Rebuilding credit.

[morallyBR2]

Well my 341 is coming soon and I was wondering when and how I rebuild my credit? Where in the world do I start? And how do I keep it under control?

[chloe0724]

Are you a 7 or 13?

If you're a 7, wait until you are discharged and pull your credit report and start correcting any errors.

You can also get a secured credit card with a small limit to help with the credit rebuild.

If you are in a 13, the steady payments to your mortgage will help your credit during your plan.

[morallyBR2]

Are you a 7 or 13?

If you're a 7, wait until you are discharged and pull your credit report and start correcting any errors.

You can also get a secured credit card with a small limit to help with the credit rebuild.

If you are in a 13, the steady payments to your mortgage will help your credit during your plan.

Its a 7. I would really like to get some help to manage myself better. Like a 12step deal or something like that. I really suck at managing money and especially credit.

[chloe0724]

Have you looked into addiction counseling? It is an additicion that many people deal with. I would sugest looking for a counseler in your area that can help you get to the root of your spending habits and give you the tools to deal with them so you don't end up here again.

[magyar123]

Its a 7. I would really like to get some help to manage myself better. Like a 12step deal or something like that. I really suck at managing money and especially credit.

There is no such a thing as 12 step deal. Only one - stay away from credit cards. If you necessarily have to have one pay off the balance as soon as you get the bill.

[Never_Again]

Since you have, by your own admission, a problem managing money, I would make a couple of suggestions.

First, do NOT be overly concerned about rebuilding your credit. Forget credit cards exist! Forget about buying a vehicle on credit. Just do not worry about your credit rating, period! Concentrate more on your own cash flow, and net worth, than a three digit number that some computer assigned to you.

Second, learn to live on your income only. No credit. Make this your number one task! To be concerned at all with rebuilding credit while you are doing this could serve as a distraction, and you could end up back where you are now. And you DON'T want to do that. This will require you to have a BUDGET, and to potentially keep track of every dollar that you spend, and make sure that you do not go over in categories. Hold yourself accountable for this, and if you can't, find someone to help you.

Third, establish an emergency fund by saving. 3 to 6 months of your expenses is a good starting point. If you get this in place, all of the little bumps in the road will be easier to manage. Try to get this done within a year after discharge.

If all that you "suck" at is managing money, then you can get some training to help you with that. If you have an addiction, that is another matter. For training with the managing money portion, I would check out any number of sources. The book "Personal Finance for Dummies," is a great source of wisdom, easily written, and by someone who does not want to sell you anything else. I would definitely check it out first. Dave Ramsey is another. Many people on this board do not care for him, because of his perceived anti-bankruptcy stance (he went through bankruptcy himself, and is public in thinking that it is a last resort, but it is out there if needed), but his teachings are solid. When you get your discharge, just think of it as a fast forward to baby step 3.

YNAB is a software application that can also be helpful in budgeting and tracking. Their site also has forums for discussion. I do not use it, as I use my own Excel file for budgeting (my wife says that I need to sell my system ), but their system is somewhat like mine. It is a system that will take you from living paycheck to paycheck, and get you living on last months income. Definitely worth checking out!

And, there are many personal finance blogs out there as well. Feel free to PM me, and I will share with you some of my personal favorites.

I hope that this helps you.

[jktrading]

My attorney told me to wait 6 months, and then pull your credit reports. Apparently, it can take up to that long for your reports to update fully. Then, you'll know what you're working with.

[Flamingo]

Its a 7. I would really like to get some help to manage myself better. Like a 12step deal or something like that. I really suck at managing money and especially credit.

A credit card was recently described in a major financial article as a "snake in your pocket." Remember that term if you ever reach for one again to buy something.