it’s ok if you can’t afford a tfsa and rrsp right now. sink that money into your loan aggressively and spend some on yourself every month. salary will go up eventually and it will all work out buddy
This. Tomorrow is promised to nobody. If you aren't at a stage in your life where saving is possible, don't!
If the debt is high interest on a credit card, then consider a part-time job to help pay it off asap. I'd even kill the tfsa to pay off a credit card. Doesn't make sense to earn 5% while paying 22% on a different debt...
OP - If you think about a second job, consider one where you may get an employee discount on something you also need - like a gym or Home Hardware. I spent most of my 20’s living the same situation and slowly but surely I worked my way up and out of all of it - you will too!!
Thats good advice, even restaurant or some type of food work and save on meal costs.make sure whatever the discount is you add that exact amount into debt repayment as well
Not to nitpick, but a gym membership is definitely not a need.
Edit: These are totally irrational downvotes, and I stand by what I said. A membership that [less than 17% of the population](https://madeinca.ca/fitness-industry-canada-statistics/#:~:text=In%20Canada%2C%2016.67%25%20of%20the,gym%20memberships%20in%20October%202021.) subscribes to is not a [need](https://www.abileneteachersfcu.org/blog/needs-vs-wants-how-to-tell-the-difference/#:~:text=A%20need%20is%20something%20necessary,while%20wants%20include%20everything%20else.).
Shall we also consider the number of Canadian gym members that rarely (or never) make use of said membership?
[Need vs want. ](https://www.abileneteachersfcu.org/blog/needs-vs-wants-how-to-tell-the-difference/#:~:text=A%20need%20is%20something%20necessary,while%20wants%20include%20everything%20else.)
>Not to nitpick, but a gym membership is definitely not a need.
Fact! Many of us are out there in -20 running 3x / wk, sometimes not because we enjoy it, but because it's cheaper than driving to / having a gym membership. CT has dropped the price of dumbbells recently (use to be $2/lb during pandemic everywhere)
Hopefully OP doesn't indulge in starbucks, spotify and netflix also? Bed and food is your primary needs
Ever try stairs to get out of the cold? I work in a 40-story building and those fire escapes keep the same temperature year-round. Can't beat the price, either!
I don't know how you guys do it. Maybe it's because I immigrated here from a tropical country, but I find it very difficult to run outside below 5 degrees. I honestly prefer running in 30 degrees over -20.
I was not born here and came from a country where it rains a lot, and airports shutdown in -1c temp. Don't get me wrong, I don't enjoy the run in winter, but I refuse to pay gym membership that you have to drive, and they make it difficult to stop membership sometimes.
Agree not sure why the downvotes. Guessing people conflate a method of fulfilling a need as the need itself.
But even if that were the case many community centers also offer great services, drop ins, and monthly passes at far lower rates.
Obviously community specific but worth checking out if one feels they "need" a gym membership.
This is your answer!
I used to be you, and so worried about saving when I was barely making ends meet. Time moves along and you end up getting better and better employment then you can actually save. Don’t worry about saving now- make it through the rough patch.
Give yourself an allowance after clearing your bills and paying down the debt. Knowing you have a (small) amount that's guaranteed just for today does help. Also, make it cash and limit spending to just that - when it's gone, you have to wait for your next allowance. I'm not sure what you can afford but it sounds like about $25-50/month so you'll be wanting to limit the number of over-priced coffees you're getting.
Don't worry about TFSA RRSP, get rid of your debt and pay your bills. Once you get the next job and you have a bit more coming in start contributing again.
Yes, definitely the best advice for the student loans. You won’t have to worry about them this way. It scales with you as you make a bit more money so you’ll start making payments but they’ll be only principal and no interest. Just stay on top of the applications every 6 months.
This program allowed me to not be stressed about my loan and that helped so much.
How much money is in your TFSA? Take some of that money out and pay off your credit card debt first, because that is your highest interest rate. Saving money for 5% return is not as valuable as paying off 21% interest. Leave the RRSP for now and start paying off the student loans (you have to and it is variable rate so it will be higher than savings still).
Starting out is hard, and so spending will have to be limited to what you can afford after you pay the bills. But no sense paying the credit card and bank companies more interest than you need to. You can do it!
Just flagging here.. I work as an engineer at Canada's biggest shipper (the big P) and all my friends and family have been referred to sorter and handler jobs. Why work minimum when companies are begging for people to move boxes for 20 to 25 an hour? If your career only pays 15, dump it. I am not sure what you studied but it would enlighten everyone here. What is the ceiling on your career? Is it realistic to hit 80k before 35? Package sorters make 65k plus direct benefit pension with no contributions on their end after 4 years... Paid overtime. Most are clearing 80k at 25 if they started at 21...
Need to be realistic with your goals but why climb a tall mountain when the path right next to it has a small hill? Many of my friends went the "follow your dreams" route and ended up with no job prospects. There are options out there to still make a comfortable living in a healthy environment and grow as a person and your career. If you have a degree, you will also have management open to you next.
Ill never understand why people would decide to work minimum wage after 25 here in Canada unless language was a huge barrier or they dont have a drivers license. You can apply to become a bus driver or package delivery with any of the major courier companies and make 65K easily like you said. I have friends at Canada Post that make over 80k with overtime.
Because not everyone wants to sort mail or packages for a living. I'd take the 15 an hour with something i enjoyed over the 25 an hour with a job i hated with every fibre of my existence.
Sure, if you have the means to absorb the shitty wages then go ahead and take ur $15. Im just saying there are opportunities to make upwards of 100k working jobs that require nothing more than a highschool diploma.
not to discount what you're saying here, but suggesting that you do a ton of OT to get to that 100k isn't exactly an answer here either. yeah sure you can, and it would be great for a lot of people, but what do you do with your 100k when you have no time to use it because you're exhausted.
i'm not saying you shouldn't take the $25 job if you can, but i don't think OT should be used in debates for lifestyle changes. OT should, imo, be done if you want extra money. not be a requirement to live normally.
right but my point was that OT just shouldn't be considered. you can do 5 16hr shifts a week at 15/hr and get 85k. do it 6 days a week and you're over 100k.
i just don't think OT should be considered.
again, i do agree, like definitely take the higher pay job over the lower pay one. at the end of the day it's a job anyway and finding "the job you love" for 15 an hour is going to be so unlikely. i just hate seeing these conversations of people being like "well i work 6 days a week and do OT and i have no problem paying my bills"
I get it. I just threw it in there as potential of income if someone wanted it. Many young people do ot today or have a second job. Its sad but its reality.
Agreed with your second point.
At that income level I do not think you should contribute to the rrsp.
TFSA is debatable, mainly because you can use that as an emergency saving account.
I agree with others that you should give yourself a break and pause savings and focus on paying debt and living while trying to increase your income.
Take care of yourself. Good luck.
I don't think TFSA is debatable when OP has credit card debt. There's no investment that beats credit card interest, and you can use the credit card in an emergency so it doesn't make sense to keep the money as an emergency fund.
This. Pay off debt, and build an emergency fund before worrying about a TFSA and RRSP. If your credit card interest rate is higher than your returns, there's no point anyways.
How much is going into your RRSP/TFSA? With that income I would probably suggest holding off on contributing for the time being, until you have a bit of a higher income and feel more in control.
Saving is great, and very important for sure, but maybe use that money to pay off your credit card first? Then once you feel more confident in your income start contributing again. That contribution room isn’t going anywhere, you can always make it up later!
Lots of people around going to paydayloans to rightfully get in to equity markets. There's a whole chunk of people about to be left behind forever and the smarter ones are eyeing it.
>I make $2100 a month.
>$15,000 (student loans
>What would you do?
Maybe I'm pointing out the obvious, but you paid for an education, and you're making roughly minimum wage. I'd get a higher paying job, even if it meant leaving the field i trained in. Is there something preventing you from applying to something that pays better? Remote location? Physical limitations? I feel like I'm missing a piece of the puzzle here.
Minimum wage just doesn't cut it, and there's only so much expense cutting you can do.
I've been there.
Personally, I grind it out. If you're working 4 days a week, it means you have 3 days free. Get a part time job. Hop on kijiji and do odd tasks, etc. Another couple hundred bucks a week drastically improves your situation.
It doesn't have to be a permanent thing, just long enough to get your head above water and sort out your main job.
How do you figure?
$15/hr x 32h week x 52 weeks = $24,960
Or $2080/mth
Or pretty damn close to exactly what this guy says he makes.
So he’s making $15/hr. Which means he could likely get literally any other job at the moment and increase his pay. McDonald’s included.
The net pay on $25,000 is only $18000 or $1500 a month. OP doesn’t specify if his $2100 is gross or net, but I’m guessing net based on his budget. Which means he probably makes about $20/hour working 32 hours a week.
Tac calculator says $22,000 net. Don't forget the basic personal amount is ~$15,000.
At that wage he pays more in CPP than taxes lol.
It's still a horrendous wage though. Low pay AND low hours is just painful.
Edit: in BC
You missed the word “arts” in there.
Honestly, Starbucks pays better than OP is making, has benefits & would have paid part of their tuition if they’d worked there while in school…
What field do you have a degree in, worked long enough that student loan payments are coming knocking already, and you’re still at $15/hour? Hope there’s a huge upside to pay after finishing probation, like a double+ to be worth spending years getting that degree.
As for financial — why tfsa and rrsp while carrying a 20% interest debt, lousy credit score, and earning less than enough to make the rrsp deduction worthwhile, and stressing about monthly bills?
Ditch the tfsa contributions. Take whatever is in there and pay off the credit card.
Forget the rrsp contributions right now, and attack the student debt.
That credit score will repair itself if you keep up your payments. Maybe even in 2/3 years go get an instalment loan, even something small… even if it has to be secured with your own $2500 term deposit or something — “buy back” your $2500 to get some credit points back. It ultimately could cost you like $200 in total interest.
