A New Life

So much has happened since my last post.

I tried to manage debt as best I could on a very limited income. I made my credit card payments faithfully. I was never behind on a payment. But all of my extra income was going towards interest, and the payments ballooned beyond what I could manage.

I took a course to become a proofreader. I fully believed that the extra income generated would amply cover my debt, and then some. What I didn’t anticipate were the debilitating anxiety attacks that accompanied this change of profession. I was unable to proceed. And so I was left with $35,000 of debt and not enough to service it. I am a senior, on a fixed income, with very little wiggle room.

This may seem like small potatoes to those of you who manage hundreds of thousands of dollars day in and day out. It’s all relative.

I investigated bankruptcy, and found a licensed insolvency trustee that handled bankruptcies. The people in this firm were wonderful – respectful, helpful, non-judgmental. I filed for bankruptcy in January of 2022 and was discharged in October of the same year.

Needless to say, my credit rating has taken a severe hit. I function with prepaid MasterCharge cards. The ones I use are provided by KOHO and EQ Bank. EQ Bank is interesting. They offer a 2.5% interest rate on all deposits, whether the money is in the savings account or on the card. I am enjoying earning interest instead of paying interest. KOHO has its perks as well. I am earning 1% cash back on all grocery purchases.

I have become a bit of a fanatic about earning points, interest, and cash back. At some point, I will apply for a secured credit card but in the meantime, the prepaid cards are serving me well.

This is my story. This is where I’ve been. Now I am moving forward with a clean slate.

What has been your experience? I trust you have not had to go this route, but if you have, know that there is life on the other side.

Affectionately,

Penny