Single Mom Pays Off $30,000 Debt After Divorce

Sometimes things are going well until “life happens,” and your finances take a sudden turn for the worst. “Life happens” could look like a sudden medical emergency, job loss, or a divorce. There are no guarantees in love, which is why many couples who have the best intentions end up divorced. While marriage and divorce information hasn’t been published in Canada since 2008, a western researcher found there are six divorces for every 1,000 marriages. Amber is among those who are divorced, and it shook up her finances. There is a silver lining; Amber found the strength to fight back. She’s just a few months away from being debt-free, and here is how she did it.

What started as a separation...

For Amber, separation and eventual divorce delivered the one-two punch of heartache and financial difficulties. Besides the emotional strain, Amber faced financial hardships such as mounting legal fees and a reduction in household income. “My debt eventually climbed to $30,000. I tried to go to my banks, as I have a few accounts and a line of credit with them BUT the big banks seemed all too happy to turn a person down, especially when I was at my lowest.”

Turned into one of the darkest moments of Amber’s life…

Getting divorced is hard enough but adding a child into the mix can make it more challenging. Becoming a single mother can also make women more susceptible to financial difficulties. In fact, 21% of single mothers in Canada live in poverty.

Becoming a single mother was a scary prospect for Amber, especially without any financial cushion.

“I felt as though I had no options. I felt alone, and to be honest, scared as well.  As a newly single mom with credit card debt, paying lawyer fees (which you can’t be late with) and being turned down for help by the banks, there was so much happening at once it was suffocating. Thankfully, that’s when a friend referred me to Consolidated Credit.”

Until Consolidated Credit saved the day…

Amber connected with a counsellor at Consolidated Credit who helped turn her story around. She enrolled in a debt management plan which helped her manage her debt and lower the interest rates on her credit cards. 

Although Amber was off to a bumpy start, the credit counselling team helped her achieve her goals. 

“Consolidated Credit’s counsellors worked with me through the payments. Unfortunately, I did have trouble making two payments at the very beginning of my Consolidated Credit journey. When there were changes to my financial situation, Consolidated worked with my creditors to make my payments more manageable. The fact that Consolidated was willing to help was pretty amazing.”

With just a few months of payment left, Amber’s hope is restored…

For people in debt, getting to their last payment is a dream come true. Amber shares how she feels with just a few payments left. 

“Before Consolidated Credit, I thought I couldn’t possibly have any options to get out of this mess. Now that I have just a few more months of payments left, I feel like there is an end in sight, which brings me to the feeling of relief. Knowing that I won’t have credit card debt is a huge burden that I will no longer have to deal with, and I can finally put those monthly payments to use elsewhere—it’s almost too good to be true.”

She’s learned life-changing lessons she wants to share…

Consolidated Credit debt management plans not only help individuals get out of debt; they also teach you key lessons about personal finance. Amber has learned how critical it is to live within her means and focus on necessities. 

“As I’ve been on the program and haven’t used a credit card, I have learned that for the most part, if I don’t have the cash to make a purchase, it’s not a necessity. I would just like to say THANK YOU. Thank you for taking the time to have the situation explained, thank you for agreeing to help, thank you for working with me and lowering the payments.”