Credit and Debt Management
This in some ways could’ve been my first blog, so I figured with the Christmas season, I would share a little something I have learned and grown in. I am still very simple with my approach, in everything I try to keep it simple, as things can grow into a complex web or fishing net that traps us. All too often we don’t want to leave those nets, but instead become enslaved by them.
Back in 2016 I had made some “choices”. I was growing frustrated with working for companies that took me for granted, and I rarely trust working for anyone other than myself, which included the potential religious order I was interested in joining. So I decided I would begin to lay the foundation to rebuilding my credit, that way if things didn’t work out with joining the religious group, I would have some kind of means to start my own business, thus bringing the freedom and American dream I sought.
To back track a bit, in 2010 I was working 2 jobs, my credit score had just reached a 710, and things seemed to be moving in the right direction towards this dream. Then one day the company I was working for basically expressed to me they didn’t like me having another job, despite the success I brought to them. With no warning they fired me and I was left with a part time job that took me for granted, The bills began piling up quickly thanks to merciless late fees from all my creditors. I had a choice, fight to get my head above water with these people who were now mistreating me due to circumstances outside of my control, or to walk away and trust everything would be OK. I chose a different path and walked away trusting in time I could rebuild my credit as I had just done a couple years earlier, paying off past debts from my delinquent 20’s.
Five years later I was finally ready to get back to working, and building something after several years of discovery and better understanding of life through some travels. It started with a really crummy credit card. I didn’t need to pay a deposit, but I had to pay a $200 annual fee if I remember correctly and interest on every purchase I made, even if I paid the full balance. This was a surprise for me, due to my ignorance of cards. From here they gave me a new car with a larger balance of $1000. I used it for a short stint as well, but eventually within a year I began to get other cards, that had no fees, and gave me some benefits. I’ve learned to use these benefits wisely. I pay my debt in full every month despite a limited income so the interest does not nullify my reward. With this I was able to cancel the crummy cards and only have cards that do not charge me annual fees, unless the benefits exceed the annual feel. I.e. $100 credit statement for a $95 annual fee card if you spend so much money in 3 months.
Eventually I was given a card that was 18 months 0% interest. This would become key in purchasing a lot of my equipment. Through all of this however, I was working a lot at times to pay down the debt every time I had a large purchase. This ensured when my 18 months was up, I wasn’t buried in debt. Eventually I was offered another 0% card, this time with my business name on it from American Express. Both of these cards gave me cash back on purchases I was already making and they allowed me to buy what I wanted or needed without the worries of needing the immediate cash. The key again, is we have to have a plan to pay it off. This concept is foreign in the United States today as our past 30 years of elected country leaders (President, Congress, Senate) have racked up 23 trillion dollars in debt with no real plans in the future of paying it off. All places that operate like this eventually go bankrupt.
A little over 3 years later, with some patience, mistakes, interest and learning from those mistakes I have a clean record. Past debts fell away this time round due to their unwillingness to work with me in the tough times. I have Several cards, none with an interest bearing balance. I am near opening my business to make routine sales and most of all it came from Chase Bank, a company who wanted my business and did what was necessary to earn it. They offered me 2 cards and incentives for an account. American Express did their part as well with 3 different cards over the past 3 years. Credit Karma deserves credit as well for teaching me some basics and connecting me with Amex and Chase.
My credit score is at a 768, steadily growing and I have for the most part a debt free business with the exception of a car note. Sadly this was one of my bad decisions as I trusted the car dealer too much. I recouped some of the money from the bad deal, but still lost in the bigger picture. Lesson learned. Credit is like your reputation and your word. If you promise to do something, your score usually reflects that. In the same respect, don’t be a slave to debt or these people that take advantage of you in bad business deals. Sometimes their immorality in business should be rewarded without a payment until they are willing to work with you. In addition, situations happen out of your control. You discern what’s best, most off all do it morally, just do something and build your dream, instead of being discouraged from it.
The Ladder of Divine Ascent is an icon in early Christianity that captures the battle of good and evil on our ascent to heaven. In many respects, this is life in general and we have to keep our eyes focused on the prize, just as those in the image. It’s only when we look back or down for too long , that we then loose our way.