Established Contributor
Posts: 858
Registered: ‎09-18-2007
Re: Success Stories and Encouragement
I just joined last month, and have learned a lot.  I had many, many store and bank credit cards, was managing fine, and then ended up with 9 surgeries in about a 7 year period, most minor, but two back surgeries, on pretty major in which I was off work for almost six months, but did have good disability.  The medical bills put a real crimp on things, and I started falling behind.  I don't want to put the blame just on medical, I was just not good at budgeting (still working on it).  About 3 years ago, one my credit cards recommended Take Charge America (formerly cccs, I think), which is a debt management company.  I was always to terrified to run a credit report, or add up the totals.  My call with them was a real stomach turning event.  I had over $45,000 in credit card debt.  I signed up, they worked out a payment plan and got most of the interest rates reduced.  At that point, I was fairly current, usually would be late on one or two a month, and I had two in collections which I was paying off on my own.  The charge 35. a  month (which is about one late fee) and I pay $1250.00 a month off in debt.  I still didn't know my score, I was too chicken to look.
About six months later, I made a major move in my life, from a very expensive area to a much more moderately priced area, and realized that perhaps, in the future, I could actually afford a house, so I went to a first time hombuyers seminar, and then went home and checked my credit w/ Experian.  I believe is was somewhere around 509...pretty devistated.  Since then (a little over two years) I have checked it on a 2-3 month basis, and it has consistently gone up (one requirement of the debt management plan is absolutely no new credit...period (exceptions for car and house)).  So, now it is in the 680 range on all three reports, I have 10.5 monthly payments, and plan on putting a deposit down on a new house next month (when the montly payments go down below 10 payments), figuring the house will take 4-6 months to build, so I will only have a few months overlap of housing payments and the debt payments.
Just wanted to bring this up as an idea for people who owe and feel strong (like I do) that I truly owed this money, bankruptcy was not an option for me...I got into this trouble, and with help, I got out.  Everyone got their money. 

Starting Score: EQ 679, TU 697
Current Score: EQ 680, TU 672
Goal Score: EQ 720, TU 720

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