What not to do with your credit when you separate and divorce.
If you are separating and divorcing from a spouse, it is a difficult time. Everyday things can become a burden and you don't necessarily use your best judgment. I didn't use my best judgment in the first months after I set off on my own.
I was moving several states (back to home) and starting over. To get me to that point I hired a transport company to haul my stuff, some loaders to get it on the truck and insurance to cover everything. I put it on my credit card to worry about later.
I had housing lined up and finances to take care of it for a little while. I bought some appliances and things for around the house. I put those on my credit card to worry about later.
What I hadn't planned on was how stale the economy had grown in the area I was moving to. I applied for part time jobs, full time jobs and kept working freelance around the kid's schedules. Without real work I couldn't afford to put them in daycare. The phone didn't ring. There weren't even rejection letters coming in the mail!
Later I found out that administrative and secretarial jobs, even part time and temporary jobs, were getting 50, 60 and 70 applicants each. How could I compete? I kept at it, all the while using up my credit cards to pay for extras like birthday presents, Christmas gifts, school pictures and anything else I didn't have the cash for. I thought, I will have a job soon and worry about it later.
My home based business job sputtered out since nobody else in the area had extra cash to spend. I kept up with my minimum purchases to keep being able to sell it. I put it on my credit cards to worry about later.
Guess what? Later is here! Do I have regrets? Oh, yeah. Tips for those of you to NOT follow in my footsteps.
The home based businesses probably won't make you a lot of money unless you are in a big city with little competition. In my ten square mile area there were 20+ suppliers of the same product. Don't invest your money to make them more money unless you have sales experience or know you are going into a "virgin" territory.
Cut back on spending. Avoid the expensive food, the extra birthday present or larger picture package. Save to buy the extras when you don't need to put them on credit. Save the "worry about it later" and wait until you can take care of it today. Interest builds up faster than you think.
If you must keep ahead, take a job in a fast food place or retail store. Money will pay the bills and keep the credit card interest from building up while you continue to look for a better job. You want to make money for you, not the credit card companies.
I am now in a better position financially, but am still learning lessons. Next week I will share ways to get out of debt and stay that way. Until then, don't charge it!
