When Debt Doesn’t Win

So let’s talk money, I feel like with the shiny world of blogging/Instagram we can lose sight of the truth that everyone goes through mishaps,…

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So let’s talk money, I feel like with the shiny world of blogging/Instagram we can lose sight of the truth that everyone goes through mishaps, tough times & financial hardships. Currently, we are in a really good place on our journey of becoming debt free, we constantly put extra payments towards any bit of debt we have but it wasn’t always that way. As a couple of 20-year-olds, we like many other young couples who had struggles with money that caused stressful moments & I thought I’d share one of those moments with you.

 

When we wanted to start our home buying process, we felt like we needed to pull our credit scores up a tad to get a better rate on a loan which is no easy task.  We took out a small loan to consolidate our credit card debts into one manageable payment to get it paid down quicker. Our credit cards had very high-interest rates that every time we paid off a chunk it seemed to never go down, even with our side hustles & throwing any extra money at it. because the interest just ate up the payment so we felt like we’d never get our scores up by just paying off our cards. By consolidating our credit card debts, getting an installment loan & paying it down in the same chunks we were able to pay it off in 6 months!

After paying off our debt and our installment loan, our credit score jumped to a place where we were confident to apply for a home loan. Financial troubles hit us all & it’s good to have a financial lifeline. Did you know that state legislators threaten to lock out America’s most vulnerable families from accessible credit options? This could force families to turn to unscrupulous, unregulated lenders, unfortunately.

And when we came into home ownership it was our dream come true & then after 6 years our A/C blew out. As in, we had repair man after repair man out, spent money on repairs & then were told that our whole unit was just done. Our heart sunk, the huge expense came at a time when I was waiting on several large checks that would more than cover the expense of our new units..but in the heat of July, I couldn’t wait on those payments. So instead of trying to tough it out in the brutal heat, we took out another quick installment loan to cover the cost of the much-needed home repair until my checks came in. Oh, the joy of entrepreneurship & chasing paychecks.

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