Time to pay of some debt

[hirev]

Over the last few years I have had a crappy time with money and life in general.
I bought a house, car had 2 kids, got laid off, went back to school, Fiancee left leaving me with the kids and paying off all the bills.

All in all its been ****. I racked up about 128,000 in debt 80,000 of that being a very cheep house.

I have recently started working and have income again and with that I have started to pay off debt.
I work 3 jobs right now to pay for bills and all the child care expenses. I average about 56-70 hours a week(not making Toronto wages, one job pays well the others only like 11.50-12 an hour.)

So far I have paid off a 20,000 dollar loan in the last 6 months. I still have student loans to pay off but I am now free of car debt.

The next goal is to pay off the 14,000 in student loan debt over the year to year and a half.

This will allow me to cut back on work to spend more time with my kids. I will be able to go back to working normal hours in about a year and a half to two years. Thank god

[walkonby]

you certainly will have a challenge doing this all alone, but sometimes the sweetest victories come from that sense of self preservation. All the best at chipping away your debt.

[terry2144]

Way to go! Seems like you have things straight in your head. Wish I was that smart when I was a single mom 20+ years ago. Definitely on your way to success. Cograts and thanks for the inspiration. Getting out of debt is possible. I look at my savings from this site. Once my move is done I am looking at rolling this in to my debt.

[terry2144]

Ps. Three jobs? I worked 48 hours when my kids were young. Got everything done. Almost 50 now and look back wondering how I did it. God bless all moms.

[macw1960]

You are definately determined to pay down your debt but don't forget to take time out for fun with your kids. Way to go.

[ilovecoupons23]

Good for you!! Remember not to get discouraged, every dollar you can knock off that debt matters In a short time you will be relieved!

[hirev]

I always make sure I pick up the kids from daycare, make supper and put them to bed every night. I often work nights at home so I can keep up with house work and can make time during the day on the weekends for the kids.

The hard part is lack of sleep but I will sleep when I am dead. That being said being 30+ dad and having two kids under 5 and working this many hours. Definitely to old for this crap. LMAO

[CrazyQT]

You are doing amazing! Paying off $20,000 in debt in 6 months is incredible!

[bmaven]

Good for you!that's amazing! You should be VERY proud


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[Mulveyteach]

Good for you. Must feel very good to pay off some debt. I wish I knew the feeling lol!

[addsup]

It sounds like you've been through quite a bit lately! Congratulations on paying off $20,000 of debt in a year, that is quite a big achievement!

Would you mind letting us know what the rest of the debt is? (128-80-20-14=$14,000 other debt) I guess I'd just like to see if you decided to pay down the highest interest rate debt first, or if you decided on a different method?

It sounds like you're doing a fantastic job and that you're being a great dad. Your kids are lucky to have you!

[xlxo]

Don't forget to put some aside for RRSP to use the return to pay down debt while lowering taxes.

[hirev]

addsup

it was 80K for my house
14K for student loans
Personal load/car loan was 20 K
some credit card debt and the cost of a new furnace/oil tank and some needed home reno's makes up the remainder

Some of the other bills have higher interest however my payment on my loan was 600 a month.
this will allow me to take that extra 600 a month towards other bills.

paying off money with the highest interest rate is great but not always the best option. I try to pay off some of the little things while putting a larger focus on what will free up the most money per month.

This way you can start paying down other things faster.

[The Friendly Financial Co]

Hello Hirev, first of all congratulations on being so diligent by paying off all of your debt. As a Financial Coach I really like hearing that.

How is your student debt structured? Is it all Federal/Provincial or was it offered through a Financial Institution?

If it governmental, then you can try to apply for interest rate/debt reduction relief. The qualifications depend on which province you reside in. If it is Ontario, then the option is called the "Repayment Assistance Plan" and they qualify using a sliding scale based on household income. It sounds like your income may be too high to qualify for this, but it's still worth applying for, if you haven't already. I've had several clients that were surprisingly approved based on their circumstances.

If the debt is with a Financial Institution, then you may be able to refinance it into a secured line of credit or even a mortgage (if the maturity is near). The downside is that there will be legal and possible appraisal fees with this option.

Also, if it is governmental, never ever refinance it with a Financial Institution. You will lose several perks that include, but not limited to debt elimination and interest rate relief.

If you have any questions pm me.