Browsing posts in: Debt

Ashley’s January 2017 Debt Update

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First, thanks for all the great comments and advice on my Medical Debt Collector Dilemma post!

If you haven’t read the comments, then I’ll give you the update:  I was able to negotiate our medical bill down into 3 equal sized payments to be paid across the next 3 months (February through April), and then the medical debt will be GONE and nearly $2,000 will be forgiven. Some commenters noted how this will ding our credit, but seeing as we’re unlikely to be needing any new lines of credit anytime soon, I’m not too worried about the ramifications. I feel like we’re pretty well “set” with our current debts (great mortgage rate, good credit card balance transfer options for paying off student loan debt) – we won’t be adding any additional debts, hopefully EVER!

I’m kind of excited about being rid of this medical debt. We prioritized it below everything else so far simply because it was at a 0% interest rate. But with the offer to forgive $2,000 of the debt, it had to be bumped up to the top of our priority list (which will change the “debt payment” proportions that I had just posted in our 2017 budget. Oh well, budgets need to be flexible!).

I know there are strong feelings on both sides of the fence regarding whether it is morally “okay” to negotiate down debts as opposed to paying the bill in full. We would have paid the bill in full. That was always our intention. But we also weren’t in any hurry about it with so much student loan debt racking up in excess of 6% APR. The offer to settle for less than was owed was solely initiated from the medical debt collection agency, itself. So I feel like it was a fair transaction. The medical company will receive their payment (much sooner than they would have otherwise, at that), and we will soon be able to cross off one more debt from our  list of debts!!!

One other thing I wanted to mention was regarding credit card balance transfer options. When I realized I would be unable to refinance my student loans away from Navient with one of the big/respected student loan consolidation companies, some of you recommended continuing to do credit card balance transfers. So I applied for a new credit card and promptly transferred another student loan away from Navient. Again – a super controversial thing in the world of debt repayment. I wouldn’t recommend this option for everyone, but I’ve been doing it a couple years now and have had great success with it. I literally only use the credit card for balance transfers (it’s not even in my wallet – it would otherwise be cut up and destroyed because it serves no purpose otherwise). So now I’ve got TWO credit cards designated specifically for doing balance transfers. The balance transfer fees have been low (between 2-3%) and I receive 0% APR as long as balances are paid in full by the due date (which I closely track and monitor and have never had a problem with). So….it works for us. Unconventional? Yes. Would I recommend it for everyone? No. But it’s working for us.

And so with some explanation of our debts (and, specifically, the new credit card balance transfer debt you’ll see), I present to you January’s Debt Spreadsheet:

PlaceCurrent BalanceAPRLast Payment MadeLast Payment Date Original debt, March 2014
Navient - Federal 2 (unsubsidized)$110985.8042January82433 (all school loans, combined)
Navient - Federal 3 (subsidized)$86245.8025January
Navient - 2 (subsidized)$85316.5525January
Navient - 7 (subsidized)$72266.5521January
Navient - 8 (subsidized)$63986.5519January
Navient - 9 (subsidized)$85316.5525January
Navient - 10 (unsubsidized)$97726.552018January
Balance Transfer Student Loan #2$22000% (through April 2017)$800January$7650
Balance Transfer Student Loan #3$45940% (through October 2018)
Medical Bills$55860% (must be paid by April)$25January$9000
Balance Transfer student loan #1$00% -Paid off in March 2016$5937
PenFed Car Loan$02.49%-Paid off in January 2016$24040
License Fees$02.5%-Paid off in April 2015$5808
BoA CC$07.24%-Paid off in June 2014$2220
Mattress Firm$00%-Paid off in May 2014$1381
Wells Fargo CC$013.65%-Paid off in May 2014$7697
Capital One CC$017.9%-Paid off in March 2014$413
Totals$72,560 (Dec balance = 75,171)$3000Starting Debt = $145,472

When I first started blogging back in April 2014, I had $145,472 total debt.

