Confused please help

[SSH0126]

Would it be better to pay off several small things over time( let's say for one year depending on the age on the credit report) or pay off one huge thing with the highest intrest rate and amt of debt that we have in a much shorter time period to free up money quickly to be able to focus on the remainder of the debt some of which the older collections and etc? I know all about the snowball effect however we would end up paying tons of intrest on this larger loan. The rest of our debt is collections and etc. 

Our goal is to buy a home in 2-2.5 years and currently have very low credit scores 4-500's. The income is there however we need to clean up our credit, show good payment history and low utilization between now and then. Feel free to PM if need be as well. 

[llecs]

If the debts are bad, as in COs or CAs, it really doesn't benefit to pay them over time. In some cases, it'll prolong score damage because of the way they can update. Pay in a lump sum. Paying over time can also reset the SOL in some states, so if one payment is missed, they can come after 100% of the difference, regardless of any settlement agreement. Be sure to aim for PFDs too. Remember paying off a collection will never ever help your FICO.

[bettercreditguy1]

I agree, pay off in full as rapidly as possible using a stratedy you are comfortable with.You could pay the most current and then work backwords or start at the worst and come forward. You haven't given us enough info.  Upon a manual review, paid in full collections and caught up, now current late accounts will help your case as it shows you are recovering from mis steps. Good luck in you journey