While I was unemployed between working at BDO and IBM, I lived well beyond my means. I was given a good settlement from BDO (it’s confidential, so I can’t disclose the amount, but it was approximately 10 months salary) and it was paid out over 10 months as opposed to a lump sum. I was also getting employment insurance at the same time so I was bringing in unprecedented amounts of money.

On top of this, I used my credit cards extensively and Canadian Tire MasterCard kept raising my limit as I was paying the balance off in full every month. It got up to 10k in credit within about 6 months. I had a second card that wasn’t quite as insane with only a $1500 limit. I ran both cards to the max.

About when my severance ran out, I wasn’t bringing in enough funds to cover expenses, this is when my credit really helped, and hurt.

Thankfully, I started at IBM in March of 2022 at a good salary. I was making minimum payments on the MasterCard and nothing more. The interest was staggering, minimum payments were nearly $300 per month.

Late last year, I just stopped making payments at all. The cycle of a payment and then interest being almost as much as the payment became too much to handle.

Back when I moved to Calgary and my Jeep Wrangler Unlimited died, I was faced with a $10000 bill for a new engine. I didn’t have that kind of money, so I stopped playing the bank for it, so, they sued me and won. They got a garnishment order for so much money per month that I wouldn’t have enough left over for rent, never mind other living expenses. I was in a true panic.

Working for BDO, I spoke with the Financial Recovery group and the partner suggested a Consumer Proposal and since I didn’t want to deal with BDO, he got me an appointment with another form, same day.

They were able to get the garnishment stopped immediately and set me on a path to get out of debt. I was set to pay $300 per month for 60 months, a total of $18000 and all of my debt would go away. I was saved.

Now, with mounting interest charges and some items in collection, I’m in a similar situation, although not as bleak. Before it becomes bleak, I decided to investigate another Consumer Proposal.

This time, with less total debt, I’ll be paying $150 per month for 60 months and everything will, again, be erased. The creditors are unlikely to decline the offer as that would force me into bankruptcy and they’d get only pennies on the dollar.

So, another reset at 54, my RRSP and LIRA are safe and cannot be touched, my car is safe, I’ll be debt free and calls and letters will stop.

It’s a last resort, but, it provides some peace of mind.