Here’s a common enough story, and one i also hope none of you reading this will encounter. I remember a chap i went to university with who had a few credit problems. He used to have quite a tedious job in a factory or something like that but decided to better himself by going to university…
However, it wasn’t as plain sailing for him as it was for the rest of us, and i remember him telling me about all the credit card problems he’d encountered throughout his degree years, and all the credit card bills he is still yet to pay!
He had a family you see, and there were three children if i remember correctly. The problems he had with credit cards stemmed from the fact he was unable to work part time because his wife was sick, so he had to look out for the kids when he wasn’t studying. The student loan didn’t cover half as much as he needed so he got several credit cards. At first he could pay off the montly payments without too much trouble, but then they suddenly escalated beyond his control. He defaulted and ended up in a world of trouble, debt and pain.
Today he is still digging his way through the debris, and do you know what? He told me that he doesn’t have one single thing left from all that credit card debt. You see all the money was spent on things like petrol and food etc. It just goes to show that sometimes you have to have credit to survive, but remember that it will always catch up with you.
Tags: bad debts, credit cards, credit scoring