Until earlier this year, I had not borrowed new money for at least 5 to 7 years while making payments on a variety of debts. I am still making payments. My financial mess has not been fully resolved, but it has improved substantially.
I have been homeless nearly 4.5 years. While homeless, in addition to paying down debt, I have been working on developing an income that makes sense for me.
There is no cure for my medical condition and most jobs are too much of a burden for me, medically speaking. I went homeless to get myself healthier. Developing an online income source was a critical part of making that work.
My income is still low, but I am healthier and, since last September, I am working more consistently. My income has been trending upward and I believe it will continue to improve.
For a long time, it was my policy to either raise the resources or do without. I went to soup kitchens and food pantries. I had food stamps for a while. I collected recyclables. I joined reward programs and shopped sales and bought things off the clearance rack. Being homeless helped give me a flexible schedule so I could scramble and try to find what I needed.
But, in January, I was in a real pickle financially and I decided to take out a Payday loan. With my upward trending income and a few other details, I felt that made more sense than trying to find soup kitchens and food pantries up here in the Central Valley.
It allowed me to keep working for pay while having a better quality of life than I get from soup kitchens and food pantries. I felt putting a lot of time and effort into returning to soup kitchens and food pantries would have my life unraveling.
Interest on a Payday loan is quite high and I often have cash flow issues. I ended up taking out a new loan every month. I felt I was doing the right thing, but I also felt very frustrated, like I was trapped in a vicious cycle.
In late May, I decided to try to put a stop to this vicious cycle: I applied for a credit card.
Given that I am still homeless, this seemed crazy. But my thinking was it would be a cheaper means to manage my cash flow issues than getting a new Payday loan every month.
I applied for a card with the same bank where I have had a checking account for over two years and where I have a safe deposit box (for documents like birth certificates). I have never overdrawn the account in part because I declined that option when I set it up.
I applied online. They had a question where they asked about housing. They gave me the options of rent, own or other and a place to list the monthly cost. I checked "other" and left the amount at $0.
I was approved and granted a higher limit than I was hoping for. One of the first things I did was upgrade my neurotic, falling apart tablet so I can be more productive.
I am thrilled. Assuming I manage it responsibly -- in other words, use it to manage cash flow problems, not use it to live well beyond my means -- this should be the end to spending all my time living in fear of starving for one or more days late in the month.
It is also potentially a step towards getting back into housing.
Re-establishing credit is a middle class, market based solution to my problems. This is very much in line with my ideas about how to effectively fix my life, in spite of all the serious problems on the world scene.
So, yes, it is possible to improve your income and credit rating and re-establish credit while still homeless. It's challenging, but it can be done.
This website can give you some tips on how to make that happen. Here are some relevant posts on the site:
Debts
A job you can carry in your backpack
Payday Loans
Money and your headspace
Anti-Poverty Programs and Real Solutions
Getting Your Life Back
See also: Independently Poor: A Twist on FU Money. Or: "FU, Money"
I have been homeless nearly 4.5 years. While homeless, in addition to paying down debt, I have been working on developing an income that makes sense for me.
There is no cure for my medical condition and most jobs are too much of a burden for me, medically speaking. I went homeless to get myself healthier. Developing an online income source was a critical part of making that work.
My income is still low, but I am healthier and, since last September, I am working more consistently. My income has been trending upward and I believe it will continue to improve.
For a long time, it was my policy to either raise the resources or do without. I went to soup kitchens and food pantries. I had food stamps for a while. I collected recyclables. I joined reward programs and shopped sales and bought things off the clearance rack. Being homeless helped give me a flexible schedule so I could scramble and try to find what I needed.
But, in January, I was in a real pickle financially and I decided to take out a Payday loan. With my upward trending income and a few other details, I felt that made more sense than trying to find soup kitchens and food pantries up here in the Central Valley.
It allowed me to keep working for pay while having a better quality of life than I get from soup kitchens and food pantries. I felt putting a lot of time and effort into returning to soup kitchens and food pantries would have my life unraveling.
Interest on a Payday loan is quite high and I often have cash flow issues. I ended up taking out a new loan every month. I felt I was doing the right thing, but I also felt very frustrated, like I was trapped in a vicious cycle.
In late May, I decided to try to put a stop to this vicious cycle: I applied for a credit card.
Given that I am still homeless, this seemed crazy. But my thinking was it would be a cheaper means to manage my cash flow issues than getting a new Payday loan every month.
I applied for a card with the same bank where I have had a checking account for over two years and where I have a safe deposit box (for documents like birth certificates). I have never overdrawn the account in part because I declined that option when I set it up.
I applied online. They had a question where they asked about housing. They gave me the options of rent, own or other and a place to list the monthly cost. I checked "other" and left the amount at $0.
I was approved and granted a higher limit than I was hoping for. One of the first things I did was upgrade my neurotic, falling apart tablet so I can be more productive.
I am thrilled. Assuming I manage it responsibly -- in other words, use it to manage cash flow problems, not use it to live well beyond my means -- this should be the end to spending all my time living in fear of starving for one or more days late in the month.
It is also potentially a step towards getting back into housing.
Re-establishing credit is a middle class, market based solution to my problems. This is very much in line with my ideas about how to effectively fix my life, in spite of all the serious problems on the world scene.
So, yes, it is possible to improve your income and credit rating and re-establish credit while still homeless. It's challenging, but it can be done.
This website can give you some tips on how to make that happen. Here are some relevant posts on the site:
Debts
A job you can carry in your backpack
Payday Loans
Money and your headspace
Anti-Poverty Programs and Real Solutions
Getting Your Life Back
See also: Independently Poor: A Twist on FU Money. Or: "FU, Money"