Rebuilding - How long will it take?

[Anonymous]

Hi Everyone,  I am brand new to the forum and need some advice.  I am about 23K in credit card debt and medical bills (before car loans and studnet loans) my credit scores are 530's.  I have been offered a personal loan from a friend to pay off everything but our cars.  I am current on all the accounts but three which are charge offs not slated to be removed for several years.  My question is this.  If I pay off all of the revolving debt, keep my car loans (which are always current) and student loans (whch are in deferment).  How long will it take to get to a score that would qualify me for a home loan?  Should I pay the charge offs or let them be?  Thanks much for your help!  

[Momof5]

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@Anonymous wrote:

Hi Everyone,  I am brand new to the forum and need some advice.  I am about 23K in credit card debt and medical bills (before car loans and studnet loans) my credit scores are 530's.  I have been offered a personal loan from a friend to pay off everything but our cars.  I am current on all the accounts but three which are charge offs not slated to be removed for several years.  My question is this.  If I pay off all of the revolving debt, keep my car loans (which are always current) and student loans (whch are in deferment).  How long will it take to get to a score that would qualify me for a home loan?  Should I pay the charge offs or let them be?  Thanks much for your help!  

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First order of business is to pay down the CC's.  The COs are going to hurt for the duration.  If you get the $ to pay them off, see if you can negotiate a PFD with the OC.  It is unlikely that you can get mortgage with COs out there.

You didn't mention whether or not the CCs are still open or have been closed by grantor.  You need to give a bit more detail for us to help you.  As far as how long it will take?  No one can say.  If you get PFDs straight away, some of those CC's are still open and you pay them off, etc., you could bounce into qualification level pretty fast.  Sometimes, the PFDs refuse and it could hinder progress depending on DOFD.

[Anonymous]

Thanks so much for your advice.  All of the credit cards are current and open.  I am going to take the loan from my friend because my average interest rate is 22% and I am getting no where paying off the minimums.  So once they are paid off all I will have are two car loans (one will be paid off in november) and my student loans.  I will have the funds to pay off the charge offs ( 2 of them are recent one is about 3-4 years old) should I do that?  I have some late payments on the report from a few years back as well.  

[Anonymous]

Here is my life in numbers:

Current Accounts

Monthly Payment

Total Amount Due

Paypal

$46.00

$1,436.73

Pella

$43.89

$746.98

Sears

$86.00

$2,098.86

QVC

$151.00

$4,866.11

Capital One

$155.00

$2,975.61

Home Depot

$33.00

$1,158.86

Lowes

$148.00

$4,890.76

Amazon Card

$27.00

$827.37

Medical Bills

$50.00

$3,558.98

$40,380.90

Ford - Ralph's Auto Loan

$334.61

$3,243.67

M&T-Amanda's Auto Loan

$440.00

$25,253.69

Collection Accounts

Not currently paying on

Old Personal Loan

$1,797.00

Walmart cc collection

$300.00

Credit one cc collection

$700.00

Capital one cc collection

$500.00

[Momof5]

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@Anonymous wrote:

Here is my life in numbers:

Current Accounts

Monthly Payment

Total Amount Due

Paypal

$46.00

$1,436.73

Pella

$43.89

$746.98

Sears

$86.00

$2,098.86

QVC

$151.00

$4,866.11

Capital One

$155.00

$2,975.61

Home Depot

$33.00

$1,158.86

Lowes

$148.00

$4,890.76

Amazon Card

$27.00

$827.37

Medical Bills

$50.00

$3,558.98

$40,380.90 <- is this medical or the Auto Loan?  Are the medical bills collection accounts?  are they on your credit reports?

Ford - Ralph's Auto Loan

$334.61

$3,243.67

M&T-Amanda's Auto Loan

$440.00

$25,253.69

Collection Accounts

Not currently paying on

 Can you give me some dates?  DOFD (date of first delinquency) date of CO from OC

Also, who is the CA?

Old Personal Loan

$1,797.00

Walmart cc collection

$300.00

Credit one cc collection

$700.00

Capital one cc collection

$500.00

Also, is the loan you are getting from your friend interest free?

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