Declined Credit Card!!

[Op3nTheJar]

I'm 19 y/o and i'm muckin up BIG time. I hate to just throw my financial biz out like this but I've had it with myself, I'm cutting every corner to get what i want. I have now 4!!! credit cards and three of them are OVER max and 1 is pretty close to max. my land bank account is $66 in the hole, my online bank which has an under balance allowance of 165 has like 10 dollars left including the allowance, I went to a little restaurant tonight with two friends and I had to leave my I.D. because I could not pay. I have to stop myself. How the hell can I run a business if I can't even keep my own personal finances in order.

words of advice?...

[bbrian017]

Get another job and fill your life with work! This will allow you pay off your debts and maintain a lack of free time to spend!

Maybe if your spending continues seek professional help or advice for your own financial safety!

[pboychuk]

get water instead of soda! but honestly, be frugal, I dont see why u have soo many credit cards at 19, i had one but solely to build my credit, i have never left a balance on it for 3 years.

But you have to change your mind set, I cannot buy something without scruitinizing the purchase, wondering if i can get it for less somewhere else and proving to myself it is worth the money. I am so stingy with my money that my friends make fun of me when we are in stores.

[billyw]

Op3nTheJar,
I used to be just like you. I guess that I always thought that my credit limit was how much I had and could spend freely, thinking it will only cost me a few bucks a month to pay back. Boy was I wrong. I was once like $250,00 on debt. I am still in debt for a stupid SUV, I bought a while back, but I now have 1 credit card, and only use it for emergencies. It will take time, but I agree with BBrian017, Talk with your bank manager, I'm sure that they will be happy to guide you.

[byzantium]

I didn't get a credit card until about a year and a half ago, ostensibly to pay for my startup costs. (I am almost 34.) But with inflation on a tear, I was forced to use it for food and other everyday expenses, since my SSI check which could usually last me the whole month only lasted 10-14 days before running out. My parents were deep in debt too and couldn't help out. So I had to use the cards.

I did eventually get my business started up (my web designer is working on the site now-it's an e-commerce business-and it should be up in a couple weeks) but I ended up with double the debt I should have had because I was buying necessities that I otherwise couldn't afford. So I ended up with about $22,000 in revolving debt and a $7500 student loan for training at a career college. I only get $877 a month. My parents finally paid down their debt due to an inheritance, and secured me a low interest loan to take care of my credit cards. But I'm still paying most of my check in payments. It should be ok, though, since I'll have extra income.

One thing I learned to do is scrutinize my credit card statements. Most people don't look at their statements, they just pay the minimum amount if that. I kept all my receipts, and made sure I didn't go over my limit because that's where they get you with fees. I learned where all my money was going and what I had to do to cut back. Most people just spend and spend until they're in so deep with fees on top of fees for over the limit transactions that they're stuck.

I suspect at 19 that you're spending a lot of money on fun things that you WANT but don't necessarily NEED. Me, I was buying food and household supplies that I really DID need. I also was putting gas in my car, and even though it's a Nissan Sentra it cost $50 for 9 gallons at one point. You are probably not buying needs but wants. Cut out the wants. At this point you may need to file bankruptcy, so talk to your bank.

[smokinjoe]

Hi All,

Let me tell you a little story. I am in the business of bad credit. I sell cars to people with TERRIBLE credit. We call it shooting fish in a barrel. Because if we manage to get you approved we tell you which car you can buy.

If you can't pay cash you don't need to buy it. Why are you going out to eat when you don't have the money to pay for it.

Would you like a business card so I can pick out the Taurus with 114K miles on it that I am going to sell you in a year or two?

Get it straightened out now before it is too late.

Smokin Joe

[byzantium]

Hi All,

Let me tell you a little story. I am in the business of bad credit. I sell cars to people with TERRIBLE credit. We call it shooting fish in a barrel. Because if we manage to get you approved we tell you which car you can buy.

If you can't pay cash you don't need to buy it. Why are you going out to eat when you don't have the money to pay for it.

Would you like a business card so I can pick out the Taurus with 114K miles on it that I am going to sell you in a year or two?

Get it straightened out now before it is too late.

Smokin Joe

I happen to agree. Thing is, some people aren't willing to go hungry, or wipe their butt with newspaper, just so they can avoid using credit. Now most of them are in that situation of their own making. No sympathy here, buddy. But there are some that are forced by circumstances outside of their control to run up debt.

For a dozen years, I avoided debt. My parents gave me a credit card when I was 24, and after a few months canceled it. I learned my lesson. But in 2005 I wanted to get training in some real skills. I had liberal arts training, which is useless. So I enrolled in a tech school. I didn't have $10k cash, so I was forced into student loans. Ok, so for a year my only debt is $7500 in student loans.

