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Just when you think you're in the clear...

Date: Fri, 04/28/2006 - 10:08

Submitted by Ehwin
on Fri, 04/28/2006 - 10:08

Posts: 139 Credits: [Donate]

Total Replies: 12


My story starts the same as many stories do. I went off to college as a naive 18 year old freshman. Everytime I walked across campus, I was bombarded with $250-$500 limit credit cards. If you signed up for a card, you got a free shirt/soda/candy/pizza/etc. I knew that the card was worth so much more than the freebie - it was some financial freedom. As a music student, I didn't have time to work and go to school as I was constantly in rehearsal or the practice room. What money I did have to go out with or buy some clothes with came from my mom and step father. I didn't want to ask them for money as I didn't feel it was fair for them to pay for my "entertainment" so the card was the PERFECT way to get around that. I was instantly approved (with no prior credit history). I maintained a small balance on that card (as I was able to pay if off with Christmas/Springbreak job money). However, once I realized how easy it was to buy things I could not normally afford, the balance took off. I went to nice dinners, shopped at Gap, went on road trips... I didn't think twice about the expenses as I was able to meet the minimum payment each month. One card turned into 2, to 3... finally I had 6 cards - ALL maxed out. These were no longer $250- $500 limit cards, some were $4,500. Why I was ever approved for that amount, I don't know. I had no job - I was a student - what were the credit companies thinking. I knew it was getting bad when I was only able to meet the minimum and pay for my car each month. I was scraping food money and rent money together by donating plasma, working odd jobs, selling my stuff to resale shops and on ebay. Still, there was no light in sight. It had been 4 years since I started school and I had one year left. I did not want to graduate with that much debt (18,000 to be exact - more than a new car!). My mother suggested bankruptcy as a last resort. I filed with the promise to continue payment on my car and a small consolidation loan (some good that did) that my credit union issued me. It was a huge weight off of my shoulders. For a year I did not get another credit card and life looked good.
Then I went to the emergency room only to discover I would have to have emergency surgery for a gall bladder that was in a bad way. It was one week after my student insurance expired and weeks before I would start my new job with benefits. I freaked out. How much would this cost me? 1 surgery and $16,000 in bills later, I was back to where I was in school. Medical creditors calling wanting minimum payments amount to more than I was going to make in a month. I finally worked deals out with them, got payments cut in half (thank goodness for non-profits that are sensitive to people with medical bills). However, the minimums I was paying on those still cost me so much that I didn't have gas or food money each month. I applied for a "credit repair" card. It was a small limit - I'd be okay... right? I HAD learned my lesson... right? Wrong. You never learn your lesson. Once again, I'm up to 3 cards all maxed out. I'm able to pay a little more than the minimum, but they are still keeping me from saving money, buying a house, doing the things I want to in life.
This time I HAVE learned my lesson - I've learned that once these are paid off they will be closed and I will NOT get another card... ever. It will take time to pay them off, but I do the best I can. Whatever extra money I get from odd jobs here and there goes towards the cards. My job pays the rent and medical bills and the 2nd job pays for the cards. It works for now - it's tight, it's frustrating, I cry myself to sleep, but I will come out of this stronger and wiser than I was before.


Don't beat yourself up. This is how we learn, even if you have to go through with it more than once. And you know what? I work for American Express and am in a way of knowing that credit card companies are not innocent! They knew what they were doing! Credit card companies love it when people max out! The over limit fees, interest, and finance charges are their bread and butter!

You'll get through this. I did. I have credit cards, I'm extremely stingy with them since my ex's laxness with them makes them feel like incendiary devices in my hands. I have student loans due this coming January, but I'm not crying myself to sleep because this will not control me!