As of January 31, 2017, with a margin of under $200, we have finally hit our half-way mark! We now have $72,560 in debt.

Oh my gosh, guys! I can’t tell you what a huge milestone this is for us! I’ve been blogging for nearly 3 years and we have JUST NOW hit our half-way mark in terms of debt reduction. We likely have another 2.5 years to go (maybe less), so we’re over half-way in terms of the time spent in debt reduction mode. I just cannot even believe it. All the changes in the past three years, all the sacrifices, all the splurges, all the savings and the spending and the analyzing numbers over and over and over again. It just feels fantastic.

I know some have commented that the second half of debt reduction would just fly by. That as soon as we hit the half-way “tipping point” things would start snowballing and debt would just melt away.

I’ve got so far still to go, but I am hopeful and excited about the future!

And I want the debt gone sooner than our projections have it. I want it gone yesterday. I’ve been doing a lot of thinking of ways to reduce savings categories (temporarily) in order to throw more toward the debt. And there’s still some work stuff up in the air that will impact this whole process. I’m optimistic. It’s hard not to be. I may not be able to quite see the light at the end of the tunnel yet, but at least we’ve crested the top of the mountain and are about to make our descent. I can’t wait for the journey downward!


Medical Debt Collector Dilemma

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One of the debts on our debt spreadsheet is from an outstanding medical bill we owe. Before this month’s payment, we owed $5611.00. We’ve been making payments for years but have only been paying the minimum $25/month (with 0% interest). At some point we always knew we’d obviously pay more. But it was a lower priority when we have other student loan debts racking up over 6.5% interest!

Well, just this week we received a bill from the debt collection agency stating:

“If you will pay $3647.15 of your balance by phone using a debit card, credit card, or check by phone, our client has agreed to adjust the remaining $1963.85 and you will have a zero balance.”

Well, I thought it was a good deal. I immediately showed hubs.

“Hey, should we just pay this debt off and be done with it?!”

His thought is: no. We should continue making our minimum $25 payment as normal. He thinks that eventually they’ll come down even more. While we focus on my student loans we’re in no hurry with them. It can sit and wait (as we continue making our $25/month payments). They’ll be there when we’re ready to negotiate.

As a little backstory, at the time when we first incurred the medical debt (back in December 2013) I called and tried to negotiate settlements if I could pay the debt in full. We owed several different medical entities (I wrote about how hubs had a weird health crisis in one of my very first posts on this blog). When I called around, only one (0ut of maybe 4 or 5) would even negotiate. I’ve since heard Dave Ramsey talk about this on his radio shows: few medical entities (or collectors for medical entities) will negotiate and settle debts. I guess they’re less likely to do it than a major credit card company, for example.

So the fact that this company is offering a settlement now, I thought, was HUGE!

But then, I got a call today on my cell. It’s the debt collection company (who has never once tried to contact me before). They asked how we planned to pay our bill. I told them that we’ve been paying our bill and planned to continue the way we have been. They said that, no, we were not actually on a payment plan. That we needed to pay the bill in full. And then they started trying to confirm information (employer, address, etc.). I confirmed our address but, when they asked about employers I said I was uncomfortable talking about that and they got all huffy and ended up hanging up on me. No mention of the settlement offer that they had just mailed.

Soooo…what the heck, guys???

I don’t know what to do! I’ve heard many times on Ramsey’s show about nasty debt collectors calling employers, etc. I’ve literally never had a call from this entity before and have been making faithful payments. Now I don’t know if they’re lying, or trying to scare us into paying, or what?! And I was about to pay in full to receive this settlement, but now I don’t know if that’s a terrible idea – like if they’re trying to take advantage of us. For instance, if we pay with a debit card and then they try to withdraw more than we agreed to, etc. Or what if I’m being overly dramatic? I just have absolutely NO experience with debt collectors. And then we get this letter, and now this rude call, and now I’m worried about my boss getting a call… What the heck!?

Thoughts? Advice? Words of wisdom?

