2corinthians1114
New member
I lost everything during Covid and made some really dumb financial mistakes in the last couple years. Over the past year I’ve been making strides to get my finances on track, but needs some advice.
1) I have $3700 sitting in an RRSP with work. I owe Money Mart (yup I’m an idiot) $3800 on an LOC I took out in 2021 I took out to by cryptocurrency (yes I’m that stupid) the value of which went to $0 shortly after. The LOC has a 49% APR, I’m paying about $180 a month on that debt and barely putting a dent on it. Although I’ve got my spending and budgeting under control this debt looms over me. I’m thinking about withdrawing my RRSP and paying the capital gains and clearing out the LOC and closing it. Am I wrong to assume the loss from paying tax on it and the long term interest gains lost is out-weighed by the money I’m haemorrhaging to a payday lender?
2) I get a secured credit card from Capital One for $1000 to help build good credit, with a $68 annual fee, it’s always maxed out. I went to close it and get the $500 I paid to secure it to put towards this debt or my remaining student loan that’s sitting around $3800 (that I haven’t paid in a year because they aren’t charging interest and it’s not reported to the credit bureau and I’m really fucking broke). I feel like my credit is kinda screwed anyways and I’d rather just get out of debt and build up my savings before I get a credit card. I only make min payments. Is there any advantage to keeping it?
3) On top of that I borrowed $3800 from my parents that I need to pay down more aggressively for peace of mind at family dinners but they are cool with waiting until I get the debts above under control.
Any advice for the very dumb person I am will be appreciated, even if you just roast me.
1) I have $3700 sitting in an RRSP with work. I owe Money Mart (yup I’m an idiot) $3800 on an LOC I took out in 2021 I took out to by cryptocurrency (yes I’m that stupid) the value of which went to $0 shortly after. The LOC has a 49% APR, I’m paying about $180 a month on that debt and barely putting a dent on it. Although I’ve got my spending and budgeting under control this debt looms over me. I’m thinking about withdrawing my RRSP and paying the capital gains and clearing out the LOC and closing it. Am I wrong to assume the loss from paying tax on it and the long term interest gains lost is out-weighed by the money I’m haemorrhaging to a payday lender?
2) I get a secured credit card from Capital One for $1000 to help build good credit, with a $68 annual fee, it’s always maxed out. I went to close it and get the $500 I paid to secure it to put towards this debt or my remaining student loan that’s sitting around $3800 (that I haven’t paid in a year because they aren’t charging interest and it’s not reported to the credit bureau and I’m really fucking broke). I feel like my credit is kinda screwed anyways and I’d rather just get out of debt and build up my savings before I get a credit card. I only make min payments. Is there any advantage to keeping it?
3) On top of that I borrowed $3800 from my parents that I need to pay down more aggressively for peace of mind at family dinners but they are cool with waiting until I get the debts above under control.
Any advice for the very dumb person I am will be appreciated, even if you just roast me.