Straight from the horses mouth

from JoeUser Forums
I am always curious about those people who read statistics about how people’s dept are at an all time high and stuff but never really bother to learn from personal experience and/or talk to those the statistics speak of. Well get ready cause I’m gonna give it to you the way it is, for me anyways. Chances are this is a very common scenario amongst people in similar situations as mine.

My credit began to spiral downward the day I got my first credit cards when I was 18 years old. One was a JC Pennys card, a Sears card and an electronic store card (can’t remember the name). You would think a smart kid would use the cards only when necessary for necessities and maybe a few wants so long as he/she can make the monthly payments. Not me, I went on a shopping spree and not just necessities. I also got myself a lot of unnecessary wants such as a leather jacket, a tent and several other goodies. But this was just the beginning. Not only was I maxing out my cards with unnecessary, expensive stuff, I was not sending in payments. First I sent a few on time, then I began to fall behind. Eventually I just didn’t send any at all. It eventually made it to the collection agencies and then began the calls and letters. Keep in mind that up till now I have completely responsible for the chaos I had created and the ripple effect it would have in my future.

As time when by I just got another card from somewhere else, but then eventually I couldn’t get anymore. Then I started with bills such as electrical, phone, cable and even the rent. Time and time again I would connect and disconnect services that I knew I couldn’t afford but would get them anyways and would then just continue to fill my bad credit list. Always asking for money from family members to keep up cause I did not learn to balance my budget and control my spending. When it wasn’t Burger King, it was KFC or Chinese food. Keep in mind I have a family by this time and they are suffering my ignorance at this point. Blockbuster’s profits were probably my doing due to the constant super late late-fee’s they would charge for the several days I was late. This trend continued year after year. I eventually found myself over drafting my bank account every week to keep up with bills, food for the house and our constant need for entertainment (I know, shame on me). During most of this time I had great jobs with great pays but even then it just wasn’t enough. My terrible waste of money was out of control and I was just too ignorant to the consequences of my actions in the future. I eventually lost my highest paying job where I worked with my brother. He was the President of the company. I had a really serious problem with him and ended up having to leave (or fired, we never really figured it out).

After a month of loathing over myself I made the decision to move to Puerto Rico hoping to give myself and my family a new start. That was not the best idea I had had. Puerto Rico was much harder to survive than the states and for 2 years I learned to deal with even less of the luxuries we take for granted here in the States such as a car, big supermarkets, variety of food, theaters, Blockbusters. Most of this stuff was either to expensive for my wage or were too far away since I lived in a small town no less than 30 minutes away from the city scene. I couldn’t take it anymore and decided to return back to the States where I could deal with life better. I had changed a bit and decided that this time around I would do better.

While I am no where near the opposite of my past life, I am heading in the right direction. I am learning to deal with bills, rent and everyday things. I have a great job with decent pay for a guy with no college under his belt. I plan to go to school to study computers which my job will pay for. Another new thing is my wife is working, something I chose to not let her do before because of the kids. Now it’s different and I just can’t do it alone anymore. I had a part time as well (first time doing 2 jobs, 15 hours a day) I don’t have it anymore but if I need it I can always get it again. I needed to spend more time with my kids who were beginning to lose focus in school due to my constant absence in their life because of my 2 jobs.

My bad credit still haunts me till this day but am working to fix it. I won’t give up till I have more money than I owe. Till I have the house of my dreams. My point? I am completely responsible for my bad decisions that lead me to where I am today. I could have gone to college, I could have worked 2 jobs, I could have learned to balance my budget, all in all I could have made a better effort to become a better person. I should have been more careful having 2 kids during a time I was acting the fool. In no way I blame the Gov’t for my mistakes, I only have myself to blame. By the same token every citizen in this country that is capable of making a better life for themselves but find themselves in situations similar or worse than mine are responsible for their own lives. There are enough Gov’t programs out there to give you a new start, to point you in the right direction, to help you stand up and try again. There are several charities that due the same. Things are expensive? Learn to manage your money better, learn to conserve, learn to make your own food if necessary. What ever it takes it about learning to survive on your own.

