about every home game.  2 tickets cost around $100 then there's food $20 and a couple of beers $20.  Or we might go out for dinner or to a comedy show or something.
I don't go to the pub drinking with mates or anything like that.  And the entertainment amount was also just an average until I get the figures in via an app.

Ha! GWS is still a young team and have had the privilege of watching them thrash your team. And Swans beating them too :oP

How about this: don't go to the footy this year - watch it on tv instead with several six packs of Melbourne Bitter (do they still exist? I'm a wine drinker) and meat pies up to a budget of $50 per game.

Once you cut your credit cards, you can go back to the footy next year and treat yourself to the Grand Final. I say this because your credit card interest rates are shocking and it can be a vicious cycle. As MMM would say: your hair is on fire 🔥🔥🔥🔥

[nnls]

Agree that your Entertainment is something you need to look at.  FWIW I would cut it out altogether. You have Apple and Netflix costing you so much less so what's in the Entertainment category? Congrats on cutting back on the coffee and quitting smoking.

If you can't pay off your credit cards, I would consolidate into a personal loan after the interest free period then cut the credit cards. No temptation. And pay off your mum first.

No champagne on a beer budget.

Entertainment is basically what me and my partner do on weekends.  Like going to the footy last week to watch The  Sainters flog GWS. (Sorry had to throw that in seeing where your from..lol)
We go to the football for just about every home game.  2 tickets cost around $100 then there's food $20 and a couple of beers $20.  Or we might go out for dinner or to a comedy show or something.
I don't go to the pub drinking with mates or anything like that.  And the entertainment amount was also just an average until I get the figures in via an app.

Can you get cheaper footy tickets? Like buy the cheap seats and then move to the more expensive ones once at the ground? most saints games don't seem sold out and I know a few years ago when I was in Melbourne I was able to do this, though I don't know how much a ticket at Etihad costs at the moment

Also food wise if you do go, can you eat before or after the game and just take in some of your own snacks. I go to the footy every  Dockers home game (I am a member as it worked out cheaper than buying tickets every week) and I usually just take some chips and some water or soft drink. Then if I do end up buying a beer its only one or two.

[Laura33]

4. My over spending is just bad habits and spending beyond my means.  I'm not a good saver and I spend it when I get it and more.  I dont know how to fix it or I would. 
2 years ago I got made redundant and got a $35k payout. I found a job 2 weeks later so used that money to pay off all my debts and I was debt free. But I smoked a packet of cigs a day and that cost me over $730 a month.  I had $12k left but blew it all and then racked up my cc back to $6k.
Mum paid that out but since then I've managed to bring it back up to $2700 (it's Credit card 2).

Ok, based on this, I am going to double down on "do not take the consolidation loan."  This is not a financial problem, it is an emotional and behavioral one.  You have have a history of repeatedly overspending, and then being bailed out when money magically appeared.  So you have never had to learn what it actually feels like to live within your means.  As a result, you have a baseline expectation of a lifestyle that is far more than you can actually afford.  Look at your responses here:  people have made a number of suggestions for cuts, and in each case, you have responded with a reason you can't.  This is your emotions speaking -- it is the natural reaction that comes when you build your spending around the kind of life you think you deserve, instead of building your lifestyle around what you can afford.

You have five figures in debt.  And yet you are spending 15-20% of your income on footy and coffee.  Dude.  You can't afford that kind of lifestyle.  And the sad thing is that you think you have to keep doing that to be happy.  But the reality is that there are many, many other ways to enjoy time with your partner and kids that don't rely on spending money you don't have.  But you won't ever find them if you just keep doing what you have always done.

Honestly, given your history, I am going to suggest a dramatic shift:  go as bare-bones as you can until the debt is paid off.  Get your kids and partner involved, brainstorm things you can do for free.  I guarantee you the first week will feel weird but easy, and by about week 3-4, you will be antsy to go and spend -- this is your habit, your addiction fighting back.  See it through.  Draw on your creativity.  Sure, give yourself treats when you hit a goal, but only when you hit the goal.  Really feel what the life you can afford feels like -- what you miss, what you don't, what new things you have discovered you enjoy.

Then, once it is paid off, add back in the things that you missed the most.  But not all of it -- that credit card payment needs to become savings.

[potm]

Agree with what others have already said.
You have credit card debt but thankfully it's not too bad and can be dealt with if you knuckle down.

No takeaway coffees, no going to football games and spending on food and beer.
You can get Netflix and spotify on family plans where you can share the cost between 4-6 people. Use these as your entertainment until you have taken care of the credit card debt.

