Being in Debt Stinks: Don't fall into the trap
I have to admit I fell for it and fell for it hard. The marketing on how debt should be used and should be used often.
I struggled to pay bills in college so I opened a few credit cards, I needed to. I was going to college full time and was set to graduate about one year later. My degree in Mechanical Engineering was waiting for me at the other end. I could already picture the future. I would graduate and a well paying job would be waiting for me at the other end I just didn't know where.
I was new to credit so the limits were low but I needed money for college. So I opened more. I had other traditional student loans but they had been used only school expenses. I then, pulled out cash advances on each and paid them back. That created activity. Once activity was established I asked for increases and was granted those. In the end I built about $14K in credit card debt that got me through my last year of college.
In the end, I graduated and was able to pay back the debt in less than a year since I was used to keeping my expenses low. That was the only time that I was debt as being necessary. I took my chances and it worked out well.
These events happened back in the 90's. The world has changed a lot since then. Now there are full marketing campaigns selling the idea that you should always seek to raise your credit rating. There are constant news articles trying to convince you to keep balances open on your various credit cards in order to stay in the good graces of credit companies. Are they serious?
I stopped using the credit cards I had for about 9 months after I graduated since I didn't need them anymore. Guess what happened. The cut the limits to a few hundred dollars each. Unbelievable !!! When I made no money and had no job they gave me a credit max of over 50K. When I made over 50K per year in my first job they reduced the my limits to under $1K on all cards combined.
Now I strictly use cash. It was painful in the beginning but I got used to it. I live well and I know exactly where I am financially since I have no debt to pay off. I see friends buying new cars and houses on credit over and over again. Who is everyone trying to impress. I would be impressed by the person who doesn't need to work not the one with the most stuff. I have a lot of interesting stories on the process too if it seems that there is interest in this article.
By the way, this is not a teaser article for a product or simple method to get out of the rat race. I hope it will be more of a record of my struggles.
Keep Steeming!!!
Cheers,
Alex
image source:
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someone is out there somewhere telling folks that debt should be used often???? lol what?!
LOL. Credit seems like to have grown into having a cult following since there is so much marketing lately.
yes there is lots of credit and debt but i didnt know people were actually saying it's a good thing lol
You haven't met my coworkers. LOL Its like a competition for them.
This was a great read. Very informative for an european like myself. These "practices" are unbelievable.
Thank you very much. With all that going on here in the states I just hope matters don't get worse specially for health care. Cheers,
Crazy things are preached about how to raise your credit score! I use credit cards quite often and I always pay them off in full in order to avoid interest on them. My credit score is quite good compared to most people. Although, in all honesty, I do have a bit of debt left over still in the form of student loans. However, as a teacher after 5 years some of the loans can be forgiven and when I reach that point I will be completed down with those loans.
Credit cards do have their perks if they are used responsibly as you can earn money back on them that you wouldn't have gotten otherwise. However, I am surprised that they cut your credit limit once you were making money. This may have been because you were not using them anymore. Although, between college and obtaining a decent paying job my limit was never changed unless I asked for it.
Thank you for your comment! Unfortunately for me, I grew up always being close to zero savings and having to provide for my mother and grandmother later in their life. Debt for me was endless, even after I bought a house for us there would be the "good mortgage debt" then their would be a new replacement furnace and a new roof to refinance for which just added to the monthly bills. It was calamity after calamity that I couldn't even cater to the "keeping up appearances factor" . I never did get to buy a great car or flat screen TVs either. You are right, when I called up the credit cards company stated that they lowered them because I didn't use them but they would raise them. LOL
Great Article! A must Resteem ;)
Yes I too was and am in debt thx to having a dysfunctional family who did not educate me until I g0t my first j.o.b.(just over broke) SMH
My dad explained how I was able to obtain triple-AAA-Credit by applying for numerous of credit cards and so, I really heard and listened. He said to buy one 0r two things like a Cd, some socks and payback immediately! I was able to get a Radioshack credit card, Best Buy, and all types of Visa's, you name it!
The plan would have worked had my parents taught me about m0ney@an earlier age ye dig!
Young people(including myself@the time) go thru a phase of wanting to act like they have money by buying needless things that make them look like they 0r we are really doing something in life. But nope! That's the trap! I had my first apartment on my own(no rommates) and It was tempting to buy all this stuff for my pad and so, I maxed out all my cards buying furniture and whatever you can think of. After the bills started coming in the mail, I didn't want to pay it. It felt good having the feeling of obtaining things without actually having to come out of your pocket if you catch my drift! And so, I decided to pay the minimums and I was doing it for quite some time but after awhile when things started getting harder, I gave up the payments and ended up in debt lol
Now I hate credit and am blessed Crypto came into existence. I can say that I honestly don't want credit cards anymore, I really don't! It's all about Ca$h and Crypt0 f0r now ;)
Great t0pic & thx y0u f0r allowing me to vent ;)
DON'T FALL INTO THE TRAP UNLESS, YOU ARE RESPONSIBLE ;)
Yes, yes and yes. I cannot agree more. I'm 46 and have friends and coworkers trying to impress each other on their new car purchases, lease, insurance and other related expenses (under $1000/mo). I'm thinking who are they trying to impress since the next day they talk about a new item $3K TV set etc. It never ends. I just stay quiet since if I said that my car is 20 years old and cost me $1000 total with just liability insurance expenses are 85 bucks I would really make some enemies fast. I want to stop working at some point and look back and say " Wow I made some hard choices but look at me now. " Period. I don't want to be 80 working as a cashier because no one will hire me and I need money.
One last Yes..... Crypto is a blessing.
Keep Steeming!!!
Cheers,
Yes! lol All of my peers around me think they really doing something ha! I now laugh because that use to be me! I just thght I was doing the right thing like everyone else, trying to have something to show for their(0ur) hard work. But little do they know, things get old and ppl always want to keep up with the lastest fashion;) Now I see the importance of saving and investing and only spending money like a true baller when you truly are a true baller!
The women who fall for those guys and vice versa, will start to see 0r realize money just being waisted and realizing they end up in the same situation. Some really do make great living but they are waisting money and most importantly, time!
Trust me I know! I had money and so much was just waisted on material crap. I was searching more towards freedom(independence) so, half my money was also spent on finding the right business. Have to lose/waist money to a point where you just get so sick & tired and BANG you start to make changes & you are on your way to maturity ;)
We need credit to get a good deal on insurance, to get accepted for a rental, Fet a good eats in a car or auto loan...yet good credit requires a degree of debt to show lenders we can borrow responsibly. It's quite the balancing act. I'm pretty sure the FICO algorithm is more complicated than the US tax code!
LOL. True. Very true.