As bad as things may have seemed to me, they were not as bad as I thought and could have been avoided by simply trying or trying harder. It could be said the same for many others. Not only am I proof of it, but having been in it for so many years one usually ends up relating to those in similar situations and become witnesses of each other.
politics
9,102 views 29 replies
Reply #1 from JoeUser Forums Top
Thanks for sharing, Charles, I hope your trek towards financial stability goes well.
Reply #2 from JoeUser Forums Top
Thanks for sharing, Charles, I hope your trek towards financial stability goes well.


I won't deny I have been a major screw up all these years. But I am working towards bettering myself. One step at a time this time.
Star Control: Origins
Reply #3 from JoeUser Forums Top
One debt at a time, one paycheck at a time... You'll get there.
Reply #4 from JoeUser Forums Top
That's how you beat bad credit and turn it into good credit, have a good amount of cash left on the credit cards, pay ALL YOUR BILLS ON TIME, all of them, all of them, get it? all of them no matter what they are no matter how small they are. Soon your credit rating will begin to soar.
Reply #5 from JoeUser Forums Top
Thanks for sharing. 

If more people would take responsibility for themselves instead of blaming the government for their problems, we would be much better off.


Reply #6 from JoeUser Forums Top
The government is where we learned how to blame from. The government doesn't take responsibility for itself.
Reply #7 from JoeUser Forums Top
That's how you beat bad credit and turn it into good credit, have a good amount of cash left on the credit cards, pay ALL YOUR BILLS ON TIME, all of them, all of them, get it? all of them no matter what they are no matter how small they are. Soon your credit rating will begin to soar.


Someone once told me that if I wanted to raise my credit score a good way to do it was to pay all my bills with my credit cards (I don't have any BTW) and then take the money that I would have used to pay them and pay off the credit cards. That way I use my credit cards and I can also accumulate those rewards they give. Of course I think that's kinda wacky considering I will be paying interest on these bills, as if they don't charge enough taxes and hidden fee's. What do you think MM?

Thanks for sharing.

If more people would take responsibility for themselves instead of blaming the government for their problems, we would be much better off.


I never understand this whole idea of blaming others for the faults of certain people. Like when people completely forgot New Orleans had a Mayor and a Governor and instead bashed on Bush for the disaster, or when the steam pipe in New York busted they were quick to blame Bush instead of looking at the local Gov't for mistakes. And lets not forget the recent bridge that fell.

My job doesn't pay more because I have no college degree, I have no college degree because I could not afford college, I could not afford college cause I didn't try hard enough. As you can see not once did I blame the Gov't for me not making more money, if anything my parents are partially to blame for not motivating me and helping me go to college.
Reply #8 from JoeUser Forums Top
Darn double post
Reply #9 from JoeUser Forums Top
Pretty bold of you to put it all out there like this, Charles. I respect that.

It sounds like you are doing what you need to do to get your life back on track.
Reply #10 from JoeUser Forums Top
I will recommend Dave Ramsey to you, he has a couple books out I guess, I read one once. It was very useful. Check it out at the local library. Buying a book on becoming debt free just never seemed to make any sense to me.
Reply #11 from JoeUser Forums Top
Pretty bold of you to put it all out there like this, Charles. I respect that.

It sounds like you are doing what you need to do to get your life back on track.


Thank you. I learned years ago that keeping my problems hidden from others only made my problems worse cause no one ever knew to give me advice on problems they did not know existed. I'm not afraid to admit I have made a lot of mistakes and to this day I still make them, but I have gotten better at avoiding repeating many of them and hope to avoid more than I make. As much as I criticize my wife for thinking she is still 15 (because she does think that way I hate to say), I too tend to be childish myself and make bad choices from time to time. So I apologize to her here and to her directly.
Reply #12 from JoeUser Forums Top
I will recommend Dave Ramsey to you, he has a couple books out I guess, I read one once. It was very useful. Check it out at the local library. Buying a book on becoming debt free just never seemed to make any sense to me.


