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I Asked for Your Help Before in Paying Off My Debt. – LaQuanda

“Dear Steve,

I asked for your help a while ago on paying off my credit and reestablishing some kind of credit. I took your advice and I am happy to say that I have paid off most everything except a repo which I am making payments on. I waited after paying some things off and took your advice to try for a secured credit card but was approved for a credit card with a high interest rate and only a $300 limit. I recently went back to college and received student loans both subsidized and unsubsidized. On one I know the interest is applied automatically.

Should I go ahead and begin making monthly payments on the student loans? Is there a way for me to use the credit card as a means to improve my credit with the credit limit being so low?


Dear LaQuanda,

Getting a second secured card or making a deposit to increase your balance on the secured cards would be my first thought.

While making the payments on the student loan now is a good way to reduce the debt it won’t help you to build credit as fast.

If you read this article you’ll see my advice on how to deal with a single a low limit secured card.

If the repo balance is small enough for you to pay it off within the next year, you may want to focus on tackling that before making payments on the student loan that are not required right now. The reason is if you can pay the repo off that collection account will be satisfied and no longer reported as an open item on your credit report.

It sounds to me like things are improving, will just need a bit more fine-tuning and will work out just fine.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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