Anonymous Herconomics Money Story

“Dear Reader

When Herconomics asked me to tell my money story at first I was excited. I had lots of money fails to share. I am a cautionary tale.

But as my contribution became due I became afraid. Afraid of what my money story said about me as a person, as the professional worldly woman I appear to be. It is all, not a lie, but just that I am also a money mess. There I said it.

Let’s start at the very beginning. My parents grew up very poor and it was only in their 30s that money found them and they prospered. We never spoke about money growing up. I never asked and they never said anything, not about how it was made or what to do with it once you got it. We never spoke about savings or investing. All I grew up ‘knowing’ was: go to university, get a good job, get married.

Fast forward to my first day in Australia as an international student. We were taken to the shopping centre to start our first Australian bank accounts. It included a $300 credit card. Oh how nice.

I got a part-time retail job and made a little money that I spent on my first stereo. I never saved. It never even crossed my mind.

Over the years, I remember getting letters from my bank: Congratulations, your credit card limit has been increased. I remember feeling proud of myself for it, proud that the bank felt it could trust me with more money. I never considered it a ‘debt’ - I mean it is a line of ‘credit’ and credits are good right? Before I knew it, I had a $3,000 credit card and I owed $3,000 on it.

A few years later I got married and with it came the 24 months interest free furniture purchases, and other $3000 on another credit card. Then came some travel expenses and as all the adds on TV said, travel now, pay later, so I got a $4,000 credit card and off I went.

Then I heard about credit card balance transfers to give you a head start paying off the credit card debt. So I gave it a try and transferred one of the accounts. I thought if you did a credit card balance transfer it would mean your previous credit card account would be closed and all the debt transferred across for the magical interest free period. Nope. I now had four credit cards and the amount paid by the balance transfer did not stay on my credit card for very long.

In what felt like a very short space of time I had somehow gotten myself four credit cards totalling $14,000 in credit card debt. How is this possible? How did I get myself into this mess?

Truthfully, I didn’t know what I was doing. Everything was so easy. Apply in 3 minutes! Instant pre-approval! I didn’t know what this would do to my credit rating. I didn’t know this would impact my ability to obtain future credit. I didn’t know that credit cards were this hard to pay off. I believed what the ads said about how a credit card makes your life simpler, and easier. I didn’t know that these companies have us all figured out. They know a good number of us won’t stick to our interest free periods, won’t pay on time and reduce the debt owing on these accounts. They have hacked me in ways I probably can’t even imagine.

I didn’t know then what I know now. If I could go back in time I would have declined that first $300 credit card I eagerly accepted as an international student, fresh off the plane.

This is hard to admit. I am quite embarrassed and it’s easy to feel alone because even now, I don’t talk about money, my parents still don’t talk about money and my friends and I don’t talk about money. That is why I love being a part of Herconomics. Even though I am not brave enough to share my name with my story, every woman who has, has inspired me and helped me feel not so alone as I go through my money journey.

Thank you Herconomics.

Sincerely

Anonymous”