Credit Confessions: True Stories of Debt, Regret and Second Chances

Credit can feel overwhelming with countless card options, tricky jargon, and plenty of room for missteps. The truth is, almost everyone makes mistakes along the way, including us. That’s why, for Get Smart About Credit Month, we’re sharing “Credit Confessions”: real stories from C&N teammates about early credit mishaps and the lessons we’ve learned, to give you practical insights and reassurance that you’re not alone. 

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Amelia 

My Credit Confession 

I signed up for my first credit card shortly after turning 18. I didn’t read the fine print or understand how it all worked. To me, it just felt like free money. I used it for everything – clothes, gas, food – and those small splurges added up quickly. I ignored the growing balance until it became overwhelming and late fees plus high interest only made it worse. 

When it was time to buy a car, my first big purchase, I paid the price for those mistakes. I was declined because of my bad credit, and when I was finally approved, it came with an outrageous APR. 

The Fix 

I decided to stop ignoring the problem and take control. I cut back on using credit cards and focused on paying more than the minimum balance each month. I also set up reminders to never miss a payment again. 
Eventually, I paid off my balances. I worked hard to build positive credit by keeping my utilization low and paying on time. I also made a habit of reading the fine print before signing anything. 

Advice to Younger Self 

Every swipe adds up and paying the bare minimum isn’t enough. Start small and spend only what you can pay off right away to build a strong foundation for the future. 

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Liam 

My Credit Confession 

When I was 25 years old, I accepted what seemed like a great deal: a dream vacation weekend in Orlando. The only catch was I had to attend a timeshare seminar. 

During the presentation, the sales team painted a picture of affordable and luxurious getaways for years to come. I was sold. I purchased a timeshare that gave me one week at the resort every other year.
 
However, I did not do my homework. A few years later, reality hit. I learned that the resort could raise my timeshare maintenance fees indefinitely…and they did! Before long, I was paying a ridiculous amount of money every year, far more than it would have cost to simply book my own vacation. I also discovered that timeshares are nearly impossible to get rid of without getting scammed. The resort would not work with me to sell, transfer, or offload my timeshare. My only options were to keep paying the fees or stop paying and face the consequences. 

The Fix 

Eventually, I chose to stop paying alongside many other owners at the time. The resort eventually foreclosed on the timeshare, and for the next two years, I watched my credit report closely, expecting to see a foreclosure and a major hit to my score. It never came. The resort took back the deed without reporting anything to the credit bureaus. I got lucky and was finally free from the timeshare. 

Advice to Younger Self 

Never make major financial decisions without fully understanding their impact. Big purchases deserve research, clear thinking, and time, not sales pressure and impulse decisions. Ask yourself how a purchase may affect your credit standing. 

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Elizabeth 

My Credit Confession

In my early twenties, I went car shopping for the first time. I was really interested in a vehicle and asked what a monthly payment for the car would be. The dealership ran my credit, which sent it to several different financial institutions to see what they could offer. Ultimately, I decided not to purchase the vehicle. 

A few months later, I applied for a credit card for the first time. I got denied for having too many inquiries on my credit report. I was upset about the situation because I had only gone to one dealership and didn’t even purchase a car. 

The Fix 

I had to wait a certain time before I could apply again or seek any other credit financing. 

Advice to Younger Self 

Do your research on credit inquiries and how they impact your score. I would recommend seeking financing at your local bank or trusted financial institution to avoid multiple credit inquiries in a negative way.  

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Susan 

My Credit Confession 

I racked up thousands in credit card debt in my early 20’s by trying to pay off student loans. I would pay so much on the loans that I didn’t have enough to live off. So, I would have to use my credit card to make ends meet. It was a vicious cycle. 

The Fix 

I met a financial advisor who pointed out I should pay down the credit card debt first since it had the higher interest, then pay on the loans. He also said not to overpay on the loans until I could afford rent, food, and other monthly expenses. Once I started doing that, I was able to prioritize my necessities and make progress toward paying off my debt. 

Advice to Younger Self

Seek advice early. If I had sought advice sooner, I wouldn’t have accrued as much debt, which took me years to pay off. 

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Navigating the world of credit isn’t always easy. Fortunately, mistakes like these don’t have to be the end of your credit journey. If you find yourself in a tough spot, reach out to our C&N team of experts to explore tools, resources, and guidance tailored to your situation. This month, let C&N help you get smart about credit.
 

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