Where to start? When I was 20 (6 years ago) I got 4 credit cards and defaulted on all of them. I also incurred about 5 medical bills which I didn't have the cash to pay so they went to collections Two years ago I signed a lease with a roommate of two years and got stiffed with 2 months of their back rent. I came home one day to find they had moved out so I had to move out as the rent was due in two weeks and my account was already drained from paying their side for the past two months. I tried to work out things with the complex but ultimately I had to move back in with my parents and get my financials together.I cleaned the apartment, dropped the keys off in the lock box with a note. I never received an eviction notice although they could have placed one on the door after I left I have no clue. I did get a letter stating they won a judgement of $700 against me and my roommate which is far. I am finally financially in a place where I can afford to start paying some of the debts I have ( Medical Bills) My credit cards are falling off starting next year. I can say I have my reasons but the truth is I have been very irresponsible with my credit and finances. Below I have listed my credit report. Questions- Should I actually file for bankruptcy? My CC are falling off next year and I can settle hopefully for 50% of 3 of the medical bills ranging from 700 and below. I can't afford to pay the leasing agency until the next 3 to 4 years and would only be able to at 50% at that. I don't think I need to file but I don't know how much trouble I actually am in, you do. If I can settle with the medical bills as listed above at 50% and pay it will it help my credit? Probably self explained question but what does paying it help with? Does the payment status change? Does it go away from my credit report if I pay them? Can I have it erased once its paid or do I still have to wait the 7 years to have it fall off as well? If its marked as paid does that help on my credit report or is it the same as it was? If this was your mess what steps would you take to get start fixing this? I have heard of opening secured cc to help your credit... how does that work? How many points will that go make it go up?
I am working full time as a retail supervisor so my income is not high but I have learned how to save and would like to start fixing these things and eventually get a unsecured card. What kind of score do you need to get approved for a cc?One last question- Capitol One as listed below is listed as collection but so is portfolio they are reporting on the same debt. And both in collection? Thats two negative marks for the same debt. Eventually when I am done with school and gotten myself out of this mess with the right financial choices I'd like to own a home. I know this is a mess and for years I lived paycheck to paycheck. I have worked very hard to get myself where I have enough to start paying a little at a time. Any help is appreciated. Thank you for taking time out of your day to listen and offer any advice that you have.
Lauren
Credit Score of 548 - Equifax