Freshman Year

Alright, picture this: I’m a wide-eyed 18-year-old, fresh off the parental leash and living it up in my college dorm. It’s my first taste of freedom, where the biggest worry on my mind is whether I studied hard enough for my next biology test. Which I never did Biology was not my subject!

Back in those days, I didn’t have a job, just me, my books, and the occasional financial aid refund check to help me make it through the semester. Remember when phones were just phones? No Instagram, no TikTok —just free minutes after 9 PM and a $35 monthly bill. Simpler times indeed.

Then one fateful day, hidden among the usual pile of junk mail, a credit card arrives. As a college student, apparently, you didn’t need to apply for these things—they were handed out like flyers for campus parties. Of course that was way back when. Anyway So, there I was, holding this little piece of plastic that seemed more like a rite of passage than a financial tool.

I wasn’t overly thrilled, but hey, it was nice to have in case of emergencies. Besides, I was pretty responsible with money back then. Fast forward through the years of lectures, late-night study sessions, and the blue pack of instant noodles, and I had not one, not two, but three credit cards to my name. A $500, a $1000, and the granddaddy of them all—a $1500 limit.

I learned the hard way

After graduation instead of fleeing my college town like everyone else, I decide to extend the party for another year. I find this decent-paying job to keep the lights on and move into a cozy house with a couple of my good friends.

Fast forward to the end of my extensive one-week training (okay, maybe it was two), and boom— That sinking feeling in the pit of my stomach told me this job wasn’t my dream job. So, like any rational adult, I called in sick. “I Just need a breather,” I told myself, promising to return the next day, pinky promise.

Well the next day rolled around, and guess what? The thought of going back made me want to fake another cough. So, I marched right up to that office, dropped my key fob off to whoever was available and bam—I’m jobless in less time than it takes to microwave a cup of noodles.

Now, you might think, “Uh-oh, what now?” I wasn’t sure, but the one thing I was sure of: I’m not about to dial up Mom and Dad about this mess. Nope, this is my mess, and I’m determined to clean it up solo.

I had to craft a whole new game plan for adulting without an adequate income. I was able to land another job pretty quickly, even got hired on the spot but it was way less than what I was making previously, so I needed a supplemental plan to help me out. I whipped out my trusty trio of credit cards.

Cue the superhero music as I transferred funds left and right to cover what my paycheck couldn’t handle rent, groceries, road trips you name it. It was my makeshift safety net, my financial sidekick. At that time I lacked knowledge on the best way to use credit cards and the potential problems it could cause down the line if I mishandled them.

In Hosea 4:6 it says that my people are destroyed from lack of knowledge. The word of God is truth and this was true for me in this case. We tend to get into difficult situations at times due to lack of knowledge. How many times have you gotten into something without having all the information that was necessary to make a good decision?

Avoid the Mistakes I Made

1. Credit Card Misuse– This often happens when a person is living beyond their means, which was true in my case because the job I had was not paying enough to meet my basic needs. My cards were often maxed out and I was only able to make the minimum payment.
2. Financial Dependency on Credit Cards– reliance on credit cards as a primary source of emergency funds is problematic due to high interest rates. I paid well over what I actually borrowed from those cards and it took years after the cards were opened to finally get them paid off.
3. Lack of Financial Literacy- I lacked basic knowledge on how credit cards were designed to be used. I was also unaware of how credit worked and the impact it had on your score. My lack of financial literacy could have possibly damaged my credit worthiness down the line.

Well, that’s my story, first time dealing with credit cards and it was a doozy! However that put me in great position to build my credit and start a new season of life in Memphis, Tennessee,

I was able to gain a great deal of knowledge during my career in the Credit Union world. With the knowledge that I have gained over the years, I believe God has called me to educate anyone that I can, to help them avoid some of the missteps that I made. This story time came about because God reminded me of a season in life that prepared me for this very moment. The call to share the goodness of God through financial education and resources.

If you are having trouble with your credit score or want some insights on the best way to utilize credit cards and manage other forms of debt please consider visiting the Transforming Finances website or setting up a Free 1:1 Consultation with me!

Disclaimer:
The information provided in this post is based on my experience and research in personal finance. While I strive to share accurate and helpful insights, this content is for informational purposes only and should not be considered professional financial advice. Please consult a qualified financial advisor for advice tailored to your specific situation.