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Posts: 2
Registered: ‎06-25-2011
trying to get bad credit under control and turn it into good credit...help!

Question for you, my husband and i have pitifully bad credit 450-500 blah =( our own fault and now with three kids and needing to buy a house soon, we need to get things on track!  I have gotten alot of "settlement" offers from collection agencies and i'm wondering if paying a lot of little settlements would be better or worse than just paying on the full collection of a few...From now until the end of the year i am working a second job brining in an extra $800-$1000 per month.  I want to use this money to pay off our delinquent and past due accts.  We have three credit cards that are open and active total owed is approx $4000.  We have two loans out totally $6000 and NONE of these accts nor our two car payments are behind/delinquent...we have 3-4 CC's that are in collections, i have a student loan i'm being garnished for each month, and he has some past medical debt and all the "bad" collection debt is unsecured and equals approx $5K-$6K...so i guess what i'm asking is, do i continue to just make my monthly payments on our "good" debt, and take the settlement amounts and pay those off, or do i just go one by one and pay off each collection acct in full or do i just pay off all our "good" debt in totatl and leave the collection stuff sitting there til last?  I don't understand which ones will actually raise the FICO scores the best????