How bad is my situation and what would you recommend?
At 22 years old i had about $30k saved up. Around that time I ended up in a situation where I became responsible for paying a relative’s lawyer in a lawsuit. Around May of 2025 I started to worry about not being able to continue paying the lawyer September onwards as I am a full time student completing my degree in nursing.
Here is what happened chronologically:
– January, 2025: lawyer is retained, I stop investing in my tfsa and pull money out to be able to pay him
– February-March: lawyer charges anywhere from $2-$6k per month
– End of March: I start to worry heavily about these bills, despite my $30k savings still remaining mostly untouched
– Early April: I start a construction business with a relative who is a skilled heavy equipment operator. I pay $10k/mo for a rented excavator to perform house demolitions and basement excavations
– April-May: I accrue a significant amount of debts on my credit cards and pulled out student loans to have liquid cash available
– June: I put a $10k down payment for an excavator that had the original cost of $33k but comes out to $48k total with financing over 4 years
– July: The lawyer in the lawsuit I mentioned was able to convince the court to have the other party cover litigation costs and so the person I was supporting financially received $60,000
– August: We purchase a small skid steer using company funds
– September: We purchase a trailer using company funds
– October: We purchase a large skid steer using company funds
– November: A client whom we performed work for way back in June refuses to pay $40k that he owes us
– November to now: very little work, partly because it’s winter and partly because both me and my business partner are afraid of continuing to get big contracts with such little operating cash
Now at 24 I have lost all that $30k I had saved up, and instead have:
– $17k in student loans
– $22k in credit card debt (with 5-13% interest rates as i was thankfully able to reduce that interest rate by claiming hardship)
– $48k equipment loan, financed at $788.56 per month
– $40k owed by the nonpaying client
– $30k skid steer #1 fully purchased and owned
– $15k skid steer #2 fully purchased and owned
– $10k trailer fully purchased and owned
– $14k equity in the $48k equipment loan
– $21k in my personal account that I am keeping as an emergency fund (eg the lawyer)
What is my current net worth? Would it be better to abandon the business and focus on nursing? Which is more lucrative in your opinion?
TL;DR: Only first and second last paragraph are truly important