So I have a personalized and interesting situation going on which im seeking advice for. First I'll give a litte background on myself and the situations that have lead up to this moment.
When I was young and boneheaded, I started out with credit cards and bills I could not afford. This continued until I buried myself in debt. Now, the debt I have is in collections (I believe the total is around 2800) and my credit has taken a hit to the point where I can no longer get any sort of personal loan or credit cards without it being a secured loan. I have no assets of value and not a ton of money I could put up as collateral. I do make somewhat nice money, but with bad credit, that only goes so far. I just got married and we are looking to buy our first home together but I'm not sure where to turn, or what options I have in my corner.
Now, onto the question at hand. Is it worth paying off my old collections debt with some of my saved money/wedding money? or should I focus more on saving up a good down payment for a FHL loan? It will take another 5 years for my collections and bad credit to drop off. Even if I do pay off the collections, from what I've been told it wont necessarily change my score for the better. So i guess I'm stuck trying to figure out where to go next.
Any assistance or recommendations is greatly appreciated!
When I was young and boneheaded, I started out with credit cards and bills I could not afford. This continued until I buried myself in debt. Now, the debt I have is in collections (I believe the total is around 2800) and my credit has taken a hit to the point where I can no longer get any sort of personal loan or credit cards without it being a secured loan. I have no assets of value and not a ton of money I could put up as collateral. I do make somewhat nice money, but with bad credit, that only goes so far. I just got married and we are looking to buy our first home together but I'm not sure where to turn, or what options I have in my corner.
Now, onto the question at hand. Is it worth paying off my old collections debt with some of my saved money/wedding money? or should I focus more on saving up a good down payment for a FHL loan? It will take another 5 years for my collections and bad credit to drop off. Even if I do pay off the collections, from what I've been told it wont necessarily change my score for the better. So i guess I'm stuck trying to figure out where to go next.
Any assistance or recommendations is greatly appreciated!