Hello all,
I have about $20K in debt. Half of that debt is from an apartment eviction (I will never be 'leasing' again!) and the other half is a combination of medical bills, a student loan and a car reposession (all in collections, of course). My FICO is currently 563.
Moving on, I've found a decent paying job and I'm trying to make some serious moves towards paying off my debt. The thing is, I'm 27 years old and I'd really like to get my credit to where I can get a mortgage on a home or condo (around $100K).
I've looked into debt consolidation with national debt relief, but I can't justify paying an extra 25%. Also, the debt consolidation company wont give me a loan. They want me to open up an escrow account so they can 'play' with my money and negotiate with the creditors.
Also, this debt consolidation company claims that my credit score will increase by lowering my debt/income ratio. HOWEVER, isn't a derogatory mark still a derogatry mark on your credit report? I am trying to understand all of this.
If all else fails, I'm thinking about bankruptcy . . . but then my chances of getting a home would be 0.
Any thoughts? Opinions? Inputs? I'm just a broke milennial who wants to move out of the parent's house.
