Question:
Dear Steve,
I just took out a debt consolidation loan, and I have a total of 7000 in credit card debt, a car note with 3700 still owed, and 5200 owed to IRS in back taxes.
I wanted to know how to spread the money around to increase my credit scores to buy a house. Thanks.
Monica
Answer:
Dear Monica,
You didn’t mention how much you received in the debt consolidation loan.
However, I would suggest talking to a local mortgage broker and discussing what will be the most effective way to apply the available funds since the end goal is to apply for a mortgage.
We know what the end goal is and the smart thing to do is talk to the broker and understand what will make the most sense for you rather than guess.
Sincerely,
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
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The IRS doesn’t report on a credit report. A car installment note paid regularly should reflect positively on your credit. You can keep that. You will want the balance on your credit card to be less than a third of the credit limit. For example $10k credit limit, balance should be $3300 or better yet less.
Eric HELPS Nonrpofit Law Firm
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