Thursday, April 14, 2011

Bad Credit Ruins Lives

I really wish I'd known 10 years ago what I know now.

Over the years hubby and I have pretty much completely ignored any bills or debts that weren't an immediate threat. If we weren't going to face losing the roof over our heads, or our electricity, we didn't care. We racked up a lot of bills and never paid them off. I have to say 90% of it is medical debt, and those are the ones hurting us the most. We do have a couple other little things, a couple car repos from 6 years ago, an eviction 5 years ago, things like that. But mostly it's medical, and 2 of those medical debts have filed judgements against us (2 for me, 3 for hubby). Our credit is awful!

We're turning things around now. Our bills are being paid on time, even a little early. We've been making some payments on our debts. Things are starting to look up.

My main goal at this time is to get a house. I'm sick of living in a dump of a trailer. We have no space what so ever, we have no yard for the kids to play in. All in all it stinks and we're miserable.

I decided to look into the possibility of being approved for a mortgage. Unfortunately we don't qualify at this time. We were told by the mortgage company that if we could erase the judgements then they could work with us.

Well the trouble is I owe $6,000 on my judgements, and hubby's is double that at least.

Had I been smart enough to have been making some payments on those judgements, I could be in a situation right now where we could see about affording to own our own home.. or perhaps we'd already be homeowners. Instead, we were stupid and ignored our debts. Now we're faced with paying off these ridiculously expensive debts in order to escape our situation of living in a dump!

But at least now I have a little direction. I'm going to begin paying on these judgements, and hopefully by the time we get our taxes back next year I will be capable of paying them off completely. So hopefully by this time next year we'll be proud homeowners.

I also need to work a little harder on building up my savings. These past few weeks I haven't been saving any money. Actually I used my last two paychecks towards sending my kids to camp this summer.

I must say I am enjoying having the extra money from working. It's amazing how much our lives have changed already. Last year I couldn't have even considered the idea of sending my kids off to camp. Hubby's money alone barely covered the bills, and then we always needed or wanted spending money. We'd somehow manage to overdraw our bank account every week. The following week we'd have just enough to pay our bills, but in order to buy groceries we'd have to overdraw again. It snowballed out of control.

Now, our bills are paid, we usually have a bit of money left in the bank when the next paycheck hits. My money is being used mostly for extra cash or fun things, like sending my kids to camp. Plus we have money in 3 different savings accounts right now. Granted it's not much, pool it all together and we might have $500, but it's there, and it's more than we've ever had before. We're getting somewhere.

So I'm feeling really good about our current financial situation, I'm just not feeling good about our credit situation. But I'll be working on that.

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