*****UPDATE: I’ve written some relevant updates in the comments section. I’ve now received a new/updated settlement offer (see comments). Looks like I may be getting rid of this debt sooner rather than later, after all! ******


Financial Goals: 2017 & Beyond!!!

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For the past couple of years I’ve made our family’s financial goals public, sharing them with you all and tracking along throughout the year to see how we did (see 2015 goals here and 2016 goals here). We met our financial goals the past two years and hope this year will be no different.

2017 Financial Goals:

  • Pay $30,000 Toward Debt. This may seem like no big deal since we had this same goal last year and met it, no problem. But this year will be different because our salary is going to decrease a bit. Hubs is going back to school and mid-way through the year I’ll be leaving my part-time job. I’ve kept hinting that I have some news on the job front but I’m still not in a place where I’m able to share it. Probably within the next few weeks I’ll be able to elaborate on this. Overall, though, our salary will be down this year compared to last year.
  • Fully Fund A Roth IRA. Our first two years of debt payment were narrowly focused on debt payoff at the exclusion of all else. When I started my full-time job in August 2015, a 7% retirement contribution was required (and is matched by my employer). In the past year (we’re almost at the 3-year mark for our debt payoff journey), I’ve tried to add in a little extra balance. That means more of a focus on savings for retirement and on spending a little bit for fun (e.g., monthly date nights, kids’ activities, etc.). I’m still continuing to do my mandatory pre-tax retirement contributions (it goes into a 401(k) type thing, but the education equivalent…I think it’s a 401(c) or something??) I’ve also tried to separately put a little money into a Roth the past couple years, but we’ve only managed to do about $1,500 or $2,000ish each year. This year the goal is for us to have 1 fully funded Roth at the maximum allowance (I believe it’s still $5,500). In the future we’ll work toward having 2 fully funded Roths, but I think just having 1 will be a good goal for this year, as we still work diligently to reduce our debt.
  • Mom & Dad Getaway. This is still a very new and not fully fleshed out goal but one that has been floating around in my mind for quite awhile. For newer readers, hubs and I have twin 4.5 year old girls. One of our favorite (pre-baby) passions was to travel. We used to travel a LOT. In fact, that’s one of the reasons we have in our mind for why we want to be debt free: so we can have the freedom to travel! In February 2015 we set a goal to go on a cruise for my Mom’s 60th birthday and we did! We saved up for over a year and in April 2016, we went on a family cruise. It was a lot of fun and I’m glad we did it. But it kind of re-kindled this flame in my heart – this desire to travel with my husband! In the past nearly half-decade since we’ve had kids, we haven’t had a single overnight away from them. Not one. We love our kids, but I also think we’re now at the point that it would be healthy and good for us to have a little mini-getaway solo. It likely wouldn’t be for long (we’re thinking 4 days/3 nights) and it likely wouldn’t be extravagant (maybe drive out to San Diego since that’s only a few hours drive). So I’m sure it won’t be as costly as the cruise was. We don’t have defined or “set” plans in place, but we’ve talked to hubs’ mom about it and she’s volunteered to come out to Arizona and watch the girls for us so we wouldn’t have to be paying for childcare. I don’t know when this would be (maybe over summer; maybe not until fall), but it will happen sometime in 2017. It needs some work to make the goal more defined, but it’s a definitely goal we have for this year.

 

I know this is a get-out-of-debt blog, so some of the things I talk about (e.g., savings, spending) may be a little controversial. I am proud, overall, on how frugal we have been and how much we’ve been able to reduce our debt. I think ours is a success story. If we had less debt, we may have just been able to go gung-ho the whole time (we did for a solid 2 years!!!) and just eliminate the debt in its entirety. But with the amount of debt we’re grappling with, I didn’t think it was possible for us to be “gung ho” for a solid 5-6 years. I knew we would end up falling off the wagon. Therefore, we’ve purposely built our budget in a way where we can SUCCEED. That includes building in a little “wiggle room” for a monthly date night, weekly dance class for the kids, and having friends over for dinner every couple of months. These “life” things are important to us and we wouldn’t be able to make it through to the finish line if we didn’t allow them.

