What would you do if you had to leave a bad situation and start over? What if you had six children to bring with you? Many of us wouldn’t know where to start.
However, Miracle* made sure she didn’t let fear of the unknown prevent her from taking care of herself and her children, nor did she let her situation break her spirit. Miracle took her children away from an abusive, domestic relationship and moved from the United States to Canada. This is her turnaround story.
Once Miracle left her abusive husband and moved to Edmonton with her six children, she began to accumulate debt. The normal way. Kids have needs that can’t wait for a paycheque, especially for one parent’s paycheque with no child support coming in. Miracle made sure her children got what they needed, but that meant carrying high-interest credit card debt. Miracle is the type of person who did not want to receive handouts, so she didn’t look into any social assistance programs that could help bridge the gap.
It wasn’t until she became injured and unable to continue working at the daunting pace that she had been, that things started to pile up. Her mortgage payments fell behind. Her bills fell behind. Even though she was injured, Miracle did not want to receive disability. She feared the stereotype of a single mother with six children receiving ‘free’ money. That was when she was referred to Parley Consulting.
Miracle had $20,000 in debt to clear up and ended up paying $6,000 with a consumer proposal. There is a ‘sweet spot’ for being in debt, the minimum being $10,000 for a proposal, and she did not have enough debt for a bankruptcy trustee to even bother with her case. In this instance, Miracle could have used the equity in her home to relieve her debt, but it would have meant selling her home. That was something she absolutely did not want, as it would probably mean that her children would need to go to foster homes. Unfortunately, being in her own home meant she couldn’t receive government assistance either. With no home, it would be impossible to raise six children. However, Miracle wanted more than anything to get out from under her debt, control costs with a budget, and move forward. In the end, Miracle decided that a consumer proposal was the right move for her.