So here’s my situation…about 4-5 years ago I was in college and made some (very) irresponsible decisions which led me to piling up balances of ~ $3,000 and ~$2,000 on credit cards, about a $5,000 unpaid tuition bill (private school).
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The former two are in collections, the second is in collections but doesn’t report to any of the 3 bureaus. Â The collections agency that bought the $3000 debt filed a successful judgement against me for the principal amount (+ interest, which means the total is more like 4-5K now).
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I was laid off from my job just weeks before I was served papers for the judgement, so it really wasn’t within my power to offer any reasonable payment plan. Â After 4 months I have finally found a job and really want to get my credit on track.
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Now, I’m juggling two different things at the moment…
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1) Â I want to return to school but because of the unpaid tuition at my previous school they will not release transcripts and I am unable to transfer or apply for financial aid because of this.
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2) Â The judgement and collections (I feel) have disqualified me for jobs that I otherwise would have been well-qualified for.
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My questions are…
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Now that the judgement is on my credit and background history, do you think even though it is paid employers will still disqualify me for positions because of it? Â I have tried to be as up front about these issues as possible especially in expressing my desire to pay off my debts. Â It is very frustrating the amount of employers that require pre-employment credit checks regardless of the field and type of work.
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What order do you think would be best for me to pay them all off? Â Judgement, tuition, then the $2000 balance CC? Â In all honesty by the time I pay off the first two the statute of limitations may be up on the third account.