It’s been so encouraging to watch our debt shrink. We now owe $75,000 according to our most recent debt update. Here are our long-term goals:

2017: $30,000 toward debt payments

2018: $30,000 toward debt payments

2019: DEBT-FREE by the middle of the year!!!!

2019 still seems so far off! But then, we started this journey in 2014 and that feels like it was just yesterday! So I know 2019 will be here before we know it. We’re over half-way there!!! I hope you’ll continue to stick around while we’re on our journey. And I wish you luck on your journey as well.

 

What are your 2017 financial goals? Do you set annual goals for yourself and/or your family?


2017 Planning

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Hi friends! How is 2017 treating you so far? So far, so good over here! Just trying to balance work and childcare (always!!) The kids have been out of school all last week (they go back to preschool this coming Monday) so I’ve been drowning in work-related tasks while I’ve been trying to juggle childcare with hubs. Yikes!

Speaking of hubs – a quick work-related update:

Remember when we spoke about hubs going back to school full-time and closing the doors to his business?? Well, slight change of plans…

He IS going back. He’s starting with 9 credit hours; his classes meet on Mondays and Wednesdays. That leaves him with quite a bit of spare time still on his hands (though, to be fair, his classes are basically ALL.DAY on M/W, so he’ll need to spend quite a bit of time on the other weekdays actually studying, doing homework, etc.).

Anywho, hubs landed a really big contract around October-ish that was supposed to be completed by the end of 2016. For newer readers, hubs is a wood floor contractor & installer. Unfortunately, the contract was for a big “new build” condo complex and anyone who is familiar with new build knows that they are rife with setbacks and delays. The same was true here. Floors are one of the last things to go into a new home, so hubs’ schedule kept getting pushed back more and more and more while other contractors were working on their parts of the project.

I think you can see where this is going.

The project was not complete by the end of 2016. Not even close. In fact, hubs had only just barely begun! (again – this was due to no fault of his own – this is just how new builds sometimes go).

At this point in time, hubs has a two-man crew still working for him. Rather than renege on the contract he had signed, he’s having his crew continue working for him on this big project. He’ll be able to check in on days he’s not in class to make sure all is running smoothly and according to schedule, but it shouldn’t be a big time commitment for him since the work is actually being completed by his crew.

After paying salaries, he obviously wont’ be making as much as if he were doing the work himself (which was the initial plan when we thought it would be done by the end of 2016), but he’ll still be making a nice little chunk on the side which will help add a bit of a buffer as we transition into the land of no-more-work. I think this is a great thing, though. It will be nice to have a month or two of additional side-income (from hubs’ business) before we transition into me being the sole earner in the household.

Speaking of, I’ve been running numbers over and over again trying to make our 2017 budget “work.” I think it’s just going to require a bit of flexibility because right now with our debt-payment goals and everything else….if I were the sole earner it just wouldn’t work. I wouldn’t be making enough to cover our budgeted items.

To be fair, this is with a budget that is dolling out $3,000/month for debt payments, alone. It may be that some months we are unable to make such a large debt payment. As I’ve alluded to, I also have some employment changes in the future, too, so there are lots of balls up in the air and lots of considerations at hand.

I currently have a few blog post drafts going (one with a 2017 budget and one with 2017 financial goals). I’ll do my best to try to get one of those posts up this coming week. I’m just counting down the days/minutes until we have regular childcare again! Whew! Especially now with the girls being older (4.5 years) and not napping – there is not a single break during the day in which I can get real work done. I do a good job of attending to emails, etc. but anything other than the basic necessities is pretty tough to squeeze in! Yikes! Any work-from-home parents out there?? How do you do it!?!? The kids each have little workbooks so I’ve tried to have “work time” for all of us (like, we’ll all sit down to do “work” together), but the interruptions are constant and, while that’s okay when I’m just doing emails, it makes it challenging to do any serious work that requires extended concentration, etc. I’d love any tips (though, hopefully this problem will dissolve once preschool is back in session!)

