What would be a credit consolidation company to use?

Is it better for me to settle my own debts or use a company?Will this then give me a credit score?

• Is it better for me to settle my own debts or use a company?Would they be able to settle cheaper than just by myself? Will this then give me a credit score? I'm 22, never had any credit at all (no cellphone, or cars bought that are on my credit,no credit cards), I'm wanting to try to buy a house now, but when I was younger I was immature and have about $5,000 of unpaid bills on my credit (medical,electric,water bill,phone bill,etc.) some about 4 years old up to last year... Any advice would help also I have like $700 on my credit because I signed up to go to College, when I just turned 18, but I guess I didn't think that I was signed up until I applied for federal grants, Or go on the first day, but they have that on my credit report, I guess I didn't understand at that time. Is there anything I can do about that?

• Answer:

  I would try just paying the cheaper ones first..and the bigger accounts try to talk with them yourself (some collectors are wiling to work with you) and if it doesn't work out then try using a consolidation company..As for the $700 I'm pretty sure you might have to end up paying that also, it depends on the statues of limitations in your state (Age to enter contract)..But I did the same exact thing you did as a kid, but luckily my total debt only came up to $1,126 and I'm paying it off now... As for tips on building credit..try applying for a secured credit card at your local bank or credit union and you decide your limit with your deposit ($300 +)..I hope this helped !!