Some people encounter an unforeseen circumstance that causes them to fall into debt. Others simply mismanage their finances and dig themselves into a hole they can’t see their way out of. Regrettably, I fall into the latter group. I started misusing credit in my early twenties. Fresh out of college, I opened a Visa, Mastercard, and department store card. Tired of the penny-pinching lifestyle I had adopted in college, I splurged every chance I had.
Living The Good Life
I lived in a decent one-bedroom apartment, had an entry-level position as a paralegal, and thought I was on top of the world. I kept my credit card balances pretty low (in the beginning) to the point creditors offered to extend my limit. Then, I got comfortable and began charging everything from lunch to new suits. Within two years, I had $5,000 in credit card debt on high-interest credit cards.
Until I Wasn’t
The company I was working for had some budget cuts and my hours went from full to part-time. On top of that, creditors constantly called, threatening further collection actions if I didn’t pay the balance. With no money in the bank, a past due rent bill, and a tight budget, I realized I needed to get serious about my finances.
Debt Consolidation Changed Everything
A co-worker told me about their financial struggles and how they turned to a debt consolidation agency for relief. The company got them approved for a small debt consolidation loan to lump all their credit card balances into one. The interest rates were lower, the credit card accounts were settled, and the collection calls stopped. I figured nothing beats a failure but a try, so I asked for the contact information.
I visited BriceCapital.com and learned more about the agency. After analyzing a few reviews, I contacted a financial advisor that helped me get approved for a $5,000 loan. The interest rate was five percent less than my credit cards, and the monthly payment was affordable. As long as I stuck to the repayment plan, I’d have my debt paid off in no time.
Inspired To Do More
The relief I felt from consolidating my credit card debt inspired me to get more disciplined with the rest of my finances. I quickly realized that I didn’t want to remain in this position any longer. If I was going to live stress-free, I had to take steps towards making positive change. Here’s a quick look at what else I did.
- Budgeting – I had developed a bad habit of spending money I didn’t have and repaying it whenever I got the chance. By creating a realistic budget that listed my everyday expenses compared to my income, I corrected my behavior.
- Saving – You never know when something could throw your finances out of whack. I learned that the hard way with my job. I wanted to have a cushion just in case something like that happened in the future. So, I used the savings from the debt consolidation loan and set it aside for a rainy day.
- Tying Up Loose Ends – Credit cards weren’t the only debt I had mismanaged. I still had student loans and an old cable bill I let go into collections. I signed up for an income-based repayment plan with my student loans. The cable company offered me a settlement amount that I paid upfront. I even contacted my landlord and agreed to pay an additional $50 on my rent until my balance was up-to-date.
When you’re young and carefree, you don’t think about how misusing a credit card could lead to physical, emotional, and financial stress. Fortunately, I learned this lesson early on and was able to do something about it. Consolidating my debt with Brice Capital inspired me to get serious about my finances. Now, I’m on track to living the life I want without my past financial mistakes weighing me down.