Have a lovely weekend!!


Ashley’s 2016 Goals Wrap-Up (With December Debt Update)

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2016 has been a rough one for many. Have any of you seen this meme floating around the interwebs?

Screen Shot 2016-12-22 at 3.07.22 PM

(Here’s one source, but I’ve seen it on multiple accounts. It’s everywhere.)

Makes me chuckle. Although 2016 has been tough in many regards (and I have a year-end wrap-up post in the works with more info on my 2016), it hasn’t been all bad. In fact, I’ve had a pretty good year when it comes to my financial goals.

In the beginning of 2016 I set these financial goals for myself and my family:

  • Save $10,000 for down payment for a home.
  • Save $5,000 for an emergency fund.
  • Put $30,000 toward debt.

These were pretty lofty goals at the time they were set. But then our income just exploded.

I ended up working all summer (an extra 3 months worth of income), I taught an extra class one semester, and hubs landed some big contracts in the Fall.

Without any major financial set-backs this year (*knock on wood*) we managed to hit these goals out of the park!! I’ll explain each in more detail below.

  • Save $10,000 for down payment for a home. Once this goal was set, I really put it first above  all else. Initially we were going to start looking at homes in May, but we pushed it back a bit when we felt we needed more time to save up an EF, etc. We found “the house” in August and it was a long process, but when all was said and done we finally closed in early November. I wasn’t sure if we’d be able to save the money in-time when we were shooting for a May timeframe, but by the time November rolled around we had more than enough saved for our down payment. With the money we saved (+ a generous gift from my mom) we had just over 20% to put down. We also had some cash reserves still on-hand that came in quite helpful when we needed to buy nearly $4,000 worth of “stuff” to get moved into the house (e.g., refrigerator, blinds, etc. See this post for details).
  • Save $5,000 for an emergency fund. This goal was so important to me, personally. This was the real reason why we delayed our house hunt from the beginning. We had our $10,000 saved up, but had nearly no emergency fund and I felt like it was just a recipe for disaster to buy a home with no money on hand. After we pushed back our original “house hunting” date, we were able to continue to stack money (again – I picked up work over the summer and additional classes in the Fall, too, which really helped in this regard). As I type this post, we have exactly $5,085 in our dedicated Emergency Fund and I consider it fully funded for the time being. Eventually we’ll try to bump this up to a full 3-6 months ($5,000 is about one month for our household…maybe 2 if we really stretch). But while we’re still in the process of debt repayment we’ll leave it at $5,000. I did have some comments on the house post that mentioned making a separate house-related EF (especially given the age of our home, etc.). I’ll address that more in my forthcoming 2017 Goals post. Look for that post likely next week sometime.
  • Put $30,000 toward debt. This is just such an obscene amount of money to pay toward DEBT in a single year! It’s crazy to think about how many families are struggling just to get by on $30,000 total annual income. When I first started blogging here our household income was just under $50,000. Thinking of that time (and there would have been zero chance we could have put a full 30k toward debt) compared to where we are now…I’m just amazed. Life has had it’s fair share of ups and downs, but we’ve been blessed in the financial realm this year. Check out our December Debt Update table:
PlaceCurrent BalanceAPRLast Payment MadeLast Payment Date Original debt, March 2014
Navient - Federal 2 (unsubsidized)$110715.80209December82433 (all school loans, combined)
Navient - Federal 3 (subsidized)$86215.8025December
Navient - 2 (subsidized)$85376.5533December
Navient - 7 (subsidized)$72326.5528December
Navient - 8 (subsidized)$64026.5525December
Navient - 9 (subsidized)$85376.5534December
Navient - 10 (unsubsidized)$161356.552020December
Balance Transfer Student Loan #2$30000% (through April 2017)$1000December$7650
Medical Bills$56360%$25December$9000
Balance Transfer student loan #1$00% -Paid off in March 2016$5937
PenFed Car Loan$02.49%-Paid off in January 2016$24040
License Fees$02.5%-Paid off in April 2015$5808
BoA CC$07.24%-Paid off in June 2014$2220
Mattress Firm$00%-Paid off in May 2014$1381
Wells Fargo CC$013.65%-Paid off in May 2014$7697
Capital One CC$017.9%-Paid off in March 2014$413
Totals$75,171 (Nov balance = 78,345)$3399Starting Debt = $145,472

