Great new habits - old debts sinking me

iVillage Member
Registered: 05-09-2002
Great new habits - old debts sinking me
1
Wed, 10-12-2005 - 7:07pm

hi,
I've posted on and off for a few years and thank gooddenss this board is here. Here's my problem that I think others can relate to. I haven't had any new debt in quite a few years. My problem is digginy myself out of the debt I have! I make a decent salary, but have incurred so much between college and stupid purchases years ago that I am so sad about my credit. I don't know my FICO offhand, but it is not good. I have pulled my credit and it is as bad as I thought.

I have made progress though - this summer I paid off a doctor's bill and got another bill down from $900 to $400. I also chipped away at another card that once had a balance of $950 down to $75. No new debt and I know I will eventually get there. I am so paycheck to paycheck though that some months I cannot pay the credit card (that I don't use - just old debt) card bill and one other loan. I know it hurts the FICO - I just cannot sometimes and still live.

I spend under $8 a day in food, I don't get lattes let alone coffee - I drink the free coffee at work. When I go out I save half the meal for another meal. I don't buy drinks or dessert when I go out with friends to save money. I don't splurge on clothes. I don't splurge on anything. I just have a hole from years ago that is so hard to keep up with all the payments. Some weeks I have only $30 left until payday but I am not overspending. Anyone else in this boat? I allow myself $15/day for tolls, gas and food and I stick to it. I use the change I save each week for tolls when I can. (I live in a city and work outside the city. Driving is actually CHEAPER than the train!)

Each time I miss a payment, I am fully aware of it and so sad that it is another ding on my credit. I've done the Credit Consuling thing and missed two payments when I just could not do it and got kicked off the program. They agreed that what I take home barely covers the essentials. I will be ok in a few months - just moving is so expensive. The guy I am dating is great, but doesn't understand and thinks I must be "financially irresponsible". Yeah, I was 10 years ago. Not anymore and good habits now so I am FRUSTRATED! Thanks for listening. Anyone else out there with great NEW habits, kicked old habits to the curb, but lots of old debt?

iVillage Member
Registered: 04-19-2003
Wed, 10-12-2005 - 10:52pm

Hello,

In reading your post, I couldn't help but be reminded of my own situation several years ago.

Like you, I made some financially unsound moves, mostly in the form of credit card purchases. There was a time that I spent every Saturday at the mall and spent hundreds of dollars on impulse purchases..just because I could. Even though my balances were always going up, I had actually deluded myself into thinking that I would just pay it off a little at a time.

That's fine, I suppose, until reality smacks you in the face. Before I knew it, the minimum charges were more than I could cover..and that was the case for more than a dozen credit cards. It was a nightmare. I was literally digging in my purse and coat pockets, looking for loose change in order to make my carfare to work. I had stopped using my credit cards all together, but the debt was still there, and I had to do somthing about it.

This kind of burden takes a toll, mentally, emotionally, and even spiritually. I was too embarrased to tell anyone how deeply indebted I was. I couldn't sleep for worrying about how I was going to make all those payments. Even taking the mail out of the mailbox caused me anxiety because I knew what was coming.

I applaud you for modifying your spending habits and making every effort to dig yourself out of debt. Don't worry too much about your credit score at this point. What's important is that you pay down your debt and get to a point where you are able to pay everyone and still have enough to live on. When I was in the middle of my money crisis, I couldn't worry about credit scores. What was I going to finance anyway? I wasn't looking to buy a house or a car because I had the money for neither. The good news is this--your credit score will rebound. It may take some time, but perhaps the only "fair" thing about the system is that, in time, your score will go up. Seven years ago, my credit score was in the 500's. Today, it is close to 800 (as of 10/1/05).

I'm not very good at budgeting, but it is something I work on every day. Like you, I avoid casual spending, drive only as much as I need to, bag my lunches, rarely go out to eat and leave my credit card at home. If you're committed to getting out of debt, it is possible.

Best of luck to you!