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How I Plan to Rebuild My Credit Pt 1.

One of my New Year’s Resolutions is that I want to work on my credit this year. Since my lifestyle is so much more different now than it was in my younger adult years, I need either a fresh start or some time to figure out which debt I really want to knock out first. I never had a credit card and still to this day, I do not own one. So how did my credit get so bad? Lets break this down into a 2 situations that put a damper on my score.

Hospital Bills

After going to the hospital on numerous occasions without health insurance, I had got stuck in the same gap that most are in having hospital bills roll over into collections. The bills were rather high and unaffordable. Yes I could easily give my last $50 to this hospital bill just so that I could stay out of debt, but as I stated that is 1 “bill” out of quite a few.

My plans: After much research, I plan to see about consolidating my past hospital bills. Since they are lower than what they use to be, I’m hopeful that by the end of this year after paying little by little on them, I will have accomplished one goal! I considered filing for bankruptcy a few times because I was not really in a position to pay anything on my hospital bills. If in fact I see that I am struggling with these payments because I do have other bills besides the hospital ones, I may have to make that move to bankruptcy if consolidating doesn’t work.

Student Loans Payments

I had to take out a student loan in my first year when I was attending my local community college. Since I was still considered a dependent under my parents and didn’t have a child, I was denied Financial Aid Funding. Even though I was filing my taxes on my own, I was only 19 years old and was still considered a dependent. My parents had a combined income and were retired teachers and of course like many other first time students, my parents couldn’t afford to pay for me to go to school.

Paying my loans back and trying to finish up school has been very hard. I fell in a category where I wasn’t getting the income that was able to help me pay for my necessities and bills at the same time. I had been paying on them the best way I could, but it seems like it is never ending. The reality is, it is still going to take a few more years to get my student debt but I did make the first step a few years ago to keep up with my payment plans.

My plans: Since I am still considered a student, my student loan creditors have been very lenient with me so that I am able to pay every other month. I’m not saying that every loan company is like that, but most will work something out where they are still able to get there money back from you. I plan to keep up with the promise that I made to them so my score can continue to incline.

If you are on the path to rebuilding your credit or have gotten your score knock up a couple points, please share in the comments below! I would love to here other information to strengthening my own personal score.