With our last large debt payment from December 2016, we’ve managed to cross the finish line on our final financial goal of 2016. We have officially paid over $30,000 toward debt this year!!! See below (with a previous goal check-in post found here):

Month 2016 GOALS 2016

January

Goal: $3500 $4013
February Goal: $1000 $1261
March Goal:  $1000 $2134
April Goal:  $2000 $1521
May Goal: $2000 $1325
June Goal:  $4000 $3500
July Goal: $4000 $4928
August Goal: $2500 $1374
September Goal: $2500 $2775
October Goal: $2500 $2750
November Goal: $2500 $2625
December Goal: $2500 $3399
Total Goal: $30,000 $31605

Some months were up and some were down, but the highs and lows all averaged out and still allowed us to hit this monstrous goal we had set that didn’t even seem feasible in January of 2016 and yet, here we sit at the end of 2016. Mission accomplished.

For anyone casually stumbling across this blog (as well as long-time readers – thanks for sticking around!!), I just want to stand on the top of a mountain and shout: I’M A REAL PERSON. A NORMAL HUMAN BEING JUST LIKE YOU. THERE IS NOTHING SPECIAL OR OUTRAGEOUS ABOUT ME AND MY SITUATION. IF I CAN DO IT, SO CAN YOU!!!!

Three years ago, I never would have believed I’d be sitting here today having annihilated nearly half of our debt!!! It’s a pretty incredible things and more great things are on the horizon.

How have you done on any 2016 goals? Are you taking stock and making plans for 2017 goals??


Ashleys November 2016 Debt Update

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Another month is over – time for another debt update!

November was a good month! In some regards it was pretty pricey (hello, new house!!!), but in other ways we were able to be thrifty and save. In the end, we had a decent debt-payment in November and are expecting an even BIGGER one in December! Our first mortgage payment isn’t due until January and rather than let the “extra” money float away (or be absorbed into holiday/Christmas stuff), hubs and I have purposely budgeted to make a big debt payment this month.

Here’s how we did in November:

PlaceCurrent BalanceAPRLast Payment MadeLast Payment Date Original debt, March 2014
Navient$686846.55%$2000November$82433
Balance Transfer Student Loan #2$40000% (through April 2017)$600November$7650
Medical Bills$56610%$25November$9000
Balance Transfer student loan #1$00% -Paid off in March 2016$5937
PenFed Car Loan$02.49%-Paid off in January 2016$24040
License Fees$02.5%-Paid off in April 2015$5808
BoA CC$07.24%-Paid off in June 2014$2220
Mattress Firm$00%-Paid off in May 2014$1381
Wells Fargo CC$013.65%-Paid off in May 2014$7697
Capital One CC$017.9%-Paid off in March 2014$413
Totals$78,345 (Oct balance = 80,712)$2625Starting Debt = $145,472

YOU GUYS!!!! Not only are we finally in a new digit (in the $70,000’s instead of $80’000s), but we are THISCLOSE to reaching the half-way mark in our debt journey!!! We started at about $145,000 so when our total debt reaches $72,000 we’ll officially be HALF WAY to debt-freedom! It’s only a few thousand away!

Our debt reduction journey began when I was selected to start blogging here in March 2014. My goal is to have officially hit our half-way point by my 3-year bloggiversary in March 2017. I can’t believe I’ve been around so long! Initially when I began here I thought I’d only be blogging until our credit card debt was gone…but then I ended up hitting it out of the park and eradicated our credit card debt in just THREE months (I thought it would take a year or longer!)! I wasn’t done yet, so I decided to stick around for the long-haul. So glad to have so many of you as readers for this entire time (and welcome to new readers!)

