I need help! I had a really really rough time 3 years ago and basically didn't make any payments towards any credit cards. I almost had to file bankruptcy, but didn't. Now, I have several large accounts with amounts due on closed credit cards. They are accounts at collection agencies now. I have 5 accounts $5k, $3.6k, $3k, $1.7k, and $1.7k. These five accounts are all at collections and I just got my first call about one of them. I had 2 student loans on top of these, but with hard work completely paid both of those off. While I was paying those off over the last year, I didn't make payments on the other accounts. At that point, it had already been 2 years since my last payment, so what's the difference in making it another year. It is now time to start paying these off. My main question is what is the best way to do it? How can I increase my score the fastest, it is at 520 right now?
If I make a deal with these collection agencies to volunteer to make payments (non-wage garnishment), will monthly payments affect my score? Do they report to the Credit Bureaus, or will it not get reported until the account is completely paid off?
Next question, would it be better to make a monthly payment of $75 to each of the 5 accounts, or a monthly payment of $375 to one account and move on to the next account after its paid off?
Please Help!!!
