Unprepared for Bad Credit

Let's face it, most of us who have bad credit never expected ourselves to have bad credit. it's some life-changing event like a car accident, getting laid off, or losing one's investment that makes a person's credit sink deep into the hole. I've been there, many people have been there, and you have been there too.

When I started college years ago, I got my first credit card and a decent part-time job. I was happy of course because I was then financially independent, but I didn't go on a mindless spending spree like other people who got their first credit cards. I knew it's not free money. I only use my credit card for what I can actually afford. Because of what I've learned about money management from my single mother, I knew how serious it would be if I go beyond my credit line or not paying the balance on time. Yeah, I did occasionally run up a hefty bill due to my carelessness but the debt was never beyond what I could pay in the short run. I was able to live the college life that I've wanted and didn't have to worry about my credit yet.

After my graduation, I worked at several odd jobs for several years before finally getting my dream job that made good use of my degree. I managed to buy a new car and had plans to move to a better place to live. I felt that I could finally have the life that I've wanted. But then everything changed after a serious car accident. Although my car insurance covered some of the damages and costs, I was slapped with a huge hospital bill which amounted to almost a hundred thousand dollars. I had to pay the bill plus interest over the course of several years. When I got laid off, my life started to go in a downward spiral. My new job wasn't enough to make ends meet and I maxed out all my credit cards. I was in financial hell.

The situation was completely hopeless and there was no way out. But then once I found out about bad credit loans. It was no secret, but I don't know why I hadn't discovered that earlier. I would've been in a much better situation if I had applied for those types of loans earlier. These loans are much easier to apply for than traditional loans. Soon I was able to get my life back on track. Even though I still had a mountain of debt on me, these bad credit loans made it possible for me to see light at the end of the tunnel and I did. I found a good job and managed to maintain the lifestyle that I had before the crisis. I have to pay the debt right now, but it's much less than before.

Was there a way to have prevented me from sinking into the credit hole in the first place? If I had expected the unexpected, I would have bought an insurance policy with better coverage, put more of my income into savings, etc. But that's difficult for a lot of people. Besides, there's no way to know what will happen in the future. It's better to prepare for what you don't expect, but it's even better if you have added a safety net.