Submitted by fishonthesun t3_11e4ixa in personalfinance
TLDR; due to mental & physical health limitations, I have ~3.2k CC debt and my credit score consistently goes down. Will closing my 3 bank accounts and consolidating to Chime actually help me rebuild my credit, pay down debts, and actually build savings like their ads claim?
Post:
I'll try to give context as concisely as possible.
I have no savings. I had to spend the $1.6k I had invested to move out ASAP when my ex broke up with me.
I make $19 an hour, eventually this will be $20 an hour.
My rent is $937/month.
I've never had to pay for my own heating before- I'm still figuring out how to manage not freezing (I have a circulatory disorder so I don't want numb hands and feet in my apartment) and not paying more than I can afford. I'm on track for $110 this month and this will go down as it gets warmer. I live in MI so it's been very cold lately.
I have a second job that allows me to work on my own schedule. Due to endometriosis, narcolepsy, and coming out of a bipolar depressive episode, I have low energy and don't do this second job often. I barely bring in $100/week with it.
My health issues are being managed, and unless they flare up dramatically, my energy levels will improve and I'll be able to do my 2nd job more, and can expect to bring in ~$250/week with it.
So, all that being said, I have ~3.2k credit card debt, ~$20k student debt, and ~13.5k left on my car loan. Student loans and car loan payments I always make on time, but my credit card payment... I can barely afford minimum payments on it and many months I can't even afford that. My credit card debt goes up each month because it's maxed out and I have late fees. It's maxed out because I used to have a job paying $15/hour and I had to use my CC for EVERYTHING. Plus I had a bipolar manic episode and ~1k of my debt is from me overspending with the mindset of "it'll all work itself out." I've improved that mindset massively in therapy and most of the time can resist both impulse purchases and non-necessary, low-cost purchases.
I have 3 bank accounts and I feel like if I closed them and consolidated to 1, I'd be able to manage my money better. My big question is: will Chime actually help me recover my credit score and pay down my debts more easily? My credit score used to be 735 as a 23 y/o but now it's 666 due to missing CC payments. It causes me a lot of mental anguish, to be frank.
Anyways, thank you so so much to anyone who reads all of this!
P.S. I used to be very good at saving money, before my first bipolar manic episode. I'm very embarrassed by how my mental illness has affected my ability to care & provide for myself. Please be kind and understanding, I'm doing my 100% best to get a hold on things; I just think my efforts may be directed in the wrong ways and am looking for guidance on if I should redirect them in the stated way.
yes_its_him t1_jacbqgf wrote
You wouldn't expect those things to happen just from changing banks. Their ads are probably overselling what benefits you will receive.
There's probably not much downside to doing this, but just don't expect major changes as a result.