Rebuilding Credit After $23K Debt, On a Path to My First House Hack

[Anderson Montoya]

Hey BP community,

I’m looking for advice on how to rebuild credit to be able to buy our first investment property, after falling into $23,000 of debt. I currently have multiple delinquent accounts, including some that have been sold to collections. This is my first time dealing with this process, so I’m unsure how to approach negotiating with collectors, settling accounts, or what steps I should prioritize to begin improving my credit. Any strategies, tips, or personal experiences would be incredibly helpful.

A Bit Of Backstory:

I recently relocated from California to Kennesaw, Georgia to reset my financial path. Back in California, I was pretty irresponsible with money when i was 21, using credit cards to fund trips and nights out without thinking long-term. Once taking notice on how bad our financial situation was, my partner and I have made it a priority to clean things up and take the leap to move to GA. In August of this year, my partner and I sat down to take a deep look on our spending, bad habits, and expenses. At the end we created a budget and a plan to pay off all $23K of debt by January 2026, by contributing $3,000/month towards are debt utilizing the debt snowball method since we felt more comfortable with that choice. So far we have $20,000 left with a $1,000 Emergency Fund. Inspired by Set For Life by Scott Trench , We’d also set a goal to build a $25K financial runway before September and buy our first house hack (hopefully a duplex) by the end 2026.

I know I have a long road ahead, but I’m committed to turning things around and doing it the right way. I’d love to hear from others who’ve been through a similar situation or who can offer practical steps on dealing with collections and rebuilding credit while working toward that first property.

Appreciate any insight, thank you!