Resurrecting the finances

Well someone’s happy in their new role.

‘You see, there is life after [Company X],” one of my commuting pals said the other day to one of her ex-colleagues on the train.

‘How can there be life after death?’ was the disgruntled reply she received.

‘Well, it is Easter…” I volunteered. She smiled.

Setting aside the deep, serious questions of the afterlife and whatnot, it seems to me that there are tiny deaths and resurrections happening around us all the time. And each time something ends, it’s another opportunity for something better to begin.

Like starting a new job, after a dreary one where you’re losing the will to live. Or fixing something that’s been broken and giving it a new lease of life.

When it comes to money, a less-than-savvy debt decision can be the last straw that jars us out of old habits and gets us back on track towards growing net worth instead of slipping backwards. So if you’re hurting financially, look at it as your chance for a comeback.

Recently I got in touch with someone in our Sorted community to find out more about how he resurrected his finances. I’ll let him tell you the story:

‘About eight years ago I was in deep credit card debt of about $18,000 over three cards. I  paid for a motorcycle at an auction with one card.

‘I knew that I was getting nowhere in paying off the balance, as it was so large. I started reading everything I could about personal finance and self-improvement. I can’t remember when the Sorted site first started, but I began using the calculators and suggestions on money management when I first found the site.

‘I worked long hours to earn enough money to start reducing the credit card debt. I also started to spend less on things that I didn't need, but I would treat myself when I had achieved a good reduction in debt…

‘I made a point of joining KiwiSaver and started contributing to this while I was reducing the card debt, as this gave me a sense of getting somewhere financially.

‘I also combined all my card debt and transferred this to a low-rate card, including having a very low rate for six months as part of the transfer from the other bank. I made a point of destroying  the cards that I no longer used – as a type of cleansing ritual.

‘I still have a low rate card, but I only use it for small items and I pay it off before the due date. I have paid off all of the original card debt and have a reasonable amount in KiwiSaver now.

‘I even have some cash in the bank.’

Now there’s a true turnaround – a real rebirth.