You are doing the right thing my friend. you are working hard to set things right and you should be proud of that. You will get this all in order, I guarantee it. I can see your resolve clearly!


lrhall41

Submitted by Jedi Mistress Ari on Fri, 04/28/2006 - 10:21

( Posts: 2192 | Credits: )


Hi Ehwin

Take the words of Ari. She is inspiring you in the best way. You don't need to worry so much spoiling your sleep and comfort. Take some financial and budgeting lessons while you are on your way repairing your credit. Remember, the payments that you are making will not go wasted. They are being reflected in your credit file and you are improving your worthiness. Do not stop making the payments during this time. If possible, live on a restricted budget for some time so that you can achieve your goals sooner. I wish you all the luck and success in this path to glorious life.


lrhall41

Submitted by john on Fri, 04/28/2006 - 11:21

( Posts: 1231 | Credits: )


I will never stop making payments. I'd move home before I did that. I've never not made a payment or been behind - but I am always at the point that everything I have go into the cards. But at least I can make the payment. My boyfriend and I have really learned how to make great food at home so we never want to go out and if we absolutely have to go somewhere we go get Cici's pizza (2.99 a person) or something cheap. I've really learned to cut back so when I do pay everything off maybe I'll be able to continue living on my small budget and save, save, save!


lrhall41

Submitted by Ehwin on Fri, 04/28/2006 - 11:43

( Posts: 139 | Credits: )


Hi Ehwin

It's great to feel your confidence level getting higher. When you feel down, live with this spirit. You will rejuvenate with happy moments in your life.

Don't forget the lessons you learnt using the plastic money. Use them if you are sure of paying back in a timely manner. Otherwise, it will be tough to come out of the debt cycle. The credit card companies are there for doing their business. It should not be at the cost of your discomfort. I wish you all the success towards a better financial life.


lrhall41

Submitted by john on Fri, 04/28/2006 - 15:07

( Posts: 1231 | Credits: )


Oh, thank you for the advise. I've seen Suze Orman on tv before and have wanted to read her books. Sometimes you think you know all of your own best advise (but look what it got me into) but sometimes it's the advise of the experts and others who went through and are still going through the things I'm dealing with that have the best advise. THANKS!


lrhall41

Submitted by Ehwin on Mon, 05/01/2006 - 13:48

( Posts: 139 | Credits: )


Speaking from experience IS the only way to learn. I know I am echoing what everyone said here. Like a child that learns when we say "no, no", adults have to learn to teach themselves how to say "no". Learning to say NO to something (like using credit cards) is EXTREMELY difficult and takes much self-control.

Sometimes this learning process isn't always "absorbed" the first time. I had problems with my creadit when I was in my mid-twenties, filed bankruptcy at 40's and now having problems again at 50. I HAVE FINALLY LEARNED THE LESSON! I cannot have a credit card as I cannot say NO to myself. I am assuming you are fairly young. So by you learning your LESSON now, like you said, is great. You will be that much better off in your financial future. Good For You!


lrhall41

Submitted by Lorri on Thu, 05/18/2006 - 12:48

( Posts: 1721 | Credits: )


EXACTLY! I can't have credit cards in my wallet. If I have them frozen in a block of ice in my freezer, I'm okay (and I want to keep them open for credit score/car emergency reasons). If they are in my wallet, I somehow forget that I ever have to pay them back and 2 bags full of Gap clothes later... you get my drift. I have recently found a new freedom when paying with cash, check, or debit. I somehow feel richer when I do that. It's good knowing that I am paying the actual store my stuff comes from and not a credit card company!


lrhall41

Submitted by Ehwin on Thu, 05/18/2006 - 13:15

( Posts: 139 | Credits: )


Way to go Ehwin :D You are right, there is a freedom to all of this. I never realized that I was in a prison that was full of dread and fear of what was going to happen and how was I going to make it. I still have a ways to go,but if we don't have cash,or have the money to do it,it doesn't get done or bought. The one thing I try to do is be good to myself. If I start getting that "deprived" feeling,I will go buy a magazine,book,or bubble bath. That way I don't feel like I'm not able to do anything and I'm being good to myself too. Hope that makes sense,it sounds rambling even to me :lol: ...Karen


lrhall41

Submitted by Bossy4455 on Thu, 05/18/2006 - 15:29

( Posts: 5854 | Credits: )


You're on your way Ehwin, things are going to get much better from here on. I know firsthand what happens when you make a financial boo-boo. I'm also familiar with desperation and crying myself to sleep. All of us here are. Sounds like you know exactly what you have to do to get out of the mess, and you're doing a fabulous job! I'm really glad you found us.


lrhall41

Submitted by finsfan13 on Thu, 05/18/2006 - 16:48

( Posts: 6919 | Credits: )