Financial Challenges Support Group
This community is for people who are struggling to meet financial obligations of any kind. Financial challenges include everything from the day-to-day challenges of making ends meet to managing credit card debt to bankruptcy. Get support from others who are going through similar obstacles on the road back to financial stability.
When I started my journey to get out fo debt, I felt nothing but shame. It was 2010 and I was in my 50's. I should have had a nice nest egg headinbg into my retirement but instead I was $65,000 in the hole, with no savings, a small 401K, and a credit score of 375. I got divorced, moved into a small apartment, and began a new life with no sense of entitlement. I was broke, no one would extend me anymore credit, so I hade to learn to live with less - A LOT LESS.
By 2016, I was out of debt and had a nice growing savings account. My credit score had reached 715 and I had learned to live within my means. Also in 2016, I left the USA and moved to the UK, to start a new adventure and face a new reality. USA's credit system was not in snyc with Europe's. So once aa\gain on I was deemed a high risk. I first had to stay in the same residence for three years and hold steady employment.
At the end of three years I applied for a high riusk CC and got it - along with its 74% interest. Which didn't bother me because I hadn't paid CC interest since I got out of debt with them 5 years earlier. I used that card for six months and applied for a second one and got it - with 39% interest! Things were starting to come together.
I recently got my 5th card. My first one with cash back rewards and 24% interest. A financial wizard that I knew in America, gave me great advice when I was acquiring my discipline with money. He never used cash. He lived with cash back CC's. And at the end of the month paid everything off in full and got a sizable discount because of the cash back.
Since I've gotten CC's in England I have used them all the time and paying in full at the end of the month. Now that I finally have a cash rewards card, I will be using it all the time and getting back to my American ways of making money work for me instead of me working for money.
I only have one CC. I could not handle 5. Too tempting!
One card, I use once every 3 months, just to keep it active. One is strictly for Amazon purchases, one for train tickets to work. This new one will be for rent, utilities, food, just to get money back and make living cheaper.
A rule of thumb is to never use more than 10% of the XXx value. Between these five I've got $16,000 credit. 10% ($1,600) is to much. 5% ($800) is to much, so the goal is to not go over 5%... 3% will be perfect and keep building my credit worthiness..