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How come people have late payments?

Established Contributor

Re: How come people have late payments?

I'm not going to sugarcoat anything. I was horrible with my finances for many years...I would buy stuff with my cash and buy stuff on credit. Since I didn't see the money used on credit in front of me I just ignored it, let them go negative, and let them charge off.

 

Ignorance and immaturity. I had many many lates and about 6 years ago started realizing how it was effecting me and decided to give up any form of credit altogether. While it was good that it taught me to live without financing stuff, paying for everything right out, it didn't teach me how to handle credit, which is what I'm trying to teach myself now. Not use credit for money, but use it to help regulate my finances and nothing more.

Message 11 of 27
Regular Contributor

Re: How come people have late payments?

It's possible that many people are struggling to make ends meet in this very tough economy. I dont think too many people want to pay late. It's tough out there.
 

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Message 12 of 27
Frequent Contributor

Re: How come people have late payments?

Yes it's tough for sure which is why I'm so scared right now to get all of my bills paid off.  I retire from the Marine Corps next year and man it's an awesome feeling and  a scarry one at the same time!!


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Message 13 of 27
Senior Contributor

Re: How come people have late payments?

Divorce happened, LOL! Still, I was 100% responsible for not handling things better.


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Message 14 of 27
Frequent Contributor

Re: How come people have late payments?

Good Point and I'm not saying that this is the case all the time but I would have to put a high percentage of divorce default on the man!  Not always but most of the time!


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Message 15 of 27
Established Contributor

Re: How come people have late payments?

As others have said, myriad of reasons. Mine included having a medical insurance company deny my newborn's digestive difficulties as "pre-existing conditions". Not even our congressman could figure THAT one out.  She's 16 now and I just paid for her in full last year. Add to that $1,000/month to buy said crap-insurance until we just couldn't afford it and eating at the same time anymore.  16 years ago, we were also paying $450/month JUST to feed her as she needed special formula, which was more than the groceries for the rest of my family.  Top that with self-employment in a horrible economy and feeling like a roof over your head is more important than paying CC bills this month.  Sometimes it isn't about not knowing "want" vs. "need", sometimes it's just a perfect storm of life and doing the best you can with what you have.

 

We stuck it out and opted against bankruptcy, however, as we felt it was our obligation to pay our debts.  I'm still paying for it being stuck in credit-score-debtors-prison for 7 years, but that's the way the system rolls.  Sadly, there are those who are never able to dig out once they have dug themselves in and the cycle continues. 

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Message 16 of 27
Established Contributor

Re: How come people have late payments?

I too had stellar credit, all scores mid 800's. Then life changing events, divorce, child support, slowing economy. I did pay some things late, however everybody was paid in full! NOT the way I was accustomed to living. Both lifestyles, always within means, no unpaid cc bills always paid cash for major purchases, paid my first mortage  off in less than 8 years  originally a 30 year note. I saved thousands in interest. Had a nice cash cushion of one full salary year in the bank and pooof! Divorce, etc. I am through that valley, credit scores never went below 700. I am heading for the moon and will be cruising with a nice savings cushion, newer home and stress reduced lifestyle soon. BTW, my credit scores should be back in 800s next year or so. I am a Dave Ramsey kinda guy. No cash to pay in full at the register, then you really do not need it! except for auto and home. Keeps the budget balanced real easily.

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Message 17 of 27
Senior Contributor

Re: How come people have late payments?


BigDaddy18 wrote:

Good Point and I'm not saying that this is the case all the time but I would have to put a high percentage of divorce default on the man!  Not always but most of the time!


It was just stupidity. Was trying to keep work stuff together, forgot to do a change of address, and really didn't think their calling to be paid over the phone was a huge deal, LOL! Wasn't really credit-educated and would have never let a payment go late knowing it would hang out 7 years. One last late payment falls off in a few days and all three reports will be perfect.

 

Most of the guys I've met were financially better off divorced. My Ex is still messing up her finances. Not having to deal with it is a relief. Smiley Happy


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Message 18 of 27
Member

Re: How come people have late payments?

Let's not forget those who are unemployed or have had unforseen medical bills.............

Message 19 of 27
Regular Contributor

Re: How come people have late payments?

I'll bet a good percentage are like myself and had incorrect info in their credit report, and didnt realize it until we walked into a bank or auto dealership to get a loan.



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Message 20 of 27