Will look into it. Thanks for the suggestion. I am currently reading Bernard Goldberg's Crazies to the left of me, wimps to the right and have Bill O'Reilly's Culture Warrior on stand by. These would be my first books ever that I would have read in their entireties.
Reply #13 from JoeUser Forums Top
That's great that you're reading books in their entirety. Seriously, though, a lot of people want to be debt free and don't know how to do it, and that will teach you how. Of course, you don't have to read the whole thing - just read the next step, and then do it, then read the step after that.
Reply #14 from JoeUser Forums Top
That's great that you're reading books in their entirety. Seriously, though, a lot of people want to be debt free and don't know how to do it, and that will teach you how. Of course, you don't have to read the whole thing - just read the next step, and then do it, then read the step after that.


Sounds great. I can't deny that like many others I am a big wants person; there are so many things I want and that was my biggest downfall. Now I go to the store and fill my cart with a lot of wants but by the time I make it to the cashier I have removed most of them because I think twice and decide to leave it for when I can spare the extra money. I still have the need for the wants, but this time I am taking it easy and saving up for them as oppose to just buying them and then getting deeper into debt.

Where's Mr I-hate-Bush Almighty? I guess when confronted with the real realities of life and not those he reads from reports made by Gov't employees, he avoids them just like many here say he does.
Reply #15 from JoeUser Forums Top
"I still have the need for the wants, but this time I am taking it easy and saving up for them as oppose to just buying them and then getting deeper into debt."

Sell stuff. Buy cheaper things. Don't eat out. Get current with all your bills, then save $1,000 in the bank for emergencies so you won't use debt when one hits(really helpful to sell things for that purpose). It takes time to pay off debt, but every time you pay off a debt, get excited. One less! Start with the smallest debt and work your way up. That's the way you get that stick-to-it bit. Put the money you put to that debt every month and roll it into the next one, so eventually you're making HUGE payments on your HUGE debts.
Reply #16 from JoeUser Forums Top
Will look into it. Thanks for the suggestion. I am currently reading Bernard Goldberg's Crazies to the left of me, wimps to the right and have Bill O'Reilly's Culture Warrior on stand by. These would be my first books ever that I would have read in their entireties.


Let me know how Bernard's book is, I was interested in reading it.




Reply #17 from JoeUser Forums Top
then save $1,000 in the bank for emergencies so you won't use debt when one hits(really helpful to sell things for that purpose).


My dad offered a great idea. I should save 3 months my average bills (rent, light, water, food, car, etc., the basics). That way in case anything happens, such as job loss, I have 3 months to solve my problems.

Reply #18 from JoeUser Forums Top
Dave Ramsey said to wait to do that until you're free from all the debt, except a mortgage. The $1,000 is good enough for most things that'll happen, like the car or something. If you lose your job, you're out of luck but if you lose your job you have more to worry about than just being debt free... like feeding your family.
Reply #19 from JoeUser Forums Top
I wll look into it. Again, thanks.
Reply #20 from JoeUser Forums Top
Just validating your father's idea as being good enough for a financial expert to pass on, heh.
Reply #21 from JoeUser Forums Top
Just validating your father's idea as being good enough for a financial expert to pass on, heh.


Trust me when I say that my dad is a pro. I however never gained that knowledge from him. He was never broke, but then he could do what I couldn't, take advantage of peoples ignorance to make a buck. I have to much of a heart and sometimes I think I will always get by as oppose to surpass people financially, because I'm not willing to step over others to move up. But the reality is I may to in order to survive.
Reply #22 from JoeUser Forums Top
I'm not MM, but I'll tell you it's a perfectly awful idea, and here's why.

Most credit cards won't charge you interest if you pay off the entire balance each month, so that really doesn't come in to play in the above scenario--IF you never, EVER, let a balance carry over.

With your track record, and your tendency to succumb to tempation, how long would it be before you start leaving a little balance here, a little balance there..."I can get chinese food if I only pay $60 on the electric bill instead of $79, what's $19 bucks? I can make that up next month."

