Viewing a single comment thread. View all comments

exstonerchick12 t1_iydonm1 wrote

Reply to comment by dwright1542 in Help! Drowning in debt. by nah_just_ocd

Thank you! And yes, it was WORK. After the 1st year I got a secured card through Capital One for $500. With good credit usage they eventually refunded my money, turned it into a “real” card and increased the limit. Every 6 months or so they increased it, and after about 2 years I applied for another Capital One card. Now I apply for 1 -2 new cards per year with different banks and have been approved for all with increasingly higher limits. I use them once a year for small things and pay them off immediately. I only carry a high balance for big purchases - furniture, travel, car repairs, unexpected medical - on one card with zero interest and throw buckets of money at it monthly. Which I can afford to do because I’m no longer in debt!

I also have a student loan which wasn’t forgiven in the BK. This has undoubtedly helped me establish a solid fixed payment history. Never been late or missed a payment in 10 years.

Bankruptcy isn’t just about getting rid of debt. It’s about a massive shift in understanding money and its psychology - particularly the psychology behind credit usage. The banks WANT you indebted - that’s how they make their money.

I’ve learned the hard way that cash truly is king. If I don’t have it I don’t spend it, period. Unless it’s an absolute emergency I have no reason to run my plastic.

1

dwright1542 t1_iydra10 wrote

That's interesting. I was credit-adverse for YEARS. When I learned how to manipulate the system though, plastic became a HUGE asset. I run EVERYTHING thru it now, and accrue points. Those points have paid for Home Depot gift cards (when Amex runs the 20% off sale) plane tickets, etc.

2

exstonerchick12 t1_iyerzig wrote

Credit is amazing if you know how to use it to your advantage. Good on you 🙌 Personally, since I have quite a past with my cards, I can’t risk using them as often as someone in your position might. But I’m with you on the points when you can get them. The only card I use regularly and carry a balance on is a travel points card.

1