It’s also time to begin thinking about 2017 financial goals. Goal-setting has always been one of my “things.” I really enjoy setting goals in different aspects of life (e.g., financial, work, personal, etc.) and I frequently take stock to see how things are going. I’ll be working on a post soon where I discuss the outcome of 2016’s financial goals and I lay out a plan of goals for 2017 moving forward. I’m excited to start seeing this debt really melt away as we near the half-way mark. Can’t wait!

What financial goals did you make for 2016?  How are you doing on them?


My Loan Request Was DENIED!!!

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First thing’s first. Welcome, Amy! I’m so excited to have another blogger up in the mix! I was a reader long before I was a contributor here so I’m super pumped to be able to follow another blogger on their debt journey! Yay!!! I can’t wait to get to “know” Amy as we share this debt-reduction journey together!

(Side Note:  I’ve also seen many people ask about Hope in recent comments. I don’t have any updates, but I’ll send her a quick email today just to pass along our warm thoughts and kind regards. I honestly don’t have any additional information at this time but I wanted to address it because I know lots of have asked about her recently).

I hope all our American readers had a lovely Thanksgiving this past week! It was JUST what I needed! Quiet, low-key, relaxing, etc. We spent a solid 3 days in a row at home (we had friends over for play dates on Friday & Saturday so we weren’t all alone), and it was GLORIOUS to just hang out and relax. This was our first Thanksgiving in a very long time where we were just at home – we didn’t go anywhere and we didn’t have any guests here, either. I used it as an excuse to go super easy for Thanksgiving. We just had meat, 2 sides, and a single dessert. That’s it. I have to admit that I kind of missed not having a ton of Thanksgiving leftovers (my favorite is a thanksgiving sandwich with cranberry sauce, stuffing, and turkey – but we didn’t even do ANY of those foods this year! Our main was ham and our sides were green beans & sweet potato casserole). We did buy a mini (2 lb) butterball turkey that I’ll probably cook sometime this week, but hubs had specifically requested ham for our main meat for Thanksgiving so that’s what we had.

And then I applied for a student loan consolidation….and I was DENIED!!!!!

I couldn’t even believe it.

According to Credit Karma, my credit is in the “excellent” range. They have my credit at a 760 or 785, depending on the site (Equifax & Transunion, respectively).

What possible reason would they have for denying me a line of credit?

An outstanding collection.

That’s what they said. The thing is, I’ve literally only had one “derogatory” mark on my credit in my life. It was from when I was 18 or 19 (nearly 15 years ago now) for not paying for those 10 DVD’s for 1 penny thing (mine was via Columbia House, but surely you’re familiar with those programs – there were several in that time-frame). It was a legitimate debt that I owed and, funny thing is, I even tried to pay for it a few years after-the-fact, but I couldn’t get the creditor to send me a letter stating that the debt would be settled in full after payment, so I never sent the payment. It aged until it fell off my credit and I haven’t even thought about it in years.

According to Credit Karma, I have no derogatory marks/late payments/etc (like I said, due to its age, this one negative mark long-ago fell off my credit report). I’m telling you, I’m kind of a stellar client from a lender’s perspective. I’m conscientious, pay on time, more than the minimum, etc. etc. Plus the lender who denied me also had me link my different bank accounts so they could see that I had lots of assets available (not only from my EF, but also my retirement, and I’m listed as a joint account holder on my Dad’s account, too, so although  I don’t consider his money “mine”, its a lot of additional liquid assets that are mine from a legal perspective since it’s a joint account). Soooo…what the heck? I don’t get it. But that’s that.

So this lender is out. I still have other options, but I was just shocked about this denial. Truly, genuinely shocked.

Have you ever been caught off-guard about an unexpected credit denial?

How did you spend your Thanksgiving holiday? What’s your favorite Thanksgiving food?


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