I’m £54kin in debt with two loans – and one of them is for my used car
A mum has revealed how she found herself £54,000 in debt with just two loans – and one of them is to pay off a used car.
Michelle, a single mother, who lives in Ontario, Canada, with her two children, began documenting her debt journey on YouTube in 2020.
In her first video, she revealed her huge financial burden which she was struggling to repay due to her “sporadic income”.
“I feel very vulnerable sharing this journey,” she admitted.
“Saying that number out loud obviously makes me want to vomit. I wonder what I’ve done with my life to go into so much debt.
“I don’t have credit card debt, I don’t have personal loans.”
Michelle explained that she had £7,600 to pay off on her used car, which had an interest rate of 9.9%, seeing her shell out £262 a month in payments.
Her second loan is two student loans worth £46,029 which she racked up after becoming a mum at a young age.
“I had my children very young,” she explains, “I had my first when I had just turned 20.
“A relative so young, unless you are rich, you have no money.”
In a bid to get a degree to support her daughter, she started a women’s studies course – and took out a student loan to get by.
She eventually dropped out of college and took out a second student loan to earn a two-year college degree.
“I didn’t really realize that I was going to have to repay that one day,” she admits.
“I didn’t even know how much student debt I had until a year ago. »
“I do the snowball method, I attack my car loan first and then I will attack the student loan.”
In May 2021, Michelle was able to pay off her car loan in full after taking a job as a real estate agent.
She also sold abandoned furniture on eBay and started making money from her YouTube videos, which allowed her to put an extra £1,751 in case of an emergency.
If you’re struggling to keep up with bills and credit commitments, you can get free help at stepchange.org and nationaldebtline.org.