Credit Hell: How Impulse Buying Taught Me a Lesson at 23

At first, I was in disbelief. I never thought that a credit card company could do that. My history of making minimum payments combined with a rising huge balance, indicated that I would not be able to pay them in the future. They were right, I was losing my mind trying to keep up with basic cell phone payments and groceries.

How Did I Get Here?
When I was 16, I got an offer to get a credit card with a purchasing line of $500. It was explained to me that whatever I spent, would have to be paid back. This was clear. Later on, when I moved out and started going to college, I would put little things on my credit card. Fast food, books, gas, groceries, and the list goes on.

Of course, as the years moved on, credit card offers kept coming in. By the the age of 21, I had $30,000 worth of credit. Why did I accept all the offers? I will never know. Perhaps I just wanted to have a fan of cards to pull out at any moment. Department stores, gas cards, you name it, I had it. When depression set in, shopping became my antidote. I would go to a department stores and purchase $400 worth of stuff when I was only making $800 a month. Do the math!

The Spending Catches Up
The spending continued though fully aware that this would have to be paid back. Making only the minimum payments due, it became apparent that I couldn't even keep up with just that. Even then, confronting reality was not going to happen. It was not until I got the phone call that I was able to sit down and take a look at my bills. My stomach would turn inside out looking at the total figure that I would end up owing. It was over $28,000 dollars.

My debt kept me up at night, made me cry, made me anxious and it made me open up my eyes. My options were starting to run out. My pride would not let me ask for help. No one knew my situation. My parents have great credit. They would be disappointed. It felt like, I dug myself into this hole, and will get out of it. Hearing stories of other people who were in debt was not helping me. It was like, debt is for losers, this is not who I am. How was I going to get out of this?

Relief from a Coworker.
I will never forget the day that I spoke with V, he said that he was struggling in debt and had to consolidate his bills. Not knowing what debt consolidation was, I began to ask questions. He helped me to find a non-profit debt consolidation agency that would help me to lower my interest and pay off my bills.

(Warning: Debt consolidation should be considered as the very last option. There are many negative consequences that can result.

Calling for the first time, was very embarrassing. At such a young age, it was hard to look at the debt that was accumulated. The representative explained how the program worked and helped me work out an estimated payment. In the end, my overall payment would leave me with just enough money to get by every month.

Changing My Lifestyle.
It was hard to bite the bullet at first. After a few months, I started taking a hard look at myself. The reason behind my spending was called 'impulse buying.' It can be triggered by different emotional reasons. It caused me to want to reward myself when things didn't go right.

This new lifestyle involves the use of no credit cards. This means coming up with cash every month to pay my bills. At first, I thought that this was impossible However, it wasn't as if there was a choice involved. I started cutting back on groceries and my overall spending. It was hard to tell my friends that I couldn't make it to the movies or dinner. My pride would never allow me to have someone else pay my way. It just was not going to happen.

Key Learnings
For many, taking out student loans or getting high interest credit cards is a temporary solution. Maybe you feel like I did, like you were just doing the necessary things. At the age of 23, I am glad that this has all happened to me. Why? Because I can say that I learned a lesson. Live within your means. Very slowly, I will work to build my credit. It may take years, but I will be there eventually. It's a hard pill to swallow, but it feels great to know that I am paying my bills off.

This article is to help other young people who may be facing similar circumstances. Bite the bullet! Being financially responsible will help to build your credit and character. Take a self evaluation of yourself and determine whether you need help or not.