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My story of how i got out of debt !

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Mario4
New Contributor

My story of how i got out of debt !

Hi, im 22 years old working with a 21k income. Got my first credit card with BOA 2 years ago. Along the way I acquired 2 other credit cards and 4 store cards (all in my listed below). I began taking advantage of the 0% financing offers from the store cards some came into some financial stress.. long story short I ended up with about 3k in debt between my cards.. (6K TOTAL LIMIT)

 

I had all on time payment for all cards at this point, no bad marks so i applied for a personal/debt consolidation loans. I got declined each and everytime from different lenders. There is a one main financial office near my office and I've read so many bad reviews I was discouraged to seek a loan through them. I spoke with a rep at their office and found out that for a 3k loan I'd end up paying over 6k at a 29.99% APR for 48 months This sounded ridiculous.. but I felt as though It was the only choice. 

 

I accepted the loan.. paid off all my debt.  

 

Heres a before and after image.

 

Before: 

 

N/A EX FICO  620 EQ FICO 640 TU FICO

 

BOA SEC.            $300

CAPITAL ONE    $750

FIRST PMR        $700

HOME DEPOT   $500

WALMART          $1000

BESTBUY           $1200

AMAZON             $1600

 

 

After: ( i asked for increases on every card and applied for some new ones)

749 EX FICO 732 EQ FICO 736 TU FICO

CHASE FREEDOM - $2,000

CHASE SLATE - $2,400
DISCOVER IT - $3,000

BOA REWARDS - $3,000 (unsecured the card)
CAP1 QUICKSILVER - $1,750

WALMART DISCOVER - $3,000
BEST BUY - $3,000

HOME DEPOT - $3,000

AMAZON - $1,600

 

 

****I also joined a credit union and refinanced the loan at 15% and i'm currently financing a 20,000 auto loan for a 2008 BMW 328i convertible as well @11.25%****

It's through BMW financial services. My scores qualify for less than 5% but my income appears to be a big risk with lenders.. but I will refinance that in a come months as well. 

 

I did apply for amex blue everyday, but was declined due to too many inquires and recent inquiries lol.. but i'm still happy. 

 

Thats my story!

 

 






Message 1 of 17
16 REPLIES 16
alvon123
Super Contributor

Re: My story of how i got out of debt !

congrats on your success Smiley LOL


Message 2 of 17
gh17
Frequent Contributor

Re: My story of how i got out of debt !

20k car on 21k income?  No wonder it's a risk.

BofA Cash Rewards 25,000 (2009) | Citi Double Cash 25,000 (2011) | Cap1 Quicksilver 10,000 (2013) | Discover It 31,000 (2014) | Chase Freedom 9000 (2014) | Barclaycard Rewards 25,000 (2014)

FICO: 840 Discover/Barclays/BofA TU, 869 Citi Equifax
Message 3 of 17
Mario4
New Contributor

Re: My story of how i got out of debt !


@gh17 wrote:

20k car on 21k income?  No wonder it's a risk.


Yep, but I've done a pretty great job lol. I am only 22 =/

 

Im training to become the direction of I.T at my office and my income will be over 100K. My ceo is currently paying for my programming clases. 

 

I can only imagine the doors that will open when I get that income later this year. 






Message 4 of 17
Mario4
New Contributor

Re: My story of how i got out of debt !


@alvon123 wrote:

congrats on your success Smiley LOL


Thanks !






Message 5 of 17
gh17
Frequent Contributor

Re: My story of how i got out of debt !


@Mario4 wrote:

@gh17 wrote:

20k car on 21k income?  No wonder it's a risk.


Yep, but I've done a pretty great job lol. I am only 22 =/

 

Im training to become the direction of I.T at my office and my income will be over 100K. My ceo is currently paying for my programming clases. 

 

I can only imagine the doors that will open when I get that income later this year. 


Awesome, congrats on the job training/future position!  Personally, I would have waited until after the salary increase - you never know, things happen, and I wouldn't want to get stuck with a loan I couldn't afford.  But to each his own.

 

BofA Cash Rewards 25,000 (2009) | Citi Double Cash 25,000 (2011) | Cap1 Quicksilver 10,000 (2013) | Discover It 31,000 (2014) | Chase Freedom 9000 (2014) | Barclaycard Rewards 25,000 (2014)

FICO: 840 Discover/Barclays/BofA TU, 869 Citi Equifax
Message 6 of 17
Mario4
New Contributor

Re: My story of how i got out of debt !


@gh17 wrote:

@Mario4 wrote:

@gh17 wrote:

20k car on 21k income?  No wonder it's a risk.


Yep, but I've done a pretty great job lol. I am only 22 =/

 

Im training to become the direction of I.T at my office and my income will be over 100K. My ceo is currently paying for my programming clases. 

 

I can only imagine the doors that will open when I get that income later this year. 


Awesome, congrats on the job training/future position!  Personally, I would have waited until after the salary increase - you never know, things happen, and I wouldn't want to get stuck with a loan I couldn't afford.  But to each his own.

 


Yea I thought the same, but I was getting a new schedule for work and new classes. Needed the car ASAP so I wouldnt postpone the position. I'm just hoping I make it till September. Thats when I sign the contract to stay at the position for at least 5 years at a set schedule.  Thanks a lot though. I'm truly proud of myself for fixing the underlying problem; consolidation only shift the debt.. I had to learn self control and spend only what i have. Luckily I did. Or Id owe a personal loan, auto loan and have maxed out cc's. lol






Message 7 of 17
nachoslibres
Established Contributor

Re: My story of how i got out of debt !

Congrats on the consolidation - but I wouldn't open any more credit lines till you pay off the remaining debt.

 

Take it from me - someone who racked up $120k in student loans, bought two new cars when getting into a better job, and bought a house when I shouldn't have and ended up moving and had to pay $40k out of pocket to sell (bought at the peak of the real estate boom).  I now make about $140k a year and have paid down the student loans down to $30k but I now drive a 9 year old car and a 7 year old minivan and am currently renting and saving up for a house.  I could have been in a house a long time ago if I hadn't made the dumb choices I did - and while a bigger income gives you a bigger shovel to dig out of the hole of debt - assuming that you will be able to pay it all off quickly once you start making 6 figures is optimistic unless you start working on a plan now to budget your money on the income you have now (and IMO a car loan on a luxury car @ 10%+ is crazy).

Message 8 of 17
Mario4
New Contributor

Re: My story of how i got out of debt !

Called amex for reconsideration on BCE and got approved 2K. Smiley Very Happy






Message 9 of 17
Creditaddict
Legendary Contributor

Re: My story of how i got out of debt !

Why not move most of your freedom credit line to slate and then use the 0% bt to pay off your 15% personal loan, what wont fit on slate put on your discover at 0%.

 

Message 10 of 17
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