Each of us lives only now, in this brief instant. The rest has been lived already. So make the most thoughtful choices you can today that will lead to a better future.
Steve's Thought of the Day
Stop drifting and hoping a magic solution will appear. Instead, you can participate in rescuing yourself. Find peace by pursuing facts through trusted advisers and research rather than the blind trust of salespeople trying to sell you something by almost any means necessary.
Steve's Thought of the Day
Make decisions to deal with your debt with logic and facts, not assumptions, and worry about what other people will think. People who judge you will soon be forgotten. Nobody thinks about anyone that much.
Steve's Thought of the Day
The world is nothing but constant change. Your life is only a perception. Choose a way out of debt based on facts, not assumptions. Do what is best for your future because those that judge you will not feed you.
Steve's Thought of the Day
Do you have a greater responsibility to repair your financial past or your financial present and future? Make good choices that allow you to tackle your debt and immediately start building your emergency fund and saving for retirement. Tomorrow will be here before you know it. Lost time is a sin.
Steve's Thought of the Day
There is no sense in wasting a perfectly good financial mistake. Instead, learn from it and do better moving forward. The past is gone. Turn and face the future now.
Steve's Thought of the Day
Those who judge you for past financial mistakes are not your friends. So don't make choices about your future out of fear of what they may think. Instead, make choices based on truth, fact, and what is best for you moving forward from today.
Steve's Thought of the Day
Don't believe everything you think. Challenge your assumptions about getting out of debt. Do what is best for you, not others.
Steve's Thought of the Day
Is it less moral to file bankruptcy or to not take action that leaves you old, broke, hungry, and dependent on others?
Steve's Thought of the Day
If bankruptcy is so bad, why did our Founding Fathers specifically include it in the U.S. Constitution as protection for financial difficulties?
Steve's Thought of the Day
Maybe it is time to read what the Bible really says about bankruptcy instead of listening to the assumptions of others. Throw out your misperceptions and you'll be fine. (And who is stopping you from throwing them out?) - Marcus Aurelius
Stop listening to people that say bankruptcy is a last resort. It is neither first nor last. It is a tool like credit counseling, debt settlement, and others. For the best result, you need to use the right tool for the job.
Steve's Thought of the Day
People that tell you to avoid bankruptcy want to sell you something else are repeating something they heard or do not know what they are talking about. Get the facts and then make your own decision. Don't let an unskilled script-reading commissioned salesperson make life decisions for you.
Steve's Thought of the Day
Debt problems are like fingerprints. No two are alike. A one-size-fits-all solution will give you a one-size-fits-all result. You deserve better.
Steve's Thought of the Day
You are not your debt. Your value, self-esteem, and existence should not be defined by the money troubles you may be facing right now. Debt problems are solved with proper action, not guilt, self-hatred, and disgust.
Steve's Thought of the Day
Debt is nothing more than math wrapped in emotion. The math is easy, the emotional part leads us to do impulsive things. Not the right thing.
Steve's Thought of the Day
What type of money personality do you have? It is important to know. Take my online test now and discover how you unconsciously deal with money, credit, and debt.
Steve's Thought of the Day
How much retirement savings are you willing to throw away by dealing with your old debt instead of preparing for your financial future? Find how much you will lose by making the wrong choice. Use my online debt repayment calculator now.
Steve's Thought of the Day
Does it make more sense to ask for life-altering debt advice from an unskilled and untrained commissioned salesperson in a call center or an experienced debt coach like Damon Day that provides a customized solution for money troubles?
Steve's Thought of the Day
Throw out your misperceptions and you'll be fine. (And who is stopping you from throwing them out?) - Marcus Aurelius
I’m Not Paying My Bills But Need to Rebuild My Credit. – John
I am currently past due and do not pay payments on my debt. I am aprox. $2500 in debt from two credit cards, a loan, and debt thats being collected from another source from sprint. I have not planned on paying any of these but i need to build credit and fix this.
What is the appropriate way to handle this? Pay off all my debt and try to build credit again via CC, car, etc.. which ever way I can get approved. Or not pay it off and try to get approved for something and put it in the past and start fixing my credit?
John”
Do You Have a Question You'd Like Steve to Answer? Click Here.
Dear John,
The best way to approach this is in two stages. First stage is to close the door on the past by satisfying that debt.
Next stage after you have paid it off will be to focus on rebuilding your credit. Start with a secured credit card that reports to all three credit bureaus. Make sure that you don’t carry a balance on that card greater than 45% of your credit limit. Consider getting a second secured card and do the same thing.
After you do this you will notice a substantial improvement in your credit after six months to a year.
10 thoughts on “I’m Not Paying My Bills But Need to Rebuild My Credit. – John”
true, but I’m trying to climb that mountain one step at a time. Actually, I’m thinking in the back of my mind, if I wait til tax return time, I can use some of that money to pay the bill. That’s a ways off til February though, at least the bill collectors think.
The one I spoke with will basically do that, he wants $500 up front to get me started with a package I fill out and get him all my info. Then I pay him whatever I can til I get to $1000.00 (on top of the $500) and he moves the case along a little faster the closer I get. The problem I have is getting the $500 to begin with. There is always something that comes up with the kids (school fees, dr visit, luxuries like food, clothing, etc.). I’m stuck between a rock and a hard place. My wife is working all sorts of weird hours (online shopping network)that always change each week, from midnight to 2 am, or 4am to 6am. Than the usual 9pm to 1am. It gets stressful when our young kids don’t sleep thru the night and we can’t think straight. People tell us we need to focus and take time for ourselves once in a while and it’s funny when they say things like “you’ve got to make time, I know everyone can if they want to”. No, not everyone can….:)
Steve, checked the link, tried calling, but haven’t gotten thru yet after waiting 15 min. on hold. Will try again today, but it looks like they are trying to help only those in dire situations ie; unemployed, immigrant, handicapped, veteran, etc. I tend to fall into the just plain stupid category…..
