4 Hidden Faces of Your Personal Credit State-of-Mind

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4 Hidden Faces of Personal Credit

Are you looking at me?

Hello, World of Dreamers! Today I kick off my big dream of attaining personal finance mastery. If you’ve ever tried, without success, to bring order to a chaotic financial life, perhaps you’ll resonate with my sense of gritting my teeth and girding for battle. I’m thrilled to have joined 8 Women Dream, because I doubt I could go the distance alone. So, without further ado, away we go…

I have been reading The Simple Dollar, a book about how one man (the author, Trent Hamm) got himself out of debt. It’s a well-written, interesting book, but I was thinking it doesn’t apply to me, because I don’t have a lot of credit card debt.

See, years ago, I filed bankruptcy from the depths of a divorce, and I’ve never really gotten back on the credit bandwagon. Could have gone there, but didn’t, and have some pride over it too.

Except for this.

It’s not strictly true that I live without credit. Credit is not just a thing that arrives with an approval letter, a limit, a pretty plastic card, and a monthly payment. No, World of Dreamers, credit is actually a state of mind, one in which I blithely live but which I did not see until just moments ago.

My version of the credit-state-of-mind is borrowing from an outstanding bill to buy something I want, like a Christmas turkey. Let us call this state of mind,

So I’m a little late with the utility bills, what can it hurt?

I bought my turkey this year with money I owed to the electric company. The electric company won’t be back to ask me for it again for a couple of weeks, so where’s the harm? Well . . . I got out the current electric bill and I see that I am habitually 30 days late.

Possibly I bought last year’s turkey from money I owed to the electric company too, and I’m still paying for it. I’ve been one payment behind for a really long time. And guess what? Whenever I’m late, I get charged a late fee. The late fee averages about $7.00 – not so bad until you realize that a year of $7.00 charges is $84.00.

A look in the frank, unwavering eye of reality reveals that my Christmas turkey cost me $44.00 (because it was a fresh organic one), plus $84.00 in late fees. Gosh, that’s some sumptuous turkey.

Borrowing from my electric bill is really no different from putting the turkey on the Discover card. Ow – that hurts.

So here’s the news flash.

Credit is a habitual way of thinking and acting. A life philosophy. A monkey on the back of personal finance mastery. The credit way of life involves spending before earning, making the smallest payment possible, and waiting to pay until the very last minute (or longer, even). Credit wears many more faces than the Visa logo. The face on my personal credit state of mind is

I can be a little late with the utility bills, what’s the harm?

Here are 4 hidden faces of the personal credit state of mind. Do any of these ring a bell?

1. The “Whoever’s Yelling the Loudest” Face of Credit.
This means that you borrow from a bill until you get shut down, and then you pick some other bills to borrow from in order to get your service restored. Maybe you’ve been borrowing from the cable bill to pay the phone bill for a couple of months, but now the cable company has caught up with you and “interrupted your service.” And to get the cable back up and running in time for tonight’s Warriors game, you have to pay your entire past due balance plus a reconnect fee of $234.00, billed in 6 convenient monthly installments, complete with a small convenience fee.

Stop the hamster wheel! I want to get off!

2. The Scarlet O’Hara Face of Credit.
Also known as the “tomorrow is another day” state of mind. It goes something like this. There are still 3 years, 4 months, and 29 days until your oldest child starts college. Who knows what could happen between now and then? You could win the lottery, or said child could become a professional golfer and forgo college altogether. Better to borrow from the intended but as yet unrealized college fund that you might not even ever need, to pay the cable bill, so you won’t miss the Warriors.

(See Whoever’s Yelling the Loudest above. It is an unfortunate truth that Credit States of Mind tend to attract one another.)

3. The “Sheep May Go Extinct” Face of Credit.
Named in honor of my pernicious yarn-hoarding habit, which has led to a very large collection of wool yarn piled up in my office. So named because of the danger that a loved commodity (say, wool yarn) may not be around forever, therefore we must borrow from the grocery money to get it now while it’s still available.

There must be someplace left in here where I can wedge in another couple of skeins.

The kids? Let them eat cake. Or refried beans.

4. The “It Was on Sale, So I Bought Five” Face of Credit.
Expressly tailored for the post-Christmas season, but valid year round now that retailers will stop at nothing to get our attention. We will worry about paying our 2010 tax bill on April 14, an eternity from now, but today we will buy five reduced-price cast iron sandwich grills, because when are we ever going to see a price this good again?

Not in THIS lifetime, that’s for sure.

I found this cathartic. What about you?

Leave a comment and share your thoughts!


jayne speich teaching you about personal financeJayne Speich is a small business coach/consultant who writes, thinks, and coaches extensively on customer service, business finance, and ways to thrive in the new economy. You can find her at theselfreliantentrepreneur.com. Jayne’s post day is Saturday.

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  • Heather Montgomery, CEO & serial entrepreneur

    Jayne – thanks for the great post! Unfortunately all those sound WAY too familiar!

    – H

  • Remy G

    Welcome to the dream team Jayne. I think I will be dreaming right along side you with this one. Ive worn all those faces at different times in my life. Right now it seems to be the loudest yeller one, but they all show up at some point. What’s the one where they turn off your electricity and you run out to the curb to catch the van before PGE guy drives off…well, not that I’ve done THAT or anything…gulp. xox Happy New Year. Rem

    • Jayne Speich

      That’s the “Wait…wait…don’t go!” face of credit ;>) Thanks Rem.

      • Remy G

        yea good one. I’ll remember that…:)

  • Mariska Smith

    I love this post!!! I can soooo relate!! I took back Christmas gifts so I could get cash to pay my electric bill! I can’t wait to see what you do with this. -M

    • Jayne Speich

      Hi Mariska – thanks for visiting. It’s nice to know I’m not the only one out there (she said as she sorted through excess yarn to sell on E-bay)…

  • Terry

    I am looking forward to reading your dream posts since it is a subject that many people can benefit from. I come from the world of mortgage banking and I have seen many people readjusting their lives down from the heyday of easy money (although doing a home loan for people is never easy). Loan officers and real estate people suffered from “I have no worries this will go on forever state of mind” followed by “This downturn will turn around in 6 months state of mind”. These state of minds can really mess up your personal finances and many of us do this.

    • Jayne Speich

      Hi Terry, thanks for your comment. I would love to hear how other people face their own money issues –

  • Catherine Hughes, Editor & Chief

    I like Scarlet O’Hara Face of Credit myself – been there done that.

    I am looking forward to your stories and spending a year dreaming with you.


    • Jayne Speich

      I wish it weren’t true, but I’ve got a million of ’em ;>)
      Thanks, Cath.