(no subject)
I know all my entries lately consist of boring financial info and money making schemes. Some people think it's tacky to discuss money. I'm OK with that -- I'll forever be shameless if it means I'm offering an opportunity for someone to learn from my mistakes.
Bit of background: When I left my ex-husband, I had $40 in my bank account and no cash on hand. I moved back into my mom's trailer for a few months and opened several credit cards, using the "convenience checks" for first and last on my Mission Hill apartment and the card for everything else. I was working in retail and returning to finish my degree at Simmons. As busy as I was, I went out all the time, spending my cash and justifying the essentials as good use of the cards. Living with my ex, who was brought up fairly wealthy, I had enjoyed a higher standard of living and continued this lifestyle despite having no means for it. Books went on the card; bills went on the card; $125 sleveless tops from Neiman's went on the card.
Ultimately I got to the point where I couldn't pay my bills, so I didn't. I did the ultimate irresponsible thing and hid from everything, starting around 2001. (I'm still, technically, in hiding.) I've since graduated from school and hold a job which pays a good salary and benefits, but I'm trying to plan a move to another (more expensive city) to start a career instead of just holding a job that pays the bills, which may equal a salary cut. I've got no savings and tons of bills. I decided to move from that same Mission Hill apartment to a studio I can only afford because I ignore my debts. My credit report is miserable, as it should be. If I try to find an apartment in NYC where the landlord looks at my credit report, I most certainly will not be living there.
Anyway, to get to the point and some potentially helpful information: I started reading The Money Book for the Young, Fabulous & Broke by the crazy-looking, painfully-unhip Suse Orman. It may actually change my life. I highly recommend it even if you do have extra money lying around. It demystifies the most dense financial issues, like which retirement fund is best (that would be Company-matching 401(K) or Roth IRA), in a very easy to read format, even if her attempts to use slang make you want to die.
My next step was to get some free advice about my personal situation from CCCS, a non-profit reputable credit counseling service. They helped me to see that several of my debts were wiped clean on my credit report. Massachusetts has a 6-year statute of limitations which states that a person is not legally responsible to debts older than 6 years. Meaning that if you last sent a payment over 6 years ago, you are now not responsible. I'm not recommending this as a strategy, just saying. My goal right now is to pay the debts that are ruining my credit and limiting the choices I have to live my life. CCCS recommended that I begin a Debt Management Plan, where they act as mediators to the companies that hold my debt. This plan would cost $158/month, with only $106 going to the creditors, the rest going to CCCS. On this plan, I would be debt-free in May 2008. I did some thinking. If I contact the creditors directly (who might even volunteer to reduce my overall debts if I agree to pay) and pay the full $158 among them, I am out of debt a full year sooner. So I suggest calling these companies for help if you need it, but then doing the leg work yourself.
I hope this helped someone, and wasn't just meaningless droning about my personal situation. I just feel so empowered knowing that I can get out of this mess. Learning about all of this stuff is actually exciting and even entertaining. Anyway, I'll let you know how it goes. If you have any questions, I'd be happy to help. I actually want to help people with their money situation for a living someday, so I could use the practice.
Bit of background: When I left my ex-husband, I had $40 in my bank account and no cash on hand. I moved back into my mom's trailer for a few months and opened several credit cards, using the "convenience checks" for first and last on my Mission Hill apartment and the card for everything else. I was working in retail and returning to finish my degree at Simmons. As busy as I was, I went out all the time, spending my cash and justifying the essentials as good use of the cards. Living with my ex, who was brought up fairly wealthy, I had enjoyed a higher standard of living and continued this lifestyle despite having no means for it. Books went on the card; bills went on the card; $125 sleveless tops from Neiman's went on the card.
Ultimately I got to the point where I couldn't pay my bills, so I didn't. I did the ultimate irresponsible thing and hid from everything, starting around 2001. (I'm still, technically, in hiding.) I've since graduated from school and hold a job which pays a good salary and benefits, but I'm trying to plan a move to another (more expensive city) to start a career instead of just holding a job that pays the bills, which may equal a salary cut. I've got no savings and tons of bills. I decided to move from that same Mission Hill apartment to a studio I can only afford because I ignore my debts. My credit report is miserable, as it should be. If I try to find an apartment in NYC where the landlord looks at my credit report, I most certainly will not be living there.
Anyway, to get to the point and some potentially helpful information: I started reading The Money Book for the Young, Fabulous & Broke by the crazy-looking, painfully-unhip Suse Orman. It may actually change my life. I highly recommend it even if you do have extra money lying around. It demystifies the most dense financial issues, like which retirement fund is best (that would be Company-matching 401(K) or Roth IRA), in a very easy to read format, even if her attempts to use slang make you want to die.
My next step was to get some free advice about my personal situation from CCCS, a non-profit reputable credit counseling service. They helped me to see that several of my debts were wiped clean on my credit report. Massachusetts has a 6-year statute of limitations which states that a person is not legally responsible to debts older than 6 years. Meaning that if you last sent a payment over 6 years ago, you are now not responsible. I'm not recommending this as a strategy, just saying. My goal right now is to pay the debts that are ruining my credit and limiting the choices I have to live my life. CCCS recommended that I begin a Debt Management Plan, where they act as mediators to the companies that hold my debt. This plan would cost $158/month, with only $106 going to the creditors, the rest going to CCCS. On this plan, I would be debt-free in May 2008. I did some thinking. If I contact the creditors directly (who might even volunteer to reduce my overall debts if I agree to pay) and pay the full $158 among them, I am out of debt a full year sooner. So I suggest calling these companies for help if you need it, but then doing the leg work yourself.
I hope this helped someone, and wasn't just meaningless droning about my personal situation. I just feel so empowered knowing that I can get out of this mess. Learning about all of this stuff is actually exciting and even entertaining. Anyway, I'll let you know how it goes. If you have any questions, I'd be happy to help. I actually want to help people with their money situation for a living someday, so I could use the practice.