Okay I don't know much about anything really ...Awesome way to start this topic. BTW, I just turned 20.

I decided I was going to start building credit last year (yay good job me). After applying for about 3 cards and being denied I Finally got one. I was being a good boy and buying small items then paying them off. Credit score was building and I decided to do this twice as Fast and got another (I R Smart For this).

Well the time came where I got Fired From my job and needed money. With living expenses and other bills I was naturally Forced into using what was my only resource, my credit cards. Now this shouldnt have been a problem really ...just pay them when I get my new job right? Na.

Around the same time I started getting hospital bills From like 3 or 4 years ago which I never knew about (was probably around 16 or so when they started). I guess my parents didnt pay them and they rolled over to me ...whatever the case.

So, I had collection agencies sending me letters and I decide to pay them a couple bucks here and there with the other credit cards (I R stupid For this). Maxed out both cards and couldnt pay anything on any debt for about a good 6 months while I was getting myself back on my feet.

Now, I do have another job right now, but I dont know where to start. I know my credit scored completely ruined and the status on everything is either closed or out for collection. Now, I also have attorney Fees on my report and Im about 5k in debt (rough estimate).

I do want to pay this debt, but like I said, I have no clue where to start since I owe so many companies. Heres my real question though...

I want to go to college, but with my debt ruined how am I supposed to get a student loan? With no student loan I cant see anyway I could pay college tuition and books. I think I'm really screwed right now and I just got started ....Someone guide me in the right direction here!

Sorry to hear about your troubles. You might try posting in the main credit forum for guidance regarding your debts. As far as the possibility of student loans, how far along are you in the process of looking into going to school? Have you completed a FAFSA by chance? Federal student loans are not credit based, so your current debts won't affect your eligibility. They will however take your parents' income into account until you can be considered independent, generally when you turn 24. Try doing a google search for "EFC Calculator." Run the numbers and see how much federal aid you're likely to qualify for.

Thank you so much, I thought it was based on credit (was wondering how all these college kids got these big loans lol).

What state do you live?

California has a great community college system, and costs are $15-20/unit. You can attend classes while working and rebuilding your credit, without incurring much (if any) additional debt.

You can go to a community college for a couple years, then transfer to a 4-year university. In addition to saving money, it allows you to get your feet wet with college classes, and gives you a chance to get prerequisite courses out of the way and find out what classes you really enjoy. This helps in selecting a major.

As far as your debt, there are a few strategies:

1. work on paying off some of the smaller balances, so you have a sense of accomplishment, then move onto paying the larger debt balances.

2. pay the most you can afford to your higher interest debt first, while paying the minimum to the less expensive debt...once you pay off the high interest debt, apply that payment to the next highest interest debt...and so on until all debts are paid...this is called the snowball effect.

Good luck!

I live in PA.

I was wondering if consulidating my debt was an option so that I could just have one big bill. This would kinda give me a sence of how close Iam to my goal (since 5k isnt a huge debt, it shouldnt take that long). With my credit being so poor, where should I turn to consulidate. I heard ccc hurts your score even more... and i know that no other credit company is going to willingly take my debt with a huge interest rate (although I can probably have it paid in a year so not sure this matters).

Another question. Once I'm debt free, how long will it take for my score to rise again. Should I take out a high interest card only to buy small items and pay it off every month or just leave it alone ...thanks.

Depends, could take one year or two years. You need to get new credit as well as pay/remove the negatives. Read the newbie section thoroughly before taking any action. Good luck.

Just a heads up to the OP; you are NOT screwed.

I am also 20 about to turn 21 in a month or so. I was on the same boat as you... I was able to save up $12,000 and buy a used car and spend my money on other things. I think what I was making and what was in my account helped me get 7 credit cards never being denied; which added up to around $16,000 in credit altogether (no joke.) One of my cards had $8,000 on it! Anyways I spent my money like a moron because I also had a good job... it wasn't necessarily great but I was working over 60 hours a week netting over $500 a week after taxes. I lost my job and gambled ALOT of my money; maxing out my $8k credit card to over $11k and f**king up all my other ones (discover, amex, paypal, macys, capital one, another with washington mutual, and my NatCity one). This happend over a year ago and I was able to thankfully get 2 jobs which I still have around 3-4 months after I lost the one that I was doing great with. I've been paying off my credit since, and I now have paid off ALL of them only leaving my main one to pay for with about $5k left.

Although all of my accounts have been closed except my AMEX and Macy's, I am very happy with where I'm at. Everything is going to be paid off this year and I've learned my lesson the hard way. My credit score for all 3 is between 615-640, which is poor to fair range. It's not that bad, I'm sure after I learn how to get some things off my credit report (which theres A LOAD of advice on doing this on these forums) and improving my credit the right way (this forum also provides this great information) I will have a great credit score and be able to get the right rates on any purchase or card I wish to get.

Keep your head up!

-tengo