Then I realize that there are no jobs, even my buddies from school can't find work, so I decide to start a business. I don't have the money. I can't get a real loan. So I FINALLY respond to my bank's offer of a credit card. I put it in a desk drawer until I'm ready to use it, then I set up an LLC and buy a couple domain names.

Then, all of a sudden, my SSI check is no longer sufficient. It runs out 12 days into the month. My parents refuse to help, because they can't. (My dad is bipolar; like Britney Spears, he spends when he gets manic. Unlike Britney, he doesn't have $100 mil laying around.) I can either starve, and wipe my butt with newspaper, or put the credit card into the wallet.

Soon, I start ringing up charges. I buy mainly food, and everyday stuff. I do buy a small digital capable TV because of the switch to DTV, and I buy a computer because my old one is near death. I also buy a vacuum cleaner and a few other little things. I have to apply for more credit to fund my business AND buy rapidly inflating necessities. I switch banks, and get another card. I also get a couple Bank of America cards and a Citibank hybrid loan to pay off some of the cards. By March 2008 gas is $4 a gallon, so I'm forced to get two gas cards.

So instead of the initial expected layout, I'm in double the debt. And I still need to buy necessities, only all my check is going towards debt service, so I have to use the cards. See how it snowballs? A lot of people had to do the same, since paychecks are shrinking while inflation is galloping. I could go to a food bank, but most of the stuff they hand out is pasta. I can't eat pasta. It keeps forever, but it makes me sick. I basically had no choice, and believe me, I explored ALL the choices. I could always kill myself, since dead people don't consume, but that didn't work either.

[Op3nTheJar]

Hi All,

Let me tell you a little story. I am in the business of bad credit. I sell cars to people with TERRIBLE credit. We call it shooting fish in a barrel. Because if we manage to get you approved we tell you which car you can buy.

If you can't pay cash you don't need to buy it. Why are you going out to eat when you don't have the money to pay for it.

Would you like a business card so I can pick out the Taurus with 114K miles on it that I am going to sell you in a year or two?

Get it straightened out now before it is too late.

Smokin Joe

Hey Smokin' joe. One of my biggest and smartest investments (I think, but will probably get beat down for) is my 2004 Jetta.

I'm on a 6 year plan at 14.5 percent, I've figured that if I paid 120 over the regular payment, I can avoid the interest and have it paid off in less than two years. I haven't been able to do that though...

[Mega B]

Tear the cards up and sell the car.

[rogercbryan]

I think a lot of people your age go through this. It comes from a lack of education about personal finances in school. I would wager to say that your parents probably are not all that great with money either. I went through this when I was about your age. I had other circumstances but the situations are similar. One of the most important lessons you can learn in life is to learn from your mistakes so that they don't happen again. The credit problems that I had when I was 19-21 lead to a mess, but I learned from it and have managed to survive.

Git rid of the cards asap. Take 30-90 days and just stop going out! It will be the hardest thing to do but it will make all the difference. It only takes a short amount of time to get caught up if you just stop spending. Getting another job for a bit isn't a bad idea either. I would not sell your car though. If you have no money and your credit is Fd up then you need to keep what you have because you will not be able to get anything else.

As long as you learn from this it isn't all bad!

[cybergift]

You need to find a job with good salary to pay all your debts.

Use your leisure time to find good ideas of building your future online business.

[zharlene]

Why would you go to a restaurant if you can't even afford such "luxury"? You need to change your lifestyle to something you can afford and your close friends will have to understand your situation. The sacrifice will be worth it in the end, avoid using credit!

[Aletheides]

Hey Smokin' joe. One of my biggest and smartest investments (I think, but will probably get beat down for) is my 2004 Jetta.

I'm on a 6 year plan at 14.5 percent, I've figured that if I paid 120 over the regular payment, I can avoid the interest and have it paid off in less than two years. I haven't been able to do that though...

lol @ calling a car an investment.

You need to stop spending. It's really that simple. You're living above your means. If you truly want to get ahead in life practice living below your means.

This is pretty tragic actually. I agree with Roger here.

If you have to buy a car and pay it off over 6 years that's a sign that you cannot afford the car my friend.

Some entrepreneurs live by the motto that if you can't pay for luxuries in full with cash then you really shouldn't be buying it.

For all of you recommending a good job, that's really no advice at all. It's human nature that if he had a new job with a higher salary, his spending would just meet what he makes every month (if not over what he makes). It's not the job that's the problem, it's spending money you don't have. You would do it if you made 10k a year or 100k a year.

You don't have to get rid of the cards, but start paying them off. Freeze your cards in ice if you really can't stop using them. Get rid of the car and get something cheaper if you really need a car.

At this point in time you can either make your credit look great or you can make a big mess.

I could go to a food bank, but most of the stuff they hand out is pasta.

What? The food banks I went to years ago gave out good stuff.