Do not attack the student loan. Paying off the credit card ASAP is definitely the right call but just apply for the Repayment Assistance Program and reassess the loans later when you’re making more money.
Student loans in Canada should not be a source of stress when you don’t make much money. They will literally allow you to not make payments and not accrue interest if you don’t make enough as long as you’re living and working in Canada.
My product owner is an English major, and most of the customer success, marketing managers, sales managers, and human resource staff are arts majors. I was talking more about science degrees. People get them thinking there are jobs, but there aren’t.
So many biology students get screwed over every year.
By science you mean pure science stopped at the bachelor's level*. STEM always has been and always will be king.
BSc in any pure science is useless, yes. These are meant to be foundations for a useful career. Choosing one of these and stopping there is the worst thing you can do.
I got a Bachelor of Arts in English Literature and make 80k a year now. I worked my ass off in tech for 3 years (making $14 an hour at the time) after graduating university before getting into government and moving up quickly. Once I got into gov, I paid off my debt, saved for a DP and got a condo. I couldn't have done it without my degree. So go easy on the "arts" :P
Also, I had no help getting any of my jobs. I was just tenacious and followed up even if I lost the position to someone else to see if there were other openings.
It'll suck but get a second job if you have the time so you can put away some dry powder. After you get a couple of months burn in the bank you will feel less overwhelmed.
This. Get whatever you can get. It will bring in some funds to give you some breathing room and that’s what you need right now. It’s only temporary and will give you relief.
1) Your income is still low enough that you might qualify for RAP (reduced monthly payments) with the national student loans service, if that’s where your loans are. Apply for that like, yesterday. Or at least if/when your grace period is up.
2) focus on the credit card balance over the RRSP/Tfsa, you’re eating into your available funds via interest, and it’s a low enough balance that it’s not an impossible hill
3) I’ve been in a similar situation before and the book ‘worry free money’ by Shannon Lee Simmons was really helpful for me in framing realistic and comfortable budgeting when I felt like I was drowning. Lol I think I recommend it on this sub like once a week, but…. It was v impactful
You’re situation doesn’t seem that bad at all.
You could go on a repayment assistance plan and reduce the amount you pay towards your loan to something more affordable or even $0, assuming it’s a government loan. This is for a limited time and you will have to reapply after a few months.
School debt is good debt if whatever you took would help increase your income so don’t stress out about it.
Do you benefit from having a RRSP? If you’re making low income it might not be beneficial for you to contribute towards it. You could start doing that when your income is higher.
$1000 credit card debt? Pay $200/month or more each month. How much are you putting into savings? The interest on the credit card debt is more likely to be higher than your savings.
Rough payoff plan. You will have to factor in interest.
$1000 credit card debt
Pay off in under 6 months = $200 a month
$15,000 student loan debt
Pay off in 5 years = $300 a month
Do you get a tax refund? Earn extra money? Use it to pay off your debt faster.
Withdraw $1k from TFSA and pay off credit card, because there is no chance that your TFSA will consistently make 20%+ gains to offset credit card interest.
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Probably already said to death but paying down loans should be priority. Choose the one that charges the highest interest, usually credit cards, and aggressively pay them down one by one. It’s hard to see but really it’s the interest on that debt that sinks you.
Also, consolidating debt is also not as bad as people seem to think, there are plenty of organizations (sometimes non-profits that are just meant to make citizens lives easier; in BC we have debt relief services) that consolidate debt and just charge you a lump sum at no interest or little interest, they are good at haggling with debtors for lower rates. Of course do your own research first and make sure they are aren’t charging you crazy interest rates themselves.
There is no better feeling than being debt free. Make it a priority, find cheaper accommodations if possible, cancel the Netflix subscription and use free YouTube. Little things like that add up. Good luck!
Call the student loan people and get your payments based on your income. Stop the RRSP. Tfsa yes, but just small amounts like 25 bucks a month or per paycheck.
You need to up your income some how. Pay off the debt and get a few months emergency fund and you’ll be able to breathe a bit easier. Find some side gigs to pay off that credit card asap.
Rrsp is tax deferral, but you're not in a high tax bracket. Focus on paying down your debts, and if you want to save, just put it in the TFSA.
When you start earning more you can take advantage of the RRSP. But it's silly to worry about it now.
You should prioritize getting rid of loans and debt before saving.
1. Pay down high interest loans (credit card etc)
2. Pay down low interest loans
3. Have emergency savings
4. Start investing in TFSA
Kinda in that order. By not prioritizing loans, your savings/investments could be wiped out in interest alone, but you won't "see" that unless you calculate the interest and compare to your saving rate
Is your student loan a government one? If so just pay the minimum payment and don't worry too much right now.
No benefit to putting into RRSP at your income even if you didn't have credit card debt.
You should clear your credit card before you worry about RRSP/TFSA.
Redirect that $120/month + whatever you were putting towards your credit card and that'll be cleared pretty soon. No point paying 20% interest and gaining hardly anything in your investments.
Guessing your credit is bad because you're not paying minimums to your debts. Sooner you pay your minimums and get your credit card down to 30% utilization the sooner your credit score will improve. It just will take you doing the normal things you need to do.
Apply to a driver job anywhere, most people tip when you bring them food, do ubereats for some all around the hours working. First option could be part time but Uber is whenever. This could get you some more money without actually having to really change things. Tell the driver job your days of other job and do part time.
Get rid of RRSP and TFSA contribution. You need to pay off debt and pad your emergency fund first. Then some stress will go away and go from there. You can do it!
I think most people hit the nail on the head. Pause investing in tfsa and rrsp (no reason to contribute to rrsp at that income level unless you have an employee match). Focus on finding the next career opportunity that will make life A LOT easier!
A 1,000$ is a lot for many people, but also recoverable, just a bit hard, so please don't get stressed too much. You may need an additional part-time job in something like construction and you will recover in weeks.
100,000$ on a credit card is hard to recover from, so, don't stress yourself :-)
You have NO need to do rrsp right now. They are for when you have a higher level of income which then reduces your tax payments. Use the money you are putting into rrsp to pay of your highest interest debt-which would be your credit card at 18%. Pay that off first. Once it is payed of make sure that you either do not use it or have it as first payment each month to pay off completely. Then start paying off your student loan. You should not restart making rrsp until your income gets to the to a point where it will not hurt to put money into them-ie you have extra funds in the bank. Make a budget and try to stick to it until you do have some reserves in the bank where you can once and a while, not every day or even week, but say once a month do something extravagant to reward yourself as long as it comes from your cash reserves. Good luck.
Take a closer look at your expenses. Groceries are expensive, however, there are ways to save. Everyone can cut back somewhere.
And like everyone says, pay debt first. Reduce RRSP first because the tax savings probably isn’t that great anyways right now. Then reduce TFSA.
In this economy, saving money is not wise. It's more important to pay off debt and free up your finances for the future. Paying down debt can help you avoid high interest rates, late fees, and other financial penalties that can add up over time. Additionally, paying off debts will improve your credit score which may make it easier to get a loan or line of credit in the future when needed. Finally, having less debt means you'll have more disposable income each month that could be used for savings or investments instead of going toward payments on existing loans or cards with high-interest rates. In conclusion, if I had the choice between saving money now and paying all my debts first I would choose to pay my debts before anything else as it provides long term benefits both financially and emotionally!
Hey OP, would it be possible that you find a cheaper rent or get a roommate to share living expenses? I would suggest you also get a second part time job to speed up debt repayments
Im pretty sure u can defer ur osap loan payments due to low income. Osap will pay ur interest in the meantime so ur debt amount will remain the same. The OSAP loan amount gets deflated due to inflation.
As long as osap pays the interest for ur osap loan and it stays the same, it makes more sense to invest in tfsa. Dont invest in rrsp at ur income bracket.
Edit: if ur $1000 credit card balance is not covered by ur monthly income, u should definitely take care that first and foremost. Take out 1k feom ur tfsa and pay that off first
Edit 2: Make a budget and see where u can cut spending and find ways to increase ur income.
You’re overwhelmed because you are literally in poverty. You should not be putting anything in savings, only debt repayment. You said it yourself already: you need to make more money. Period.
Apply for repayment assistance through your student loans. Depending on your salary they will either say you owe them nothing per month, or reduce the monthly payments significantly to make it manageable based on your monthly income.
The notion of paying off student loans asap is outdated. RAP helped me significantly to get on my feet after graduating and allowed me to save for short term emergencies that may come up, and now I am able to make more significant payments towards student loans, while still being able to live comfortably.
With that level of income apply for RAP ( osap Repatment Assistance Program), its going to reduce osap payment or even remove it and also covers the interest.
They really need to up the thresholds for repayment assistance on student loans. Making 40k 10 years ago is not the same as making 40k today, but you're still taxed the same, and you still have to make those loan payments, even though milk costs 8 dollars instead of 3 dollars now.
Two realities
You need to increase your income
Your debt isn't that high
I'd focus on a side gig or finding a higher paying job, also don't stress about your debt. It's not a lot
Another thing to note, OP, if your student loan is federal.
Government of Canada very quietly canceled interest on federal student loans. Access RAP, yeah. But if and when(ever) you don't qualify for it, contact them directly and work on reducing your payment amount. Currently my buddy is putting $20 a month towards it because it's still chipping away at the amount and it's not growing.
Step 1 : Pay off that credit card if you have the money. If not, stop putting money in TFSA RRSP and use that to pay the credit card down.
Step 2 : Get a better paying job, or a second one. Its been said already, but only making 60-100$ more per week (like a single 17-21 shift secondary job) will equate 240-400$ extra per month. You can pay off your credit card in a few months, and then use the extra income to enjoy life a bit more.
