Wednesday, September 3, 2014

Debt Breakdown Part I : Credit Cards

My first 'real' job was at a retail store around Christmas time my first year in college. I had to beg my dad that I NEED a job. I told him that I want to start paying for my own gas (he gave me my first car) and have allowance for school. I don't know why I wanted to grow up so fast... I regret that to this day! I think I just wanted a job because I wanted to be able to buy that things that my friends parents were able to get to them. I remember feeling so exhausted on my first day and kept telling myself that this better be worth it! The pain went away after getting my first check for... dun dun dun.... $300. I felt like a bazillionaire and off to the mall I went... it was gone before the next check came along and the vicious cycle started.

My friend told me that she got approved for a credit card and treated us out for lunch and dinners here and there She was able to buy anything she wanted when we went shopping. I was jealous - I wanted to keep up with he, so I opened my first credit card from Capital One Visa with a $500 limit. Off to the mall I went again and again and again - I probably maxed it out within months of having the card. But not to fret, I was only paying $50/mo for the card and when I paid the minimum for the month I was able to squeeze in a lunch or dinner for $20... then its MAXED out again.

Then I got approved for another visa card for $1000. I have probably opened 3 or 4 more credit cards after that where the limit ranged from $1000-$3000 - all almost maxed out by around the time I got my first full time job out of college. I used to travel a lot with them and the per diem was paid back to us after we do our expense reports (I hate expense reports!). I was on a spending spree - Bought knick kacks as souvenirs, shopped and ate out - A LOT (The only thing that the company reimbursed me for) On top of that, I had a car payment to pay and the lovely student loans kicked in. I was broke! The first job out of college was only paying me $40k and I wanted a way out.

This was when I started to make some changes. The first financial book I read was Robert Kiyosaki "Rich Dad, Poor Dad". I don't remember details from the book at all but   From what I remembered my debt breakdown were approx $46,000

 Car Loan
 Student Loan
 Credit Cards

How did you get into debt?


  1. My story is similar, but started after I graduated. When I graduated with $20K in student debt what's a $500 credit card here, $1000 credit card there? I think once I got "used" to the idea of being in debt then adding more didn't really become an issue. It wasn't until I was maxed out and no one would give me any more credit that I had a wake-up call. Its amazing when you think about how you get into credit card debt, its usually a whole bunch of little purchases that you totally forget you even made :(

  2. I know right! I don't even know where most of these purchases ended up. At the time, I didn't even consider my student loan and car loan as real debt. It seemed like everyone had it so it must be "normal". So i actually thought i was ahead of the game only having $10k worth of debt.

    I cant wait not to have any and start putting the money on retirement like you!