synthetic lives
In the beginning
I got my first credit card in 2005. It was an HSBC Mabuhay Classic Visa. I can't remember now how much my starting limit was. But I guess it's around 40k or so. Prior to this, I applied for a Citibank card. But for some reason, I was declined for reasons I don't know.
It was around 6 months after I got my HSBC card when Citibank started calling, offering me their card. I wasn't even interested at that time. But I guess an additional card wouldn't hurt, right? It was a Gold Visa. Not long after that, I got an HSBC Mastercard.
That time, having a credit card somewhat gave me a sense of security. A feeling that I could have money or anything if I wanted to. 24 hours a day, 7 days a week. And so my spending spree began.
I started purchasing appliances, a cellphone and a laptop in deferred payments. I got myself a gym membership, swiped my round-trip plane tickets home during the holidays, paid my groceries with it. Aside from that, I was always short of cash. I was like, why worry when there's a cash advance facility just always waiting patiently for me to use.
Then I got myself a desktop. And for some time I was obsessed with computer gaming. I upgraded my LCD monitor, graphic card, and the sound system.
Yes, Virginia, I'm living the life of the rich.
Or so I thought.
Then there's that bitter realization. It all started when I started to ask myself why I haven't accomplished anything after almost 5 years of working. I started to blame my parents. I came out of college with mounting debts on my side. I came to reason out that it wasn't suppose to be my obligation. Even my brother going to school was suppose to be their obligation. It was pretty depressing actually. My room mate and I were forced to leave the nice apartment we got in the middle of Ortigas and go our separate ways because we could hardly pay our huge rent after a third room mate left. I rented a small room nearby. I used to call that place a hellhole. Because it really was.
And so I woke up one day with more than 200k debt on my name.Yes, that huge. Apparently, I opted to pay only the minimum payment required. Purchases and cash advances were recurring items in my account statement almost in uniform periodic pattern.
It was not until I tabulated everything into a spreadsheet I came to realize that I was aiming blankly when it comes to paying back my debt. It was as if I was not paying anything at all! I write down my debts, my payments, and my daily expenses and all I got was a disappointing picture of me if I continue with this scheme.
An uphill battle
I started calling the credit card companies to ask what options I have to get myself out my current situation.
They offered me schemes to consolidate my debts but I find it not very helpful. I came across forums around the internet of people trying to evade paying their credit card debts until the collecting agencies came to a good offer. But that would be a risky battle. Not to mention a long one. And not without harassments and other schemes collecting agencies often resort to.
I came to decide to use the balance transfer promos from them and came up with a way to avoid paying the service charge anymore. I write them down to my spreadsheet (I often personally refer to this as "The Excel Project". Basically, it's encoded into the MS Excel. And the word Excel has a nice ring to it). And I came to see now how and when my debts will be completely wiped out.
As of the moment, I have already zeroed out my HSBC Mastercard balance. I called HSBC to have it closed. Without listening to their "offers" and "promos" just to save the card, they finally gave in to cut it off.
My HSBC Visa and BDO Mastercard will be both completely paid out in October this year. My Citibank Visa in Feb of 2011. All of them are in a deferred payment scheme all in their respective balance transfer promos. It's kinda slow actually but it's better than pouring in my salary and my bonuses just to find out that the service charge is still piling up. In the long term, I managed to save around 20K on charges this way. And yes, that's a good thing.
Breaking the habit
Starting with the financial enlightenment I have gone through, I see things differently these days. I am now disinterested with buying stuffs! I see every peso as a possibility of being a million pesos someday. And then one day as I peered through my wallet, I realized I haven't used those cards in quite some time now.
And so an idea, not quite unique really but a good idea nevertheless, struck me and made me do this..
It actually felt good seeing them break. I know if I just listen a little bit attentively, I could hear them pleading. If I did, maybe I'd just tell them, we had great times together but it's time for them to go back to where they rightfully belong. I've got control over them now. I have already set my priorities right now. And I guess I'm doing quite a good job.
I never could not deny that credit cards are necessary evil. When I was on-site overseas, hotels actually required credit cards as a collateral I think. When used just within my needs, I could actually fly for free home (though PAL and Mabuhay Miles). Now that I see every peso as an opportunity for investment, I guess I maybe able to spend less time with my credit cards again. I still have outstanding debts born out of my stupidity. Those broken cards are a personal reminder to me never to venture into that destructive path ever again.