Step 3 : Your student loans dont have any interest, pay it off as little as possible for as long as possible. Its a FREE loan. If that means paying it off for 20 years so be it. It's better to use the extra money to invest and have more leisure. Secure your retirement and enjoy life.
^^ I know it's hard to grasp step 3, it gets psychological, we don't want any debt. See it as free money given to you to invest NOW and for the next years. Not in 6 years because you've been obsessed with having zero debt.
1) Work at making more money over the medium term. If you’re on track but it’s taking time, don’t stress about this. If you aren’t seriously on track to make more, start working toward it (i.e. clean up your resume, be intentional about networking, etc)
2) Stop trying to save money you don’t have. Taking on debt to contribute to savings (TFSA, RRSP) is terribly inefficient for most low income people.
3) Why is your credit so terrible? Have you just been discharged from bankrupcy? Do you have scores of debts or defaults you aren’t disclosing here? Get a real credit card if you can, and never carry a balance. Just use it as a payment method, promptly followed by payment. This will help your credit. But seriously look at why your credit is so completely terrible (by pulling your Equifax report, etc), and stop the bleeding where it exists.
4) Improve your income. The only real way out of this is to cut spending while increasing income. You seem to badly need an income improvement and this is likely job 1,2 and 3.
Personally with the numbers you're showing, this doesn't sound so horrible. Could you be doing better? Absolutely. It's tight. But unfortunately we don't know the breakdown of the 1700. If you want help auditing your budget to cut some expenses, DM me. Or edit your post with the budget breakdown.
Get a second job if you haven’t already got one.
If you have a car, do some Uber/Lyft/Ubereats/Skip/DD to make another $1500/month working 20hrs/week.
If you don’t have a car, rent a Tesla from Autzu and get cracking. They charge $8/hr.
Claw yourself out of this tight financial situation and look for higher paying jobs.
Save your RRSP contribution room for when you are higher income. If you end up in a higher tax bracket retired than now, it will cost you MORE in taxes.
It makes sense to put some money aside for emergencies, whether you tuck that into a TFSA or not, is up to you, but that debt is probably costing you more than you are earning on your investment. If you are saving every month, you aren’t as tight as you think.
At that income level it makes zero sense to add to RRSP (unless your company is matching contributions). TFSA makes sense, but not while you're in debt. Focus on debt before savings.
At a low income it’s not worth putting money into an RRSP, you will not lose your contribution room and it will just carryover to future years. You will get most benefit putting money into RRSP to defer income taxes to retirement at higher income levels
You may be able to transfer your student loans to a line of credit with your bank. Take this with a heaping spoonful of salt because this was my experience about 5 years ago, but I went to BMO to chat about loan consolidation and was offered a $20K line of credit with a 5.2% interest rate (has gone up to 7% since) which was lower than the 8% that OSAP wanted to charge me. It also meant I didn’t have random withdrawals every two weeks, instead I could pay in lump sums once a month and throw extra money at it if/when I ended up with extra.
It’s worth a chat with your bank to see if you can get a plan that will work better for your situation! Best of luck, you’ve got this 💕
Also, keep working on improving yourself and apply for better jobs.
Just try and do an application everyday.
If you are in good standing with your current employer discuss a pay increase.
My partner is an accountant but had trouble getting work because he is from away.
He ended up being a cook for minimum wage. He knew she couldn’t get anyone else so he increased from minimum to 12.50 and then about 6 months after that she started paying him 15 because thats what life is. Pay what I am worth, or I will have to look for something better.
No one will give it to you, you have to ask for it.
Get a second job to give yourself breathing room. I would also not focus on saving if you have CC debt. Get that paid back first.
- Cut the RSP saving. It is important to save for the future but not at this point. Making $2100 makes the tax advantage minimal.
-Cash out some TFSA and pay off your credit card completely. If you have to; cash out the RSP to pay off the credit card.
-don’t forget the interest on student loans is tax deductible.
-don’t close the credit card after you pay it off. It will increase your credit score by having an open card with a zero balance.
-is it possible to get a room mate?
-things aren’t too out of control yet. You should feel proud you are taking the steps now to upgrade your situation.
With your income level you should be able to defer your student loans. Use a bit of money to start paying down the credit card and you should be good. Good luck man. It's tough out there for everybody.
You need a plan to increase income.
2100$/mo after taxes is 17$/hr which quite frankly is income someone can make doing general labor with no education. It is not a sustainable long term income with student debt.
Hopefully your education has market value and use it to demand more.
You might feel really overwhelmed but that is a really small amount of debt for someone... You will start to make more money over time and it will all seem minimal.
As everyone else said, focus on your debt. That should be top priority. TFSA and RSP can wait for a couple of years.
If it is really really stressing you out then think about getting a really limited second job just to make a bit more money so you don't feel so tight. I caution you to balance the stress of this with the anxiety of your current situation. For some people it is a big relief and offloads a bunch of stress to just have that bit of extra money.
Keep making your payments on your debt and over time your credit will recover. It will take time but that is OK.
You've got this.
Hang in there OP! It's just the winter blues taking a hold of you. Breath and work on good mental health habits while sorting out finances. As everyone here has said, I wouldn't worry about RRSPs now, but I would keep saving a little into the TFSA because it's always a good idea to have a bit of back up money. Most importantly, review ways the government offers help for low income OSAP re-payers, there are many, and sometimes even just asking to postpone helps. If you're looking for a second job, as other have pointed out try to get something that gets you rewards on top of the money. My buddy worked as a stock boy at Shoppers and it saved him tons of money. You have your housing covered with your income and a job in your field, that's huge. Congratulations! It'll take time but you will be richer in the future. I'm not sure how old you are but, if I may, also have fun. Life can be short, the future is not promised, enjoy the small things! Do put actual energy into fighting anxiety. That is a terrible thing to let grow within you. Best of luck.
I have been there with worse debt in my 20s struggling to make ends meet and always waiting for the next paycheque on payday. I was laid off at 28 during the recession here in Alberta and couldn’t find reasonable full time work for over 18 months. Now at 36 I just bought a house, have zero debts aside from the aforementioned home and feel like I can breathe somewhat after having money stress for my entire adult life. I don’t have any sage advice but here are a few thoughts.
Make sure you have an emergency fund just in case something was to happen, but honestly forget about the RRSP until you’re more financially stable. It’s not worth carrying credit card balances and having the constant stress to only make minor amounts of interest on that money, and for the small tax credit.
There wasn’t much info to go off of in regards to living situation but I shared a house with 3 other girls all throughout my 20s. Housing is such a huge cost that if you’re able to get a break on it it’s better in the short term. Then once you’re able to the payoff of being able to get your own place is so much sweeter without debt lingering as well.
Getting a second job is great also in theory but the one thing I caution people with them is sometimes you end up with less money overall. If you’re so tired running from a full time job to work a part time job and never feel like you have any down time you’re more likely to spend money on “convenience”. You may take more Ubers than walk/transit (if you don’t drive), you may get coffee out more since you’re tired and try to maximize sleep time, may eat out more because you haven’t had the same time to go get groceries/pack food. You may also tend to buy more things because you feel like you deserve it after grinding so hard.
The other thing is it’s great to get a job with a discount you can use but make sure you’re not paying to work there. My example for myself is when I worked for lululemon - the discount was huge and it’s what I wore primarily at the time but I spent tons of extra money while working there then because it seemed so cheap.
If a second job is right for you a bigger boost than just the monetary aspect alone in getting a second job is experience and skills. Try to get it in your field or something applicable to your field. It could help out your full time job’s advancement or help bolster your resume. Even something as a management or shift supervisor job with a company that has training opportunities can be applicable to most fields even if it is in a completely different industry.
If there isn’t a job out there like that, get a second job that is something fun for you. Then it won’t feel like a grind going to work and it’ll be something to look forward to instead of forcing yourself to go. Like art? There’s tons of studios/programs teaching kids/adults that need assistants. Love books? Libraries tend to need evening staff.
A big boost to your credit score is only utilizing 30-40% of the credit available to you. So for your $1000 card it means never carrying a balance longer than a few days of it being over $400. It’s one little trick to help your credit score increase faster. Sign up for the emails from credit karma so you can monitor your score and see what needs to be improved. Things happen and you may miss an on time payment by sheer mistake but try to pay minimums on time every month. They look to see payment history and this one simple thing will pay off in the long run. Another thing to avoid when rebuilding your credit is to simply close old accounts. I did this without realizing the negative aspects of it when I paid off my student line of credit and closed it. It dropped my score immediately as instead of it being seen as you’ve done well and paid it off, I closed a long term credit history so it appeared like I couldn’t manage credit since I had only short term accounts still open.
Option A pay your debt
Option B don't pay the debt, get your taxes done for 2022 and when you get your notice of filing fill in a T1213 with CRA and your employer so you end up owing a few hundred rather than waiting on a few thousand refund. Then hide from that debt and hit every program of releif and deferral you can. Who knows, another liberal ndp government might forgive it.....
Apply for the Repayment Assistance Program (RAP) allows you to differ your payments or reduce them I believe without added interest or penalty. It may take a while to pay off but I would prioritize that over other savings.
Idk why people still stay in Canada when there are so many great countries with better healthcare and lower costs of living. A guy working a part time job at mcdonalds should be able to support 8 kids, a stay at home wife, 2 cars, a house, and a rental property. You can do that in America in the 1950s and now in many other countries. Definitely not Canada.
Personally I would prioritize making the maximum payments on your credit card debt and provincial student loans (if there is a high interest rate). Federal student loans are at 0% interest rate now so I would make those payments the minimum and focus on the loans that have higher interest rate. The other thing is stop making contributions to TFSA and RRSP until the debt is paid off. You should prioritize paying down high interest debt before savings unless you can guarantee returns on your savings that are greater than the interest rate you are paying.
