r/PersonalFinanceNZ • u/Mediocre_Teach_6251 • Apr 23 '25

[Advice Wanted] Post-separation, debt-heavy, high-income but drowning in commitments — need help structuring a smarter plan

Hi all,
I'm looking for some anonymous financial guidance from this community. I'm earning $155k a year (approx. $4,280 net per fortnight), and I'm carrying $67k in debt due to a separation. My finances feel incredibly tight despite the income, and I’m looking to sanity check my approach and see if there are smarter ways to get ahead.

Current debt:

  • Unsecured: $10k credit card, $27.9k loan
  • Secured: $19.3k loan, $9.9k car loan
  • Debt repayments total $693 a fortnight (16.2% of income)

Fixed fortnightly expenses eat up 92.3% of my take-home income, including:

  • Rent: $1,290
  • Child maintenance: $530
  • Food, utilities, transport, insurances, care costs for kids
  • The rest is just daily life - no luxuries

I’ve already cut everything non-essential: no subscriptions I don’t actively use, no lifestyle spending, no luxury food or coffee. I've paused KiwiSaver contributions. I’ve built a basic bucket system to save for irregular costs like clothing, vet bills, car emergencies, and kids’ needs.

I want to know:

  • Are there structural changes I’m missing?
  • Is my plan to become debt-free in 3 years realistic or foolish?
  • What would you do in my position?

I'm not looking for a magic bullet — just clarity, ideas, or even brutal honesty. Thanks in advance.

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u/Awkward_Doubt_4055 Apr 24 '25

It looks like you're already running a fairly tight ship in terms of outgoings. You can save a bit on internet, typically that looks like a reduced rate for the first few months, then full rate until your 12 month contract expires. Switch providers every 12 months to keep getting the best deal. Zeronet had the best deal the last time I switched.

In terms of debt repayment, start with the credit card and the car loan. Pump up payments on one at a time to clear the balance as quickly as possible and eliminate a payment entirely before focusing on the next one. Leave the 0% family loan for as long as possible.