Hey all,
I want to be the first to share my credit card debt story.
When I was in college, I sustained an injury that left me unable to walk or work. It was my first term of my first year!!
I didn't know how long the injury would last, so I wasn't too concerned about using my credit card to finance my education for the short-term. Before long, 2 years went by and I was still using my credit card while unemployed and studying full time! My credit card debt grew to over $9,000. Even calling my credit union to switch my credit card to a low APR credit card (with an annual fee of $25/year) didn't stop the accumulation of debt.
A friend recommended I take out a student line of credit. My credit union did not offer student lines of credit so I had to go to a *gasp* big bank.
The Big Bank approved me for prime plus one because my brother co-signed my loan, and he had phenomenal credit. Add to that I did not have to make repayments until 6 months after graduation, only pay a monthly interest fee (turned out to be around $20/month). So...I paid off my credit card with the credit line, and rode that wave for another couple years, and graduated with about $15,000 debt for school expenses, cellphone bills, medical treatments and clothing expenses/personal necessities.
In the years between, I did work at the college despite my disability tutoring other students. I would get paid at the end of the semester, but when I did, I put the maximum amount I could to pay off the credit line.
I didn't find work right away after graduation. I was limited to where I could work because of my disability (and where I live you cannot get disability benefits unless you can prove your disability is permanent or if it lasts over five years). Whatever odd jobs I could do from home here and there whether it be data entry or what have you, I would put down the maximum of those paychecks to pay down my credit line. For over a year I did not have steady work, and was able to make minimum payments on credit line, a couple student loans I had also taken out, and pay my credit card bills each month (for telephone expenses and emergencies).
When I found steady work-from-home income, I again put the maximum I could towards paying off the debt and within 6 months was debt free (mind you I was living at home and did not drive a car which makes a huge difference).
Being debt free, it's amazing how the savings pile up now. One year after finding full time work and all my bills get paid and I can even pay cash for large purchases!! Plus the thrifty habits I developed while low on cash all those years have stuck with me and I plan on living debt free for life.
I would love to hear your credit card debt stories too!
