I am new to budgeting after leaving my abusive marriage about 3 years ago. My husband used to control my income. I carry over 10,000 of consumer debt from starting again which I have been working hard to pay off. I want to use the equity in my home to purchase another in about two years’ time, if I can.
Right now I have allocated as much as I can to the debt repayment each fortnight plus all of my other expenses. I may need to revise it so I can actually live, but I expect some categories like health and groceries not to spend to the envelope amount each fortnight and to flow over from time to time.
I have set up an envelope simply called “debt repayment”, each fortnight I will spend the whole amount depending on which current debt I am targeting.
I see you can set up debt and debt repayment as well. What is the advantage of this? I do not want to overcomplicate things since I am new. Is it ok the way I have done it?