My question is regarding debt consolidation verses debt reduction.  I have a fico scores in the mid 700s.  I have about 25,000 in credit card debt.  I am very fortunate to have very low rent, so I don't own a home.  However, some day I want to have a saving and I want to own a home.  I have an excellent career, working for the county, so I have benefits and make about $70k a year.

Question:  divorced 6 months ago, bought home instead of renting, now 75,000 in debt, own concession business, seasonal, make 25,000, 6mo saved money for winter months and work pt, cant find any jobs that pay halfway decent, truck was repoed 2 days ago, owed 26,000, worth only 17,000, need truck to run my business...

Question: My Fiance' & I are hoping to buy a home this summer. He was divorced last year & his ex failed to get his name off of the deed within 7 months of divorce & also failed to make payments on time. Will this affect us negatively with the bank? Also would it be best to take a large amount of money we have saved to pay off any debt, or use it all for a down payment.

Find out what the credit reporting agencies are saying about you - Step one to addressing the problem is finding out just how bad of a problem you have...

Don't apply for credit unless you need it.  And make sure you have a conservative definition of the word “need.”  Use credit cards as a 30-day, no interest loan that must be paid in full by the due date...

Myth 1: Close credit card accounts if you're not using them because it will improve your credit scores. Myth 2: Avoid credit after a bankruptcy or some other credit disaster. Myth 3: Paying your bills on time is the best way to get a good credit score...