My worst credit mistake . . .

The sting of credit cards
It was my first year of college and I had it all -- my own room, freedom, and the experience to travel. It didn't take long before the big credit card companies set up a booth in the lobby of our cafeteria and convinced everyone that all you had to do was sign up to get the free T-shirts displayed on the tables. I didn't think anything of it at first. I mean what harm could it do, right? Wrong.

That was college in 1995. A year later they had stopped the creditors from publicizing on our college campus. But for the young, impressionable minds that were victimized because we were slaves to fashion, we'd already paid the price -- with our credit.
Fashion Slave

Co-signed loan for beau's brother
My biggest mistake was to co-sign a student loan for my ex-boyfriend's younger brother. I have a problem saying no to people that I feel have been dealt a bad hand in life. I felt sorry for him because his family couldn't and wouldn't help him, and I knew he really wanted to go to school. I thought it was a good thing and that he was on the right path with the right mindset. I wanted to believe in him.

It turns out that he made me sign for two loans, not one like he told me. He had me sign the second loan by saying that the school lost the original papers and he had to resubmit the paperwork. Being the naive and trusting fool that I am, I believed him. Turns out he dropped out of school shortly after starting, and didn't give the school any notice so they could refund part of the money. He owed the creditor the full loan amount of almost $9,000. He did not make any payments for almost four years after dropping out -- which, after fees, increased the amount owed to over $13,000.

Now, years later, and after numerous phone calls, false promises, pleas and threats, he has finally made a deal with them to make three monthly payments for a reduced amount agreed upon. He could not come up with the second month's payment so I had to borrow from my credit card in order to help out, in the hopes that I can salvage what's left of my nonexistent credit after this is done with. He claims he will pay me back, but I won't hold my breath.
Amina A.

My mom and a time share
My 50-something, widowed mom got lured into buying a time share with a friend. They thought the time share was an investment; but by the time they found out that it was a deal coming straight from Hades, it was too late for them to back out. Her "friend" stopped paying, and now mom is stuck paying the fees herself. When she's late with her payment, the time share people threaten her. They've actually called and asked me for her work number. My mom is feeling depressed and low -- even though she hasn't ever used or taken advantage of the sorry deal. She has barely enough money to buy food, pay her mortgage, and other bills.

I know it was a big mistake for her to get this time share, and I have been helping her as much as I am able financially. But I just wish that these time share demonic collectors would stop treating my mom like dirt.
Irritated Child

Car purchase without research
In summer of 1996, I went to a Mazda dealership. I bought the equivalent of a Ford Escort for $17,000 at 19 percent. The payments were $419 per month. The insurance was as rude as the payment. The moral is: First shop for insurance, and then look at the car. Decide if the vehicle is really worth it and if you can live with a used or less expensive ride. Ask yourself, "Did I work as hard spending this money as I did earning it?"
Regretful buyer

In the beginning...
The worst credit mistake I ever made was getting a credit card to begin with. The best credit move I've ever made was closing my two credit card accounts a year and a half ago (totaling $12,000). I now have my balance down to about $4,500.
Derek B.

Editor's note: Because credit card companies will raise your rate if you cancel a card, it is best to keep the accounts open until you pay them off.

Trashy sofa trashes credit
I bought a sofa and love seat for the first time in 12 years. My husband and I have good credit and qualified for the six-months-same-as-cash deal. After three months we ran into trouble with the quality of the furniture. You could feel the springs on the seats when you sat down. A friend of my husband convinced us that we did not have to pay if we put the item into dispute. So we disputed.

After many attempts to talk to the general manager of the warehouse, the company decided they were not responsible for refunding our money. Again my husband's friend convinced us that we did not have to pay for it and they could not touch our credit.

Many months and letters went back and forth with us saying, "What is wrong with you? We are still not satisfied." The company maintained that they were not responsible. Finally I looked into all the legal stuff myself and found the finance company was also responsible to us, so I changed my tone and decided to cry to them for help.

Finally, we got new stuffing and cushions, however our credit was very damaged. I kept talking until someone at the finance company felt so bad for me that they sent a special report to the credit companies exonerating me of any late charges. We recently paid off our bill.

My big mistake was not doing the legwork myself. I was darn lucky they felt bad for me and pulled out the ace to help me. If I had to do it again, I would pay the minimum and fight it just the same, except without all the delinquencies.
Barbara F.

Compiled by Amy C. Fleitas

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