From Debt to Prosperity: 3 Inspiring Stories of Building Credit

Credit is very frustrating to deal with. This is especially true if you were never taught how to build and manage your credit.

Maintaining your credit score is a task that is very difficult for many people, especially those who fall into the younger generation category.

Despite numerous tips for building credit and loans to build credit being readily available online, rebuilding your credit score is not an easy task.

That’s why you may find it very reassuring to know that you’re not alone in this journey to build your credit score. 

In this article, we’ve put together three inspiring stories that will help you build credit and better manage your finances.

Let’s begin!

Story 1 – Phillip Baker 

Phillip’s story starts as a rather unfortunate one. Throughout his life, he was a fiscally responsible young man, up until his dear cat, Tabitha fell ill. 

He had spent years meticulously managing his finances in an attempt to build credit. However, within just a few weeks, he blew through not only his paychecks but also his emergency funds, on veterinary bills. Due to falling behind on multiple payments, his credit score quickly began to plummet. Now, with an abysmal credit score and no funds to his name, but still wanting to save his cat, Phillip didn’t know what to do. 

That was when he came across the concept of payday loans. Typically, he felt that he wouldn’t have pursued payday loans owing to their high-interest rates. However, he was all out of options and a payday loan would be able to secure him the funds he needed.

After getting approved, he instantly decided he would pay off his loan as fast as possible and make every repayment on time. With this mindset, things soon worked out for him. Not only was he able to provide his cat with the treatments she needed, but he was also able to repair his credit score a bit along the way. Furthermore, by making his loan repayments on time, he was able to keep his debt under control and come up on top! 

Story 2 – Daniel Green 

Daniel had never had the most luck when it came to money. In fact, at the age of 24, he found himself drowning in debt. 

Being raised in a family that always believed in never spending money that you didn’t have, Daniel found his situation especially embarrassing. Moreover, he felt that there was nobody who he could truly confide in.

In an attempt to rebuild his credit score, he took out a credit card specifically for individuals with poor credit. Now, this is the part that Daniel felt made a difference and helped him build credit. He regularly used his credit card but only for small manageable expenses. 

As a result, not only was he able to maintain a low credit utilisation ratio, but he was also able to pay it off in full every month. Alongside this, he also went through multiple online websites and forums dedicated to budgeting and managing debt. More importantly, Daniel then put the advice and tips he found into practice. 

Although it took some time and a whole lot of patience, Daniel is now much happier with his credit score. Furthermore, he is confident that as long as he sticks to his budget and avoids overspending, he will continue to build credit and soon be debt-free.

Story 3 – Louise Ballinger 

Louise received her first credit card upon turning 18 and felt that that was the beginning of the end. With no job and a lack of self-control, she maxed out her credit card pretty quickly. Moreover, by the time the credit card statement came in, she couldn’t afford to make the payments. 

As you may have probably guessed, this cycle continued to repeat itself for quite a while and continued to damage Louise’s credit score. However, once her credit score hit an all-time low, Louise decided it was time to turn things around. 

She began by actively looking for a job. Once she was hired, she then began to put part of her salary towards making minimum monthly payments. While it did eat up a big chunk of her paycheck, it helped make a difference. 

After eight years of managing her finances more responsibly, she was finally able to repair and transform her horrendous credit score. What’s more, with her healed credit score, she was even able to buy a house with her partner.

To Sum Up

Initially, debt may appear to be insurmountable and out of your control. Yet, you’d be amazed at the difference just a few months can make if you make a plan and stick to it.

As soon as you begin your journey, you will also feel much better just like these inspirational debt champions. 

Undoubtedly, debt recovery will take time and effort. However, with patience and persistence, you too can rebuild your financial life and achieve financial success.

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