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Drowning in Debt

Can it be fixed?

By Katia Ashe 🖤Published 5 years ago • 5 min read
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I have always wondered if there was a REAL way to fix your debts. Is it possible to be debt free? Or will you forever be drowning?

Let me start by telling you how all my debt got started. I was in college when my mom suggested I get a credit card so I can start building my credit. At that point, I didn't have very many bills to pay; my car was paid off, my car insurance was cheap and so was my phone bill. My total debts that I had to worry about then equaled out to be about $150 a month. Well, I got introduced to this store called Maurices. Their clothes fit me so well (I'm a bit curvy) and I fell in love with their fashion. So, I applied for a credit card at a limit of $250 and got approved. Every time I used the card, I was responsible and paid it off right away. It built my credit up to excellent and I was excited that I was winning at adulting before I was even a real adult yet.

The real struggle started when I finished college and moved to a different town all on my own. My rent was high, my roommate would never pay me on time for her half of everything, my electricity was really high, and I had to pay for food on my own. I started working two jobs and going back to school. My debts started to equal to about $650 a month. With working two jobs that paid $7.25 an hour and only about 10-15 hours a week per job, I just barely was able to pay for everything; especially since my roommate would never pay me on time, it was my responsibility to cover it all until she could pay me back. I gave in and applied for a credit card. I was approved for a $5000 limit. So, I went grocery shopping and then I got a little too crazy and started using that card for everything. Big mistake. My minimum monthly payment was $150 a month at 27.6% interest. In other words, if I pay the minimum of $150, an interest rate of about $90 was then charged on my card again. So, unless I all of a sudden was rich and was able to pay more than the minimum payment, paying it off was going nowhere.

Basically, long story short, I somehow always found myself in a bind that the credit cards bailed me out of... at the time. Once the payments started becoming due, I was screwed because I can't pay them with my low income.

I tried to seek help. I contacted banks and credit unions and asked about debt consolidation and loans. No one would help me. I have learned more recently that they wouldn't help me because my debts aren't quite as bad as most people. I am 28 years old, I have seven credit cards, a car loan, and student loans, as well as all my other bills like rent and electricity and all that jazz. Surprisingly, my credit score is still at the 'Good' score. My credit card debt, last I checked, totals to about $13,000. My car loan totals at about $23,000. My student loans are totaled at $38,000. My monthly debt total is approximately $1,500. My monthly income is approximately $1,200. So, I fall a bit short when it comes to trying to fix my debts and get back on track.

More recently, I have been let go from my job and was forced to find a new one. I went on 11 interviews in the business industry and no one hired me. I gave up and went back to a job that I have done before, fast food, and based on my experience and education I'm shooting for management in hopes that I can be paid more. I have shredded all of my credit cards so that I am not tempted to use them again. Unfortunately, because of the change in jobs, I had to skip a few of my payments. Not knowing, my minimum payments have now doubled for the following month. I have never missed a payment! I had no idea that it was going to do that. I am again in another rut. I am eating ramen again and never being able to do anything fun or nice for myself. I basically work and go home.

I have been doing some research and found an app that can put your debts at a better viewing so that you can see what you should pay and when and how long it will take to pay off everything based on their advice. The app says, that if I pay the certain amount on each debt at a certain time, all of my debts will be paid off in eight years. But will it really? I obviously can't pay more each month based on my history of low income. But, I am going to try my best and conquer all the debt. Even if I have to be a boring and starving person for awhile.

In hopes of fixing my debt problems, here are the steps that I have been taking so far:

Step 1: SHRED THOSE CARDS!

Step 2: Download an app and input your debts for better viewing of where you are and what you should pay in order to pay them off.

Step 3: NEVER MISS A PAYMENT!

Step 4: Try to pay double the minimum payment in order to actually be paying off the interest charge as well.

Step 5: Try not to stress over it. It may take some time, but have faith that it can be fixed eventually.

I hope that my story can help others out there see that they are not alone when it comes to struggling with debt. Stay positive and do what you can to fix it.

I am finally taking a stand in fixing my debts. I want to be able to start having a family and living in a nice house and being able to buy things that I want. Even if I have to struggle to get there, I am going to fix this!

Don't let yourself drown. Find a way to float and start swimming to shore.

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