Problems with my guitar and amp (need help from an expert at guitars)?

Ok back in march i made the mistake of allowing my dad to buy me the fender starcaster pack which we both looked and I decided it was good. Now I am advancing pretty well in guitar, I know a bunch of chords,bout 6 or 7 full songs, riffs to tons of songs and i really wish I got another guitar. The guitar that came in the pack is a shitty chinese made fender single coil guitar with the most buzziest (dont know if thats a word) 10 watt amp ever. Look it up if you wan't to see how horrible it is it is called a squier sp-10 amp. All the amp has is b,treble,volume, and on you press for clean or for overdrive. Overdrive is so buzzy it is almost unbareable and to get even a slight metal tone or to get a pop punk/punk rock tone I have to turn my guitar volume to 10 and the amp to about 5 or 6 and the buzzing annoys me. The clean has like no tone and sounds so dull even when I turn my tone up and even try new strings. So I decided to start out cheap in fixing my problems and I bought a danelectro FAB distortion pedal which is in the mail right now probably arriving today. I wan't to know if this would fix my problems at all or if I should start saving up money to buy a new amp...I was looking at a line 6 spider IV or a peavey vypyr which one is better and has more punk or metal tones and is versatile. And I want to get one that is not to expensive so would 15 watts be alright if I was to join a band and wanted to be heard alright. The 15 watt ones for both of those are $100 dollars and I get 45 dollars a month for allowance because I don't want to wait a year for my dad to get me a new guitar and amp.And also will a my distortion pedal make my single coil sound heavier. Will my distortion pedal fix my problems?