After it is gone, think about if you really miss those things you use to spend money on. You might find that you would rather invest your surplus and build a better financial future for yourself.

[Sydneystache]

You have five figures in debt.  And yet you are spending 15-20% of your income on footy and coffee.  Dude.  You can't afford that kind of lifestyle.  And the sad thing is that you think you have to keep doing that to be happy.  But the reality is that there are many, many other ways to enjoy time with your partner and kids that don't rely on spending money you don't have.  But you won't ever find them if you just keep doing what you have always done.

I agree with this. OP, don't be like my BIL. He bought a spa for his partner while drowning in debt and now he has to sell her car. He makes repayments on a fridge. The sad thing is he earns 6 figures but is shit with money. He asked his parents for money to pay off his divorce, he didn't and spent it on rims (drives a Holden V8 ute).

The thing is, his partner would prefer that he spends quality time with her instead of working like a dog. But his wallet seems to be burning all the time. Oh well, can lead the horse to water...

[Sapphire]

Hi Truman47

Great effort re kicking the cigarettes and I appreciate your desire to keep Netflix etc for the kids. 

Some of the things that really stand out for me on your current figures is you have no real buffer or emergency fund; so the desire to keep using the credit cards to fund ‘emergencies’ is going to be ever present.  You also don’t have any contingency for medical expenses.  I’m guessing from your name and your kids’ ages you are likely to be in your 40s?  We’re not invincible anymore lol.  While thankfully we have Medicare; if you suddenly need to drop $50 at the chemist for medications etc; there is a big temptation to use the credit card. 

I think you need to start putting aside a small amount (even $10) a week, to start to build up a buffer for emergencies and maybe $5 a week for medications etc.
 
I also suspect you are likely to want to buy your kids Xmas/birthday presents.  Kids this age just want cash, so I’d be putting aside a bit of money to deal with them - $5 a week ($250 a year) and suddenly you can give each kid $50 each for Xmas and birthday (given they are having the ongoing Netflix & Apple Music).  For $20 a week ($10 emergency fund, $5 medicals; $5 kids presents), you can buy yourself a bit of peace of mind and practice developing good saving habits.  Given you sound like you are more likely to give up your own coffee, versus giving up the kids’ Netflix, I’d save that $20 from your coffee and put it towards these three categories.  Open an ING account and get your firm to pay the money in directly.  If you don’t see it, you won’t miss it.  Even having a few hundred dollars available to deal with these sorts of things can alleviate a lot of stress.
 
There is some good advice re getting the credit cards down.  Another option is,  If I am reading this correctly, on Card 1, your $277.82 amount is due to come out of interest free next month?  If so, I’d throw your extra $79 on this and knock it off in about 4 weeks.  Then the $79 goes towards the $129.55 due to come out in November 2017 and in another 2 weeks, you’ve got some quick and easy wins. 

Next, I’d move onto card 3 – put the extra $79 on this with the $25 and in 10 weeks, it’s paid off.  (16 weeks total).  Then more importantly, get rid of it given its high rate. 
Then I’d focus on getting that remaining Credit Card 1 down – that $5655 is due to hit 24% in 11 months and May 2018 will come around quickly.  With its $25 payment you are already making + the $25 from card 3 that no long exists and the spare $79; you have 43 weeks and that would clear it.

While you won’t make the time frame to clear it completely by when the interest free period expires; if you can actually manage to work towards this plan, you will get a lot of practice paying off debt and then perhaps closer to the May interest-free expiry date; you can look at a consolidation loan then for its balance and your remaining cards.  The important thing is that you will have been practising and hopefully it will have become second nature.  Don’t get overwhelmed with the suggestions here – just pick one you like the look of and actually execute it – the most important thing is just doing something. 

I understand your passion for the football with your partner, (Go Tiges!) but perhaps just be honest with her and say you need to cut back a bit and you need to find ways to make the experience cheaper.  Formerplayer and Sydneystache have some good ideas.  Every $20 you save from your Entertainment bucket could potentially be the start of actually saving some money.

Ring gas and electricity companies and see if you can do a better deal – for one or two phone calls, you might free up $20 a month.  It all helps. 

Finally, just thinking in advance.  You mentioned paying child support.  I suspect this stops for son 1 when he is 18?  Instead of taking it back as cash – get it put into your superannuation via salary sacrifice.  You’ve lived without it and it will boost your super balance a bit.

Best of luck with it all and let us know how you go.