Today.com – How to Build Credit When You’re In Debt

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Do you want to know how to build your credit score when you’re in debt? Well, this week that’s exactly what I discussed on Today.com, so watch the segment above to find out what you can do!

Email Question From Mary:

I went on a Debt Management Plan about 2 and a half years ago. I want to start rebuilding my credit. I’ve looked at pre-paid credit cards, but I am not sure this is the best way to go. Do you have any suggestions on how to start rebuilding my credit now? Or do I have to wait until the Debt Management Plan is complete?

My advice:

-          Go apply for a credit card, NOT a debit card.

-          Go to CreditCards.com and look for a credit cards that right for you.

-          Only get one that has a small limit on it, $1,000 – $3,000.

-          Use the card WISELY, and pay it off every month!

Live Rich,

David Bach

 

 

6 Ways a Nonprofit Counselor Can Help You (From oprah.com)

Nonprofit credit counseling

Four years ago one, of my closest friends, Bill, came to me to share he was more than $100,000 in credit card debt. Bill needed more then a Debt Diet—he needed professional nonprofit consumer counseling. Fortunately, that’s exactly what he got, and last month Bill became officially debt-free! Bill’s not alone. Each year, millions of Americans turn to nonprofit credit counseling to help them get out of credit card debt. When people turn to these organizations, they have, on average, more than $20,000 in credit card debt. With that said, you don’t need to be this far in debt to get professional help. I’m an advocate of getting nonprofit credit card counseling if you feel you can’t get out of debt yourself. If you’re having trouble paying your bills on time, are only making minimum payments or have skyrocketed interest rates on your cards and can’t make a dent in the debt, it may be time to get some professional help. The key, however, is to get “trustworthy, honest help” from a reputable nonprofit credit counselor. Let’s take a look at what these organizations can do for you.

To read rest of the article on oprah.com, click HERE!