She Strengthens

Breaking Free from Debt: My Journey to Financial Freedom

The Weight of Student Loans

After graduating from university in 2017, I was faced with a daunting $25,000 CAD ($18,889.50 USD) in student loan debt. I had only $450 CAD ($340.01 USD) in my checking account, and the prospect of paying off my debt seemed overwhelming. However, I was determined to break free from the shackles of debt and start building a secure financial future.

A Fresh Start in Northern Manitoba

To accelerate my debt repayment, I took a job in a remote northern town eight hours away from my hometown. The job offered a higher salary and a retention bonus, which would help me pay off my debt faster. I also incurred some additional debt, including $8,000 CAD ($6,044.64 USD) for a reliable SUV and $2,500 CAD ($1,888.95 USD) for furnishing my apartment.

My Debt Profile

At the peak of my debt, I owed:

• $12,767 CAD ($9,646.49 USD) in federal student loans at 5% interest
• $14,338 CAD ($10,833.51 USD) in state loans at 0% interest
• $2,500 CAD ($1,888.95 USD) on a store credit card at 22% interest
• $8,000 CAD ($6,044.64 USD) to my sister for my car at 0% interest

Total debt: $37,605 CAD ($28,404.56 USD)

Creating a Budget and Prioritizing Debt Repayment

To tackle my debt, I created a budget that allocated a significant portion of my income towards debt repayment. My monthly expenses included:

• Rent: $650 CAD ($490.97 USD)
• Utilities: $25 CAD ($18.88 USD)
• Internet: $50 CAD ($37.77 USD)
• Phone: $80 CAD ($60.43 USD)
• Car insurance: $167 CAD ($126.14 USD)
• Groceries: $200 CAD ($151.07 USD)
• Charity: $50 CAD ($37.77 USD)
• Netflix/Apple Music: $15 CAD ($11.33 USD)
• Savings: $500 CAD ($377.67 USD) every other month

Paying Off My Debts

I prioritized my debts, focusing on the ones with higher interest rates first. I paid off my car loan to my sister within six months, followed by the furniture loan. Next, I tackled my federal student loans, paying an average of $1,600 CAD per month. By August 2018, I had paid off $25,000 CAD in total.

Overcoming Burnout and Paying Off the Final Debt

After paying off my federal student loans, I took a break from aggressive debt repayment to build up my savings and enjoy some well-deserved relaxation. However, I eventually paid off the remaining state loans, totaling $11,696 CAD, in May 2019.

The Benefits of a Debt Repayment “Sabbatical”

My experience in Northern Manitoba taught me the value of creating a debt repayment plan and sticking to it. Living in a remote community with limited expenses allowed me to focus on paying off my debt quickly. While it wasn’t an easy journey, I’m grateful for the opportunity to start fresh and build a stronger financial foundation.

Lessons Learned

My debt repayment journey has taught me the importance of:

• Creating a budget and prioritizing debt repayment
• Living below my means and avoiding unnecessary expenses
• Building an emergency fund to avoid future debt
• Taking calculated risks to accelerate debt repayment

I hope my story inspires others to take control of their finances and break free from the burden of debt.