True Story: I Went From $17,000 in Debt to Home Ownership in Three Years
On the first morning in my new house, I plopped down on my couch, looked out across the unpacked boxes, and burst into tears. I had never felt so proud of myself. You see, the road to get here had been far from easy. Back in 2016, I returned home with $17,000 in debt after a year abroad in Germany. The debt was entirely my fault – I had splurged on trips to Italy, Czech Republic, Spain, and Poland. By the time I came back home, I was forced to housesit for friends in exchange for free rent. So I put my freelance career on the backburner and went back to working full time at a film festival.
It took about 16 months to pay off my debt. I housesat for free rent, worked 60-hour weeks (no joke!), and worked with the financial advisor to wrap my head around my spending issues. She was really good at putting things in perspective for me. She built a strict budget for me and I stuck to it, tracking every single dollar I spent. At the end of the month, I could see where I was going overboard with spending and correct it. One of my main issues was that I'd take a paycheck and dump it all on my credit card without leaving much left over for me to spend on myself, and so I'd use my credit card again, etc. Vicious cycle!
With the debt gone, I was able to quickly build my savings and switch back to freelance. But in early 2018, my career derailed again when my mother underwent a routine surgery that resulted in multiple organ failures. I almost lost her. I spent six months with her at the hospital, navigating the ups and downs of the health system before she was finally sent home in June.
Not long after that, my boyfriend broke up with me while I was on a media trip in Hong Kong. The following months were some of the hardest of my life as I slid into a depression I couldn’t quite shake. It took ages to recover. I was aching for comfort.
I wanted a home in windswept St. John’s, Newfoundland. I perused real estate listings obsessively. I made a vision board. I went to see a mortgage broker in December. But, as a freelancer, my mortgage was entirely dependent on my tax returns from the previous two years – including 2016, the year I went broke. I qualified for a $150,000 mortgage. This would basically afford me a cardboard box.
My broker and I agreed that we’d reconvene once my 2018 taxes were filed, as I’d qualify for a much better mortgage then. But it didn’t stop me from connecting with a realtor anyway, and it didn’t stop me from looking at listings.
I figured it couldn't hurt to have a look, and I'm glad I did—I totally got lucky. Two homes popped up on my radar that met my criteria: located downtown, and with minimal upkeep required. The first house – the one I was most excited about – was a letdown. I figured the second house would be the same.
The second house changed everything. It was a well cared for three-bedroom semi-attached home, with new floors and a huge master bedroom. The back deck? The perfect spot for summer BBQs. I put in my offer that evening, and the owners accepted.
The house was priced at $165,000 and we managed to negotiate it down to $158,000. It was definitely a well-priced home (the inspection was flawless), and I suspect the owners were eager to sell because they had already been moved into their new home for several months at that point.
My home is small, and comfortable, and not fancy or modern. But it’s mine. I have a fireplace, plants on every windowsill, and a small vegetable plot in the backyard. There is a certain pleasure in ensuring its upkeep – I don’t mind the tedious work, like the grass trimming or the minor repairs, because it’s mine. And I did it all on my own, after the most challenging year of my life. There’s something to be said for having that personal sanctuary.
You Might Also Like
