This could have ended badly. I had a client years ago who was making about $22K a year … but she was in the red for about $25K. Not a healthy equation.
Gina is a terrific waitress who lived on her own in a rented apartment. All her money went to rent and her car. If something came up when she needed to spend, she had no cash, so her credit card was maxed out too.
Gina had to make some really serious choices. We worked with her bank to consolidate her debt into one loan. The best we could get was a seven-year loan at 12% interest. Not a great scenario, but it worked for her. Bankruptcy was not even a consideration.
She chose to take the loan, and moved into her sister’s basement to help save some money. When you’re in your mid-20’s that’s not an ideal way to live. But the choice was hers.
Gina was able to save for emergencies and put some money in the bank. She also got a herself a second job, a government contract that paid her pretty well. However it was only for a short term. She took my advice and used her government job to pay down her debt, while her job as a waitress gave her the money to live on.
Gina was living with some short term pain,with a view to long term gain. Through a series of good choices, she slowly but surely climbed her way out of debt. In just two years she paid off her loan.
Fast forward five years, Gina bought her own garden home, had money in RRSPs and a Tax Free Savings Account (TFSA).
With guidance from Canada’s Money Coach, Gina was able to get out of debt, and keep putting money away. With her finances in order, she was ready to meet someone and settle down.
Gina found her soul mate. They bought a house together and started a family. This story ended well because of the strategic choices Gina made earlier on, and stuck to them.
Lessons learned? Get out of debt. Don’t be complacent with your current financial state. Work with Canada’s Money Coach to find the innovative solution that works for you. Short term it may be difficult, but trust me, the payoff is worth it. Call me today @613-875-5834