Credit Score of 531 – Delinquent Accounts – $25,000 unsecured debt – $12,000 Student Loans – Bankruptcy?
I haven’t been able to pay on anything for about 9 months so my credit plummeted. However I did pay on time for 8 years straight before I lost my job and couldn’t pay for those 9 months. Now I have a new job and I will be grossing about $ 28,000. Should I declare bankruptcy to get rid of my $ 25,000 credit card debt and then try to build my credit back up by paying my student loans on time (I am still in the grace period on them right now)? Or should I try to pay the $ 25,000. Which would be better or my credit in the long term? I’m still young (mid-20’s) so I wouldn’t be looking to get a mortgage or anything for 10 years or so anyway.