Saturday, November 23, 2024

About seven years ago (2000), I sat down and knew for sure I was in debt. I had credit cards that were over the limit, due to me charging and charging, but not paying.

I used to write checks at the grocery stores in order to get cash back. I knew I would be paid within a day or so and that the money would be there when the check cleared, just not at the time it was written. I was so deep in debt.

I would submit credit card offers all the time, and over time, I would get rejected and wonder what the problem was. So at the tender age of around 20, with a credit score that had to be in the 400's, I decided I needed to make a change--and quickly.

I signed up with a debt consolidation program, got all my cards together and paid a small monthly amount. Once one was paid off, I put that extra money toward the other card, and so forth. I was broke, couldn't even afford to eat sometimes, but I did what I had to do. Slowly, but surely, the debt started to fall off. I began to realize how good it feels to finally pay off something. So I continued to do so. I monitored my credit report and score and began to save money.

When I was in the process of getting out of debt, I researched many debt websites online. Debtsmart.com was one of them that I stuck with. I subscribed to receive the biweekly email newsletter, and I read them. They offered great advice and ideas. I learned to talk my APR down. I even forwarded articles to friends in need.

In 2003, I graduated from college and did not have that much debt left over. Wasn't making much salary wise, and didn't have much saved. I realized that I would soon want to move out on my own and needed savings and a better credit score. So I managed to get a promotion at the job, making twice what I was making before. I paid off everything, except for the student loan. And my credit score was in the mid 700's!

I made the decision in 2004 that in 2005 I would make my first home purchase. So I saved and saved and managed to have about $5,500 in savings in addition to my great credit score. I purchased all my furniture prior to the move and just made payments on it until I was able to move into my place. I paid it off once I moved in, which in the long run made sense, because I would move in with new furniture and no debt. I also was able to renovate the entire place due to the fact I had no debt. I did, however, run up the credit card again to $10,000, but to me that was nothing, because that was the only card I had.

And here I am, two and a half years later, and that credit card will be paid off next month! And based on how I learned to pay off things aggressively, it was a piece of cake. I tell others about it, and they are shocked to know that I was able to do what I did.

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