Originally Posted by
Irving
If that is the situation, then an option you'll seriously want to consider is selling your paid off vehicle, and buying a much, much, less expensive vehicle so you can have liquid funds to work with. I don't know anything about your vehicle, but assuming is newer, that's what I'd do. The longer you wait to sell it, the less you'll get for it.
Using credit cards to build credit is a great idea, but it won't work fast enough to help you by January. Getting a loan against a vehicle wasn't going to happen even with great credit, but it was worth a shot.
Without knowing the full story (understandably) of your current situation, my advice is as follows:
-If you have debt, sell everything you don't need to eliminate your debt. Debt is your worst nightmare and will ruin you faster and more completely than anything else. This includes the vehicle.
-Cancel any services that you can realistically live without. I'm talking about cable, expensive cell phone, gym memberships, etc.
-Once you make headway on your debt, if you have an established credit card, keep it open and follow the advice about putting small charges on it (gas, groceries) and paying it off. *I've found it easiest to form good financial habits by paying every bill you can, every time you get paid, FIRST, before you use that money for anything else. Not just once a month, every single time you get a pay check.
-Once you round the corner and can start seeing the light, start asking your credit card company/ies for a credit limit increase. I requested to double my limit every six months on each card until they started denying me increases by citing how much credit I had available on my other cards.
-Be extremely careful with playing with credit cards. They can be extremely effective, but if you slip up, you'll dig a hole you can't believe.
I realize that not all of this advice may be relevant, or wanted, right now, but it's a good start. There are more steps beyond this, but for right now focus on eliminating debt and building credit.
