topic Re: Back to Zero! in Bankruptcy

Back to Zero!

Anonymous — Wed, 06 May 2015 20:18:28 GMT

So within a year of our BK being discharged I ended up having one of those months. No income. We had already gone through all of our family's good will.

So we did the thing that you dread the most after a BK. We put some things on our charge cards to get through the lean time.

Well, today I just paid off my third credit card. 3 zero balances.

My significant other is carrying a balance on two cards, and truth be told I'll probably have to put a thing or two on a card before the end of the month to get through, but man oh man does it feel good to write that check. Another 3 or 4 months and I think I can have all the cards down to nothing.

My reason for posting this is two-fold. One, I'm happy and I wanted to brag (in a group of people that appreciate the accomplishment). Two, there's at least one guy out there looking at the post-BK threads where people are happily and (seemingly) easily churning away month after month with their 9% utilization levels on their way to 700. It's not that smooth for all of us. BK sucks! Post BK Sucks! But Post BK it seems like there's always a light at the end of the tunnel. When I finally filed I was so completely overwhelmed by my debt that I had trouble functioning like a normal human being. I made it through. I've had some bumps since. But I'll tell you - even on a bad day I'm 10 times the man I was the day I filed. That was a very tough period to live through. Everything after that is easy-peasy in comparison.

Re: Back to Zero!

TRC_WA — Wed, 06 May 2015 20:45:33 GMT

I wouldn't stress too much over the 1-9% reporting every month unless you are planning a major car/home purchase in the next 30 days. FICO has no month to month memory so any balances reported and points loss associated with that are gained once the balance is paid.

Contrary to popular belief the world will not end if you let a balance report on a CC. In fact, letting a balance report and then paying it off shows an ability to repay. If you let your cards report $0 every month and then need to carry a large balance for whatever reason THAT might spook your creditors.

I'm carrying 20% balances right now... and every single dollar is on either a 12 month or 18 month 0% financing offer. I made some major purchases for the home and car and have till 2016 to pay them down. I despise interest like everyone else... but at the same time my creditors have not cancelled my CC accounts because I carried a balance.

Now I'm gonna go outside and enjoy the sunshine.

Grats on your payoffs BTW!

Re: Back to Zero!

04Cobra — Thu, 07 May 2015 07:27:30 GMT

Congrats OP! Definately a great feeling.

Re: Back to Zero!

Scupra — Thu, 07 May 2015 18:45:29 GMT

@TRC_WA wrote:
I wouldn't stress too much over the 1-9% reporting every month unless you are planning a major car/home purchase in the next 30 days. FICO has no month to month memory so any balances reported and points loss associated with that are gained once the balance is paid.

Contrary to popular belief the world will not end if you let a balance report on a CC. In fact, letting a balance report and then paying it off shows an ability to repay. If you let your cards report $0 every month and then need to carry a large balance for whatever reason THAT might spook your creditors.

I'm carrying 20% balances right now... and every single dollar is on either a 12 month or 18 month 0% financing offer. I made some major purchases for the home and car and have till 2016 to pay them down. I despise interest like everyone else... but at the same time my creditors have not cancelled my CC accounts because I carried a balance.

Now I'm gonna go outside and enjoy the sunshine.

Grats on your payoffs BTW!

Well said! A lot of us, including myself at one point, get stuck on chasing a score. It get tedious and tiring. Unless we are planning to app for something it isn't that important