Yeah. I went there.

[bookworm]

After my discharge, almost two years ago now, my husband and I swore off credit cards, and resolved to live on a cash-only basis. There were a few times when we've had to sacrifice wants for needs, but it's a hell of a lot better than breaking out the plastic and being crushed by a mountain of debt. We've done pretty well.

But, last month, our car broke down. It was a relatively cheap, easy fix ($200), but we were rendered carless while waiting for the part to come in, which was not easy, since we don't live walking distance to anything, and are not on the bus line. Long story short, we spent about a week bumming rides and wishing we had a credit card to rent a car.

So today, I decided to take Capitol One up on an offer, and was instantly approved. I kind of feel like I've sold my soul, but at least now I can rent a car without hassle if I need one. Besides, the limit is so low that one paycheck could almost take care of it. And we're going to be applying for a new apartment in a few months, so it wouldn't hurt to try to put a few more cool points on my credit report. I figure I can use the card to pay my utilities, and pay it off every month. What do you all think?

And, when we do get our new place, we're going to make sure it's on the bus line.

[TXskyblue]

How many people file BK, swear they'll never abuse credit again, and end up filing BK a second time? Too many and I bet very few of them thought they would do so.

For someone with previous credit card abuse/misuse issues (like myself), credit cards can be dangerous. Am I going to spend more than I make again?

I decided to obtain credit cards post-BK because my situation allowed me to build up a decent safety net of cash in the bank. Additionally, I decided I should never carry a balance. Therefore, I don't use the card unless I already have the cash for said purchase set aside and can pay in full. That way, I can never carry a balance.

Still, I find myself reaching for the credit card impulsively and I have to stop myself. I keep a box of my old credit card statements and I call it the Box O' Shame. Had to open it up a few times to remind myself of what I don't want to do.

This is rambling, but my point is to be careful. I don't know the details of your BK, but was credit card debt the main issue like it was for me? Are you going to pay in full every month? Are you going to charge more than you would spend in cash and say, "I can pay this off with NEXT check"? That last one is VERY dangerous IMHO.

Ask yourself the hard questions and make a firm commitment to how you will use and pay the card.

[bookworm]

I don't know the details of your BK, but was credit card debt the main issue like it was for me? Are you going to pay in full every month? Are you going to charge more than you would spend in cash and say, "I can pay this off with NEXT check"? That last one is VERY dangerous IMHO.

I only got it so that I can rent a car if I have to (which will hopefully be next to never). That was the driving force behind it. I don't intend to use it unless I have cash in the bank to back it.

[Drazil65]

Congrats on going to cash basis for the last 2 years. We too have done same, we have used our debit card to rent a car in the past year on a trip. We keep a nice cushion and emergency fund in bank and could cover our rental car situation with the cash in the bank when we used the debit card for that reason. We reserve hotels in the same manner for vacations. No issues at all when we went to rent our townhouse (private landlord) after selling our home here and prepared to move. March will be 2 yrs since discharge.

Although job loss and real estate (rental property) were the catalyst for our bankruptcy, had we not had the extra debt of credit cards, HELOC AND the 2 mortgages, we may have been able to make it through that period, possibly. Although we will obviously never know for sure we have changed our ways and lifestyle to always be able to live on one income with money in the bank just in case. We both work but it feels so good (and freeing) to know that should something happen like a big job loss again we can still pay rent and live pretty much the same way we live today. We will not be in jeopardy of losing homes, cars, or being sued etc. So for us it is a matter of mental comfort and peace. Good luck with whatever decision you make.

[BobMango]

I have a couple o credit cards since filing. I pay them off each month but find it does take some discipline to 1) keep the spending on them low enough to do that each month, and 2) actually pay them off and not let it float for a month when you have a little extra cash.....

Like Drazil, my bk was mostly job loss combined with the real estate crash in 2008, but I find it does require more diligence that I ever exercised before. It's now 4 years since my discharge (and rental foreclosure) and we converted our "pay and stay" home to a rental, purchased a new home last year and have been living on cash since then (mortgage being the exception.)

Good luck to you.

[TheBajan]

Bookworm, I think it's a personal decision. I don't think it's a black and white issue. For me, living on a cash basis is where I'm comfortable. My husband is more comfortable with credit cards. Because we are in a chapt 13 it's a mute issue for us at the moment. I've committed to never having another credit card and for the time being, my husband is in agreement. He may change his mind once we are discharged. All of us who have been or are going through BK would be wise to take a good look at ourselves and ask the hard questions before making the decision to obtain credit (of any kind). If you think you have really learned what boundaries to hold, and you set rules in place in case you violate those boundaries, then go for it.

You're an adult. And yes, it's true that some people go through BK, don't learn their lesson, and end up here again. Only you can answer if you are one of those people or not. You are the one who will reap the whirlwind if you violate your boundaries. Trust your own judgment. The fact that you are here asking the question says good things about it.

Best regards,

The Bajan

[AngelinaCat]

Folks, Bookworm and her family did what they thought best. They are dealing with it and are well aware of the risks and consequences.

Let us wish our fellow member good fortune and support.

Thank you!

[spidge]

Sorry to hear of your car challenges, but glad to see you made it through. Sounds like you have a network of friends and/or relatives for support.

I can understand the desire to have the credit card and can only encourage that you listen to that voice in your head and gut. A credit card can be put to use for deposits on rental cars and such. I know I cringed when we rented a car and had very little cash. The rental company put a hold on some funds, but since we had the money was not a problem. I would avoid using it for anything but the small bills that might be roughly the same amount every month. Then you can schedule an automatic payment to the credit card for complete payoff every month.

It sounds like you have a handle on it.

[Mayo]

I got a couple of cards since my 13 discharge almost 2 years now, so that I could rebuild my credit. It is rebuilt now and I'm going to use it to start mortgage shopping shortly. I too don't like charging. If I do charge something I pay it off weekly so I don't have a balance when my statement closes. Best of luck to you. It is nice having a cc to rent a car or not having to put a hold on your debit card when renting a hotel.