The week I applied for college was the week I started receiving credit card approvals in the mail. Indeed, being 18 and on my own for the first time, I couldn't pass up "free money"! I signed up for my first credit card and was approved for $200. Soon after, my limit was raised to $500. I kept up with my credit card pretty good paying off my debt.
I paid more than the minimum every month using the money left over from my student loans. Then I applied for another credit card and then another.
By the time I was 21, I had accumulated five credit cards, all with limits under $500. By the time I was 22, I had 5 maxed out credit cards. After graduation I tried to keep up with paying my monthly minimum payments but it took longer than expected to find my first job. As could be expected, I missed a payment, getting an over limit fee and then a late fee on top of that. In three months I managed to have all five credit cards $200 over their limits.
I finally got a job and was determined to pay off all of my credit card debts. I lined my cards up in order of the smallest balance to the largest. Every month I would pay the minimum on all of my cards and pay as much as I could spare extra on the card with the lowest balance. Eventually I paid off my first card. Then I moved to the next card, putting all of the money I had put towards the first one towards it. I worked my way down the line until all of my cards were paid off. Now I make sure that I only use my cards if I have the money to pay off the balance when the bill comes.
I made the decision to get debt free by learning the hard way. Please learn from another person's mistake and be smart with your credit.
By Wolfgang O, who writes for Getting Out Of Debt.
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