I have about $4400 of debt in collections. 9 of my 11 collections accounts are medical. The other 2 ($716) accounts are sprint and brighthouse. My wife and I are trying to build my credit up so that we will be able to buy a house in the near future. As of right now I dont have any good credit. The only things I have in my credit file are collections. I do not currently have anything that needs to be paid regularly(car, credit card, mortgage, etc.). I dont have the Money to pay off all of these people, but i want to.
I have heard that a debt consolidation loan would pay off all of these collection accounts and I would only have to pay the loan back, and at the same time, instantly clear up all the negative account information on my credit file.
Id like to know what to look out for when looking for this type of loan. I would also like to hear any success stories that you have with this type of loan.
Thanks for your time!