DEBT STORIES
GETTING A LOAN
(After Acknowledgement)
I consolidated my credit card debt but soon realized it wasn't a long-term solution. I fell behind on payments and took out payday loans. After carefully considering all my options,, I explored debt settlement and worked out a repayment plan with my creditors. Debt consolidation may not address overspending, so it's essential to take a holistic approach to achieve long-term financial stability. Do you agree?
I CAN DO THIS ON MY OWN
(After Acknowledgement)
I have previously negotiated my debts without any assistance and the process of negotiating with credit card companies can often be an unpleasant and time-consuming task. What advantages do you perceive in doing it independently?
CREDIT IMPACT
(After Acknowledgement)
When I filed bankruptcy a decade ago, I had $95,000 in debt, including $36,420 in credit card debt. My credit score was somewhere in the 500s.
After removing most of my debt from bankruptcy, I was left with a $7,000 car loan and $51,000 in student loans. Determined not to repeat my mistakes, I made on-time monthly payments for both of those loans. My score was in the high 600s, just 18 months after bankruptcy.
Paying loans regularly and not opening new lines of credit for two years helped me bounce back quickly.
"I've remained consistent with this practice of paying installment loans on time each month and paying my cards off."
Two years after filing for bankruptcy, my wife and I bought a house, so be assured that your credit will bounce back. Is there anything you are looking to use your credit for now?
CAN'T AFFORD
(After Acknowledgement)
I suffered through the Great Recession, like many Americans. In 2008, I lost my job, and my wife took a pay cut. We racked up credit card debt with reduced income and had to short-sell our home.
In 2012, with a baby boy joining the family, we moved to a new home and committed to paying off their debt.
We cut our spending and tried cutting out everything possible. We got rid of our satellite dish, which was hard for me at first - football is like oxygen here in Michigan - but we saved $75 a month. We also created a food budget and stopped going out to eat. Before, we had no budget.
We attacked our credit card debt first. We were minimum-payment people with credit cards, and we had to change our behavior.
We had to really talk about how bad things were. Once you walk through losing a house with someone, having faced that together made our relationship stronger.
When I realized I was still paying credit card bills for purchases I'd made two or three years ago, I started to get a little angry. We didn't want to be making payments for the rest of our lives.
Today we don't use credit cards. Credit cards aren't horrible; in the right hands, they're a tool. But for me, they're like being around a lousy ex-girlfriend - too much temptation. I don't want to get sucked back in, so I don't use them.
Can you really afford NOT to do this?