It's too easy to get behind, too tempting to let those balances ride and spend the cash on something else, and sooner or later you find yourself in DEBT over everyday recurring expenses! Trust me, the odds always favor the house, the credit card companies are COUNTING on this, and it's so common that the various 'rewards' they offer don't end up costing them a dime because all they REALLY do is encourage you to rack up increasing amounts of debt.


I agree completely. Not only is this "a perfectly awful idea", it's insane. Just as you explained, it could lead to ending back where one started, in debt.


For someone just starting to clean up their credit (like yourself) one very practical thing you can do is view your own credit report regularly. Sign up for one of those monitoring services, and make sure you get one that includes your FICO score. I use this one WWW Linkand it's the best $13.00 I spend every month.

This allows you to keep an eye on things, and contains excellent information in regards to finding old creditors so you can pay them off and get these collections removed from your report. Sometimes you can even negotiate a partial payment that will satisfy the debt if it's *really* old.

It's also got a 'scenario generator' which allows you to play the 'what if?' game with your finances to see how various actions will affect your credit score, ie: "What if I pay off this or that debt" or "What if I just make all my payments on time for the next year?" This will help you identify the most positive actions you can take at any given time and help you set goals.

Avoid temptation! If you start recieving 'prescreened' or 'preapproved' credit card offers, or catalogues with a pre-approved spending limit, destroy them immediately (use a shredder) and add your name to the Opt-out lists so you don't recieve these offers in the future.WWW Link

These offers are never very good, their interest rates are astronomical and so are their yearly/monthly fees. Haha, I got one offer for a credit card with a $200 limit on it, but the one-time 'processing fee' was something like $99 and the yearly fee was $79.00 and then there was a montly service charge of about $6.00, all at the low, low rate of 24.99% APR! I almost framed that sucker, it was such a bad offer.

Stay away from crap like this, destroy it before opening! The most attractive cards don't need to send out mass mailers to bad credit risks, and any company that does is going to cause you more trouble than that little bit of credit is worth.

Good luck on turning it all around. Be patient, it may take years, but I promise you'll find the struggle worth it in the long run.


Thanks for the links. You really are a well informed person. Its just the information I was looking for. I know it will take years but considering the time I have already wasted I can wait a little longer.
Reply #23 from JoeUser Forums Top

I was not a saint with credit cards, but I did have a problem paying them off for a long time.  Then the government removed the interest deduction, and my wife went crazy wth them, and I lost my job.  Since then, I always have.  MM is pretty close in his recommendation.  BUT, you do have to know you have the money to pay it off, and the will power.

I write maybe 6 checks a month now.  Everythign else goes on the credit cards.  Because I do pay them off (and it is easier for them to do the accounting than me).  But if there is even a hint of a doubt of paying them off, only put on them the barest minimum.

I have not carried a balance in 15 years.  And I am not about to start.  Good luck with your AA for CC.

Reply #24 from JoeUser Forums Top
Let me know how Bernard's book is, I was interested in reading it.


Will do, am only half way on it and based on how you reply on this site, I'd say you're gonna love this book.
Reply #25 from JoeUser Forums Top

I haven't read all responses so if this is repeat...sorry.

IMHO Credit is a slave collar.  Just like cigarettes come with a warning label...so should credit cards.  When I stand in line at the store and watch people I know pay for things on credit they can't afford...or can only barely afford min payments (talking friends I know well here)...I can hear the slave collar clicking around their necks.

I teach my kids credit cards are a trick...a trick to steal your money (the interest rates alone on some cards are staggering).  And I believe living within our means is important, and provides proper motivation to do better, earn more, whatever.

Actually you know you're doing well when you have a crappy credit score (but not from failure to pay).  Credit scores come from BORROWING money.  If you pay everything off and never borrow again, your credit score will eventually suck.  Heh.

Dave Ramsey, a multi millionaire, says his credit score is horrible.  Why?  He doesn't borrow.  Ever.  You may want to check out his website...daveramsey.com.  He has good advice on how to negotiate with credit card companies and banks...sometimes they will take something and close the account, rather than nothing.

It's good you realized this Charles.  Some people go their whole lives and never get a clue.

Good luck with it.