New girl

iVillage Member
Registered: 05-26-2006
New girl
3
Wed, 05-31-2006 - 7:23pm
Hello everyone,
I'm new to this community but I think I just found a place where people will understand me. I'm currently a full-time college student. I also work full-time but I don't make a lot of money.
My situation is that I'm so disappointed and ashamed of myself because I've been working since I was 16 years old and I have nothing to show for it except about $5,000 in credit card debt (I'm not going to calculate my student loans or car note since I make payments on both). Generally, I'm a super responsible girl. My mom (my parents divorced when I was 8) lets me live with her rent free because I'm attending college which I'm paying for myself with student loans and grants. My family doesn't know about my financial crisis because I hide it really well. I always try to be happy and stress free meanwhile, money is constantly a concern for me. I have a wonderful boyfriend, we've been together for two and half years. He has no idea about my finances. The thing is that my family never really discusses money. I've always taken care of my finances and obligations since I got my first job. I handled this really well until I started working at a department store and went crazy! I've always enjoyed shopping and could manage it before credit card temptation set in. I got a loan for my car and then got bombarded with credit card offers that I stupidly accepted. I know $5,000 doesn't seem like a lot of money to some people but it's taking me a long time to pay them off. I'm trying very hard to stick to a small budget but I just wanted some people to talk to about it. It seems harder to get out of bed in the morning or to want to go do things because I'm so afraid of a creditor calling or having to spend unbudgeted money on something unneccessary.
I really want to get this whole mess cleaned up before I graduate in two years. My car will be paid off by then. My boyfriend and I talk about our lives when we're married and he believes that I'm responsible enough to account and take care of our finances because I'm so strict with money. I have good ideas about money but I can't figure out how to get myself out of this current mess.
I was also wondering, how long does it take for credit reports to clear up? I've been late on payments and my credit is horrible. I'm worried that my boyfriend will find out if we try to get an apartment or house or something within the next five years. I just want to get out of this mess because if I do, I'm sure that I've learned my lesson and will do much better with a second chance.
Well I feel better discussing this and getting it off my chest. Any advice or help or support that any of you have would be greatly appreciated!
Thank you,
Sweetiepea1984
iVillage Member
Registered: 01-06-2005
In reply to: sweetiepea1984
Thu, 06-01-2006 - 10:25am

Sweetiepea, WELCOME!

 

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Avatar for endomagazine
iVillage Member
Registered: 11-09-2004
In reply to: sweetiepea1984
Thu, 06-01-2006 - 2:07pm

Hello,


*hugs heading your way*


I've gone through the same thing you're dealing with .. the lure and trap of credit card spending. Remember, you are *not* your debt. It doesn't define you or make you a bad or irresponsible person. I came out of college with $5000 in debt and a minimum wage job that barely paid my minimums and expenses, so I really do understand.


The fact that you are living with your mom rent-free is a big plus. It may not *seem* that way, but you *can* deal with the credit card debt.


Do you have a public library nearby? I would suggest finding Dave Ramsey's book "Total Money Makeover" and reading it.


First, find out your current balances on all of your credit card debt. Keep paying the minimum payments on all of them, but stop using the credit cards completely. Cut them up!


List your balances from smallest to largest. Keep paying the minimums on everything else and start sending all of the extra to your smallest balance.


To answer your question about repairing your credit score, the best way to repair it is to keep paying those minimum payments *no matter what*. The more payments you make, over time, the better your credit score will be.


It would be a good idea to set up a budget, as a previous poster mentioned. Figure out which paychecks you'll use to make your minimum payments and how much is left over. As soon as you get paid, send off the payments for your cards. You don't have to wait for the statement to come in. If you stop spending on the cards and keep making the same minimum payment each month before the due date, the balances will slowly go down.


If you've missed a few payments, your interest rate may be very high. If you can, transfer any high interest balances to lower interest cards, so that more of your money is going toward the principal. =)


Sincerely,
Lindsey Schocke

Geeks on Tap: Mission Accomplished

iVillage Member
Registered: 03-27-2003
In reply to: sweetiepea1984
Thu, 06-01-2006 - 2:24pm

I am going to add to the advice already given and say that I really think you should talk to your boyfriend about this. You guys have been together for a couple of years and have talked about the future, and the time for him to find out about these issues is not when the 2 of you go to buy a house 3 years from now. I am sure he will understand, and if he doesn't.......well, you can make your own decisions about what to do with someone who doesn't understand. I think it is important to tell him also because you are going to need to adjust your lifestyle in order to get out of this mess. You won't be able to go out as often, and this way he will understand why. Plus he will probably end up being a fantastic support system.

Is there anyway you could work more hours over the summer now that school is out? Welcome to the board.

Heather