🔺 r/personalfinanceuhmaccc-·65 days ago
Hoping to get myself out of this hole and start repairing my credit. Does this seem smart? Any other advice?
Paying off debts I’m getting $28k in a buyout from a home I purchased with my ex-husband. I have roughly $15k in unpaid personal loans and maxed out credit cards, stuff in pawn (I know paying these off won’t change my credit), as well as one personal loan that I’m current on but I want to pay off as well (reducing my monthly expenses). One of the credit cards (Comenity Bank) did send me a summons and I responded saying I would pay by mid August, but the remainder are still in collections. My plan is: \-pay off all of the debts in full. I’ve been reading that you can offer somewhere around 50% sometimes to clear it and stop reporting it to creditors. \-get a secured credit card from the bank to help me rebuild my credit \-after paying for some other life stuff, put the remainder in a high interest savings or CD and leave it alone (I’m estimating I’ll only have $8k-$10k after all is said and done). Does this seem like a good plan? If so, what does the timeline look like for a credit score to begin recovering? The goal is to buy my own home in the next few years. I’ve considered consulting a financial advisor, since I’ve never gotten this much at once and I kind of suck with money, bu…