Tuesday, March 29, 2016
Sunday, August 15, 2010
Credit is the Root of All Evil
This I Believe: Credit Is the Root of All Evil
I Believe credit is the root of all evil, and money is the root of all good. My experiences with credit have led me to believe that I should not buy anything on credit that I cannot afford to pay for in cash. Four years ago I was a member of an organization. This organization was a fairly new one and needed assistance in marketing to attract members to join. I was a graphic designer at the time. My brother was also a member (which was how I came to join). My brother approached me about an opportunity to get more business, and to create a good portfolio by working for this organization. He set up an appointment for me to meet with the leaders. After the meeting, the leaders agreed to hire me under the promise that they would pay me once they got government funding. I was so overjoyed with the opportunity for real work in my portfolio that I did not mind not getting paid. The work was steady, and I was getting some pretty good pieces for my portfolio.
A few years later, the organization was getting into some financial trouble, and by then I had to find some new employment. I got a job at Dillard’s Tallahassee Mall as a sales associate. One of the perks as a Dillard’s sales associate was that I could get 25% discount on all merchandise if I had a Dillard’s credit card. I signed up for one and was instantly approved for a credit amount of three thousand dollars. I got so excited when I looked at all the shoes, the clothes, the purses and the jewelry that I could now afford. I bought things that I would have never been able to buy without that credit card. It was great!
Meanwhile, I was still doing pro bono work for the organization. Soon enough, the leaders started to take notice of all the stuff I was buying. They approached me and asked me how I was getting all of this fancy stuff. I told them that I had filled out a credit card and got approved for a really high credit amount. They looked at each other with eyes wide open, as if to be so happy for me. Little did I know that they had a plan, a plan that I will live to regret for the rest of my life.
Days turned into Weeks, Weeks turned into Months, and still no government funding for the organization. The leaders approached me again, this time more seriously. They said that the organization was falling apart and that they needed money to keep it going. They also said that they were asking each member to take out loans for the organization with the promise to pay all of them back once the organization got back on track. They said that they came to me only as a last ditch effort because everyone else said they would not do it. They knew I had good credit and could get the money they needed. I was their only hope. I could single handedly save this organization.
I did not know much about credit or what it was really meant for, so, I did not mind using it in such a way. I took out ten thousand dollars in loans (five thousand from two different banks) for this organization. They used the money instantly and I felt good, I felt great, I felt like I saved the day! But that was not all. The organization was in need of a vehicle, but not just any vehicle, a BMW 745 to be exact! Of course it was I who had to save the day once more. The car was worth seventy thousand dollars. With a little help from the organization, by printing up check stubs of the amount of money they should have been paying me (but never did), the leaders of this organization was in possession of a brand new BMW 745.
Unfortunately for me, it had not been three months before the banks were asking for payments on the loans and the car. The organization had not made a single payment on the vehicle or the loans. The car was repossessed and the loans were in default, and I was responsible for payment. Now I have three banks threatening to sue me if I miss one payment. Where did the leaders of the organization go? They left town, never to be heard from again. Based on this experience, I have learned not to buy anything on credit that I cannot afford to pay for in cash because I believe credit is the root of all evil.
I Believe credit is the root of all evil, and money is the root of all good. My experiences with credit have led me to believe that I should not buy anything on credit that I cannot afford to pay for in cash. Four years ago I was a member of an organization. This organization was a fairly new one and needed assistance in marketing to attract members to join. I was a graphic designer at the time. My brother was also a member (which was how I came to join). My brother approached me about an opportunity to get more business, and to create a good portfolio by working for this organization. He set up an appointment for me to meet with the leaders. After the meeting, the leaders agreed to hire me under the promise that they would pay me once they got government funding. I was so overjoyed with the opportunity for real work in my portfolio that I did not mind not getting paid. The work was steady, and I was getting some pretty good pieces for my portfolio.
A few years later, the organization was getting into some financial trouble, and by then I had to find some new employment. I got a job at Dillard’s Tallahassee Mall as a sales associate. One of the perks as a Dillard’s sales associate was that I could get 25% discount on all merchandise if I had a Dillard’s credit card. I signed up for one and was instantly approved for a credit amount of three thousand dollars. I got so excited when I looked at all the shoes, the clothes, the purses and the jewelry that I could now afford. I bought things that I would have never been able to buy without that credit card. It was great!
Meanwhile, I was still doing pro bono work for the organization. Soon enough, the leaders started to take notice of all the stuff I was buying. They approached me and asked me how I was getting all of this fancy stuff. I told them that I had filled out a credit card and got approved for a really high credit amount. They looked at each other with eyes wide open, as if to be so happy for me. Little did I know that they had a plan, a plan that I will live to regret for the rest of my life.
Days turned into Weeks, Weeks turned into Months, and still no government funding for the organization. The leaders approached me again, this time more seriously. They said that the organization was falling apart and that they needed money to keep it going. They also said that they were asking each member to take out loans for the organization with the promise to pay all of them back once the organization got back on track. They said that they came to me only as a last ditch effort because everyone else said they would not do it. They knew I had good credit and could get the money they needed. I was their only hope. I could single handedly save this organization.
I did not know much about credit or what it was really meant for, so, I did not mind using it in such a way. I took out ten thousand dollars in loans (five thousand from two different banks) for this organization. They used the money instantly and I felt good, I felt great, I felt like I saved the day! But that was not all. The organization was in need of a vehicle, but not just any vehicle, a BMW 745 to be exact! Of course it was I who had to save the day once more. The car was worth seventy thousand dollars. With a little help from the organization, by printing up check stubs of the amount of money they should have been paying me (but never did), the leaders of this organization was in possession of a brand new BMW 745.
Unfortunately for me, it had not been three months before the banks were asking for payments on the loans and the car. The organization had not made a single payment on the vehicle or the loans. The car was repossessed and the loans were in default, and I was responsible for payment. Now I have three banks threatening to sue me if I miss one payment. Where did the leaders of the organization go? They left town, never to be heard from again. Based on this experience, I have learned not to buy anything on credit that I cannot afford to pay for in cash because I believe credit is the root of all evil.
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