If you pay the past due then your account is brought current again. Just continue to make you payments on time every month.
Yes, continuing to pay on a current account is much better than settling. Once you bring your payments current all of the lates will fall off 7 years from each occurence. When the last one comes off the account will be in good standing and stay for up to 10 years from date closed.
Make sure it has not been CO'd or sent to a 3rd party CA.
