Credit is going to be getting better soon

I am finally feeling a little more confident about my credit. I did have a few things removed from my credit, which will help. I have also now received my secured credit card. I have decided to use it to pay my storage bill every month, and then pay it off. This will help prevent me from using it for unnecessary purchases. The balance owed monthly will be less than half of the available balance, and it will be paid in full every month. Those two factors can greatly increase your credit score in a shorter amount of time.

In addition to my secured credit card I have been paying my monthly payment to the government student loans. I have paid the payment on time for four months now. After six months I will be able to get additional student loans, and after 9 months my student loans will actually go from a negative on my credit report to a positive.

I am figuring that my credit score will be increased by at least 100 points by April of 2011 with the things I have been doing. After my score has been increased and has some positive transactions on it I will then try to get financed for a reasonable car. This may be a little more difficult with my low income, but I am hoping that my income will actually be increased as well.

In other areas of my life:

I had to go to the hospital last night due to being sick. I have bronchitis, which is not to bad. The news is that they listened to the heartbeat and actually heard two in addition to mine. I am not 100% positive about it being twins, but it is enough to have me terrified. I am a single first time mother with a small income, and to have two babies is very scary for me. I am scared, but I know I will get through it. I feel as if this was a plan from God, and it is what he wants. I will get through it with planning, support from family, and hopefully increasing my income.

Defaulted Student Loans

One of the biggest things on my credit is student loans. When you are in default on student loans it can greatly decrease your credit score. I am also wanting to return to school in January, and would not be able to get any financial aid if I am in default. Yesterday I decided to call the Department of Education to see exactly what I needed to do to get back in good standings.

Apparently there is a new program that can help. The program allows you to set up payment arrangements and get caught up. In this plan you have to make all of your default student loan payments on time, every month. If you pay all of your payments on time you will be eligible for financial aid in six months, then if you pay on time for nine months your loans will show on your credit report as a positive.

I could not pass this opportunity up. I signed up for the program and will start making payments of around $40. This is one of the biggest steps I have made in my personal financial journey, and it is going to help quite a bit.

If you have a default student loan through the government you should read this page, or call 1-800-219-7931. It is worth a try to get your finances together if you are on your own financial journey.