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We Are Good Country Folk Trying to Build Our Credit. – Rebecca

“Dear Steve,

Everything bad on our credit report is major medicals; & we can’t pay on them right now. Nothing else – we’re simple country folk. We’ve had a 23% interest car loan for 2 years – we’ve been good on, (have a year to go); & a $300 secured Visa with our local bank for 1 year – we’re good on, too. But the visa still wouldn’t let us “upgrade” to non-secure, because of our credit. It’s a viscous circle, I guess. Kinda like getting a job without experience – so how do you get experience…….

Is there anything else we can do to try improving our credit ? or maybe bankruptcy is the way to go. Our medical debts are about $10,000 – but that’s 1/3 of our yearly income !


Dear Rebecca,

Well it sounds like you are things right to rebuild your credit. But any progress you are going to make on that front right now is going to be eroded by the unresolved medical bills that you can’t afford.

Is it possible to come to some repayment arrangement you can afford on those medical debts? If not then bankruptcy is a logical and legal solution to help you close the door on that bad debt and get back to rebuilding your credit again.

Unfortunately until we focus on the remaining bad debt most of the time spent building your credit will be wasted. And until we can get you in a position to start improving your credit again you will be in that vicious circle of 23% car loans and low limit secured cards.

I see hope and good things to come, we’ve just got to clear all the bad things out of the way first.

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.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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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