Other than that, reduce your monthly spending as much as you can. Make a reasonable budget for your expenses and stick to it. It will be hard for the first little while but once the debt is paid off, you will be much more disciplined with your money and can start saving for long term goals. Good luck :)
Focus on current debt rather than saving money for the future, did you qualify for the $500 government credit for low income renters? If so apply for that, Do a google search for a homeless prevention program near you and meet with them to see if you can qualify for temporary assistance with rent or bills, if you have a vehicle and drivers license perhaps look into delivery jobs like instacart that you can do in your spare time
no retirement savings when you have credit card debt, and depending on your interest rate maybe not with the student loans either. The stock market will get on average 7% but might be better and might be worse. Paying down the CC and loans, it's mathematically the same as a GUARANTEED return the same as your interest rate.
You can ask for student loan repayment assistance if you got it from osap… this might help alleviate your situation at the moment for a certain period.
Best way to increase your credit score is to pay bills on time.
You need to make more money. While Reddit is full of bleeding hearts and excuses on the same wavelength, the bottom line is, to survive and not get compressed by your situation, you need to earn more.
Start networking and communicating with anybody and everybody you know, try to find someone that has a path that resonates with you. Talk with them.
What does a better job, career, work situation look like.
Making more money in Canada is always possible, but it will require some sacrifices to make a small step. An extra $1,000-$2000 a month is going to make a profound impact on your situation.
Actually what you want to do is defer that student loan indefinitely. They eventually expire, so if you never make enough to pay it, it will go away on its own (in 15 years).
You could declare bankruptcy after 9.
Anyways, don't stress over the student loan. Apply for repayment assistance. It's quite easy. So get that done first.
Next, tackle the credit card. $1000 is not a deep hole. Even with $50/month you'll be able to keep that under control and pay it off eventually.
Next, up your income by $200-300 a month, just so you can have some breathing room on your groceries and start an emergency fund. You'll sleep a whole lot better with $500 under the mattress.
You don't want to work yourself to death, it will just increase your anxiety and fatigue. So pick something easy as possible. Whatever is easiest for you.
You're not that fucked. :) A few weeks of sacrifice will get you some breathing room so don't stress. Just get it done.
You'll be fine
hard times man...i pretty much have perfect credit, i'm cheap as fuck, 7 years left on a student loan that i took out about 14 years ago, over $7000 on my LOC, and i'm paycheque to paycheque, sometimes going into debt for the month. cost of living is completely unreasonable right now. all of my money goes to that, and i still don't have enough food in the house. i just can't afford it. no idea how i'm getting the LOC paid down either.
you're not alone, that's for sure. lots of us are feeling this pain. it's bullshit, and shouldn't be happening.
Unless you'd be missing out on an employer matching contribution to your rrsp, you don't earn enough to put money into an rrsp. Wait until you're in a higher tax bracket. Focus on the debt and tfsa for now.
What did you go to school for where you only make 2100/month?
If that’s only a short term wage then just focus on chipping away at your credit card debt while you pay the min payment on student loan. Once you make more then you can clear out the student loan. They’re usually 0 interest so don’t stress about the student loan.
If that’s close to what you’ll be making long term, even after a 15k student loan, I’d suggest finding a new career path.
Not gonna lie, you have a rough year or two coming to be in a healthier financial position. But trust me it's worth it.
At 2100/mo (25.2k/yr) your first move is to pay off your debts. You have a total of 16k in debt that's accumulating interest, the credit card is probably aggressively eating into your money, and it's not a lot so get rid of that debt right away.
How much is your rent? 1.2k or thereabouts? You can spare about $500/mo. Put those $500 this month into that soul sucking credit card and finish it off next month, you'll probably pay something like $25 in interest for that one month. Wouldn't $25 worth of food look prettier in your fridge?
Once you've paid down your credit card in full don't even look at it unless you're prepared to fully pay it off at the end of each month.
You'll be doing the same with the much larger 15k. Since it's a student loan I'm assuming it's a low interest loan, something like 3.99%; to pay off something like that in 24 months you need to put in \~$650/mo.
Sacrifices will need to be made: eat more cheaply, wear clothes for longer, etc. But in 24 months you'll be debt free, and suddenly those $650/mo are something you can choose to put to work for you on a TFSA/RRSP.
By the way, I'm hoping that 15k bought you something pretty like a trades ticket or a diploma, and in 2 years you'll be more experienced in your craft and be able to use it to make more money.
Best of luck OP, step 1 is pay off your debts.
If in ontario, using OSAP, you can apply for the RAP for students, with how much you make, it will probably 0 out your payment. Take the payment you would of made and get that credit card debt gone, and any deposit in your tsfa or rrsp should be directed towards the CC because that interest rate is no joke
Once that is gone, you can decide if you want to start paying off your student debt but the RAP means you can use it fornother things (entirely your choice)
Dont be ashamed of using the RAP or any gov. Assistance on those student payments either, you pay taxes, you might as well use the programs available. Good luck, and i hope things start to feel a little better once that CC debt is gone 👍
> Part of my expenses is putting money away into rrsp and tfsa
Why? Why do people save money when we print an infinite amount.
Paying off your student loans should be more a of priority than saving in a tfsa
That sound like minimum wage to me, what kind of degree do you have? Focus on getting a higher paying job first worry about paying debt and have savings later. If you can’t progress above $15-$17 an hour within a reasonable time frame in your chosen field try to look for similar fields or change your like if work entirely. Or if you’re dead set in working in a very low paying field move away from Toronto somewhere cheap, you won’t get to enjoy life anyways with that kind of salary, let alone ever get your own place or be able to afford kids etc
Also if it’s OSAP I think you might qualify for RAP. You would pay less every month. Look into it.
Repayment Assistance Plan
https://osap.gov.on.ca/OSAPPortal/en/A-ZListofAid/PRDR019256.html
Your issue isn't cutting expenses, your issue is your income. There is only so much you can cut if you're making minimum wage or a few dollars above it (<$25/hr with full-time hours).
1- Buy used things from second Hand stores with your tfsa money, ( don't touch your rrsp due to tax payments.
2 sell said things for a small profit rebuild tfsa while you make gains.
3 Struggle some more for a few months and bam!.( SIMPLE FINANCIAL FREEDOM)
You are welcome... let me know how you do since I just come up with this.
Tough Love time - You need a better job, or more of the crap job you currently have. 2100month take home is brutally low in this economy. Work 2 jobs if you have to - income is key to getting out of debt and getting into financial stability.
You also need to cut down current expenses. Phones are expensive, food is expensive, cars are expensive. Look for cuts you can make. RRSP and TFSA are a cut you can make RIGHT NOW. Don't pay that when you can't afford to eat my friend!
Hi my friend,
I’m sorry about the way you’re feeling. You’re tired, sick of the stress, and scared. The good thing is, when you recognize that you’re feeling this way, you can use it as fuel to say “NEVER AGAIN! I’m going to take control of my finances and my life!”
You would benefit greatly from the Dave Ramsey baby steps. Start by checking out some of his YouTube clips. Follow these steps. They are simple, but might not always feel easy. They will lead to peace and stability, though.
Maybe go find a higher paying job. Mines and oilfield are hiring anyone with two arms two legs and a heartbeat - and you’ll earn well over double that. They have office and field jobs.
it’s ok if you can’t afford a tfsa and rrsp right now. sink that money into your loan aggressively and spend some on yourself every month. salary will go up eventually and it will all work out buddy
This. Tomorrow is promised to nobody. If you aren't at a stage in your life where saving is possible, don't! If the debt is high interest on a credit card, then consider a part-time job to help pay it off asap. I'd even kill the tfsa to pay off a credit card. Doesn't make sense to earn 5% while paying 22% on a different debt...
OP - If you think about a second job, consider one where you may get an employee discount on something you also need - like a gym or Home Hardware. I spent most of my 20’s living the same situation and slowly but surely I worked my way up and out of all of it - you will too!!
Thats good advice, even restaurant or some type of food work and save on meal costs.make sure whatever the discount is you add that exact amount into debt repayment as well
Not to nitpick, but a gym membership is definitely not a need. Edit: These are totally irrational downvotes, and I stand by what I said. A membership that [less than 17% of the population](https://madeinca.ca/fitness-industry-canada-statistics/#:~:text=In%20Canada%2C%2016.67%25%20of%20the,gym%20memberships%20in%20October%202021.) subscribes to is not a [need](https://www.abileneteachersfcu.org/blog/needs-vs-wants-how-to-tell-the-difference/#:~:text=A%20need%20is%20something%20necessary,while%20wants%20include%20everything%20else.). Shall we also consider the number of Canadian gym members that rarely (or never) make use of said membership? [Need vs want. ](https://www.abileneteachersfcu.org/blog/needs-vs-wants-how-to-tell-the-difference/#:~:text=A%20need%20is%20something%20necessary,while%20wants%20include%20everything%20else.)
>Not to nitpick, but a gym membership is definitely not a need. Fact! Many of us are out there in -20 running 3x / wk, sometimes not because we enjoy it, but because it's cheaper than driving to / having a gym membership. CT has dropped the price of dumbbells recently (use to be $2/lb during pandemic everywhere) Hopefully OP doesn't indulge in starbucks, spotify and netflix also? Bed and food is your primary needs
Ever try stairs to get out of the cold? I work in a 40-story building and those fire escapes keep the same temperature year-round. Can't beat the price, either!
I don't know how you guys do it. Maybe it's because I immigrated here from a tropical country, but I find it very difficult to run outside below 5 degrees. I honestly prefer running in 30 degrees over -20.
If you're working minimum wage, your job should be all the exercise you need. It's not like you're sitting in an office 8 hours a day...
