For a LONG time I was living payment to payment (back in the early Elance days). Then everything took off and for a LONG time, I started spending all that good money coming in. I didn't use it to pay off my debt I had previously racked up on credit cards.
I had to get my mortgage awhile back on an ARM (and thank GOD I was able to get into a fixed later).
But I continued spending whatever came in.
Then I took on a project to write a 12-part debt course. For me, when I get into a project, I DO as I write. I can't write as well unless I Do what I'm teaching, which is why my content turns out so good I'm convinced. I'm not writing on theory alone.
Today I go run my credit report (and my hubby's) as I did the very first day I started working ont he project two months ago. In July, we were rated Fair on our credit scores. Ouch. Main problem? debt to credit ratio. Everything STILL racked up because what money came in, I spent in cash and still paid minimums on my cards (22ish of them).
We have no big collection issues or bankruptcy or anything, so this was what I needed to do - get out of debt on those damn cards!
As I wrote the 12 part course, I followed my own advice.
Today? Our credit has risen just 60 days later to the Good category. Yea!
I'm expecting it to be in the Excellent by next year (meaning January not a year from now).
This is a relief. I'm, not sure how many other Warriors live PayPal payment to PayPal payment. I certainly made enough to cover all my bills and then some, but it's that "then some" that I was splurging and not using to pay down my debt. I bougth Flip Minos, Dragon Naturally speaking, toys, iTunes, expensive vacations - you name it.
1st order of business to build Internet wealth - GET DEBT FREE!
Then save and spend