The other day, I went to my first Debtors Anonymous meeting. I know, I should remain anonymous, but this stuff is just too helpful not to share! I am only outing myself here. So, I definitely realized, after five minutes that I certainly do need to be in this twelve step program for self improvement, but I also realized how lucky I was that I have fairly little debt comparatively and also that I am smart enough to know just how I will go about getting out from under debt. It turns out; I just needed the little reality push of knowing I need help!
In that very first meeting, it finally sunk in that I must get out from under some of these high interest rates. I got these cards after my car dealership had made my credit report look screwy as they made way too many inquiries finding me a good rate (more on this in another post!). Later, I was rejected by better cards with lower rates when I needed money fast for a creative project- the making of the third album of my songs. Somehow, my creation felt urgent enough to accept an interest rate as high as 23%!
I was using credit cards for years in order to establish any credit history at all, being a young person. My department store card was the first recommended for this purpose. But I am what Debtors Anonymous calls an “under-earner” and so I have been paying off my cards slowly, sometimes only the minimum for about nine months and only recently did it occur to me that this is ridiculous and there must be another way.
The way, for me, it turns out, is to be my own loan consolidation officer, in a way. I have had good luck with credit union loans and their low interest rates and so I will be taking out a fixed loan in the exact amount that will immediately pay off my multiple debts- canceling those accounts and leaving me with one low-rate loan payment and my car payment. Two things to deal with instead of five (Dept. Store Card, Visa, Personal Loan, A Hefty Medical Bill and Car Payment). (Editor’s Note: A Prosper personal loan can be an excellent source of a debt consolidation loan.)
These high interest rate accounts will be paid off and fade from my credit report. I only have one payment of general debt under a rate of 12 percent and my one car payment. My next step after improving my credit this way over the next six months will be to re-finance my car payments for a lower rate too. (Editor’s Note: Prosper loans can also be used for auto loans, for an example see Refused by Credit Unions, Yes by Prosper.)
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Moorea Malatt writes with QueerCents LGBT financial blog.
She is a folk musician, performance artist and Certified Life Coach.
www.mooreamalatt.com
www.queercents.com
