my story

In 1999 I took out a car loan for 5000, then in 2002 I bought a new car for 10k and refinanced what I owed on the old one onto the new one. I then sold the old car and used that against my loan. I made paymens on it until 2004, but when I left the navy I was unable too find a decent job and could barely afford too eat and pay rent. The account went over 180 days past due..... I found a permanent job....They only called me once. They obtained my work phone number and told me that if I did not pay in full that my wages would be garnished. At the time I was working 30ish hours a week at 12.15 hr. I was paying 250$ a month in medical (required by the union) 200 a month for tools so that I could do my job, and 60 for union dues. I was barely able too pay my rent. My wages were never garnished, I never heard back from them. 6 months latter I quit that job.

Now I am making 12.10, but I am working 60 hours a week. No more medical premiums, no union dues, no tools. I am currently making around 3k a month gross and when I go back too school this next quarter I will be making another 600 or so a month. I started saving my money, and now I have around 1200 in the bank. I want too get the charge off off of my account, and I was thinking about using consolidation in order too be rid of it. Would there be much of a differnce on my credit report between paying the bank directly or having a consolidation pay it of on full then quickly pay back the consolidation?

Currently I owe 9,200 to the navy federal credit union, I recently found out by checking my credit report that I also owe 160$ to alltell(marked as a charge off, I don't recall oweing them anything when I closed my acount with them and moved too washington??). There are also a few minor things here and there that I owe on that have not shown up on my credit report, but reguardless I will be taking care of them in the next week or two when I have time off of work.

Tottal debt= 9800$ aprox

I need to get out of debt so that I can get a decent car, lower my insurance rates, and who knows mabey even someday use my VA loan. Even after I have paid everything off will I still have bad credit??