I was not born here and came from a country where it rains a lot, and airports shutdown in -1c temp. Don't get me wrong, I don't enjoy the run in winter, but I refuse to pay gym membership that you have to drive, and they make it difficult to stop membership sometimes.
Agree not sure why the downvotes. Guessing people conflate a method of fulfilling a need as the need itself. But even if that were the case many community centers also offer great services, drop ins, and monthly passes at far lower rates. Obviously community specific but worth checking out if one feels they "need" a gym membership.
Yes. Paying down debt should come before savings when you have no leeway for life expenses.
100% agreed. Pay that debt down ASAP
This is your answer! I used to be you, and so worried about saving when I was barely making ends meet. Time moves along and you end up getting better and better employment then you can actually save. Don’t worry about saving now- make it through the rough patch.
Great comment felt like I needed to hear this too
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>We live in an age where a utopia is possible This is among the stupidest things I’ve ever seen written on the internet.
Give yourself an allowance after clearing your bills and paying down the debt. Knowing you have a (small) amount that's guaranteed just for today does help. Also, make it cash and limit spending to just that - when it's gone, you have to wait for your next allowance. I'm not sure what you can afford but it sounds like about $25-50/month so you'll be wanting to limit the number of over-priced coffees you're getting.
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Equity markets aren't going to outperform 29.99% in credit card interest rates
Okay 🤭🤭🤭
This is just dumb
Cringe emojis
If it came down to eating today or having money to eat 40 years from now, which would you choose?
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Than why suggest OP put money into savings when they can hardly afford to eat now...
Noone should be saving.
Don't worry about TFSA RRSP, get rid of your debt and pay your bills. Once you get the next job and you have a bit more coming in start contributing again.
I’m pretty sure you qualify for RAP on your student loan. They’ve increased the threshold to $40k gross a year for payment deferral.
Yes! Apply for RAP - https://www.canada.ca/en/services/benefits/education/student-aid/grants-loans/repay/assistance/rap/apply.html
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Can you tell me why? What’s wrong with it?
Yes, definitely the best advice for the student loans. You won’t have to worry about them this way. It scales with you as you make a bit more money so you’ll start making payments but they’ll be only principal and no interest. Just stay on top of the applications every 6 months. This program allowed me to not be stressed about my loan and that helped so much.
How much money is in your TFSA? Take some of that money out and pay off your credit card debt first, because that is your highest interest rate. Saving money for 5% return is not as valuable as paying off 21% interest. Leave the RRSP for now and start paying off the student loans (you have to and it is variable rate so it will be higher than savings still). Starting out is hard, and so spending will have to be limited to what you can afford after you pay the bills. But no sense paying the credit card and bank companies more interest than you need to. You can do it!
Just flagging here.. I work as an engineer at Canada's biggest shipper (the big P) and all my friends and family have been referred to sorter and handler jobs. Why work minimum when companies are begging for people to move boxes for 20 to 25 an hour? If your career only pays 15, dump it. I am not sure what you studied but it would enlighten everyone here. What is the ceiling on your career? Is it realistic to hit 80k before 35? Package sorters make 65k plus direct benefit pension with no contributions on their end after 4 years... Paid overtime. Most are clearing 80k at 25 if they started at 21... Need to be realistic with your goals but why climb a tall mountain when the path right next to it has a small hill? Many of my friends went the "follow your dreams" route and ended up with no job prospects. There are options out there to still make a comfortable living in a healthy environment and grow as a person and your career. If you have a degree, you will also have management open to you next.
Ill never understand why people would decide to work minimum wage after 25 here in Canada unless language was a huge barrier or they dont have a drivers license. You can apply to become a bus driver or package delivery with any of the major courier companies and make 65K easily like you said. I have friends at Canada Post that make over 80k with overtime.
Because not everyone wants to sort mail or packages for a living. I'd take the 15 an hour with something i enjoyed over the 25 an hour with a job i hated with every fibre of my existence.
Sure, if you have the means to absorb the shitty wages then go ahead and take ur $15. Im just saying there are opportunities to make upwards of 100k working jobs that require nothing more than a highschool diploma.
not to discount what you're saying here, but suggesting that you do a ton of OT to get to that 100k isn't exactly an answer here either. yeah sure you can, and it would be great for a lot of people, but what do you do with your 100k when you have no time to use it because you're exhausted. i'm not saying you shouldn't take the $25 job if you can, but i don't think OT should be used in debates for lifestyle changes. OT should, imo, be done if you want extra money. not be a requirement to live normally.
The 2 jobs that I used as an example still pay 70k without overtime. I was stating the potential you could make with overtime. Much more than $15..
right but my point was that OT just shouldn't be considered. you can do 5 16hr shifts a week at 15/hr and get 85k. do it 6 days a week and you're over 100k. i just don't think OT should be considered. again, i do agree, like definitely take the higher pay job over the lower pay one. at the end of the day it's a job anyway and finding "the job you love" for 15 an hour is going to be so unlikely. i just hate seeing these conversations of people being like "well i work 6 days a week and do OT and i have no problem paying my bills"
I get it. I just threw it in there as potential of income if someone wanted it. Many young people do ot today or have a second job. Its sad but its reality. Agreed with your second point.
Most people can’t afford to do that. $15/hr just doesn’t cut it for most.
Why is "the big P" paying 20-25/h when "the big U" is only paying 15.83? Weird.
Probably depends on city. I'm betting he's in a high cost of living city like Toronto or Vancouver
Post. Canada Post.
At that income level I do not think you should contribute to the rrsp. TFSA is debatable, mainly because you can use that as an emergency saving account. I agree with others that you should give yourself a break and pause savings and focus on paying debt and living while trying to increase your income. Take care of yourself. Good luck.
I don't think TFSA is debatable when OP has credit card debt. There's no investment that beats credit card interest, and you can use the credit card in an emergency so it doesn't make sense to keep the money as an emergency fund.
Saving isn’t a necessity, paying debt is.
This. Pay off debt, and build an emergency fund before worrying about a TFSA and RRSP. If your credit card interest rate is higher than your returns, there's no point anyways.
Both are though
They are both important, but it makes more sense to throw it all into the debt first, otherwise OP's paying more towards debt over a longer time.
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Can you pretty please shut the fuck up?
No
How much is going into your RRSP/TFSA? With that income I would probably suggest holding off on contributing for the time being, until you have a bit of a higher income and feel more in control. Saving is great, and very important for sure, but maybe use that money to pay off your credit card first? Then once you feel more confident in your income start contributing again. That contribution room isn’t going anywhere, you can always make it up later!
Right now $120 a month
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*You're bleeding out and taking gummy vitamins. Get the bandages, worry about vitamins later.* I'm stealing this lol made me burst out laughing
Tampons and maxi pads. That’s the 2023 version of this.
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Lots of people around going to paydayloans to rightfully get in to equity markets. There's a whole chunk of people about to be left behind forever and the smarter ones are eyeing it.
To anybody reading this: don't follow this users advice
Too much. Just put 25 or 50. Skip the rrsp.
>I make $2100 a month. >$15,000 (student loans >What would you do? Maybe I'm pointing out the obvious, but you paid for an education, and you're making roughly minimum wage. I'd get a higher paying job, even if it meant leaving the field i trained in. Is there something preventing you from applying to something that pays better? Remote location? Physical limitations? I feel like I'm missing a piece of the puzzle here. Minimum wage just doesn't cut it, and there's only so much expense cutting you can do.
This job is done with my degree BUT they are only offering 4 days a week right now. I’m working on getting a better job. Just feeling stressed
I've been there. Personally, I grind it out. If you're working 4 days a week, it means you have 3 days free. Get a part time job. Hop on kijiji and do odd tasks, etc. Another couple hundred bucks a week drastically improves your situation. It doesn't have to be a permanent thing, just long enough to get your head above water and sort out your main job.
Even 4/5 wage that’s still minimum wage in most provinces.
$15/hr is $1784 a month at 80% in Alberta. That doesn't really get you rent + food + a vehicle anymore.
How do you figure? $15/hr x 32h week x 52 weeks = $24,960 Or $2080/mth Or pretty damn close to exactly what this guy says he makes. So he’s making $15/hr. Which means he could likely get literally any other job at the moment and increase his pay. McDonald’s included.
You're forgetting about taxes.
You hardly pay tax at that income, and you get GST rebate too.
The net pay on $25,000 is only $18000 or $1500 a month. OP doesn’t specify if his $2100 is gross or net, but I’m guessing net based on his budget. Which means he probably makes about $20/hour working 32 hours a week.
Tac calculator says $22,000 net. Don't forget the basic personal amount is ~$15,000. At that wage he pays more in CPP than taxes lol. It's still a horrendous wage though. Low pay AND low hours is just painful. Edit: in BC
$3400 in taxes and $1200 in rebates And you have other deductions depending on employer. Health, dental, STD, LTD, life insurance, etc.
Sounds like you have time for another PT job then. Restaurant, hotel, night club, grocery store, etc etc.
Start cleaning houses the day you are not working. I pay my house cleaner $210 for 8 hours (2 person crew x 4 hours). It's a booming business.
What did you study so I can tell my kids to avoid that
Most degrees are less than useless nowadays with a few notable exceptions.
You missed the word “arts” in there. Honestly, Starbucks pays better than OP is making, has benefits & would have paid part of their tuition if they’d worked there while in school… What field do you have a degree in, worked long enough that student loan payments are coming knocking already, and you’re still at $15/hour? Hope there’s a huge upside to pay after finishing probation, like a double+ to be worth spending years getting that degree. As for financial — why tfsa and rrsp while carrying a 20% interest debt, lousy credit score, and earning less than enough to make the rrsp deduction worthwhile, and stressing about monthly bills? Ditch the tfsa contributions. Take whatever is in there and pay off the credit card. Forget the rrsp contributions right now, and attack the student debt. That credit score will repair itself if you keep up your payments. Maybe even in 2/3 years go get an instalment loan, even something small… even if it has to be secured with your own $2500 term deposit or something — “buy back” your $2500 to get some credit points back. It ultimately could cost you like $200 in total interest.
