Debt Disasters – 4 Debt Horror Stories (And How To Avoid Making The Same Mistakes)


Bad credit has an uncanny ability to follow you around like a ghost, making every step forward more difficult, and bringing with it a perpetual state of anxiety. If you need to be scared straight about your spending habits, these four spine-tingling horror stories will do the trick.

1. The never-ending nightmare

If this story doesn’t give you the incentive to find alternatives to payday loans, nothing will: Kansas City resident, Elliott Clark took out payday loans to the value of $2,500 to cover emergency medical bills. Over the five years it took the Vietnam vet to pay back this modest sum, he was lumped with an additional $50,000 in interest.

If you find yourself in desperate need of cash, avoid payday loan schemes at all costs. Instead, research low or no-interest emergency loans offered by non-profit organizations. And be sure to read all the fine print before signing anything.

2. Creepy crawly credit

If you live a normal life, throwing your everyday expenses on your credit card but always paying the minimum amount each month, then take heed of Isaac and Miko’s story. The couple never splurged on indulgences, so they didn’t bother keeping an eye on their credit balance. However, to their surprise, the card was denied when they were trying to buy a cheap takeaway dinner. When they got home, the couple discovered that their $10,000 limit was maxed out.

Horrified, thinking they must’ve been hacked, Isaac and Miko scanned their transactions. However, this soon revealed an even more terrifying truth – they had dug themselves into a deep hole of debt with nothing to show for it but groceries and everyday items. To save yourself from such a nightmare, be sure to keep an eye on your credit card balances. Track your spending and aim to pay your card off in full every month. This way, you’ll get all the credit score boosting benefits without the hefty interest.

3. Monstrous interest

Texas woman Toni Riss fell victim to a horrific 79.9% interest rate on her credit card. Aimed at luring in customers with bad credit ratings, the card had an introductory offer of 29.9%. However, once this time was up, the interest shot up to a shocking 79.9%. Though the CEO of credit card company told CNN that the rate never should’ve gone so high, he felt that the pared-back rate of 59.9% was reasonable.

What can we learn from this? If you’re struggling with a bad credit score, you have to be vigilant about any credit cards or loans aimed at people in your situation. The hard truth is, you have to be prepared for it to take some time to get out of debt.

4. Ignorance isn’t bliss

A young fellow named Carlos was denied the loan he needed for his dream home when the loan officer handling his mortgage application found a maxed-out credit card with multiple late payment fees on his credit history. Though this debt was due to identity theft, it took years to sort out and Carlos missed out on his mortgage. The takeaway from this? Though you may think you have your debt under control, it’s worth checking your credit history to ensure you haven’t fallen victim to identity theft. As you can see from these horror stories, debt can rear its ugly head in your life, even when you think you have your finances under control. While you shouldn’t live in fear, it does pay to keep an eye on your accounts and pay close attention to your spending

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