I’m Not Paying My Bills But Need to Rebuild My Credit. – John

“Dear Steve,

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?


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.

Please update me on your progress by

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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

Damon Day - Pro Debt Coach

Steve Rhode

10 thoughts on “I’m Not Paying My Bills But Need to Rebuild My Credit. – John”

  1. 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.


Leave a Comment