Just cancelled my trip...

[NewJersey]

After talking to Steve about our upcoming trip, we both thought it was the right thing to do since I need to pay off my CC and work on restoring my credit rating. Let's just say I was a bit reckless with my spending when I was in college, so I have to begin the long process of paying it off and having a credit rating I can be proud of, especially when I want to purchase a car in December and buy my first house in a year.

How long does it take to restore credit? I'll have my debts paid off by November (or even October hopefully), thanks to my job I start next month. Then, I'll use my CC for emergency purposes like I'm doing now but make my payments in full each month so I can slowly up my score. It's really quite embarassing that I'm going through this.

I guess it's better I learned the error in my ways when I'm young and just starting off, rather then when I'm 50 and thinking about retirement.

 

[Mackey Mouse]

Sorry about your having to cancel your trip, but I commend you on taking charge of your life and paying off your debts. It is not easy getting out of college with debt, getting a job and paying everything off.....you sound like a responsible young man and it will get better.....

 

[Blondy876]

It just takes time to up your credit rating. Make payments on time, pay down debt and don't incur anymore. It will go up.

And good for you for being so responsible. It's tough to do the right thing but when you go to buy your car and your house you'll be glad you did it. My dh and I made some bad financial decisions early on and it was a nightmare to get out of but we did it. We have no debt (other than or car and house) and it feels so good. Congrats and good luck!!!

 

[kelleigh1]

Congratulations on making a smart decision to get yourself out of debt and being an example to others your age. Disney will still be there when you've paid things off and it will make a trip that much more enjoyable to know that this debt isn't hanging over your head.

Good luck!

 

[Grumpy's Wife]

You'll be glad you did this now. When you do get to DW it will mean so much more to you. Way to go.

 

[SDFgirl]

It can be done!!

I had horrible credit at your age too. But I worked hard, payed things on time, and significantly reduced my debt. Now my credit score is excellent. It took about 5 years to make this change, but just think - every day it will get better and better. Every day you will be closer to the time when the "black marks" come off your credit report.

Good luck to you! You are right that it's better to take charge now than later.

**As an aside, I HATE the way credit card companies prey on college students! My university always had 3 or 4 tables set out, advertising a free t-shirt or something if you applied for a credit card. No wonder kids graduate with so much debt! But, parents need to take responsibility to teach their kids about credit - mine really didn't. I love them to death, but this is one area they glossed over.

 

[NewJersey]

Thank you all for your kind words of encouragement! After cancelling the trip last night I was bummed, but Steve cheered me up and today I woke up and realized this is definitely the right thing to do. I feel so much better and know this is the first day where I take my credit back.

And like others said, I"ll enjoy our Disney trip when I can afford it, a lot more!

I'll be sure to keep everyone updated.

 

[kelleigh1]

Credit card companies on college campuses is one of my biggest complaints. And I didn't even go to college, so this isn't a personal thing. My debt is my own stupid fault and I'm paying for it. But I hate seeing all these kids fresh out of college who are so deeply in debt and it's because they were lured into applying for a credit card. I think that every high school should teach a mandatory class in using credit wisely and that credit card companies should not be allowed onto college campuses.

But I'll get off my soapbox now.

Again, good luck Tim!

 

[NewJersey]

Credit card companies on college campuses is one of my biggest complaints. And I didn't even go to college, so this isn't a personal thing. My debt is my own stupid fault and I'm paying for it. But I hate seeing all these kids fresh out of college who are so deeply in debt and it's because they were lured into applying for a credit card. I think that every high school should teach a mandatory class in using credit wisely and that credit card companies should not be allowed onto college campuses.

But I'll get off my soapbox now.

Again, good luck Tim!

Thanks! I have to agree with you 100%. My spending was my own fault, not the CC companies. But they were all over the Student Center everyday of my 4 years of college with free shirts or free anything. And hello, when you're in college and you see 'free' you'll get it. And students don't realize how quickly that debt racks up, until its over your head. I should have known better and budgeted and I only can take the blame for that and live with the consequences as I'm doing now. But a high school course would be a great idea.

 

[hlbtimes2]

Good for you for doing the resposible thing.

As for your credit rating- it depends on why its low. If its low because you have negative marks- charge offs, collections, 30+ days late, creditor closed accounts, its gong to take a long time to really bring your number up. If it is low because you simply have too much debt, it will come up pretty quick once you get your balances under 50% of your credit limit.

Try not to stress over it, and keep moving in the right direction. We had to file bankruptcy 5 years ago. It wasnt easy for us to make that step. But, in the last 5 years we have came along way. We refi'ed our old house, then sold it. We bought a newer house. We got a small loan for ortho work I needed done. We were able to buy a car. All were things that were with in our budget and are rebuilding our credit. Slowly its going up.

 

[Stephanie218]

I totally would agree with what you're doing - it's definately the right thing. It's still pretty hard to do though. I'm majoring in finance right now and I'd eventually like to get into teaching later in my life to try and prevent what you're going through now for other people. A high school course would be a great idea. My HS finance course taught me how to balance my checkbook....which was a great idea and start, but it wasn't really enough.

You'll definately enjoy the trip more without debt hanging over your head. I noticed you're starting a new job next month - good luck with that!

 

[disykat]

You're doing the right thing! You have many years ahead of you to vacation - you CAN have it all, you just can't have it all RIGHT NOW!

 

[sweet angel]

Good for you for realizing a bad habit now, rather than later! I've pretty much always had good to excellent credit, even though I had a lot of debt -- I just recently refinanced my house and paid off EVERYTHING so I only have a mortgage payment which is manageable. It's an awful cycle of minimums and interest....even when you pay more than the minimum.

Anyway, I wanted to say that ExBF had horrible, horrible credit (charge-offs, collections, always late, etc.) and I was able to bring his score way up in only a couple of years. From July '05 to June '06, it went from 694 to 729 -- I can't see from the website what it was prior to July '05.

Also, you CAN still do vacation while paying off your debt. Simply earmark a set amount to a vacation account each week ($50 or whatever you can afford) and have your SO do the same. You'd be surprised how quickly that adds up, as well as gets rid of the need to charge your vacation.

 

[NewJersey]

sweet angel,

Thanks for good news about the credit score of your ex. It'd be good to be able to get my score to go up that much in a year, and I'm confident I can do it!

I've looked into my credit union's vacation club so I think I'm going to sign up for that and put 50 dollars a paycheck into it! I have a strict budget all set up.

stephanie,

Thanks for the kind words! I'm really looking forward to the job..I interned at the company last summer and loved it. So ready to start the next chapter of my life!

 

[Bob Slydell]

A very smart, responsible choice.

Remember, Disney World's not going anywhere.

 

[Laura]

Hey, it's too bad you're not going, but there's going to be more cool new stuff to see at WDW next year than this year. You will definitely enjoy your trip more having a better credit rating and less debt. You will enjoy life more, too.

 

[PrincessMo]

Sorry to hear about your trip. I think you are making a smart decision though and as sad as it is to think about right now, there will be other trips. And those trips will be even more wonderful because you won't be so worried. Take care of yourself.

Have A Magical Day!

 

[NewJersey]

Thanks PrincessMo! I already feel so much better, and today I made a payment to Amex. for the money I was spending on the trip.