[Long] My $2,000 financial hardship story

TL;DR: I lost $2,000 due to financial ignorance. I'm hoping this story will inform you and help you avoid the same mistakes I did. <br><br>**The Problem:I**<br><br>*Graduate school (Fall 2016 - Spring 2018)*<br><br>As a poor graduate student, I was living on my meager stipend, my savings, and $15,000 in student loans. I had just paid off my car loan and was saddled with credit card debt. I had only one credit card that was almost maxed out at $10,000. I was 26 years old and still financially illiterate. <br><br>That year, I had to pay $2,000 in taxes and my university wanted me to pay them $2,000 for tuition. I was absolutely broke. I begged my parents for money but they refused. Instead, they suggested I take out a personal loan in my name for $4,000. <br><br>I took out my first personal loan ever and paid off my university tuition and my school taxes. I thought I had dodged a bullet but really I had just shot myself. I was now $4,000 more in debt than I was before. <br><br>**The Problem: II**<br><br>*Graduate school (Fall 2017 - Summer 2018)*<br><br>My credit card debt had gone up to $35,000 between cash advances and my personal expenses. I took out a $8,000 loan and paid off my credit card. I thought I had dodged a bullet but really I was shot twice. I was now $12,000 more in debt than I was before. <br><br>**The Solution:**<br><br>*Early 2019:*<br><br>* I managed to get a fairly well-paying job for someone with my experience. I was making $60,000 a year. I had just paid off my student loans and my tuition. I had $15,000 in personal loans and $23,000 in credit card debt. I was living with two roommates. I decided to aggressively pay off my credit card debt by using the snowball method. I started paying $3,000 a month towards my credit card. I stopped using my credit card. I sold some of my stuff to get some cash. I worked extra hours and got extra pay. I kept my expenses minimal and lived frugally. I stopped buying things I didn't need. I started using one of my credit cards wisely and getting cash back. I paid off my student loans and my personal loans. I paid off my credit cards. I worked hard, saved big and made sacrifices. <br><br>**The Aftermath:**<br><br>*Mid-2019:*<br><br>I paid off all of my debt and saved enough to move abroad. I travel more than ever before. I've seen 10 countries in one year. I've learned to budget and invest. I know what a 401(k) and an IRA is. I have a Roth IRA and I contribute to it regularly. I know how to live below my means. I don't go shopping when I'm stressed and bored. I have more in savings than I ever did before. <br><br>**The Conclusion:**<br><br>A few years ago, I was living below the poverty line and barely scraping by. I was so poor I had to go to a food bank to get food. I had no money. I was in debt. I was living paycheck to paycheck. I was underemployed and poor. I was ignorant. I made mistakes. I learned from them. Tonight, I'm sitting in a hotel room in Paris and reflecting on my past mistakes. I'm happy, healthy and debt-free. I'm living a good life and enjoying it. I'm debt-free and wealthy. I made mistakes but I learned from them. I'm writing this story to tell all of you to be financially literate. Know the basics of finance. Know your budget. Know your expenses. Know your income. Avoid debt. Invest. Save. Live below your means. You never know when you might lose $2,000 or even $200,000. <br><br>**Edit 1:** I'm overwhelmed by the support. Thank you for sharing this story and thank you for your kind words. <br><br>**Edit 2:** For those who are asking, I got a 7.5% interest loan. It was a personal loan that I got from a credit union. I was young and financially illiterate. <br><br>**Edit 3:** For those who downvoted, I appreciate your feedback. Please tell me how I can improve my story and what you would like me to add. I would love to hear your thoughts.