@Phoenixupward wrote:It’s been 1 yr since my bankruptcy discharge. I have been ghosting this forum for quite sometime and I believe it’s time to give some advice. First I would like to thank everyone for their insight and positive energy, especially Firemedic1, you are truly awesome.
I filed for bankruptcy due to job loss during the height of the recession. I was earning over 100k a year, had a nice savings, beautiful living quarters, etc. I live in the Northeast, Mid Atlantic where the cost of living is exorbitant but my salary had compensated me quite well and gave me the financial power I needed. Well, when one loses a job it can create a domino effect that continues to spiral. I could not find a job that could replace my former income. So, I took this job just to have health coverage. My rent was 1500 per month. So I had to move to where I currently reside. So here’s my post bankruptcy journey:
Filed 4.18
Discharge 7.26.18
Cost: $450.00 (yes, I have a legal service plan deducted from pay each week that costs a little over $10.00 per month)
I was so turned off by debt that I was happy living on cash. I managed to save a lot of money making less.
9.2018 - Blaze MC - 1.5k now 2k
10.2018 - overstock - 250
10.2018 - Milestone- 300
11.2018 - Kohl’s - 300 now 700
12.2018 - cerulean- 750 now 1.05k
01.2019 - Navy Federal - 2k
01.2019 - GM Financial 2015 BMW Financed 9k @ 12%. Payment is $223.00 per month. I put down a hefty down payment. I was not in the market for a car. An uninsured drunk driver hit my parked car as well as others and it was deem a total loss. Smh. I will be paying off this debt in 2 months. I already have student loans reporting as part of the installment mix.
04.2019 - Ollo - 800 now 2.1k
04.2019 - Nordstrom - (TD Bank is my main bank) 500
04.2019 - Discover it - 1k
07. 2019 - PayPal Credit - 3.05k
07.2019 - Target - 300
08.2019 - Cap 1 - 2k (did not prequalify, cold apped)
08.2019 - TD Cash Reward (secured)- 5k. I like this card a lot. Will graduate in 6 months.
08.2019 - Boscov’s- 500
08.2019 - Discover Chrome - 2k
09.2019 - Bergdorf’s- 750. I wanted this card baaaad.
Joined the following credit unions:
NASA
Bethpage
PenFed
Navy Federal- Granddad was an Army Veteran but he had passed away. Sent them corresponding documents to verify his service. Love this credit union.
Ocean Financial-Love this one as well. Very homey appeal.
Current Scores:
TU - 668
EQ - 651
EX - 657
Inquiries -too many. Car shopping.
Goal - 700 by 7/2019 2020?
Current utilization- 1 percent. PIF BABY!
Waiting for my accounts to age.
Burned almost everybody - chase, cap 1, synchrony, comenity, Wells Fargo, web bank, credit one, merrick.
I’m glad I closed my Amex gold card and paid it off way before I bottomed out. 4 years and counting.
Cash is always king. Cash is like a loving spouse. Treat cash well and it will be with you during good times and bad times. I have access to 20k in various accounts. I earn very little for now. Have a nest egg.
Credit is like a mistress. If you can’t pay for the upkeep, credit will turn on you.
So I hope that I’ve encouraged others to know one can bounce back from BK.
If anyone has any advice for me, please share.
Welcome to the forums. Nice recovery. Hope the apps have stopped now. And let these age. 12 in 12 months is a haul. Garden time! Once all the inq's fall off in a year and responsible use. 700 is in reach. Good Luck!
If they have annual fees. Close them in month 11 before the fees hit. Glad to hear you've stopped apping. Ya got more than enough to rebuild for now. Good Luck!
@Phoenixupward wrote:I don’t know my exact scores from the onset as I did not care but Blaze was my first preapproval via snail mail as my initial SL was 1.5k that was September 2018. So, I assume that my scores were in the low 600s. I did not find out about the Fico community until months later and I decided to see what is exactly on my credit report. I pay for monthly reporting with scores with TU now and plus NASA federal gives me my Experian scores Fico 9 as well as Navy Federal Equifax Fico 9. I really think what jumpsrted my recovery are my student loans which I have paid faithfully and/or in deferment. This community has been so helpful to me. You are off to a great start. Discover is great. Blaze will give you an increase around the 6 month. You will receive a letter via snail mail. I’m probably due for another increase soon. Keep your utilization at 1 percent. Join a credit union. You don’t need a lot of money to join. Credit unions have helped me save money. I haven’t rebounded from my income but I’ve learned to manage my money better with far less. If you don’t mind, who did you burn? Good luck on your recovery
🙂
These bits of advice you give are spot on as to how i am approaching my new financial life....Filed toward end of June so i'm getting close.
You mention your student loans helping you post BK....I have co-signed for about $40k in student loans for my daugher. They are still in deferment, this is her last year of 5 yrs. I'll assume those will help me in my rebuild in a round about way?
I also know that i will be able to save a lot of money. Single guy, cheap rent/no mortgage, no vehicle loans, nothing.
I opened 2 new checking accts ( i had about 12 checking/savings with banks and CU's prior to filing). One with a large-ish local bank and a local CU. I researched them to see if they offered secured CC's before i chose them, and they do. Also, the CU i joined, has a relationship with a particular home builder that i have been in contact with already. Can never be too prepared or plan too far ahead, right?
Living on a debit card for the last 3 months has been an eye opener. And i must say that the BK classes you had to take really did bring me back to reality and a lot of it has stuck with me....especially the budget thingy.
I wish i wouuld have filed 18 months sooner, instead of smacking my 401k for well over $100k to try to get ahead of this mess i created.
The point of my reply is that i feel like im on the same single brain wave with you as to how you handled your situation and how you're looking forward.
P.S. I wouldn't close ANY accts unless they have an AF as mentioned. No sense in closing them. Just let them age even if you don't use them. But then again, they will report for 10 yrs even if you do close them.
