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Should we consolidate or do it on our own?


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Ok my wife and I would love to buy a home. Should we consolidate our debt or negotiate on our own? The thing about negotiating on payments on collections is if even I negotiate say $10 a month on a card thats in collections, will that at all be helpful or will only larger payments help?. On my credit I have a collection Credit One card of about $400 and older Verizon and ATT accounts of about $400-$700. I also have a balance of $350 on a cap one that I have never been late on. Good standing etc. I also have a car loan of $10000 that I have never been late on. My wife has two older cap ones in collections of about 400 each and student loans she is past due on. Our scores are both in the mid to high 500's and not moving. Im wondering if we should consolidate the debt and if any companies are recommended. Cannot file BK since we had a BK (chapter 7) discharge back in 2012. Would love to buy a home sooner than later since we both have good incomes now but our apartment is raising rent and for the price we could pay a mortgage. We've been looking at cheaper places but with the bad credit its hard to leave. Blew it after the BK due to job loss soon after. Good stable incomes now. I work for a school district (not a teacher yet) and theres tons of home buying help and programs for employees but I need to get the debt fixed first. HELP!

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Consolidation or payment negotiation won't help.

 

I would suggest starting credit repair without a fixed timeline to start house hunting. It takes time, and it sounds like your reports and finances both need some work before buying a home.

 

Don't just start paying collections or your scores may not improve at all.

 

Order paper copies of your credit reports directly from EX, EQ and TU and list your negative accounts here without account identifying info.

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Don't assume that having a mortgage payment equal to a rent payment means a mortgage is a smarter decision. If you're cash strapped, it can be a huge mistake when the roof leaks or you have to buy a new A/C and don't have funds, income and credit to swing it. Renting means calling the landlord to fix it.

 

As for rebuilding your credit, you have a lot of reading here to do and you can do it 100% yourself. It's a slow process for most but it's worth it because doing the work yourself teaches you not to crap on your FICO score every 5 years.

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Ok. Gonna get the paper reports this week. Once I get those. Then what? Also, is credit karma a spot to check the reports? I have it and check every so often. Has info. I've disputed before to see what would fall off etc. it's fairly accurate from what I can tell.

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Posting an entire credit file here is too much information. The site is designed for people to post a specific question regarding their credit reports and have us try and answer those questions. Also, keep in mind you need to make positive you do not disclose any personally identifying information here.

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Maybe a mod could change the thread title for you and you could make this a running thread.

 

Once you have your reports, post the negatives and we can help you pick which to start with. At that point, you can give more details on the accounts you are starting with.

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For instance: list one credit file problem, such as you mention a Verizon collection. Tell us all about it. Date opened, date closed, the total amount owed. Last date you made a payment on the account, and we will go from there.

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For instance: list one credit file problem, such as you mention a Verizon collection. Tell us all about it. Date opened, date closed, the total amount owed. Last date you made a payment on the account, and we will go from there.

 

I think it would be helpful to get a general view of the overall picture and then solicit more specific info once a general plan is formulated. For example, if there are medical collections those should be handled first with WhyChat's program, if there are instances where an OC should be paid to get a collection deleted those can be handled together, etc.

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The last post in this topic was posted 1412 days ago. 

 

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