Fire ruined my credit
Date: Thu, 02/01/2007 - 04:05
Back in 2003, I had about 5 or 6 credit cards, Macy's, Sears x 2, Visa, JC Penny's, student loans.
I was making all of my payments on time, for the most part. I had the occasional glip once in a blue moon as everyone does. I didn't have perfect credit, maybe a 680 as a score. I was doing okay.
Then, in October of 2003, my apartment burnt down one horrible evening while I was out of town (so not my fault). Everything was destroyed and everything in my life changed. I had no clothing, bedding, basics of life. It was a very horrible time in my life. I had to spend what little money I had on hotels and buying basic necessities and all of my energy was on surviving the next day.
For some reason, life kept kicking me while I was down. My car broke down 4 months later and cost me 1200 dollars. About 3 months after that, someone broke into my car while at work and cost me $620 to fix. I had to drop out of school due to financial problems. My roommate and I had to move. My job didn't support me or help me out and I struggled for a very long time.
I didn't have fire insurance and I managed to get 6000 from the person who caused the fire. However, this took about 6 months to get. Meanwhile, I couldn't make any of my payments on my cards or loans because I was struggling very hard to get by. All my accounts, except the sears defaulted and went into charge off's. Once I got my money, I paid Macy's off, and a few other big bills that I had managed to mess up in a few short months, thinking that this would fix the problem. However, it did not. The Visa card made my life miserable (long story made short) and I paid them 1500 of the 3500 i owed them with the thought that I could go back into payment on them and all would be okay, but they raised my interest to 28% from 9% and promised to lower it after 6 months of payment. I made the payments as agreed and when I called back they told me that they couldn't lower it since the account was closed. This prompted me in a fit of anger to stop paying them. (bad move on my part).
Flash ahead three years: Student loan company were going to garnish my checks and I am in repayment for them now each month. I've been paying them for 1 year steady. The evil Visa card tried to sue me, which now I am in repayment to avoid. I've been paying them for 1 year also. My poor credit score dropped to a 450 after the fire. It's only up to 515 now. I can't get any credit cards, loans, etc at all. Anywhere I try to move charges me the highest amount due to bad credit and also question me about that fire.
I struggle every month to pay all my bills and still have money to eat. I find that it's nearly impossible to fix my credit due to all of the charge off's and not being able to get any cards or loans to fix it. I can't catch up. I dread the mail, as new collection notices and bills owed arrive. I still have not gone back to school, which eats at me every day since I had plans for my life at one point. I can't ever see my goal of teaching college and doing research ever occurring.
The sad part (and happy part) is that I'm engaged now and want to get married in the next year or so. No idea how I'm going to pay for it since I have no family help with it. Every day and month that passes, I kick myself for not getting smart back after the fire and think that there had to be a better way back then. However, the mistakes made are mistakes made and can't be fixed after the fact.
It was a major learning experience, one that I will never forget. I figure by the time I'm 35 (26 now) maybe my credit will be better...right? right?
Keep your chin up. I will only that you have gone though some re
Keep your chin up. I will only that you have gone though some real struggles in your past and have come through. Don't regret on what has happened. Make sure that you do everything to make your future safe.
Do you have a job now? Pay importance to the bills that are recently defaulted. The previous accounts might be getting close to the SOL. You can't be sued when the SOL is over. If you can manage some money, call the companies and settle those accounts that are recently defaulted.
Re: Fire
I do have a job and it pays enough to get by.
I am in repayment with my student loans and with the Visa. I think I have a yearish or so on Visa. Hopefully, my student loans will be rehabilitated and I can go back to school in the next three years (tho all my old credits will be lost..blasted!)
I have recently (or about to) default with Sears because citibank is evil. :) (raised all interest rates to highest rate possible on the sears cards for most people I know who have them). I hope to call them soon to work out some deal because I don't need another knock on my credit. I was monitoring my credit every month with truecredit but stopped to save a little more money each month. HOwever, I've been thinking of signing back up for that again.
Thank you for your post. I am definitely learning about that SOL now...keeping my eye out so I don't get harassed by them. (ie. a columbia house account from 1999 recently sent me something..which was quite odd) My big goal now is tryign to find some credit card/loan that will improve my credit rating..but that might be a lost cause for the time being. I hoped to get a car loan as I've heard those help a lot with credit repair (but was denied).
Thank you again for your concern and words of support. I appreciate this site and other users. I learned a lot in a short time from here. :)
Lostdreamer--Things will straighten around shortly. You've come
Lostdreamer--Things will straighten around shortly. You've come to the right place. :)
I do recommend getting back to a credit monitoring service just to be on the safe side. Especially with your accounts being in collections you need to be aware of any move that they make.
I would not recommend getting a car loan until you get your other things under control, and/or paid off. Yes, it will help to have the installment loan on your report, BUT it will kill you if for some reason you can't pay it and it ends up repoed. :shock:
So now you're just working on your Visa accounts and your student loans? If I were you, and they're charging you high interest, I'd call Visa(repeatedly...Like every few days) and keep asking them to lower the interest rate. In my experience if you bother them about it, you'll get to someone who WILL lower it. A lot of times they'll do it just to shut you up. LOL Seriously. I would call them. If the person on the line says no, ask to speak w/ a supervisor. Make them HATE talking to you. :twisted: I've done it before with a collection agency that was bent on charging me interest so $50 of my payment went to fees. I called the guy constantly and he stopped the interest.
Ok, so I'm rambling, but if you get that interest lowered your balance will really go down fast. Then you can work on moving on. :)
Great idea Jessi---a reverse harassment! And just like when cred
Great idea Jessi---a reverse harassment! And just like when creditors call the account holders, "we" usually get tired of talking to them and will pay them to shut them up!
lostdreamer---Good for you that you are trying to clean up your credit. No, it won't be easy, but it is do-able. I would lay off trying to get a credit card or car loan for right now---keep paying your other debts in a consistent manner is of most importance right now. Good luck.