It was nearly a year ago that I wrote my post, “Arising From the Ashes of Credit Card Debt.”
Sure, within a couple of years of declaring bankruptcy, I was able to get a furniture loan and a car loan, but credit cards were unattainable. Not that I’m a fan of credit cards, mind you, but sometimes it helps to have one. What if there’s a major expense (like the washer breaks or the dog gets sick [from eating my brand new cell phone, but that’s a whole ‘nother story]) and there’s not enough money in the checking account to cover it?
Before my bankruptcy, I had nearly every credit card that was ever offered (gee, I wonder why I never saw bankruptcy in my future?). Years later, I could understand why companies I stiffed in bankruptcy would now be reluctant to grant me a new account. I did understand, I did.
So I went merrily on my way using only cash and a debit card and hoping nothing major would arise.
Recently, one of my co-workers refinanced with the same bank I use. The loan terms were incredible – low interest, and no closing costs or fees. I scoffed when my co-worker told me “no fees” – certainly, those would be rolled into the mortgage somehow. But I sat in on the loan closing, and guess what – NO CLOSING COSTS AND NO FEES!
After my colleague’s loan closing, I chatted with the loan officer. I had been struggling to pay one mortgage at 7% and a second one at 10% – plus two brand new construction loans at 9% and 10%, respectively – an interest rate under 4% would save me hundreds of dollars every month if I could roll all the balances into one loan.
But I didn’t have high hopes. Lenders definitely didn’t like me over the last few years.
The loan officer, like loan officers everywhere, was very confident and upbeat – yes, she could get that loan through! And quickly! How would I like to close in two weeks?
Yeah, right.
God bless the woman – she not only got my new mortgage through, and got me a few thousand dollars extra to use towards my ongoing construction costs, but she even managed to get me a brand new, “real” credit card through the same bank. This was funny as hell to me, because that same bank had rejected me for that exact same credit card just a month or two earlier.
So, here I am today – another card-carrying American citizen. I don’t know why having a major credit card makes me feel more worthy, but it does. When we had to stay in a motel for a night during the construction, it was so much easier to do so knowing I had some credit available.
For those who are concerned that I might slide back into the credit card jungle I recently crawled out of, let me just say that I am very careful using my new card. While I admit an urge to want to treat myself occasionally, I keep that under control so that I can pay the balance off each month.
Which is what I should have been doing years ago.
I learned my lesson the hard way. Let my readers learn from my mistakes: It takes a long, long time to come back from bankruptcy – best to avoid that in the first place, if you can. Enjoy the credit cards, but don’t go nuts with them.
__________
I love to hear from my readers. You may comment on this post, comment on my Facebook or Twitter pages, or email me at cordeliasmom2012@yahoo.com or notcordeliasmom@aol.com
__________
Images by Cordelia’s Mom
Cordelia's Mom, Still 
Good financial lesson we can all learn from.
LikeLike
And hopefully learn from it sooner rather than later. I was really hesitant to even get the new credit card, knowing my proclivity for overspending.
LikeLiked by 1 person
Yep, know the feeling, borrowing from one to pay back the minimum repayment plus interest on another. When we had a credit card, it was purely as a cash flow tool, and the balance was repaid in full every month. Now we don’t have one at all and if we can’t afford it, tough. We have an emergency fund though which we contribute to every payday and ensure that a minimum of one year’s expenditure is in it all the time.
LikeLike
You’re doing it right. I should have known better way back when.
LikeLike
It’s so easy to get drawn in to ‘the plastic way’, but when it comes to paying it back, yikes! I’ve always been pretty good with money but my circumstances (Man of the time) didn’t help. I certainly wouldn’t go back to that way of living now. Glad you’re out of it too.
LikeLiked by 1 person
Congrats on getting everything wrapped up into a single loan with a better rate. I am glad you found a loan officer who takes the time to understand the person and not just the facts.
LikeLike
It felt especially good that I was able to pay off both those construction loans before the first payments even came due – that should really help my credit score!
LikeLiked by 1 person
And it should make you feel better about getting the necessary work done.
LikeLiked by 1 person
Congratulations CM!! Teddy Rosalie must be very proud.
LikeLike
Teddy Rosalie’s just happy she no longer has to pose on construction props.
LikeLike
I REALLY understand. Really really.
LikeLike
I’m finding that lots of my readers understand. I wish that weren’t so. I’d like to think that everyone else was in a better place than I’ve been. I know your understanding probably comes from medical expenses, and there’s no way to avoid that if you’re not independently wealthy.
LikeLike
Pingback: Anticipation? Or Surprise? Which Do You Prefer? | Cordelia's Mom, Still
Congratulations on your ReFi, CM. That’s a real blessing for the monthly nut! And the comfort of the card in the pocket is really a big deal. I think you are showing a lot of wisdom in this post. Way to go, my friend.
LikeLike
Thanks. It still makes me nervous every time I use that credit card. But I get rewards points with it, so I’ve been using it for everything I would normally have used my debit card for, and then I just pay everything off at the end of the month.
LikeLike
Rewards points are a good thing, too, CM.
LikeLike
Especially when those points can be turned into hard cash directly deposited into a checking account at the same bank.
LikeLike
Winner winner, chicken dinner?
LikeLiked by 1 person
Credit cards, like a sharp knife, are an excellent tool if treated with respect
LikeLiked by 1 person
Good way to put it.
LikeLike
Huzzah, Cordeliasmom. Huzzah. Doing Good.
Kitties ask Puppy Cody what the deal is with dogs and cell phones, as they do not seem delicious.
I applaud you and send a last Huzzah. We are down a kitty here, been a bad summer. On the other hand, I am able to stand up these days. Vestibular Systems, Death and Credit Cards are a Drag
Triss and Raleigh say Hi.
LikeLike
Gonna make me guess, huh? Commenting anonymously?
Sorry to hear you have one less kitty – never a happy occurrence.
Maybe things will be better in the Fall. Hugs.
LikeLike
Pingback: Ain’t Doing It No More | Cordelia's Mom, Still
Reblogged this on Cordelia's Mom, Still and commented:
For those you have wondered (’cause I know the world revolves around me), I have managed to stay debt light, having only the mortgage, the car lease and a couple of small loans taken out for the household renovations. – and those loans will be paid off within the next few months. In fact, I’ve managed to not use a credit card at all this year. Yay, me!
LikeLiked by 1 person
Good for you, CM! 👏🏼👏🏼👏🏼 Living in a society that shouts at you to buy buy buy it is SO tempting to charge charge charge. I am just SO proud of you for coming back the way you have and in the process you have learned a lesson. Again good for you! 👏🏼👏🏼👏🏼 Most people never learn but just continue to loop round and round in misery. It feels wonderful to be debt free (I know!) and I encourage you to just keep on going in that direction! GO, CM!!!! 😘🌈💝
LikeLike
Well, Amy, with Social Security in my near future, I need to be extremely careful now so I don’t find myself unable to pay my bills.
LikeLiked by 1 person
We are on a fixed income and with good habits in place, you will have no problem adjusting. I promise! (((HUGS))) ☺️
LikeLiked by 1 person