You can dig your way back from rock bottom. ( a personal story )

**Dancing Lotus** · 04-18-2011, 03:46 PM

When I first found FV a few years ago now, I was in big trouble.
We were maxed out, credit cards were in default and I had just had our first baby. The day I found this place was the day the city cut off my water. It was the first and only time I had ever had a utility cut off and I knew I had to do something to change things.

It took a long time but one by one we got all those late bills paid off. Closed up our accounts and have been living credit card free since. I know living a cash only lifestyle is the only way I was ever going to dig out of the hole. And it worked.
However I also didn't realize the possible ramifications of having NO credit history.

I late 2010 when my husband and I were facing a possible split I realized I didn't exist. I had no savings of my own, no credit card for an emergency NOTHING.I didn't like that feeling. I decided to get a small credit card of my own. Only problem, I couldn't get one. Not because of my credit score but because I had no credit history.

I went back and forth trying to a find away to solve the problem. Here is what I did.
I got a credit card for Fashion Bug, A clothing store. It was the only place that would approve me for anything. The limit was only 150.

I needed new bras so each billing cycle I went in and bought just one bra. When the bill came I paid it in full.
Not even four months later I had established enough history to qualify for a MasterCard with a decent credit limit and 12% interest , in today's economy I think that's pretty good. In addition to that I have also accumulated my own savings.

I opened an ING account with 100.00 dollars my mother gave me for Christmas. I then added to it my birthday money. Our household budget allows me 125.00 a week for groceries. I doubled my efforts to cut that back and pocket my savings. I had two yards sales and sold some broken gold. When my mom asked what I bought with the money she gave me , I told her piece of mind.

Now I feel like I'm in the drivers seat of my own life again. If I ever did have to take care of my self, I'd have a good start. Fortunately that's not a concern right now because hubby and I are doing just fine. In fact better because I believe just being a happier more independent woman has made me a better partner. The husband is in awe of the way I took control of things instead of falling apart. As for me, I'm forever a changed woman. I have no doubt that no matter what direction my life goes, I'll be leading the way.

p.s. Credit cards currently have ZERO balance

**Maine Girl** · 04-18-2011, 04:01 PM

Thank you for sharing your story...I am a big believer in women having their own savings account and credit ratings.

**HappyMama** · 04-18-2011, 04:08 PM

Ann, you are a strong woman blessing to you hon and thanks for sharing!

**jas** · 04-18-2011, 04:15 PM

Way to go Ann!

**itsahumanzoo** · 04-18-2011, 04:17 PM

This is a great story! Thank you for the inspiration.

**OOwl** · 04-18-2011, 04:42 PM

Very good advice. Thank you for sharing that. Glad things are going well for you.

**Ramona** · 04-18-2011, 08:06 PM

It took courage to post your story, I applaud you. And hug you

.

**Russ** · 04-18-2011, 08:15 PM

Outstanding Ann! Thanks for sharing!

**Michelle68** · 04-18-2011, 08:42 PM

Good for you, Ann! You are an inspiration.

**lisaflex** · 04-18-2011, 08:59 PM

you are an inspiration to all the others who fear going creditcardless......and then going back to it w/ full knowledge of what they are truly doing...you go girl....

**tervsforme** · 04-18-2011, 09:22 PM

Thank you for sharing your story. It is truly inspirational and shows what determination can do.

**NikoSan999** · 04-18-2011, 09:54 PM

Loved reading the story. Or I should say the truth. I admire you for your courage and your not giving up. I applaude you.

**Palooka** · 04-18-2011, 10:26 PM

WTG Ann! Good job and thanks for sharing.

**Anna43** · 04-18-2011, 10:33 PM

Way to go girl!!! Debt free and money in the bank = peace of mind.

No credit rating is a big problem. It really ticks me off that my car and auto insurance company rated our policy because dh had no credit rating. All credit was in my name and, of course, they ran their report in his name. My question is why it should matter to the insurance company what our credit rating is. We've been with them since 1959 and have always paid our premiums -- shouldn't that be sufficient?? Its ridiculous that everything in this country hinges on a credit rating. So dh got two credit cards and pays balance in full each month. I've got 3 cards and also pay in full each month. Our house rule is the first month the card cannot be paid in full it has to be cut up!

**Dancing Lotus** · 04-19-2011, 08:24 AM

Anna43 - I totally understand what your saying about your insurance. We have been with USAA for 12 yrs and all of a sudden they kept upping our premiums and our end of year refund was getting smaller and smaller, all the while we never once have made a claim.
NO credit at all can be about as unhelpful as bad credit. I think if I had it to do over again I may have kept just one card open. But it would have been a very strategically planned card. Now if I had something like a car payment in my name I don't think a card would be necessary but of-course we pay cash for our cars.
My situation was unique because while we have a mortgage payment my name is only on the deed not the loan, so the payments do not count on my credit report. Given whats happened with the house that's a very good thing because in the future we can use my credit to rent and or buy a home. While my husbands credit is screwed for some time to come, mine is not. I know that sounds selfish of me but I'm sorta grateful I dropped of the financial map for a few years. Now that I'm back on the map I intend to keep it in good standing.