Humble. asked:


I am in my mid-twenties, and I need some advice and direction in fixing my credit, and wondering at this point if it is possible to actually obtain GOOD credit in the future, if I fix it in the next few years.

I am not even in MAJOR debt, but based on what I make a month, I make enough to pay my current bills and not too much extra, as we are also trying to maintain a savings account.

So, my question is-for example I owe about 2,000 to a credit card, that is now in collections–do I take them up on an offer where they cut the amt. I owe down or just pay small amounts monthly until it is paid off, I have heard differing advice on this, as some people say if they cut the amt. down it actually has a negative effect on your credit, and that’s the last thing I need as far as my credit score is concerned.

So, please, tell me, what can I do, because I really want to fix it. I have MAYBE $5000.00 in debt, but I am sure I cannot get a loan to consolidate this because my credit is bad, and no NO co-signers, I am in this alone.

Thank-You in advance.