Plan B/Update

I think it is great that youare thinking about going back to school. There isn't a hurry- school will always be there for you.

As far as credit scores go- I don' tknow to much about them. I thin it is important that you pay back at least the minimum required payment every month on time.

i do this and am alwyas getting letters in the mail saying that I am pre-approved for some credit card. I assume they found that I am on time with my other credit card payments.

Unfortunately it is taking me awhile to pay off these debts. I n the new year I plan to try harder. I dislike being indebt and nowadays these credit companies like to trick people into thinking that youae saving  money by using your crdit card- with  bonus coupons and "reward points", and like millions of people out there- I fell for it for awhile and now I am in debt up to my ears. i am disability now and wonder whre the money is going to come fromto pay them back in full. I suppose I will have to cut up the cards and just not use them- and stay out of these stores unless I can afford to pay  out of my regular bank account. I suppose that what is meant by credit score. I don't have much experiece with terms like that and about handling money.

It is wise that you payback your debts before you try to get back to school-  or bills will pile up and you will feel overwhelmed. BUt I admire your healthy and mature attitude.  Best of luck to you!

Claudia

Hello Valash,

You can improve your credit score by paying more than the minimum on one of your credit cards, if you carry a balance.  Pay off the card with the smallest balance first to feel you've accomplished something.  David Bach outlines a good plan in his book, The Automatic Millionaire, where he talks about DOLP: how to eliminate debt so it's Dead On Last Payment.  If you have student loan debt, work out a payment plan.  Once you pay off your consumer credit card debt, commit to using a debit card or cash for every day payments.  Transfer to a credit card that has 0 or no interest for a specified time period, and make sure to pay off all or as much of the balance within that time.  I wouldn't charge anything new until you've paid off your old debt.  If all you have is student loan debt, you're in pretty good shape.  A student loan is consider "good debt."  I hope this has given you some ideas.

Regards,

Christina

Valash,

A credit score above 640 is OK; 700 to 750 is good; 750 and up is better; above 785 you're in the top tier.  Obviously, the lower you go, the worse it is.  In New York State, via the SONYMA Home of Your Own program, a person with a psychiatric condition can get a mortgage with a 640 credit score.

Regards,

Christina