The credit card game is a rotten trap. It's so easy, when you first get them, to just charge, charge, charge it. Then before you know it your up to your ears in debt and making the minimum payment every month gets you nowhere. The credit card companies actually look forward to this happening. It guarantees them a steady income every month plus tons of added interest. That's how they make thier money.
I am not saying having a credit card is a bad thing, because if you have a true emergency they come in very handy. The trick is to use them wisely.
Nowadays, just the thought of going out or going shopping with only my credit card to rely on makes my stomach turn. If I don't have the cash to purchase something, I don't need it.
The best way (in my experience) to get out of debt is to make yourself a plan (5 years or so) and stick to it as much as humanly possible. About 7 years ago I got divorced and had to find an apartment for me & my son, buy new furniture, appliances, etc. I ended up charging everything. I did not ask for alimony, so it was sink or swim on my own. I would not ask my parents for money.
I decided I would do whatever I had to do to make ends meet. I also had a student loan, and a car payment because my 11-year old car crapped out. I started bringing my lunch to work and cutting out anything I didn't really need (of course, I allowed myself to splurge every now and then). I made it a point to ALWAYS pay more than the minimum on my credit cards...transferred balances when there was a good interest rate on another card...paid double on my student loan when I could.
The good news...it gets better and it gets easier. My student loan will be paid off in September, the car in February and that extra money will go toward the credit card debt. I still pay more than the minimum, but now I only have 1 card which is just about maxed out from transferring the balances. This works for me because I can't really use it unless it's an emergency. Two years ago I bought a house (yeah, my mom co-signed and it's an FHA loan because of my debt to income ratio). Soooo, the moral of this long story is, you can do it. You just have to be able to tell the difference between "needs" and "wants" and be able to get over the embarrassment of having to tell people "I can't do [insert whatever] because I can't afford it." It sucks, but you can do it if you want it badly enough.
Oh yeah, and I believe the changed the bankruptcy laws last year to make it harder for people to declare just to give them an "out".
Edited By Sweet Angel on April 25 2002 at 10:43
I remember hearing something earlier this year about a college student suing the credit card companies and winning. He alleged that they trapped him or something and that he should not be liable for his spendings....oddly enough, he won.
Quote:I just wish someone would hand me $25,000 so I could be close to free
Ouch. That's rough. Definitely look into the consolidation. It's easier to keep track of one payment than 10. Go to at least three different companies though and get a quote on what they can do for you. Always comparison shop on these things.
Quote:If I don't have the cash to purchase something, I don't need it.
Great advice. I also figure in that the bill won't come for 30 days and I'll get payed between now and then, so I just have to set that money aside in the next paycheck.
Try this. Sit down and list all the payments you HAVE to make each month. (Loans, Credit Cards, Utilities, Rent, Phone)
Then subtract that form your total income.
Now subtract the stuff you HAVE to buy (like food, medicine, hygene stuff).
Then take what's left and figure out where to best apply it. Savings account, paying down your debt, and just living (Do you really NEED cable? Do you really NEED to see that movie in the theater or can you wait for it on video? Or go to the early matinee? Brown bag lunch? Stuff like that.)
That's one of the first things a credit counsilor will do as they figure out how to consolidate your debt so you make only one, smaller monthly payment with lower interest.
Quote:It's all my fault, I accept that, I just wish someone would hand me $25,000 so I could be close to free.
yup, that would be nice, although at this point i'd just be happy if someone would give me dental insurance for a couple of months just so i can get my wisdom teeth pulled.
i was lucky in that my parents having moved here with excellent credit were completely denied any stateside, even though they owned a house 2 cars and had several major credit cards in england; so when i went to college they cosigned on a mortgage for my apartment. it worked out really well because i established a good line of credit while my monthly payments were cheaper than rent and they got major tax breaks. i have to keep telling myself that now because i'm heavily in debt to mr visa and mr mastercard and i'm currently in the annoying process of selling said apartment. i may never get out of debt, but so far i think i'm playing their game pretty well. the sad thing is i really have nothing to show for any of it {
}
Thanks everyone! I really appreciate your advice, see here's substance on the site! {
} I think I'll try the consolidating route just to get the payments down..but will that ruin my credit or put anything bad on my credit report? And I didn't realize you can keep a card out of the program, like Sluggo said, because I do like to have 1 card just for emergenices (although that's what got me into this trouble in the first place so maybe I should rethink that) I think I have about $8 or 9,000 in credit card debt, the rest is student loans and my computer. And probably a really high debt to income ratio.
But no way in fucking hell would I ever declare bankrupcy. My parent did that, I think, 3 times, maybe 4...they're shady mother-fuckers when it comes to money, using different social security #'s, spellings of last names, etc. to take more and more loans, credit cards that they couldn't afford to pay back (needless to say, I've seen lots of repos in my life, damn does that repo man suck when he comes to your house at 3 in the morning!)...Bad situations in that house...and there's no way I want to end up like them. That's probably why I'm so scared and pissed at myself. I want to be able to put down roots and buy a house in the next 5 years...
Thanks for everything guys :loveya:
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Edited By Spitfire on April 26 2002 at 11:16
Quote:but will that ruin my credit or put anything bad on my credit report
Spit, I work in the mortgage industry and as long as you make your monthly payment to them on time, and have the contract/agreement with them in writing you will have no problems obtaining a morgage or even a new car loan. The thing that will appear on your credit report is that you are working with a credit counselor, and that isn't a bad thing. As an Underwriter, I would rather have that appear than a Chapter 7 Bankruptcy, at least you are going the honest route and paying your way out of the situation you put yourself into. send me a pm if you want to talk about it...
I got in the same predicament but I tightened up my belt and threw big chunks of cash towards my card bills and i'm happy to say just about completely out of the hole. The best advice I can give you is to try to put it all on paper and see if theres any way, through budgeting, to pay it off without going through bankruptcy.
i am debt free!!! :bouncer: :bouncer: :bouncer: :bouncer: :bouncer: :bouncer:
Thanks for sharing dickhole...
Edited By Spitfire on April 26 2002 at 12:59