Eliminated $17,223.10 Worth of Debt in 10 Months

Eliminated $17,223.10 Worth of Debt in 10 Months We were wondering who would do us the honor as our very first success story on We Beat Debt! It was heartening to come across so many stories from people who had faced the debt demon and overcome it (which also means lots of stories to come!), but when we chanced upon krystalatwork and her remarkable story, we knew we didn’t have to look any further.

After graduating from college in 2006, krystalatwork found herself saddled with $20,000 worth of student loans and credit card debt. Like many college students, she had gotten used to the ‘charge now, worry later’ lifestyle. It wasn’t until debt collection agencies came knocking on her door that she decided that enough was enough. And in an amazing turnaround, she cleared $17,223.10 worth of debt in 10 months and is now working towards a down payment on a condo. She’s only 24.

Learn how she eliminated debt after the jump.

The steps she took to reduce her debt:

Moved out of a $600/month apartment to live with her parents for just $150/month
Delegated $1000 of her $2,100/month paycheck to pay off debt, which increased when she got a higher-paying job
Deposited $50/month into an Emergency Fund and Registered Retirement Savings Plan (RRSP)
Sold her car and bought a scooter which reduced her insurance premiums from $80/month to $15/month and saved her gas money
Kept to a $30/month dining out budget and $25/week groceries budget

Living a frugal lifestyle and budgeting were definitely keys to her success, but it was her attitude towards her situation that made us sit up and think:

I’ve gotten a bit of heat from people about being too “extreme” about my budget and not having a life because I’m afraid to spend money … I guess everyone has their own way of dealing with debt, but the way I saw it is, I got myself into debt, so I didn’t deserve the niceties I was so used to spending on myself until I got myself out of debt.

What a great attitude, especially for someone so young. Best of luck, krystalatwork! We look forward to the grand day when you place that down payment on your first home.

Read more about krystalatwork’s financial adventures on her blog, Give Me Back My Five Bucks.