I’ll make a long story short and say that 2 years ago I lost my job and moved to Georgia. Things got a little dicey and I had to default on a few credit cards. The limits were not high and some of it was circumstantial. I am not immoral and I due feel an obligation to repay my debts. I have years of good payments, followed by a year of missed payments.
I am about to start looking for a mortgage as I now have a great job with dependable income. I am also ready to repay this debt, but I would like to do so without being gouged, or further hurting my credit score. Right now it sits at a miserable 524.
The two credit cards were about tripled with non-payment charges and interest. After this they were sold off to debt collection agencies. Unfortunately both the original and the bought debt are showing up on my credit report.
Who do I rightfully owe, now? The bank/credit company or the collection agency? Will repayment with one satisfy the other? I would like these blemishes to be removed from my credit history if possible. I am willing to pay the entire amount if necessary, but could I offer the original amount and see if they will bite?
I’m at this amazingly awkward point financially where I live quite comfortably (to my standards; 4 squares heat and electricity, and of course interenet access) but have to make my income look good (mortgage, etc) and bad (student loan repayment, etc).
Any help would be much appreciated.