I've been dealing with an upturn in work at work (a good thing!) and yesterdays dump of snow and ice in New England. Don't you just love winter?
I wanted to do a mini follow up to my Sunday post before I do PartIV of my Bankrupt Street saga.
When I reread the post, I don't think I made it clear that prior to the BK I had stopped using my credit cards, except for a some instances that I had to (plane tickets for work travel, car rentals, hotels). I was doing some travel related to my now defunct part time business and needed to use the credit cards, car rentals with a debit card are doable, but not easy.
Probably one of the most frustrating aspects of the whole situation prior to the Bankruptcy was that I had been making measurable, but slow progress in my debt reduction. I paid my bills on time, used cash 98% of the time, tried not to incur any additional debt. I did not take my credit cards and go on wild shopping sprees, take fancy expensive trips, buy expensive designer clothes with the intent of going bankrupt and evading my debt responsibilities. I used them for things like clothes shopping, gas, the Home Depot, what most of us would consider everyday purchases. When I realized (about 2.5 to 3 years prior to the BK) that my income was not increasing, I made the decision to go to a cash only basis, except for those instances where I needed to use credit. I tried to use my Am Ex since I had to pay that card off at the end of the month in full, but I do admit that I did use my credit cards for things like the travel, car rentals and yes, the odd occasional voyage to Macy's.
And as I wrote in the post, when things started to go south and the Universal Default kicked in, my balances sky rocketed because of the additional interest that got piled on. Then life got interesting as I like to say.
My next post about Bankrupt Street-How I am slowly getting off Bankrupt Street. The lessons I have had to re-learn, and what I've learned (and am still learning) about myself through this whole process, and how I've survived my first year post discharge.
Have a sunny day all!