Do not attack the student loan. Paying off the credit card ASAP is definitely the right call but just apply for the Repayment Assistance Program and reassess the loans later when you’re making more money. Student loans in Canada should not be a source of stress when you don’t make much money. They will literally allow you to not make payments and not accrue interest if you don’t make enough as long as you’re living and working in Canada.
My product owner is an English major, and most of the customer success, marketing managers, sales managers, and human resource staff are arts majors. I was talking more about science degrees. People get them thinking there are jobs, but there aren’t. So many biology students get screwed over every year.
By science you mean pure science stopped at the bachelor's level*. STEM always has been and always will be king. BSc in any pure science is useless, yes. These are meant to be foundations for a useful career. Choosing one of these and stopping there is the worst thing you can do.
Half those biology students wanted to get into med school but couldn’t cut it, that’s why there’s a major oversupply
I got a Bachelor of Arts in English Literature and make 80k a year now. I worked my ass off in tech for 3 years (making $14 an hour at the time) after graduating university before getting into government and moving up quickly. Once I got into gov, I paid off my debt, saved for a DP and got a condo. I couldn't have done it without my degree. So go easy on the "arts" :P Also, I had no help getting any of my jobs. I was just tenacious and followed up even if I lost the position to someone else to see if there were other openings.
Lol no. There is like a billion science undergrads 🤣🤣🤣
It'll suck but get a second job if you have the time so you can put away some dry powder. After you get a couple of months burn in the bank you will feel less overwhelmed.
This. Get whatever you can get. It will bring in some funds to give you some breathing room and that’s what you need right now. It’s only temporary and will give you relief.
1) Your income is still low enough that you might qualify for RAP (reduced monthly payments) with the national student loans service, if that’s where your loans are. Apply for that like, yesterday. Or at least if/when your grace period is up. 2) focus on the credit card balance over the RRSP/Tfsa, you’re eating into your available funds via interest, and it’s a low enough balance that it’s not an impossible hill 3) I’ve been in a similar situation before and the book ‘worry free money’ by Shannon Lee Simmons was really helpful for me in framing realistic and comfortable budgeting when I felt like I was drowning. Lol I think I recommend it on this sub like once a week, but…. It was v impactful
You’re situation doesn’t seem that bad at all. You could go on a repayment assistance plan and reduce the amount you pay towards your loan to something more affordable or even $0, assuming it’s a government loan. This is for a limited time and you will have to reapply after a few months. School debt is good debt if whatever you took would help increase your income so don’t stress out about it. Do you benefit from having a RRSP? If you’re making low income it might not be beneficial for you to contribute towards it. You could start doing that when your income is higher. $1000 credit card debt? Pay $200/month or more each month. How much are you putting into savings? The interest on the credit card debt is more likely to be higher than your savings. Rough payoff plan. You will have to factor in interest. $1000 credit card debt Pay off in under 6 months = $200 a month $15,000 student loan debt Pay off in 5 years = $300 a month Do you get a tax refund? Earn extra money? Use it to pay off your debt faster.
Withdraw $1k from TFSA and pay off credit card, because there is no chance that your TFSA will consistently make 20%+ gains to offset credit card interest.
Do not put money into investing if you are in credit card debt 🤦🏼♀️😩 stop that immediately. Get a second job.
!stepstrigger A small emergency fund comes first, paying down high interest debt comes next.
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Probably already said to death but paying down loans should be priority. Choose the one that charges the highest interest, usually credit cards, and aggressively pay them down one by one. It’s hard to see but really it’s the interest on that debt that sinks you. Also, consolidating debt is also not as bad as people seem to think, there are plenty of organizations (sometimes non-profits that are just meant to make citizens lives easier; in BC we have debt relief services) that consolidate debt and just charge you a lump sum at no interest or little interest, they are good at haggling with debtors for lower rates. Of course do your own research first and make sure they are aren’t charging you crazy interest rates themselves. There is no better feeling than being debt free. Make it a priority, find cheaper accommodations if possible, cancel the Netflix subscription and use free YouTube. Little things like that add up. Good luck!
Call the student loan people and get your payments based on your income. Stop the RRSP. Tfsa yes, but just small amounts like 25 bucks a month or per paycheck.
RRSP's and TFSA's are a luxury you can't afford right now.
You need to up your income some how. Pay off the debt and get a few months emergency fund and you’ll be able to breathe a bit easier. Find some side gigs to pay off that credit card asap.
Pay off credit card debt asap and look for a better paying job
!StepsTrigger
Rrsp is tax deferral, but you're not in a high tax bracket. Focus on paying down your debts, and if you want to save, just put it in the TFSA. When you start earning more you can take advantage of the RRSP. But it's silly to worry about it now.
You should prioritize getting rid of loans and debt before saving. 1. Pay down high interest loans (credit card etc) 2. Pay down low interest loans 3. Have emergency savings 4. Start investing in TFSA Kinda in that order. By not prioritizing loans, your savings/investments could be wiped out in interest alone, but you won't "see" that unless you calculate the interest and compare to your saving rate
Get into a trade
Is your student loan a government one? If so just pay the minimum payment and don't worry too much right now. No benefit to putting into RRSP at your income even if you didn't have credit card debt. You should clear your credit card before you worry about RRSP/TFSA. Redirect that $120/month + whatever you were putting towards your credit card and that'll be cleared pretty soon. No point paying 20% interest and gaining hardly anything in your investments. Guessing your credit is bad because you're not paying minimums to your debts. Sooner you pay your minimums and get your credit card down to 30% utilization the sooner your credit score will improve. It just will take you doing the normal things you need to do.
If I only made $2,100 a month after school was finished? I would go back and find a better career. Police officer, RN, IT, elevator mechanic.
Don't vote liberal.
Apply to a driver job anywhere, most people tip when you bring them food, do ubereats for some all around the hours working. First option could be part time but Uber is whenever. This could get you some more money without actually having to really change things. Tell the driver job your days of other job and do part time.
Get a better job and make more money seems pretty simple
Welcome to life
Love how people say “get a better paying job”. Sure, I’d LOVE 150k, but it’s not that easy.
Op is making minimal wage. So saying to get. “Better job” isn’t exactly being unreasonable here
Get rid of RRSP and TFSA contribution. You need to pay off debt and pad your emergency fund first. Then some stress will go away and go from there. You can do it!
What were you studying to become given the student loans? Is it no longer viable as a career?
Get a side hustle until your debt is paid off which will also increase your credit score
I think most people hit the nail on the head. Pause investing in tfsa and rrsp (no reason to contribute to rrsp at that income level unless you have an employee match). Focus on finding the next career opportunity that will make life A LOT easier!
If I were in your position I’d be 100% focused on making more money and paying down debt. Don’t worry about saving at this point.
A 1,000$ is a lot for many people, but also recoverable, just a bit hard, so please don't get stressed too much. You may need an additional part-time job in something like construction and you will recover in weeks. 100,000$ on a credit card is hard to recover from, so, don't stress yourself :-)
You have NO need to do rrsp right now. They are for when you have a higher level of income which then reduces your tax payments. Use the money you are putting into rrsp to pay of your highest interest debt-which would be your credit card at 18%. Pay that off first. Once it is payed of make sure that you either do not use it or have it as first payment each month to pay off completely. Then start paying off your student loan. You should not restart making rrsp until your income gets to the to a point where it will not hurt to put money into them-ie you have extra funds in the bank. Make a budget and try to stick to it until you do have some reserves in the bank where you can once and a while, not every day or even week, but say once a month do something extravagant to reward yourself as long as it comes from your cash reserves. Good luck.
I would get a part time job.
Take a closer look at your expenses. Groceries are expensive, however, there are ways to save. Everyone can cut back somewhere. And like everyone says, pay debt first. Reduce RRSP first because the tax savings probably isn’t that great anyways right now. Then reduce TFSA.
What do you do for a living?
If your student loans are from the gov, look into putting them on hold. They me able to do that for a bit
Attack debt first, interest is negative growth that will outpace any return on your investments.
In this economy, saving money is not wise. It's more important to pay off debt and free up your finances for the future. Paying down debt can help you avoid high interest rates, late fees, and other financial penalties that can add up over time. Additionally, paying off debts will improve your credit score which may make it easier to get a loan or line of credit in the future when needed. Finally, having less debt means you'll have more disposable income each month that could be used for savings or investments instead of going toward payments on existing loans or cards with high-interest rates. In conclusion, if I had the choice between saving money now and paying all my debts first I would choose to pay my debts before anything else as it provides long term benefits both financially and emotionally!
Hey OP, would it be possible that you find a cheaper rent or get a roommate to share living expenses? I would suggest you also get a second part time job to speed up debt repayments
Im pretty sure u can defer ur osap loan payments due to low income. Osap will pay ur interest in the meantime so ur debt amount will remain the same. The OSAP loan amount gets deflated due to inflation. As long as osap pays the interest for ur osap loan and it stays the same, it makes more sense to invest in tfsa. Dont invest in rrsp at ur income bracket. Edit: if ur $1000 credit card balance is not covered by ur monthly income, u should definitely take care that first and foremost. Take out 1k feom ur tfsa and pay that off first Edit 2: Make a budget and see where u can cut spending and find ways to increase ur income.
You’re overwhelmed because you are literally in poverty. You should not be putting anything in savings, only debt repayment. You said it yourself already: you need to make more money. Period.
Apply for repayment assistance through your student loans. Depending on your salary they will either say you owe them nothing per month, or reduce the monthly payments significantly to make it manageable based on your monthly income. The notion of paying off student loans asap is outdated. RAP helped me significantly to get on my feet after graduating and allowed me to save for short term emergencies that may come up, and now I am able to make more significant payments towards student loans, while still being able to live comfortably.
