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I am a prime example of WHAT NOT TO DO

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Valued Contributor

Re: I am a prime example of WHAT NOT TO DO

Thanks!! Good Luck to you..Smiley Happy

American Express Business Gold(NPSL 10k) Chase CSP (25k) Pier 1(23.5k) BofA CR Siggy (20.8k) BofA BBR (22.1k) Amex BCP(18k) Overstock (21.1K) Lowes (17K) NFCU CLOC (15K) NFCU VS Cash (15K) Care Credit (15k) J Crew( 11.9k)Venture WMC (10.25k) Amex Everyday (10k) Chase Slate (10k) Walmart MC(10k) BB Visa (10k) Discover(9.5k☝️) PayPal Cashback Mastercard (8k) Chase FU (7.4k) Citi AAdvantage Gold World Elite (9.5K) Citi Double Cash (8.5k) Fidelity® Rewards Visa Signature® Card (6.5K) PenFed PCR (5K) PayPal Credit (4550)Discover (4.5k✌️) Kohls (3k) Chase Freedom (1500)

Mortgage May 2017 - 2 auto loans (1 PenFed and 1 Navy) Aug 2018=98K
Gardening until Aug 2020

FICO 8 Scores EX 693(7) EQ 687(9)TU 708(10)
AAOA 4yrs TCL=332,600
Message 31 of 35
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Established Contributor

Re: I am a prime example of WHAT NOT TO DO


@Blackswizz750 wrote:

@LOTR wrote:

First and foremost, thank you so very much for being so open and honest - not only with us on this forum, but with yourself. 

 

Someone here has a quote in their signature line that I always try to remember:  Credit can be a wonderful servant, but a terrible master!

 

After over two years of being jobless and then followed by my divorce, I too decided to go all cash.  Due to my ex trying to take me to the cleaners (financially), let's just say the lawyers made a killing!  

 

I got myself out of debt with Dave Ramsey's snowball method.  Although it may not have been the most efficient (APR-wise) it was the most effective (emotionally)  in seeing real results fast!  At that point, to me, Credit--->BAD!  Cash-->GOOD  Period.  But I've learned that if you're disciplined and develop good spending habits, you can have credit AND still be debt free.  

 

Dave Ramsey' method works until you find yourself in a situation when..well... Life happens.  And when it does, it can often deal a blow that the best financial planning can't account for.  Dave Ramsey's plan - and any plan for that matter - can't account for everything. It certainly did not account for a vindictive partner in a divorce or an 2-3 years jobless cycle.  Now having hindsight, a little credit would have gone a long way in helping me to survive until I landed a job.  In fact, I didn't need much to help to fill the financial gap (after tapping all sources), but not having that little help caused bigger problems (tax liens and almost a car repo among others).  So in 2015, I realized that the ALL CASH method would probably work in an early 1990's world, but not in today's Apple pay and Google pay world.  

 

Now, I have CCs but don't fear them as much as I realize I don't HAVE to carry a balance.  I don't HAVE to be in debt.  By only charging what I can PIF each month, I am basically living a CASH life but using it to build solid credit as well.  Except for around the holidays, I pretty much don't go spend-crazy.  I charge day to day living expenses and pay off those day to day living expenses EVERY SINGLE MONTH.  I have a budget for every category and don't go over that budget (even with charging).  Even during the holidays, though my spend may increase, my discipline stays in tact - that is PIF every month without question.  I absolutely HATE paying CC interest and so I avoid it at all costs.

 

 

Although you may have gotten an ego boost from acquiring so many cards, as you mention, it was your basic lack of discipline that really got you into trouble.  Been there. Done that!  You are young still and no doubt, you will bounce back from this bankruptcy better than most!   You sound like you have learned your lesson AND you have a job that pays well which will allow you to accomplish many financial and personal goals.  I wish you all the best!

 

Again, thank you for sharing. These stories are just as important on this site as the "rebuild" and "I got approved" ones! Smiley Happy


Matrix

 

You have a real and clear post about what your are going through. You will go far during your rebuild. Just keep pushing.

