It didn't hit me until end of January. When I realized how important FICO score is and how that 100 points drop affect my life. I wish we are not judged by the number, ran through a formular by some companies. Unfortunately, FICO has much more impact on me than I ever thought.
It was the first time, Pop and I ever got written off on a credit card. It was my fault, my bad habit of not checking my own financial statements. (Funny I would double-check and tripple-check every numbers I am involved at work, for my company) I was many many months late on a 60 dollars balance which ended up at $270 (finance charge incurred) before the credit card company written it off as bad debt.
Once FICO came down, my insurance company took this opportunity to increase the premium. My credit score is so bad right now as I can't even get a store purchase card! It used to be that I'll have many high credit line offer in the mail daily! I can't refinance, I can't move, I can't get a loan now! I'm going to get stuck with bad credit for another 7 years.
I should move to a place where people are not judged by FICO. I wish there's something I can do in Thailand.
I officially retired from being a slickdealer. No more buying based on "good deal" and "want". Things deserved my hard earn money are only necessity nowaday. I even declined a $2 cream puff (that's $3 off regular price!) at the grocerie store today because I already have two other dessert waiting in the fridge. If it was me in year 2008, I would probably grab some of those cream puff, fridge them and then throw them away later on...
So, Suze Orman said to increase income, I need to reduce my expenses. (Since my paycheck is not showing any greater number this year) Expenses are coming down and saving/investment are going up this year. That's the plan.
I'm looking for a new job. Possibly a big paycut in exchange for greater security. My goal is a government job. It's harder to go work for the government in Finance and Accounting when I don't have the degree. I don't mind going into IT - entry level but I would like to stay in finance. I'll have to either go back to school to obtain accounting credits or change my career toward IT. My company just got listed under 15 companies may not survive 2009. I need to make sure I am prepared for that day to come...