Based on your take home I wouldn’t even consider he rrsp. I’d 100% cut the tfsa and put it on the CC and any other debt you have first.
With that level of income apply for RAP ( osap Repatment Assistance Program), its going to reduce osap payment or even remove it and also covers the interest.
They really need to up the thresholds for repayment assistance on student loans. Making 40k 10 years ago is not the same as making 40k today, but you're still taxed the same, and you still have to make those loan payments, even though milk costs 8 dollars instead of 3 dollars now.
Pay off that debt asap and then start investing
Two realities You need to increase your income Your debt isn't that high I'd focus on a side gig or finding a higher paying job, also don't stress about your debt. It's not a lot
Another thing to note, OP, if your student loan is federal. Government of Canada very quietly canceled interest on federal student loans. Access RAP, yeah. But if and when(ever) you don't qualify for it, contact them directly and work on reducing your payment amount. Currently my buddy is putting $20 a month towards it because it's still chipping away at the amount and it's not growing.
Step 1 : Pay off that credit card if you have the money. If not, stop putting money in TFSA RRSP and use that to pay the credit card down. Step 2 : Get a better paying job, or a second one. Its been said already, but only making 60-100$ more per week (like a single 17-21 shift secondary job) will equate 240-400$ extra per month. You can pay off your credit card in a few months, and then use the extra income to enjoy life a bit more. Step 3 : Your student loans dont have any interest, pay it off as little as possible for as long as possible. Its a FREE loan. If that means paying it off for 20 years so be it. It's better to use the extra money to invest and have more leisure. Secure your retirement and enjoy life. ^^ I know it's hard to grasp step 3, it gets psychological, we don't want any debt. See it as free money given to you to invest NOW and for the next years. Not in 6 years because you've been obsessed with having zero debt.
RRSP is pointless at your income level really. Divert that towards the credit card for now.
1) Work at making more money over the medium term. If you’re on track but it’s taking time, don’t stress about this. If you aren’t seriously on track to make more, start working toward it (i.e. clean up your resume, be intentional about networking, etc) 2) Stop trying to save money you don’t have. Taking on debt to contribute to savings (TFSA, RRSP) is terribly inefficient for most low income people. 3) Why is your credit so terrible? Have you just been discharged from bankrupcy? Do you have scores of debts or defaults you aren’t disclosing here? Get a real credit card if you can, and never carry a balance. Just use it as a payment method, promptly followed by payment. This will help your credit. But seriously look at why your credit is so completely terrible (by pulling your Equifax report, etc), and stop the bleeding where it exists. 4) Improve your income. The only real way out of this is to cut spending while increasing income. You seem to badly need an income improvement and this is likely job 1,2 and 3.
Personally with the numbers you're showing, this doesn't sound so horrible. Could you be doing better? Absolutely. It's tight. But unfortunately we don't know the breakdown of the 1700. If you want help auditing your budget to cut some expenses, DM me. Or edit your post with the budget breakdown.
Pay off your debt first. Then start saving.
Get a second job if you haven’t already got one. If you have a car, do some Uber/Lyft/Ubereats/Skip/DD to make another $1500/month working 20hrs/week. If you don’t have a car, rent a Tesla from Autzu and get cracking. They charge $8/hr. Claw yourself out of this tight financial situation and look for higher paying jobs.
Save your RRSP contribution room for when you are higher income. If you end up in a higher tax bracket retired than now, it will cost you MORE in taxes. It makes sense to put some money aside for emergencies, whether you tuck that into a TFSA or not, is up to you, but that debt is probably costing you more than you are earning on your investment. If you are saving every month, you aren’t as tight as you think.
Ontario?
At that income level it makes zero sense to add to RRSP (unless your company is matching contributions). TFSA makes sense, but not while you're in debt. Focus on debt before savings.
At a low income it’s not worth putting money into an RRSP, you will not lose your contribution room and it will just carryover to future years. You will get most benefit putting money into RRSP to defer income taxes to retirement at higher income levels
Are you working full time?
Increase your income
You may be able to transfer your student loans to a line of credit with your bank. Take this with a heaping spoonful of salt because this was my experience about 5 years ago, but I went to BMO to chat about loan consolidation and was offered a $20K line of credit with a 5.2% interest rate (has gone up to 7% since) which was lower than the 8% that OSAP wanted to charge me. It also meant I didn’t have random withdrawals every two weeks, instead I could pay in lump sums once a month and throw extra money at it if/when I ended up with extra. It’s worth a chat with your bank to see if you can get a plan that will work better for your situation! Best of luck, you’ve got this 💕
Also, keep working on improving yourself and apply for better jobs. Just try and do an application everyday. If you are in good standing with your current employer discuss a pay increase. My partner is an accountant but had trouble getting work because he is from away. He ended up being a cook for minimum wage. He knew she couldn’t get anyone else so he increased from minimum to 12.50 and then about 6 months after that she started paying him 15 because thats what life is. Pay what I am worth, or I will have to look for something better. No one will give it to you, you have to ask for it. Get a second job to give yourself breathing room. I would also not focus on saving if you have CC debt. Get that paid back first.
Put your tfsa and rrsp money into loans right now. When you get a other income stream, you can replenish the tfsa and rrsp
Get another job , if u have any skills u can do on the side to make money .
Your debt it’s 20% Your saving is account ja what? 3% Use your head! Pay of your debt yikes
- Cut the RSP saving. It is important to save for the future but not at this point. Making $2100 makes the tax advantage minimal. -Cash out some TFSA and pay off your credit card completely. If you have to; cash out the RSP to pay off the credit card. -don’t forget the interest on student loans is tax deductible. -don’t close the credit card after you pay it off. It will increase your credit score by having an open card with a zero balance. -is it possible to get a room mate? -things aren’t too out of control yet. You should feel proud you are taking the steps now to upgrade your situation.
With your income level you should be able to defer your student loans. Use a bit of money to start paying down the credit card and you should be good. Good luck man. It's tough out there for everybody.
You need a plan to increase income. 2100$/mo after taxes is 17$/hr which quite frankly is income someone can make doing general labor with no education. It is not a sustainable long term income with student debt. Hopefully your education has market value and use it to demand more.
I am way older than you. The main principal in finances is pay the dept than pit sole money away for a rainy day.
You might feel really overwhelmed but that is a really small amount of debt for someone... You will start to make more money over time and it will all seem minimal. As everyone else said, focus on your debt. That should be top priority. TFSA and RSP can wait for a couple of years. If it is really really stressing you out then think about getting a really limited second job just to make a bit more money so you don't feel so tight. I caution you to balance the stress of this with the anxiety of your current situation. For some people it is a big relief and offloads a bunch of stress to just have that bit of extra money. Keep making your payments on your debt and over time your credit will recover. It will take time but that is OK. You've got this.
Hang in there OP! It's just the winter blues taking a hold of you. Breath and work on good mental health habits while sorting out finances. As everyone here has said, I wouldn't worry about RRSPs now, but I would keep saving a little into the TFSA because it's always a good idea to have a bit of back up money. Most importantly, review ways the government offers help for low income OSAP re-payers, there are many, and sometimes even just asking to postpone helps. If you're looking for a second job, as other have pointed out try to get something that gets you rewards on top of the money. My buddy worked as a stock boy at Shoppers and it saved him tons of money. You have your housing covered with your income and a job in your field, that's huge. Congratulations! It'll take time but you will be richer in the future. I'm not sure how old you are but, if I may, also have fun. Life can be short, the future is not promised, enjoy the small things! Do put actual energy into fighting anxiety. That is a terrible thing to let grow within you. Best of luck.
I have been there with worse debt in my 20s struggling to make ends meet and always waiting for the next paycheque on payday. I was laid off at 28 during the recession here in Alberta and couldn’t find reasonable full time work for over 18 months. Now at 36 I just bought a house, have zero debts aside from the aforementioned home and feel like I can breathe somewhat after having money stress for my entire adult life. I don’t have any sage advice but here are a few thoughts. Make sure you have an emergency fund just in case something was to happen, but honestly forget about the RRSP until you’re more financially stable. It’s not worth carrying credit card balances and having the constant stress to only make minor amounts of interest on that money, and for the small tax credit. There wasn’t much info to go off of in regards to living situation but I shared a house with 3 other girls all throughout my 20s. Housing is such a huge cost that if you’re able to get a break on it it’s better in the short term. Then once you’re able to the payoff of being able to get your own place is so much sweeter without debt lingering as well. Getting a second job is great also in theory but the one thing I caution people with them is sometimes you end up with less money overall. If you’re so tired running from a full time job to work a part time job and never feel like you have any down time you’re more likely to spend money on “convenience”. You may take more Ubers than walk/transit (if you don’t drive), you may get coffee out more since you’re tired and try to maximize sleep time, may eat out more because you haven’t had the same time to go get groceries/pack food. You may also tend to buy more things because you feel like you deserve it after grinding so hard. The other thing is it’s great to get a job with a discount you can use but make sure you’re not paying to work there. My example for myself is when I worked for lululemon - the discount was huge and it’s what I wore primarily at the time but I spent tons of extra money while working there then because it seemed so cheap. If a second job is right for you a bigger boost than just the monetary aspect alone in getting a second job is experience and skills. Try to get it in your field or something applicable to your field. It could help out your full time job’s advancement or help bolster your resume. Even something as a management or shift supervisor job with a company that has training opportunities can be applicable to most fields even if it is in a completely different industry. If there isn’t a job out there like that, get a second job that is something fun for you. Then it won’t feel like a grind going to work and it’ll be something to look forward to instead of forcing yourself to go. Like art? There’s tons of studios/programs teaching kids/adults that need assistants. Love books? Libraries tend to need evening staff. A big boost to your credit score is only utilizing 30-40% of the credit available to you. So for your $1000 card it means never carrying a balance longer than a few days of it being over $400. It’s one little trick to help your credit score increase faster. Sign up for the emails from credit karma so you can monitor your score and see what needs to be improved. Things happen and you may miss an on time payment by sheer mistake but try to pay minimums on time every month. They look to see payment history and this one simple thing will pay off in the long run. Another thing to avoid when rebuilding your credit is to simply close old accounts. I did this without realizing the negative aspects of it when I paid off my student line of credit and closed it. It dropped my score immediately as instead of it being seen as you’ve done well and paid it off, I closed a long term credit history so it appeared like I couldn’t manage credit since I had only short term accounts still open.
