In July 2009, I was a success graduate with 2 college diplomas and 1 university degree however I was $42K in debt.
How did I get $42K into debt? Here’s the break down.
- $8,000 was a Student Line Of Credit (for university)
- $19,995.17 belonged to OSAP (university/college)
- $561.27 in OSAP Interest
- $13,766.99 is part miscellaneous (bills my parents covered that I have to pay back) and part car debt
The first piece of debt I tackled was my Student Line of Credit. Since I was on interest relief with OSAP, it made the most sense. I started payments July 2009 and it was officially paid off on April 30th 2010.
On April 15th 2010 I borrowed $19,995.17 from my parents Line of Credit and paid off my OSAP debt in one lump sum, then I started making payments to their Line of Credit. By doing this I reduced the amount of interest I would be paying per month and I had more control over the monthly payments. By October 6th, 2011 my OSAP debt which totaled $20,556.44 (OSAP + Interest) was completely paid off.
On January 30th 2012 I moved into my very own townhouse. I’m not going to lie, many people have said that it was a dumb move considering the debt I already have, especially since my parents helped with the downpayment and I have to pay them back at some point. However, the price of the townhouse was about $20,000 less then others, it was a brand new construction and if I decide to sell in a few years I will make money on it.
As of now; January 2012 all debt repayment has stopped. I’m trying to get a handle on what my monthly bills will be and just be able to live life comfortably. Hopefully soon, I will start to tackle my debt.
As of January 2013 my debt repayment is back on track. I will update this as things change.