Maybe someone here will be able to direct me, I was recently looking at the option of bankruptcy, however after reviewing my credit report and my income it seems more logical for me to pay the past debt off, not to mention it's the morale thing to do. I have a 6 accounts with a total of $9,000 in back debt still show as "balance due" yet these have all been charged off. I currently have enough cash on hand to pay off three of these accounts today, and have the ability to have all of the accounts paid off within 3-6 months. I have sent settlement offers to 4 of the companys, and should they accept my offer, i will have all the accounts paid off in full within 2 months. Now here's where i'm at, i need to rebuild the credit within a year to year and a half time frame good enough to purchase a home. I spoke with a friend who recommeded once i pay everything off to save $1,000 and open a CD with it, go to my bank, Borrow $1,000 using the CD as security, and deposit the loaned $1,000 into another CD. Once i pay the original loan of $1,000 off repeat the loan, this time seeking $2,000 and securing it with the 2 CD's, again depositing the loan into a CD (for a total of $4000 in CD's) and pay that loan off, now having $4,000 in CD's, try to borrow $8,000 securing $4,000 of that with the CD's, and then place that $8,000 in CD's also. Now with 3 loans issued and paid in full, on time, no late payments, and $12,000 in CD's According to my friend i should be able to secure a mortgage for the purchase of a 120-150K Home without much problem. Does this seem like it would work or could ya'll offer other ideas that may work also maybe i can incorporate other ideas with mine to achieve the goal.
