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I should be finished with school in a year and a half or so. In the next 5 years or so I want to be able to buy a house.

I know my credit needs cleaning up. Is it better to pay the debt or let it fall off eventually. I read somewhere that even if you pay the debt it still affects your credit.

How much of a down payment can I plan on putting down? I will probably be looking at older homes as I won't be able to afford a brand new one.

Also do they include child support when figuring income?

Yes they include child support when they look at income. My son's father had to supply 12 months of cancelled checks to prove child support since we don't have a court order.

Also, I don't know this for fact, but my personal opinion is it's better to pay off/clean up debt whenever possible.

Hopefully someone will come along with a better answer.

Also, I don't know this for fact, but my personal opinion is it's better to pay off/clean up debt whenever possible.

That's what I thought but I've read online that if you pay off a debt on your credit it will show as paid but it will hurt your credit score because paying it off starts the clock over to it falling off your credit.

Don't know how true that is but that's what I read.

I've never heard that one.

I always thought debt showing as paid was a good thing... Don't banks want you to pay off debt?

Are we talking a previous bankruptcy kinda thing or just everyday credit cards and consumer loans?

Back in the day, I had some trouble with my credit due to an accident. There are a few factors to take into consideration. Usually, after about 6 months of no payment, the debt is "charged off." That's only a term meaning the company doesn't expect any more payments. It's also used by credit agencies as the date of last activity. That date typically starts the seven year reporting clock. The debt could be sold, and the collection agency can then report. If at all possible, work with the original creditor. I was able to work out a deal where they accepted payment in full, and they removed listing from credit bureaus. The law states they have to report ACCURATE information, not that they have to report.

It's a long journey, but completely possible. I own my own house now and years ago my credit score was down to the high 400's. FICO is a fickle fellow and I can give you some more advice if you'd like to PM me. Good luck!!