How I Got into $29,000 of Debt

June 8, 2011

Our financial mistakes often explain who we are, and shape us into who we want to become. So, before talking about anything else, I should probably tell you how I got myself into -$29,000 of consumer and student debt.

When I was 18, I moved out for the first time. While my rent was only $300/month, I hated my job, so I called in sick a lot and spent most of my spare time partying. Obviously, these activities helped me save a ton of money. From 20-22, I moved back home, went to college full-time, and worked part-time. I was also the proud owner of my first credit card, which I used mostly for gas, alcohol, and takeout food.

In 2007, I graduated from college, landed the full-time job I have now and moved out again. This time, my rent was $432.50/month but I was taking home close to $1,100 bi-weekly. Had I not gotten into a relationship with a guy that refused to work, I would have saved a lot of money! At 23, we broke up and the cold-hard reality of paying for a fun, single girl life hit.

My rent was $950/month + bills and, for whatever reason, I felt it was the perfect time to buy all new furniture and a brand new car! (Aren’t breakups great!?) On top of my new expenses, I was single and wanted to have fun! Eating out, going for drinks, and spending my weekends dancing at nightclubs or going out of town were exactly what the breakup doctor prescribed.

At 25, I decided to go after my dream of living in Toronto. As you can see, I am back on the west coast… but I did have an incredible 4 months off from regular life! I also didn’t receive a paycheque for 4 months, and during that time, what did I do? Drink, eat takeout, and have fun, of course!

Also at 25, I started a two-year undergraduate completion degree program online. By the end (July 2012), the program will cost approx. $18,000 (tuition and books). Work gave me a $5,000 scholarship but the rest is up to me to pay for…

Are you starting to see a trend? In terms of budgeting, I have obviously been living beyond my means. Now, it is up to me to change both my situation and my behaviours.

If I can pay off all of my debt by May 2014, there will be one bonus: I will have better credit. When my two loans and credit cards are paid off without missing a single payment, the banks will know I can successfully pay off debt. Until then… I need to learn how to live within my means and enjoy what I bought myself during this crazy ride.

Here goes nothin’. Or, in my case, everything.

  • The Financialite June 8, 2011 at 10:39 am

    I love your style of writing! You are honest and you aren’t shy about any of the things that you did to get yourself into debt (which I started to think that I was reading the story of my twenties!). BUT you also know why and how you got there which is the key to getting yourself out of it! I think its great that you will be able to pay everything off by 2014 and live debt free :)

    • LC June 8, 2011 at 12:24 pm

      That is the nicest compliment, Financialite! Thank you so much.

      I don’t expect the next few years to be easy… that’s why I need my readers and fellow bloggers, to keep me motivated. :)

  • laura June 8, 2011 at 11:31 am

    Good luck LC. You can do this!

    • LC June 8, 2011 at 12:25 pm

      Thanks, Laura!

  • Niki June 8, 2011 at 5:01 pm

    I am wishing you luck.
    You sound completely determined, which means you can most definitely pull this off. I am excited to follow you through this journey.

    • LC June 8, 2011 at 9:03 pm

      Thanks, Niki. Feeling good, so far! I can’t wait to post about my debt repayment plan…

  • Money Rabbit June 8, 2011 at 6:13 pm

    I am just THRILLED that you’re back. Nice URL, nice design. Congrats, lady!!! But we’ll miss you in Toronto :(

    • LC June 8, 2011 at 9:04 pm

      Thanks, YOU! :) And don’t worry… I have a one-year plan here, and after that, I’d consider coming back out again. I miss the city and everyone in it! xo