My (debt) story

I immigrated to Vancouver in 2006. I landed with a permanent resident visa, 2 pieces of luggage and $ 5 000. Needless to say, this amount of money didn’t get me very far in this expensive city, particularly when I was starting over, from scratch and by myself. Luckily, I had left additional money in France.

Back then, the economy was very good and I found a job within 6 weeks of arriving. Unfortunately, it was low-paying, I was overqualified, under challenged and I just hated it. And this was the beginning of my professional life over the next 3 years. I just drifted from one low-paying, dead-end job to the other.

Looking back, I now see that I was barely surviving and getting by. My salary and expenses did not allow me to set aside enough money to have a solid emergency fund, let alone to plan for items like vacation, going back to school, buy a house or even have an efficient retirement-saving strategy.

This was also the beginning of a series of –costly- financial mistakes like:

–          Maxing-out my credit card, then applying for a second one

–          Getting a line of credit I didn’t need in the first place, all in the name of “building credit history”

–          Going back to France twice when I couldn’t afford it

–          Quitting a job on a whim with nothing else lined up

–          Using my credit line to pay for living expenses while job searching…job search that took longer than expected

–          Spending $ 400 to $ 500 a month in restaurants and take-out

Did I mention all my savings from France were long gone by then? I used all the 5K plus the additional 4K I had left in my French bank account.

I also had to weather the 2008-2009 economic meltdown…..which I couldn’t. Early 2009, I was unemployed, had absolutely no savings and had pretty much used all my available credit. I had to ask my parents to send me money.

Obviously, something had to change and to happen…fast! Returning to France was not an option. It turned out I was eligible for a provincial program that offered grants to help people with my profile obtain additional credentials. I applied and was successful. I enrolled in college and obtained a Diploma in Accounting in 2010.

Unfortunately, the amount of the grant was not enough to cover for all my tuition fees and expenses, as I attended a private school. I took student loans totaling 12K. To this day, I do not regret this decision, even if it meant additional debt, as my life drastically improved.

Subsequently, I finally found a job in Accounting that paid well and offered good benefits. At the end of 2010, I had 25K in debt with little to show for it except my Diploma. I was taking good care of my employer’s money, and it was time to take better care of my own.

I obtained a consolidation loan and closed all the accounts except two credit cards. It allowed me to save more, and combined with smarter spending, I was able to buy a condo. Update: I have sold this condo since. 

My consolidation loan is finally under 10K and repaid on a bi-weekly basis. Its highest peak was 31K.  Update: this loan has been fully paid off in April 2017. I have been consumer-debt free since June 2018. 

Obviously, buying my home put a huge dent in my savings, which I aim to rebuild. One of my financial goals is to have $ 5 000 in my emergency fund. I currently have $ 1 500. Update: I reached 5K in April 2015 and 10K in December 2016.

I also realized I wanted to learn more about personal finances and share, hence this blog.

Happy reading!

8 thoughts on “My (debt) story

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s