Financial set-backs and debt fatigue

I have been hit in the pocketbook a couple of times recently, just when I thought I finally had my debt under control.

Three months ago, our strata had a special general meeting to review the condition of our building envelope. Some repairs are definitely necessary. The -heated- debate was on how much owners should be paying. We had the “choice” between $ 5 000 and $ 10 000 per unit. “Luckily”, $ 5 000 was chosen.

Nevertheless, I do not have that money on hand, as I am still paying off around 12K of debt.

Then, in September, I got involved in a minor car collision for which I was found 100% at fault. In British Columbia, the Provincial Government administers vehicle insurance and the premiums are pretty hefty, as there is no competition.

To protect my premium and driver’s record, I was given the option to pay for all repairs on the 2 cars. Otherwise, I will face a $ 5 000 increase in my premium over the next three years. I haven’t been communicated the total cost of the repairs yet, but either way I have to pay!

The measly $ 2 000 I have in my emergency fund are just not going to cut it….If I had been able to put the amount allocated to my debt repayment over the last 3 years into a savings account, I would be more than able to pay for both.

I definitely feel trapped by my debt right now. I have also been suffering from debt fatigue. It feels endless and like I will never get out of it.

I also realized my debt is preventing me from doing many other things now, such as renovating my condo, taking classes and traveling.

Lately, I have been considering a change of career. It would take me back to self-employment but might also mean a pay-cut, at least at the beginning. It would also require me to take classes.

The issue is that paying for my bills and servicing my debt both require a solid paycheque. I simply don’t have enough savings to make-up for a pay-cut, or for no pay.

I will have to proceed step-by-step with my goals and it will probably take me more time to reach some of them.