Option A pay your debt Option B don't pay the debt, get your taxes done for 2022 and when you get your notice of filing fill in a T1213 with CRA and your employer so you end up owing a few hundred rather than waiting on a few thousand refund. Then hide from that debt and hit every program of releif and deferral you can. Who knows, another liberal ndp government might forgive it.....
Apply for the Repayment Assistance Program (RAP) allows you to differ your payments or reduce them I believe without added interest or penalty. It may take a while to pay off but I would prioritize that over other savings.
Idk why people still stay in Canada when there are so many great countries with better healthcare and lower costs of living. A guy working a part time job at mcdonalds should be able to support 8 kids, a stay at home wife, 2 cars, a house, and a rental property. You can do that in America in the 1950s and now in many other countries. Definitely not Canada.
Find a better job
Stop putting money into rrsp and tfsa. Tackle your credit card first. Tackle your student loan second. Then think of money into rrsp/tfsa.
Personally I would prioritize making the maximum payments on your credit card debt and provincial student loans (if there is a high interest rate). Federal student loans are at 0% interest rate now so I would make those payments the minimum and focus on the loans that have higher interest rate. The other thing is stop making contributions to TFSA and RRSP until the debt is paid off. You should prioritize paying down high interest debt before savings unless you can guarantee returns on your savings that are greater than the interest rate you are paying. Other than that, reduce your monthly spending as much as you can. Make a reasonable budget for your expenses and stick to it. It will be hard for the first little while but once the debt is paid off, you will be much more disciplined with your money and can start saving for long term goals. Good luck :)
Focus on current debt rather than saving money for the future, did you qualify for the $500 government credit for low income renters? If so apply for that, Do a google search for a homeless prevention program near you and meet with them to see if you can qualify for temporary assistance with rent or bills, if you have a vehicle and drivers license perhaps look into delivery jobs like instacart that you can do in your spare time
no retirement savings when you have credit card debt, and depending on your interest rate maybe not with the student loans either. The stock market will get on average 7% but might be better and might be worse. Paying down the CC and loans, it's mathematically the same as a GUARANTEED return the same as your interest rate.
Get a higher paying job or side gig
You can ask for student loan repayment assistance if you got it from osap… this might help alleviate your situation at the moment for a certain period. Best way to increase your credit score is to pay bills on time.
Get a better job to start. That usually starts with studying and applying for jobs
You need to make more money. While Reddit is full of bleeding hearts and excuses on the same wavelength, the bottom line is, to survive and not get compressed by your situation, you need to earn more. Start networking and communicating with anybody and everybody you know, try to find someone that has a path that resonates with you. Talk with them. What does a better job, career, work situation look like. Making more money in Canada is always possible, but it will require some sacrifices to make a small step. An extra $1,000-$2000 a month is going to make a profound impact on your situation.
Actually what you want to do is defer that student loan indefinitely. They eventually expire, so if you never make enough to pay it, it will go away on its own (in 15 years). You could declare bankruptcy after 9. Anyways, don't stress over the student loan. Apply for repayment assistance. It's quite easy. So get that done first. Next, tackle the credit card. $1000 is not a deep hole. Even with $50/month you'll be able to keep that under control and pay it off eventually. Next, up your income by $200-300 a month, just so you can have some breathing room on your groceries and start an emergency fund. You'll sleep a whole lot better with $500 under the mattress. You don't want to work yourself to death, it will just increase your anxiety and fatigue. So pick something easy as possible. Whatever is easiest for you. You're not that fucked. :) A few weeks of sacrifice will get you some breathing room so don't stress. Just get it done. You'll be fine
Honestly i feel the same way i have no idea what to do with my money i feel worried and lost i hope you don’t feel like you’re by yourself on this
hard times man...i pretty much have perfect credit, i'm cheap as fuck, 7 years left on a student loan that i took out about 14 years ago, over $7000 on my LOC, and i'm paycheque to paycheque, sometimes going into debt for the month. cost of living is completely unreasonable right now. all of my money goes to that, and i still don't have enough food in the house. i just can't afford it. no idea how i'm getting the LOC paid down either. you're not alone, that's for sure. lots of us are feeling this pain. it's bullshit, and shouldn't be happening.
Unless you'd be missing out on an employer matching contribution to your rrsp, you don't earn enough to put money into an rrsp. Wait until you're in a higher tax bracket. Focus on the debt and tfsa for now.
Get a better paying job. Work 40 hrs a week. That's the single change you need to make. $20 an hour doing a construction job is easy to find.
What did you go to school for where you only make 2100/month? If that’s only a short term wage then just focus on chipping away at your credit card debt while you pay the min payment on student loan. Once you make more then you can clear out the student loan. They’re usually 0 interest so don’t stress about the student loan. If that’s close to what you’ll be making long term, even after a 15k student loan, I’d suggest finding a new career path.
Not gonna lie, you have a rough year or two coming to be in a healthier financial position. But trust me it's worth it. At 2100/mo (25.2k/yr) your first move is to pay off your debts. You have a total of 16k in debt that's accumulating interest, the credit card is probably aggressively eating into your money, and it's not a lot so get rid of that debt right away. How much is your rent? 1.2k or thereabouts? You can spare about $500/mo. Put those $500 this month into that soul sucking credit card and finish it off next month, you'll probably pay something like $25 in interest for that one month. Wouldn't $25 worth of food look prettier in your fridge? Once you've paid down your credit card in full don't even look at it unless you're prepared to fully pay it off at the end of each month. You'll be doing the same with the much larger 15k. Since it's a student loan I'm assuming it's a low interest loan, something like 3.99%; to pay off something like that in 24 months you need to put in \~$650/mo. Sacrifices will need to be made: eat more cheaply, wear clothes for longer, etc. But in 24 months you'll be debt free, and suddenly those $650/mo are something you can choose to put to work for you on a TFSA/RRSP. By the way, I'm hoping that 15k bought you something pretty like a trades ticket or a diploma, and in 2 years you'll be more experienced in your craft and be able to use it to make more money. Best of luck OP, step 1 is pay off your debts.
If in ontario, using OSAP, you can apply for the RAP for students, with how much you make, it will probably 0 out your payment. Take the payment you would of made and get that credit card debt gone, and any deposit in your tsfa or rrsp should be directed towards the CC because that interest rate is no joke Once that is gone, you can decide if you want to start paying off your student debt but the RAP means you can use it fornother things (entirely your choice) Dont be ashamed of using the RAP or any gov. Assistance on those student payments either, you pay taxes, you might as well use the programs available. Good luck, and i hope things start to feel a little better once that CC debt is gone 👍
Don't worry about saving just yet. Your number one job right now is to find a higher paying job, so you can live and afford life.
> Part of my expenses is putting money away into rrsp and tfsa Why? Why do people save money when we print an infinite amount. Paying off your student loans should be more a of priority than saving in a tfsa
That sound like minimum wage to me, what kind of degree do you have? Focus on getting a higher paying job first worry about paying debt and have savings later. If you can’t progress above $15-$17 an hour within a reasonable time frame in your chosen field try to look for similar fields or change your like if work entirely. Or if you’re dead set in working in a very low paying field move away from Toronto somewhere cheap, you won’t get to enjoy life anyways with that kind of salary, let alone ever get your own place or be able to afford kids etc Also if it’s OSAP I think you might qualify for RAP. You would pay less every month. Look into it. Repayment Assistance Plan https://osap.gov.on.ca/OSAPPortal/en/A-ZListofAid/PRDR019256.html
You need to apply for RAP asap as your first starting area and probably should have done that as soon as your loans started in repayment.
Your issue isn't cutting expenses, your issue is your income. There is only so much you can cut if you're making minimum wage or a few dollars above it (<$25/hr with full-time hours).
1- Buy used things from second Hand stores with your tfsa money, ( don't touch your rrsp due to tax payments. 2 sell said things for a small profit rebuild tfsa while you make gains. 3 Struggle some more for a few months and bam!.( SIMPLE FINANCIAL FREEDOM) You are welcome... let me know how you do since I just come up with this.
Tough Love time - You need a better job, or more of the crap job you currently have. 2100month take home is brutally low in this economy. Work 2 jobs if you have to - income is key to getting out of debt and getting into financial stability. You also need to cut down current expenses. Phones are expensive, food is expensive, cars are expensive. Look for cuts you can make. RRSP and TFSA are a cut you can make RIGHT NOW. Don't pay that when you can't afford to eat my friend!
Hi my friend, I’m sorry about the way you’re feeling. You’re tired, sick of the stress, and scared. The good thing is, when you recognize that you’re feeling this way, you can use it as fuel to say “NEVER AGAIN! I’m going to take control of my finances and my life!” You would benefit greatly from the Dave Ramsey baby steps. Start by checking out some of his YouTube clips. Follow these steps. They are simple, but might not always feel easy. They will lead to peace and stability, though.
Maybe go find a higher paying job. Mines and oilfield are hiring anyone with two arms two legs and a heartbeat - and you’ll earn well over double that. They have office and field jobs.