I need help on trying to repair my wife and my credit. We went way into debt but just paid it all off. I have heard you need to have a credit card (secure or unsecure) and charge it monthly to build your credit score. We just came out of 32K of debt and afraid of credit cards. Some of our reasons for going into debt was loss of jobs and child with medical issues. What do we do now?

First, let me congratulate you for climbing your way out of $32K of debt. I know lots of families that are stuck in that zone and are still paying for groceries they bought 5 years ago.

In my experience, the only things that truly repair a past poor credit history are (1) the passage of time and (2) good recent payment history.

Only God can make time fly. If you want to establish a good payment history, then you must obtain some credit and pay on time. That is the only way.

I understand and applaud your fear of credit cards. They are an illness on our society.

I suggest you get one credit card (either secured or unsecured) and use it only for minor purchases -- for example, gasoline. Then, pay the balance in full when you get the statement. Make the payment earlier than the due date and whatever you do, don't mess up.

As you build your confidence, go buy something else on credit -- but only buy something you need. If you need a fridge, then go to Sears and ask to buy one on credit. Make the payments on time religiously.

This way, you will build your confidence in your ability to manage your credit at the same time that you build your credit history.

Now that all being said, once you have some credit history, you should use credit only for major purchases -- say a home or a car. Everything else -- pay cash!

I hope things work well for you. Send me an email if you would like to chat.