New Member “In Debt” To the Blog

Hello all, My name is Shaunie, I am 27 years old and already in debt; have been for years. I don’t remember a time in my life that I have not been in debt. Most of it began around 1996-97 when I just graduated from high school; to make a long story short, I was stupid. Unfortunately for me, my parents were in debt as well so I was not educated on how to manage my money from day-1; of course high school does not teach you that either.

Even more damage to my credit happened in 2011 when my employer went belly-up and I was left without a job to keep up with my bills but with plenty of climbing debt. I did not know enough about managing my finances to think about saving at least 3 months of pay so I went further into debt. My car was repossessed but fortunately I got it back and paid it off with the help of family. I had to move out of my luxurious apartment and had to give up my second car; I even gave away all my pets in order to save more money for needed things; I ended up living back with my Mom and I have no assets or anything of value because I have sold it all to pay off debts; I only have the clothes on my back.

So in a nutshell, I am trying to correct all this damage to my credit because I want to have a family of my own in the future and I don’t want them to go through the same b.s. I had to go through when I was little. Most of my debt is a result of my neglect of ignoring bill collectors, so I guess I got what I deserved. I have now fallen prey to high-interest credit cards, payday loans, scams and banks laugh at me now. I can’t even get credit for even the tiniest things; not even a checking account even though my ChexSystems record is clear. I am so ignorant about money, it was not until I had paid off my car several years later that I realized I had been ripped off with a 20% interest rate and making $300 a month payments on a $9000 car which took me 2.5 years to pay off.

I tried to get a lower interest rate when I initially bought it at my credit union which I had been a member of since I was 12 years old but because of my credit, they denied the loan so I was stuck without transportation so I went ahead and bought the car. My credit is so bad, I had to talk to a manager at SunTrust and practically beg on my knees for them to open an account for me because I got tired of paying $3 to cash my check at WalMart every two weeks, so I have to stay on my Ps and Qs with my SunTrust account or I am sure they will shut me down and close my accounts.

I have tried going to CCCS about two months ago but since I did not make enough money from my current job and I did not have any assets they said they could not help me.

I subscribed to Equifax’s credit score monitor and I paid off at least one item on my report and trying to save to pay off the others. At this time, my credit score is 547 but I just got another judgment/public record yesterday from CapitalONE on an account back in 2010 so I am sure it is going to sink even further by the time you all read this. On top of that, I have two credit cards from the worst banks ever; Orchard Bank and First Premier Bank. I only have them to try and “rebuild” my credit if there is ever such a term. I just got the Premier card with a 9.9% interest rate (but with a $6 program fee every month) but the Orchard I have had for a year.

The interest rate on the card was 18% when I first got it, but then I made a late payment in December and it went to 20% … then just today, I forgot all about the annual fee on the card so I did not have enough to cover it. The balance is now $75 over the limit because they put on a $29 overlimit fee. In addition, I looked at my online statement and was disappointed that the interest rate skyrocketed to a whopping 26.99%! I am at the point I don’t even want the card anymore but I have heard it is not good to close an account that I have built up a history with. So I feel like my hands are tied.

There are people out there who honestly do not care about credit but I am trying so hard to manage my it but this seems hopeless; I get one thing corrected and then 10 other things go wrong to bring me 5 steps down and making my efforts futile. I don’t want to be 30/35 years old still trying to handle this crap like my Mom. Sometimes I feel like I am going to have a mental breakdown or something; my Mom has been suffering from depression for debt problems and I don’t want to be like that. I have no transportation to work because the engine in my car blew up so I have to struggle everyday to find a ride.

So now I am trying to save $3000 to put a new engine in it because I can’t buy a new car. Friends have recommended to try an auction but I am so scared to because I am really sick and tired of wasting money. I am scared I am going to get a bad car that I can’t return. To get a decent car at the auction will run me about $3000 anyway so I figured I would just put a new motor in my own car and be done with it. I can’t even find a place to stay near my job because my credit is so bad, I can’t get anything in my name. I live with my mom which is 30 miles away from my place of employment.

I just got a new job so I am still in training. It pays okay, about $700 every two weeks and I have been through 2 pay days. I have put $1000 to the side so far for emergency money and I use the $200 left over from my checks to pay my utilities.

I wanted to know if anyone can give me some advice. I am so confused as to what I should do about this stupid high interest credit card and everything else. I am very frustrated because I want to get this right but I can’t. I am sorry this is ridiculously long but I had to vent.