Jump to content

Tips for staying out of debt after you have recovered your finances?


Scarlett
 Share

Recommended Posts

I recovered from some pretty bad debt by way of simply not working and not paying my debts LOL! I know that sounds terrible but when my anxiety/panic attacks got bad, I had to quit my job and had cards I just couldn't pay off. Time has lapsed and the debt is no loner on my records but I would like to start building credit again without getting back in trouble with it. Any tips?

Link to comment
Share on other sites

The credit system makes you use credit to improve your score. I know it is a total scam! 

There are ways to safely build credit though while restricting yourself from falling back to what ever got you into debt in the first place. 

-Secured Credit Card (All the banks offer this where you lay down cash and that cash is your line of credit)
-Low limit credit card (Ask for a low limit and just put your Netflix subscription on it and setup auto pay. That is all the card will be used for)
-Make sure to pay all your other bills on time

Living a debt free life is also an option then credit is not needed :P. I know that is not an option for many people depending on where they are in there life and it is still nice to have a good score just incase and to get 0% financing on automobiles :). 

Play it safe and spend within your means. Credit is the trap that gets you stuck working for corporations the rest of your life so you can pay your bills. 

  • Like 1
Link to comment
Share on other sites

When I was younger, I was told it was better to have bad credit than no credit. These days, I am not so sure. I feel like you want to establish credit and raise your scores with as little as possible (not a lot of cards, bills, etc.) and keep it balanced. If you start adding in more credit lines, you can easily get overwhelmed and fall behind. So I would say to only have the bare minimum when it comes to getting your scores up and keeping them there. 

  • Like 1
Link to comment
Share on other sites

  • 2 weeks later...
On 5/27/2021 at 9:46 PM, James said:


-Low limit credit card (Ask for a low limit and just put your Netflix subscription on it and setup auto pay. That is all the card will be used for)

I didn't even think to use something like Netflix to up a credit score. That is genius! Your card will never get maxed out and you end up making the monthly payments anyways so it kind of sets up almost a farming system that would be hard to mess up. Going to try this for myself.

  • Thanks 1
Link to comment
Share on other sites

You need to first understand yourself, are you someone with a lot of control or not (It is not wrong or shameful to admit this). If you lack control, try to stay away from anything that can generate debt, for example Credit cards. Try to live only with the money that you earn.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...