I got my first credit card in 2005. It was an HSBC Mabuhay Classic Visa. I can't remember now how much my starting limit was. But I guess it's around 40k or so. Prior to this, I applied for a Citibank card. But for some reason, I was declined for reasons I don't know.
It was around 6 months after I got my HSBC card when Citibank started calling, offering me their card. I wasn't even interested at that time. But I guess an additional card wouldn't hurt, right? It was a Gold Visa. Not long after that, I got an HSBC Mastercard.
That time, having a credit card somewhat gave me a sense of security. A feeling that I could have money or anything if I wanted to. 24 hours a day, 7 days a week. And so my spending spree began.
I started purchasing appliances, a cellphone and a laptop in deferred payments. I got myself a gym membership, swiped my round-trip plane tickets home during the holidays, paid my groceries with it. Aside from that, I was always short of cash. I was like, why worry when there's a cash advance facility just always waiting patiently for me to use.
Then I got myself a desktop. And for some time I was obsessed with computer gaming. I upgraded my LCD monitor, graphic card, and the sound system.
Yes, Virginia, I'm living the life of the rich.
Or so I thought.
Then there's that bitter realization. It all started when I started to ask myself why I haven't accomplished anything after almost 5 years of working. I started to blame my parents. I came out of college with mounting debts on my side. I came to reason out that it wasn't suppose to be my obligation. Even my brother going to school was suppose to be their obligation. It was pretty depressing actually. My room mate and I were forced to leave the nice apartment we got in the middle of Ortigas and go our separate ways because we could hardly pay our huge rent after a third room mate left. I rented a small room nearby. I used to call that place a hellhole. Because it really was.
And so I woke up one day with more than 200k debt on my name.Yes, that huge. Apparently, I opted to pay only the minimum payment required. Purchases and cash advances were recurring items in my account statement almost in uniform periodic pattern.
It was not until I tabulated everything into a spreadsheet I came to realize that I was aiming blankly when it comes to paying back my debt. It was as if I was not paying anything at all! I write down my debts, my payments, and my daily expenses and all I got was a disappointing picture of me if I continue with this scheme.
An uphill battle
I started calling the credit card companies to ask what options I have to get myself out my current situation.
They offered me schemes to consolidate my debts but I find it not very helpful. I came across forums around the internet of people trying to evade paying their credit card debts until the collecting agencies came to a good offer. But that would be a risky battle. Not to mention a long one. And not without harassments and other schemes collecting agencies often resort to.
I came to decide to use the balance transfer promos from them and came up with a way to avoid paying the service charge anymore. I write them down to my spreadsheet (I often personally refer to this as "The Excel Project". Basically, it's encoded into the MS Excel. And the word Excel has a nice ring to it). And I came to see now how and when my debts will be completely wiped out.
As of the moment, I have already zeroed out my HSBC Mastercard balance. I called HSBC to have it closed. Without listening to their "offers" and "promos" just to save the card, they finally gave in to cut it off.
My HSBC Visa and BDO Mastercard will be both completely paid out in October this year. My Citibank Visa in Feb of 2011. All of them are in a deferred payment scheme all in their respective balance transfer promos. It's kinda slow actually but it's better than pouring in my salary and my bonuses just to find out that the service charge is still piling up. In the long term, I managed to save around 20K on charges this way. And yes, that's a good thing.
Breaking the habit
Starting with the financial enlightenment I have gone through, I see things differently these days. I am now disinterested with buying stuffs! I see every peso as a possibility of being a million pesos someday. And then one day as I peered through my wallet, I realized I haven't used those cards in quite some time now.
And so an idea, not quite unique really but a good idea nevertheless, struck me and made me do this..
I never could not deny that credit cards are necessary evil. When I was on-site overseas, hotels actually required credit cards as a collateral I think. When used just within my needs, I could actually fly for free home (though PAL and Mabuhay Miles). Now that I see every peso as an opportunity for investment, I guess I maybe able to spend less time with my credit cards again. I still have outstanding debts born out of my stupidity. Those broken cards are a personal reminder to me never to venture into that destructive path ever again.
You know, if you listen closely, you can hear a thousand retailers scream.
-- Chandler, Friends S01E01
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