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Money Drain: Forgetting About a Debt

So, the wife and I had a busy year (a move, state license changes, car title transfers, a baby, job changes). In the mix we lost track of a bill (flex line of credit to the tune of 15k) for a bit and it’s now gone to collections.  My credit score was a mid 700s and while our debt to income ratio was up there, we were doing okay and looking to buy a house in Maryland. Now my FICO score is at a 570 and the wife went back to work to help set our finances straight again.

Submitted by: Matt

Lesson Learned:
While this doesn’t exactly show the amount of money flushed down the drain, it’s definitely a valuable lesson.  I’ve mentioned in previous money drain stories about how important it is to keep track of all your money in one place.  Whether it’s Mint.com or using Microsoft Money like me, you need to have every financial related account tracked somewhere so that it’s not lost to the wind.  It doesn’t take long to do, just spend a day on the weekend and input all of your current accounts and their balances, set up your usual monthly bills/payments, and review it once a week.

As for how to fix this particular mistake, aggressively paying down debt and living as cheaply as possible are really all you can do.  Sell junk, plan cheap meals, don’t go out to eat, don’t buy things you don’t absolutely need, etc.  Good luck!

About Crystal Groves, Google+

Crystal Groves is a farmer, web developer, musician, blogger, and personal finance enthusiast from the back hills of Maryland and Pennsylvania. She started Money Drain as a project to encourage people interested in fixing their financial situation to share their stories and learn from the stories of others. We all make mistakes, but in order to change we have to make changes.

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