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Credit where do I begin

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Anonymous
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Credit where do I begin

So I have about $4k in college loans to pay off. I paid over $5k on it with taxes as they collected. I am not on a payment plan with them currently as last time I talked to them they wanted over $800 down and then $93 a month. 

besides that I have a few older collections $287, $168, a bank one at a credit union account didn't get used after I moved and they charged me $4.99 a month as I had no cash in it. so I owe them $130 or so. I think there is one other bill for $1800 for a phone it comes up only on one reporting agency and says closed but is 3 years old, more like 4 really. If it says closed do I have to do anything with it? I know the ones are super small, but can I do pay for deletes? Or goodwill? They are all from 4 years ago with an ex... 

I did apply for 3 secured cards and got rejected on 2. Waiting on third. 

Whats the best plan? I know not much, but my scores suck!

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Anonymous
Not applicable

Re: Credit where do I begin

 

Hi Waterfall, welcome! And you've made a great step to begin thinking about how to clean up and rebuild.

 

You'll get a lot of specific advice on the individual accounts from people who have dealt with similar, but my advice to you is the first thing is to stop the bleeding. Cleaning up older accounts is not going to help if you are living beyond your means, racking up new bad accounts to replace the old ones. Rebuilding starts with looking at your current spending, and thinking about how to bring that line. First, how to live within your means. Second, how to have something left over after that to go after those debts and clean up older stuff. 

 

Try and not let anything else go bad, get the stuff that is still salvageable back to health. Then worry about the older stuff that has been charged off or worse, and either clean it up, or wait it out. In either case, make sure that you're paving a new road that's clean and solid.

Message 2 of 3
takeshi74
Senior Contributor

Re: Credit where do I begin

Definitely get your current finances in order so you're not adding to your list of derogs.  You'll definitely want to address as many of the derogs as you can as they will tend to hold your scores down as long as they're on your reports.  When you're ready, carefully research using the Rebuilding subforum as it is possible to make matters worse.

Message 3 of 3
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