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I am in a chapter 13 about a 1 1/2years in with 3 more to go...I live in NY. My question is:
does anyone know if you are allowed to get a secured credit card? I know you are not supposed to incur any new debt while in repayment...but would like the security of using a credit card if ordering anything on line versus using my debit card...Any answers would be helpful!




why would a credit card will be more secure? they steal from you by charging you interest, that is a myth, read Dave Ramsey, it helps alot when you have those questions. if you have the cash, use it. There is a reason why you're in Chapter 13, so I would think about it before getting a credit card. wish you the best :)

Sub: #1 posted on Tue, 11/30/2010 - 12:09

Paulie Paulie

(Posts: 146 | Credits: )

Hi Paulie...I do carry cash and use it as well as my debit card..and yes there is a reason I am in chapter 13..because I lost my job due to a injury and wanted to keep my house but still try to pay back some or all of what I owed for uncovered medical expenses and yes..credit card debt to cover necessities such as food and gas as I was barely making anything. My question was in regards to a secured credit card which is one that you put money into an account and that is what your limit is you are only charged interest if you don't pay in full each month.trust me I will NEVER have a credit card again that I will have to pay interest on they are all crooks! I mainly want the secured card(which is my own money)so that if I am buying something online I can use that instead of my debit card..since fraudulent activity is so high. That way if it was to be compromised my checking and savings account is not vulnerable....only a secured card that is covered for fraudulent purchases. PS I have read Dave Ramsey as well as watch his show! :)

Sub: #2 posted on Tue, 11/30/2010 - 12:30

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How about a prepaid debit, I used that to make online payments without risking my whole funds. the wal mart one, charges $3 per month and you can cancel it anytime :)

Sub: #3 posted on Tue, 11/30/2010 - 13:19

Paulie Paulie

(Posts: 146 | Credits: )

I understand that they charge you interest if you don't pay, but you never know what can happen tomorrow! Hopefully not but there might be a situation where is makes it impossible for you to make payment ontime or something and there you go. what if someone charges you more than supposed and it puts your credit on risk along with it. I would not risk it :) wish you the best!

Sub: #4 posted on Tue, 11/30/2010 - 13:24

Paulie Paulie

(Posts: 146 | Credits: )

Thanks for the information Paulie...I was unaware Wal Mart had a prepaid debit card...Do you get those right at the store or online?

Sub: #5 posted on Tue, 11/30/2010 - 13:57

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I got mine at the store and put money on it, then I went the next day to make my electricity payment with just the exact amount on it and the money posted imediately! i was surprised how quick it was! the only downside is if you put gas at the pump, it will hold your money, but not if you pay inside the gas staion. but other than that I've been using it and had no problems! when my husband is going to make a purchase online, we load the exact amount and it goes trough with no problem :) we haven't had any suspicious activity in the last year :)

Sub: #6 posted on Tue, 11/30/2010 - 14:11

Paulie Paulie

(Posts: 146 | Credits: )

Yes you can have a secure card during your bankruptcy. I am currently doing it. However, you must do it with a purpose in mind. Not just to impulse spend but to rebuild credit.My rules on a $400 secure  card, for the first 2 months I max ed it, except for

$10.00. I'd repay  the entire balance off in 15 days. That was just to get it out my system,

you've got to indulge your habits to a point, meaning the urge is there and you need to

indulge it with discipline.

 

Today I use only $140.00 of the $400.00 which is about 35%.

My goal is in 18 months when the discharge is official, my credit score will improve significantly.

 

If you are going to get a secure card, don't be foolish and pay the minimum. Those days

are over. Pay off any balance before the interest become due. Find a homebase business to bring in some income and start rebuilding slow.


Sub: #7 posted on Tue, 01/08/2013 - 20:23

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