As a (used to be) frugal shopper, I always used to save more than 80% of my paycheques and put them towards my savings, only spend about 10% on myself..and the last 10% will usually go into my "Emergency Rainy Day" fund. However, as years have gone by.. I've found that as I started to go out more..whether it be a networking event, a friends birthday or even just a simple dinner out with my parents- that my income has slowly started depleting because I simply CHOSE not to work more and that my budget kept going up as the months rolled on by.
I remember when I first got my ever first RBC Visa Cashback Card at the young age of 19, I was ecstatic because who wouldn't be? I thought to myself, "Wow! That means I can finally shop online without having to ask my parents for their card, or buy a visa prepaid!" BOY, was I ever wrong. Having a credit card with what seemed like endless amounts of "free" money, ($1000 limit but still.), was the start of something that would cost me a lot in the next few years. (To be fair, alot of the debt was from dentist visits costing me over $1000)
For the next few years, many purchases were made on this card..however no payments were ever really made even with every paycheque that went into my hands biweekly. Only minimum payments were made, more money was spent rather than saved and I slowly started going into debt.
I had thought I had hit rock bottom when I had NOT one, NOT two, but...had THREE credit cards all maxed out and a personal loan from my parents on me. At the time, I had decided to quit school to work on repaying my debt for 6 months. I moved back home and focused on finding a full time job.
Fast forward another year- and more debt has been added to the existing one. I actually had paid of all three cards with the help of the parents however... silly me- not cutting up my cards was the worse thing I could ever do. In less than 3 months after fully paying off my cards- I was maxed out again. On all THREE cards.
Lets fast forward another 6 months and then add a personal loan from a friend who had attempted to help me in that time. Thinking I had finally hit rock bottom with 2 personal loans, 3 maxed out credit cards and 1 student loan.. I thought I would get off my ass and decide to put 90% of my income towards debt repayment.
...... 8 weeks ago was when I had finally realized I had hit rock bottom. I had no job, no income, or any sort of money coming in yet I was still spending frivolously on my SO's money or on any money that was given from my parents. I had $0.10 in my chequing account, $0.23 in my TFSA account and more than $10, 000 in debt. I had no money for groceries, way to get to work or even money to pay hydro.
For two weeks, I just wanted to cry myself to sleep because I didn't know what to do. I had no job..have been going to every interview possible but still hadn't received a call and had minimum payments that were coming up. My personal loan was creeping on me as well and I started getting sick because of all the stress I had going on.
I had never felt this way before, like I had no control over what was going to happen in my life.. how things were going to look in the next few months with my lease ending.. how I was going to deal with my relationship..things were not looking good.
I think what really helped me get back up on my feet was definitely the support I got from my SO, being able to see that I'm not in this alone.. that other people have been in similar situations as I had, (Cait from www.blondeonabudget.ca) and etc. With those people in mind, I started looking for a job.. and have currently found a part time for now.
I am really motivated to putting aside 90% of my income into debt repayment every month and hope you all can provide me some support as well. I will be starting a budget plan for the next 6 months and hope I will be able to achieve that. :) It can only go up from here and I only hope that I will be able to repay everyone in the next year, be debt free and have a giant weight off my shoulders..and finally be able to enjoy just not owing ANYONE any money.
Have any of you hit so rock bottom that you don't know what you're going to do? What did you do to deal with it?
-average girl.
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