“Just plain stupid” LOL. No you are not. You actually fall into the working poor chasm which widens every year. You are too strapped to get out and too strapped to stay in.
You know, some attorneys are offering installment payment plans in the bankruptcy to pay their fees.
I still find it hard to believe, even if he takes on a second job. $123,000.00 in 4 1/2 yrs is around $27,000 a yr. They seemed to live in a nice house in a good neighborhood, and with 2 kids, I don’t think they could do it. Anything is possible, including them getting paid to tell that story by the credit card industry. They’re (the credit card industry) under a lot of scrutiny these days and stand to lose out on some unscrupulous profits to be made off the likes of me. If everyone is filing bankruptcy, they lose that cash. Why not tell people that it’s possible to pay back everything, even if it’s a ridiculous amount? Think I’m talking conspiracy theory? What is the point of consumer credit counseling? The innocent non-profit companies that are there only to help the poor consumer get caught up on debt and avoid bankruptcy. Is it that much of a stretch to think, maybe they’re just trying to make money through slightly dishonest or shall I say not full disclosure in their ad campaign? Just a thought.
I’ve been very critical of credit counseling on this site. A search of ‘credit counseling’ or CCCS will uncover some fairly critical articles I’ve written. I think the video you found is atypical, certainly of my experience in helping people since 1994. I think the greatest disservice the video does is to cast people who don’t want to sleep in their car or get two hours sleep a night as not motivated enough.
Did you check on that pro-bono link I gave you? Are you eligible for that help?
I watched the video and think that it is possible but that few can achieve the end result. You will notice that the key here was freeing up additional money to use for debt repayment each month. If you are just making it month to month that’s not likely. I also don’t think many people would be willing or able to work a second job, sleep in their car and only get a couple of hours of sleep a night for more than four years.
true, but I’m trying to climb that mountain one step at a time. Actually, I’m thinking in the back of my mind, if I wait til tax return time, I can use some of that money to pay the bill. That’s a ways off til February though, at least the bill collectors think.
The one I spoke with will basically do that, he wants $500 up front to get me started with a package I fill out and get him all my info. Then I pay him whatever I can til I get to $1000.00 (on top of the $500) and he moves the case along a little faster the closer I get. The problem I have is getting the $500 to begin with. There is always something that comes up with the kids (school fees, dr visit, luxuries like food, clothing, etc.). I’m stuck between a rock and a hard place. My wife is working all sorts of weird hours (online shopping network)that always change each week, from midnight to 2 am, or 4am to 6am. Than the usual 9pm to 1am. It gets stressful when our young kids don’t sleep thru the night and we can’t think straight. People tell us we need to focus and take time for ourselves once in a while and it’s funny when they say things like “you’ve got to make time, I know everyone can if they want to”. No, not everyone can….:)
Justin,
So if you paid the $500 it sounds like you’d never have any extra to afford to pay towards the rest of the balance.
Steve
Steve, checked the link, tried calling, but haven’t gotten thru yet after waiting 15 min. on hold. Will try again today, but it looks like they are trying to help only those in dire situations ie; unemployed, immigrant, handicapped, veteran, etc. I tend to fall into the just plain stupid category…..
Justin,
“Just plain stupid” LOL. No you are not. You actually fall into the working poor chasm which widens every year. You are too strapped to get out and too strapped to stay in.
You know, some attorneys are offering installment payment plans in the bankruptcy to pay their fees.
Steve
I still find it hard to believe, even if he takes on a second job. $123,000.00 in 4 1/2 yrs is around $27,000 a yr. They seemed to live in a nice house in a good neighborhood, and with 2 kids, I don’t think they could do it. Anything is possible, including them getting paid to tell that story by the credit card industry. They’re (the credit card industry) under a lot of scrutiny these days and stand to lose out on some unscrupulous profits to be made off the likes of me. If everyone is filing bankruptcy, they lose that cash. Why not tell people that it’s possible to pay back everything, even if it’s a ridiculous amount? Think I’m talking conspiracy theory? What is the point of consumer credit counseling? The innocent non-profit companies that are there only to help the poor consumer get caught up on debt and avoid bankruptcy. Is it that much of a stretch to think, maybe they’re just trying to make money through slightly dishonest or shall I say not full disclosure in their ad campaign?
Just a thought.
Justin,
I’ve been very critical of credit counseling on this site. A search of ‘credit counseling’ or CCCS will uncover some fairly critical articles I’ve written. I think the video you found is atypical, certainly of my experience in helping people since 1994. I think the greatest disservice the video does is to cast people who don’t want to sleep in their car or get two hours sleep a night as not motivated enough.
Did you check on that pro-bono link I gave you? Are you eligible for that help?
Steve
anyway if they can pay that off, your measly $2500 can be paid off in a couple days…
I don’t believe this is possible:
http://www.cnn.com/video/#/video/bestoftv/2009/10/19/digging.out.of.debt.cnn
maybe I’m just a cynic.
Justin,
I watched the video and think that it is possible but that few can achieve the end result. You will notice that the key here was freeing up additional money to use for debt repayment each month. If you are just making it month to month that’s not likely. I also don’t think many people would be willing or able to work a second job, sleep in their car and only get a couple of hours of sleep a night for more than four years.
Steve