 

LOTR,

 

Youy have gave me an idea on how I can better use my cards(just charge your daily expenses(day by day) and pay it all off. That way, I dont have to track what I spend in several places(checking, cards, cash). I learn so much here and see other folks perspectives. I may not agree with all but I repsect it.

 

 


Exactly!  So really, nothing changes except HOW I pay.  I don't do any artifical spending to get bonuses, etc.  But, I am definitely saving money and making credit work for me instead of against me (6% off groceries with my Amex, 5% off gas with my USAA, 3% off lunch with my Costco, 1% off utilities, online shopping, etc., 5% off Amazon, etc.)  And I don't pay a lick of interest!  Love it!  Credit can work for you..  You just need to know how to make it work for you. I don't spend to get bonuses.  I get bonuses off of what I spend.  There is a difference in that statement.  

 

Anyway...the OP will be fine because they recognize where it went wrong and why.  I am so grateful that they put it all on the line and posted this, because it will help sooo many people who may be going off the path a bit, so th speak.

 

gardening: 01/05/2019 updated: 01/23/2019 rebuild: 2/2016 EQ 648 TU 642 EX 663
Start Mort: EQ 800 TU 800 EX 805 Fico 8: EQ 794 TU 806 EX 825
Curr Mort.: EQ 800 TU 800 EX 805 Fico 8: EQ 794 TU 806 EX 825
Goal Mort.: EQ 850 TU 850 EX 850 Fico 8: EQ 850 TU 850 EX 850
Take the myFICO Fitness Challenge
Message 32 of 35
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Established Contributor

Re: I am a prime example of WHAT NOT TO DO


@Justagirl73 wrote:

@LOTR wrote:

First and foremost, thank you so very much for being so open and honest - not only with us on this forum, but with yourself. 

 

Someone here has a quote in their signature line that I always try to remember:  Credit can be a wonderful servant, but a terrible master

Again, thank you for sharing. These stories are just as important on this site as the "rebuild" and "I got approved" ones! Smiley Happy


Love that quote! 

And I agree this post is just as, if not more, important! 

 


It was the quote above that made me stop applying for credit when I found myself getting carried away a bit.  LOL!

 

Another quote ( also read on this forum) that I love is ... 0% interest is where the devil lives!  

 

It's soooo easy to charge up on those 0% interest offers and balance transfers, only to find ourselves not quiet ready to pay it off when that 0% runs dry.  We have to remember, the banks have been playing this credit game far longer than we have, so caution is the best way forward if we are to come out ahead in the game.  Any good gambler knows "when hold'em, when to fold'em, when to walk away...and when to run!".

 

gardening: 01/05/2019 updated: 01/23/2019 rebuild: 2/2016 EQ 648 TU 642 EX 663
Start Mort: EQ 800 TU 800 EX 805 Fico 8: EQ 794 TU 806 EX 825
Curr Mort.: EQ 800 TU 800 EX 805 Fico 8: EQ 794 TU 806 EX 825
Goal Mort.: EQ 850 TU 850 EX 850 Fico 8: EQ 850 TU 850 EX 850
Take the myFICO Fitness Challenge
Message 33 of 35
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New Member

Re: I am a prime example of WHAT NOT TO DO

Your honesty is impressive man! Gotta start low to get back up!

Message 34 of 35
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Established Member

Re: I am a prime example of WHAT NOT TO DO

And when you get back up, no need for monster limits.... you can always CLD yourself... 3 revolvers, 5K limits to get siggy benefits, 2 reporting $0 bal... and you'll only have $15K exposure instead of $100K, but you'll have all the benefits of an awesome FICO score if you manage it correctly after BK drops off, for auto loans, mortgages, insurance rates, even some job prospects in the future.

10/15 - EX(08) 671, EQ(08) 691, TU(08) 649: $11K TCL, 17% util, 6.4 yr AAoA, 1 4-yr-old paid CO
10/16 - EX(08) 793, EQ(08) 815, TU(08) 775: $137K TCL, 8% util, 4.4 yr AAoA, 0 baddies (Thx CFPB!)
Message 35 of 35
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