<$Tuesday, January 15, 2008$>
The Perils of Bad Credit
| *Sponsored Post* I've struggled for years with bad credit, mainly because of mistakes made in my youth. I remember my first day of university, when I thought I was all grown up but in reality was WAY too immature to handle having my own credit card, stepping into the student union and being inundated with credit offers. I applied for my first credit card just to get a free tee-shirt, and ended up with hundreds of dollars' worth of debt that I didn't know what to do with. From there it snowballed--I applied for more credit to stretch my budget, and ended up even deeper in debt. Add to that my ADD and my then-inability to remember to make timely payments, and I don't think I need to tell you that I was, essentially, screwed. Over the last few years, though, I've finally gotten my financial act together. I learned how to manage my money, how to budget, how to automate my payments or set reminders so they always get paid on time. Now I'm slowly but surely paying off my consumer debt. My biggest card balance (which, incidentally, is also the card with the highest interest rate) is one payment away from hitting a milestone of falling under $4,000. It's been a struggle to get on top of my finances, but it's paid off. My credit score has risen drastically over the last couple of years. I'm excited because I know how many doors finally having good credit will open for me and my husband--namely, finally being able to buy a house. Bad credit is an easy trap to get into, but once you're in it feels impossible to get out. But it is possible, and it's worth the struggle. Of course, the best thing to do is not fall into that trap in the first place. Get educated before you apply for credit, and be confident that you'll be able to refrain from misusing it. Labels: credit cards, disclosure, PPP |
