Reality is good reinforcement

[sophieanne]

Hi everyone. Speaking of reality, what a concept. I looked on the NDC to verify that our latest payment processed. I know some people say not to worry about what's happening but for me it's a shot of reality. As of today we have paid over $90,000 into our plan. Seeing it in print really hits home and reinforces what can happen if you're not really paying attention. We got caught in the credit card whirlwind that suddenly stopped. Had many cards have the interest rate increase dramatically and credit limits dropped. When I see the bottom line in print I know I will never ever touch a card again.
I can spend hours thinking what we could've done with the money butt it doesn't matter we can only go forward and learn from what happened. When we're done (approx. another year)..we will take the trustee payment and invest in ourselves. IF we did this plan, we can save the same amount again.
Whether one pays in 90,000, 9,000 or whatever it's something to learn from. I hope everyone is doing well.

[magic13]

Looking at what you have done over the last three years you should be proud of yourself. You have good cash flow, well you will with the ability to save $90,000 in three years. Most people can't do that in a life time. I too look at what I have paid into my plan and slap myself because I didn't have the discipline to do it on my own, but I have been forced to learn and I love it. 2017 club too

[spidge]

Great job and that is a stellar goal. Pay yourself can mean many things. A good savings brings a great feeling of confidence and flexibility.

We were also stuck in that credit mill, but it was the house that tore us up. If I only would have kept the original loan from 2000 I would owe about a years salary on it and could have easily taken advantage of the current interest rates to speed the payoff along. I also should have filled when I started needing credit for car or appliance repairs, but no I was to proud to file BK. So when we discharged we should have my wife's pay free and clear every month which is twice the trustee payment but 2/3rds my goal. Still a good landing. The little woman and I have similar ideas on how to progress in terms of savings and how and when to spend.

Still seems tough for us, but we will succeed.

[despritfreya]

I believe the point to all of this is "learning to live within your means" and saving for the future. Never purchase anything unless you can pay cash (exception might be a house). If you end up paying interest on those credit cards you are not living within your means.

I am totally amazed when I read posts (specifically at "myfico.com" and "creditboards") that inquire, sometimes just a day after filing bk, on rebuilding credit by obtaining gobs of credit cards. On one site a poster was really proud as he/she managed to accumulate credit cards giving him/her access to $100k in credit. Why anyone on this planet would need to acquire the ability to charge $100k is beyond my understanding. I have no doubt that this person will eventually file bk again. The reality is. . . you only need one good credit card and you should never pay interest when using it.

I am glad that OP and others are planning on saving for the future. The general rule is that you should have at least one year of living expenses saved in a "rainy day" account. More than that is just being smarter. Less than that, not so smart.

Good luck to all of you. I never want to have repeat clients.

Des.

[spidge]

Agreed. Makes me want to do the Jethro back of the head slap. Doh!!!!

[TXskyblue]

I believe the point to all of this is "learning to live within your means" and saving for the future. Never purchase anything unless you can pay cash (exception might be a house). If you end up paying interest on those credit cards you are not living within your means.

I am totally amazed when I read posts (specifically at "myfico.com" and "creditboards") that inquire, sometimes just a day after filing bk, on rebuilding credit by obtaining gobs of credit cards. On one site a poster was really proud as he/she managed to accumulate credit cards giving him/her access to $100k in credit. Why anyone on this planet would need to acquire the ability to charge $100k is beyond my understanding. I have no doubt that this person will eventually file bk again. The reality is. . . you only need one good credit card and you should never pay interest when using it.

I am glad that OP and others are planning on saving for the future. The general rule is that you should have at least one year of living expenses saved in a "rainy day" account. More than that is just being smarter. Less than that, not so smart.

Good luck to all of you. I never want to have repeat clients.

Des.

Hi Des, I have some thoughts on your post.

I completely agree about paying cash and never carrying a balance on credit cards. The rule I live by is that I must have the cash in my hand for any purchase I make with my credit card. The cash is earmarked to paying the credit card off. That simple, immutable rule has worked out very well for me.

You mention someone having 100K in credit card limits, and you feel this person is going to be a repeat BK customer. Possibly, but not based solely on that. I am two years discharged from chapter 7 and I have right at 100K in credit card limits. I charge my school expenses (about 10K a year) on them in addition to my daily expenses, and I get good rewards for doing so. Anywhere from 1.5% to 10% back. It is not an insignificant amount of money to me.

As far as having one credit card only, I think that is not the best advice. Credit cards can be lost, compromised, or simply not work for some unknown reason. I think 3 is a good number of credit cards to have, so one always has a backup.

The issue is that so many people carry balances. Usurious interest is, after all, the main way credit card companies make money. This is what I think you are getting at, and I completely agree. If you are ever, ever going to carry a balance, you should just leave the credit card at home and pay cash. Paying interest on a credit card should be a never thing. It means that you have planned poorly.

Thank you for your contributions to this board. You helped me when I was going through my BK 2 years ago, and I know you've helped countless others. Thank you.

[dmc-2008]

Sophieanne that is awesome!!! I should probably take a look. Almost 3 years in!!! Whew!