Been wanting to make an article about this for a long time especially because I have experienced it or I am still experiencing it now for the last XX years. LOL. I can't even remember how long I have been paying my card but I am still in the process of paying it until now.
To start of, remember my story when I asked my aunt for money and she didn't lend me? I was able to borrow from 3 different people tp pay off my debt and I was able to pay them when I have been issued a card. Can you see the chain reaction? From one debt to another and to another. The card that was given to me came at the right time and from then on I planned to kee it. I have long been wanting to have a card of my own. It's so cool to swipe whatever it is that you want. Buy now, worry later I mean pay later. LOL.
Back when I was in college, my mom made me her supplementary with her card. I brought it with me in school just in case if there is something that I need to buy and I don't have extra money, I can use it. During our long breaks, we used to go to Robinson's Place Manila or Greenbelt. So when I liked something, I would call my mom to ask for permission if I can use her card and she would say yes. That time I didn't know how a credit card works. I thought that the bank gave my mom a card with this amount that she can use and that's it. I have no idea that you have to pay whatever it is that you bought when you used the card plus interest. I think it was only when I was about to graduate when I found out about that. I was so dumb right? LOL.
How did I found out about it? Well I found out that my mom was already having trouble paying her card. I remember she would even ask me if she can have the Christmas money that I got from our relatives. Of course I gave it to her since I also used her card and it was only then when I knew about credit cards and interests. I have heard about credit cards and interest through my dad. He said he doesn't like to use his card because of the interest. It was only when I had my own card that I realized what my dad was talking about. I guess I got most of my spending habits from my mom.
I feel so overjoyed whenever I swipe my card. But it is the opposite whenever I would receive my statement of account. History does really repeats itself. I never thought that I would also be experiencing what my mom had when she had her cards. I never learned from her mistakes. She struggled paying her cards and now I am also struggling with my card. I should have listened to my dad.
But what really got me into this situation? When I was about to resign or when I rendered my resignation, I kept on using my card. I even linked it to my Grab and Uber account. Going to and from work, I would ride a Grab or Uber especially when I feel like I will be late for work and when I am so tired to commute. My dad even scolded me because of riding those to work. My daily salary was around Php500 a day and my one way fare was aready half of it. He does have a point right? It was like I was working for the sake of being employed not because of living. Well I was already resigned and once you have rendered your resignation, you aren't motivated to go to work already. Can you relate with me? I have felt that many times. LOL.
Aside from Grab or Uber, I used to do a lot of food trips with my last employer and I used to treat my workmates if we get to have the same break time. I remember that my mom messaged me before when she saw my bank statements. She asked me why I have a lot of Grab and Uber and what I was doing in Magallanes. She was paranoid that I have a boyfriend. LOL. But her instincts were correct. I did have someone during those times but the places that reflected in my bank statements was the head office of both Grab. Then she saw that I ate in one restaurant in Greenhills Promenade that cost around Php2000. I got a very long texts from her that day. LOL.
So all my spendings when I was about to resigned accumulated to a very huge amount. And when I resigned, I only paid for the minimum balance of Php5000. But my balance doesn't move because of the interests that incurred every month. It does have a very small decrease of Php100-200 a month. It was my mom who suggested me to call the bank and tell them that I am unemloyed and if there is anything that I can do so that it wouldn't incur an interest. Luckily they said that I can have my balance converted into installments but because my account has reached the credit limit, they wanted me to pay first at least Php50000. During that time I didn't have that huge amount so I declined the offer. It was only late 2019 when I had a balance conversion because the bank has increased my credit limit. Now I am still paying for it but at least I can already see big improvements.
For sure you are wondering if I have learned something from it? Absolutely yes. If you have a card or would have a card in the future, please don't use it if not necessary. Much better if you can only use it for emergency purposes. Let's say for example a hospitalization. I know they allow credit cards because I overheard my sister-in-law before when she and her family were pooling money for their father's unexpected surgery. She said that her card has a Php250000 limit. Wow right? I wasn't able to hear how much money her siblings have because I was already shock with hers. I know they were able to collect the money for the surgery that same day. The importance of having an emergency fund.
If you have 2 cards, never use card A to pay for card B or vice versa. It will only be a total disaster and will only make you so bankrupt. If you have 2 cards, just use only one card. If you have pending payments in both cards, ask the bank if there is something you can do with the balance. Just like what I did.
ALWAYS pay your credit card bills on time. Do know that when you miss paying it will only make it bigger the following month. It will only incur a bigger interest plus a penalty charge.
NEVER EVER HIDE FROM YOUR CREDIT CARD COMPANY. I remember when I was working in one company, I answered the phone who was looking for our cashier. At that time, our cashier wasn't around. The caller told me that she was just outside our store and she even threatened me that she will make me an accomplice if she finds out that I wasn't telling the truth. I was so frightened that time. I only answered our company phone and then I would be part of a criminal suit. The caller got my whole name but I was really telling the truth. As it turns out, the caller was just bluffing. She wasn't outside our store. I later found out that it was a collections agent and they would really do all sorts of scaring tactics just so you can pay. But I hope you wouldn't go to that point. Like I said earlier, pay your bills on time.
Be sure that you have something to pay for when you swipe that golden card. Don't be like me who didn't think of my credit card purchases when I resigned. I have used up all my money in my savings account and my back pay money that I got from my last employer. Still it wasn't enough but it sure helped me a little. I do get birthday and Christmas gifts in cash from my relatives and it all ended up paying my bills. See? Instead of me enjoying the gifts that was given to me, they all ended up paying my debts. The same will happen if I have a stable income but at least I wouldn't be struggling where to look for money.
Lastly, use cash instead of money. If you have cash and you need to buy something, use it. If you can't afford it then don't buy it. Don't always think that just because you have a card you can buy whatever it is that you want. Remember my first tip? Only use your card when necessary.
Having a bad record with a credit card company will only hinder your plans in the future especially if you want to have a house or car or a business and you intend to loan from a bank. Dream on because that is not going to happen. I still have less than a year in paying my card. It was hard and is getting harder but I know I can make it. Oh and before I forget, always be responsible with regards to your payables whether to a person or a bank.
Relate much..😩😩😩