I started off building my credit when I was 18...I got my first credit card through FNBO with a 300 credit limit and over time had a solid credit score and was in outstanding financial shape. At 20yo I had a networth of about 50k with zero loans. I came to this website in search of the perfect credit score, and I litterally jumped off the deep end. As you can see by my signature line, I ammased a freaking awesome display of plastic...I had this huge wallet that would hold all of my cards, I would pay with my RITZ card any chance that I had to see the face of the clerk as he felt the weight of the card.
Fast forward a few years. I'm 27yo with zero active credit cards, with $116,000 in debt (105k credit card debt), a credit score in the 500s (if I'm lucky). I make 96k a year, and I'm dead broke.
Credit is serious business--I thought I understood that a few years ago, but head knowledge is only 20%...habbit is the 80% that matters. I have nothing against anyone who has or uses credit cards...I have nothing against anyone who uses this site (obviously, because I use it)...I'm just saying "be carefull".
I'm filing chapter 13 bankruptcy this week. I will be paying $2100 a month for five years in order to pay off my debts (becuase of my income, I do not qualify for a chapter 7 discharge).
Stay classy, and be real. I was irresponsible--now I'm making up for it on the ramsey plan. No more loans. No more FICO score. Hopefully forever.
Feel free to follow me in the bankruptcy section from now on
Thanks for being honest and in that you may help someone
Good luck keep your head up and start your build
You will learn and become a better person as a result
Too often on the forums I read of only the biggest and baddest new CLs...your post was a great piece of advise and one I am so pleased you had enough transparency to post.
Being on the rebound after a ton of medical bills and choosing not to BK...I cherish every step of the journey. Your post hopefully will be a beacon for those that could easily stumble and have no recourse....but to weather the storm and know that 7 years is a long long haul. (Make payment arrangements and stick to them, it will keep many off your various boards...we sometimes only paid $50. a month, but the docs did not report us to collection agencies, we found being humble was only best presentation to those many we owed.)
Wishing you only the best and hope your circumstances improve in 2017....
Blessings to you and yours.
Thanks for the report...it takes guts to share all that. You don't mention a job loss or health problem, and it's not mortgage or auto debt, so I'm assuming this was from just general overspending.
Do you feel like premium cards fueled your spending...either as part of some quest for rewards or trying to have a lifestyle appropriate for the cards? Or available credit on anything was a problem?
Very brave of you to share your experience with complete rawness. I know it sucks right now, but many of us have been there (I almost thought I was reading my story until I got to the RITZ! I've never had one). The good news is you can come back from it. It might take awhile......and that's ok!
My BK was 5-2012 and just this past July I started rebuilding. Up until then, I was the cash queen. I didn't have any cc and didn't want any! But in today's world, at some point credit may become a necessity. So I started rebuilding.
Im happy that I'm smarter, more of a planner, and more cautious this time around. The most important chapter after rock bottom, is the knowledge of how climb back up and to avoid past mistakes.
I wish you much success! I look forward to following your journey!