According to Credit Karma, my credit score is currently mid-500s. You may wonder why it’s so low? 2 years ago, when I moved to Los Angeles, my rent was incredibly reasonable but my pay wasn’t. I was making $700 per check, my phone, rent, and bus pass cost about $905. I couldn’t afford minimum payments to any of my cards. I had to get emergency dental work which was maxed out two cards.
It took me until December to get another part-time job. I spent a good portion of trying last year trying to pay down my debt but doing only the minimum doesn’t do much. The last few months, I stopped paying on the cards and made a decision to save instead. My next goal is to get a weekend job (to slightly overextended myself once again) for 3-4 months to pay off my credit cards and save. Luckily, the minimum wage is going up to 14$ on July 1st.
While saving up with the second job, the post-bills income from my first job will also go into savings as well. Toward the end of the year, I want to see if I can get some of the amounts I owe reduced into a lump sum. As of today, a lump sum option is not currently available because my debt hasn’t reached collections.
It’s risky to have no credit but having to depend on credit is very stressful. Credit shouldn’t be a back up to living life, and it shouldn’t define who you are. That’s what I did for years and I cannot spend the rest of my life in debt. I want to be able to pay off at least half of what I owe in the next year and a half.
I am positive about the outlook of my plan. It will be tough to work 7 days a week again but to save and make sure I have the security to either find a new place, move back east, or have money in an emergency is what I need. I’m painfully aware I spend money on frivolous things but want to get better at my spending.
This week, I will be talking about birthdays for Whatever Wednesday and Part 2 of Fav Friday: The Sims.
Hope you had a good weekend!
Love & Ice Cream, Sequoia