Hello. First time poster here. I am 54 and hold 7 credit cards, a huge home equity line of credit and two new student loans. Here are my stats:
FICO: TU 705 (discover), EX 685 – droped 7 points after loans posted (amex), EQ ?
Vantage 3.0: TU 732, EX 729, EQ 727 (does it matter?)
Credit card apps frozen as of 6/2015 (4 cards obtained 2015, 3 closed, one closed then reopened)
Bad credit history (2010). Many late payments/charge-offs. Last late was Sept 2013 60 day.
Income $ 53000 (disability) VA/SS
AMEX senior gold (1991 backdated) balance 0
AMEX everyday (5/2015) 15K line balance 0
NFCU cash rewards (JAN 2015 @15%) 10K line balance 0
Chase Sapphire Preferred (JAN 2015) 8K line balance 0
Discover IT (JUNE 2015 @23%) 1800 line balance $ 20
Chase Freedom (2012@23%) 1200 line balance 0
Chase Amazon Visa (2014 @19%) 500 line balance 0
BofA Home Equity Line of Credit (125K opened 2006) balance $ 110,500 @3% (going up with prime)-repayment phase in April 2017-April 2032
Student Loans ($ 2300 sub/unsub) opened october 2015-slated for more in Jan 2016, March 2016 unless I drop out of school and apply for permanent and total write-off
Rent: $ 745 (it’s a dump in a bad part of town-due to paying off loan)
Car Payment: 0 (2011 kia forte)
Insurance (150/month)-renters, car and accidental life (can’t get real life insurance due to psychiatric and cancer diagnoses)
Phone (110) iphone 6 plus bought in June 2015-24 month ATT next repayment
single, never married…no family…no real reason to live except maybe to help fellow addicts in recovery
My downfall was gambling and reckless spending and lending. Many trips to the psych ward. Permanently disabled due to bipolar disorder but tried to go to school this fall to get a music therapy degree. VA funding was denied-I’m “UNFEASIBLE”-a worthless person.
I went into rehab last year for gambling addiction and stopped the habit 15 1/2 months ago. Then I turned to credit cards after receiving a chase sapphire mailer. When I applied for the discover in june I was denied the original offer and offered another at a high interest rate and low CL. I still have the card and the line has almost doubled. Now I have $ 2300 in deferred student loans. My vantage TU score dropped almost 40 points after getting the loans but EQ dropped only 9 and my FICO TU score went up 2 points. I am debating whether to stay in school another year-won’t get the degree or work in the field, but want some practicum experience and help my gambling clean time. I need 2 years clean to maybe start working in a recovery program. Is it worth $ 11K in 6 student loans ($ 4000 will be rebated and applied to the Home Equity Line of Credit) that may be written off due to my permanent and total disability? Is it ethical? What else would I do?
I have $ 15,000 in savings that my VA-appointed fiduciary holds. I plan to move within the year, health permitting, and want to keep that money around for car repairs and the move and maybe some travel. The VA, along with saying I can’t work also say I can’t manage my money. I am a vegetable who got addicted to credit. I have given up gambling and now credit card applications. I filed a digital “opt-out” on-line in June after the Discover fiasco. My reason for posting here is to get advice on how to handle the student loans that now will have a negative impact on my credit. Are they worth it? Should I bother with school at all? What else can I do? I have heart issues and am a cancer survivor. I’m due for more tests. I turn 55 in March if I live that long. The house used for the HELOC belonged to a family member who no longer speaks to me. She still lives there, as far as I know. Because of the source of my income I cannot be garnished. I pay the loan to keep my credit and the family person in the house. I really could care less about her but my mental health continues to be adversely affected by the debt I amassed so long ago. It is a legacy of my addiction and mental illness. It will be with me the rest of whatever life I have left. And really, my life sucks. World events don’t help. I am rather sensitive and a Navy veteran. I follow the news closely, including whatever the Fed decides to do about interest rates that will affect my ability to pay off the prime-0.5% interest loan.
This is my therapy session tonight. I have nothing better to do at the moment. Maybe someone will read it and give me advice, though the source is questionable. Many people here are addicted to credit like I am. Maybe my story will scare them and make them think twice about spending beyond their means. I wish you all well. Take care.