Credit Advice

Both will help. I think settling the collections will be a bit better. 

I think this depends on how old the charge offs are.  I have heard that current debt is more important to pay as far as protecting your credit score, as the charge offs have already done their damage within the first 4 years of having been charged off.   However, I am repeating information I have heard in my own efforts to understand credit score and would welcome any corrections or further advice as to this information.

I agree with tcsgirl.   Old debt no longer active has already done its damage.  Current debt is most important to keep in good status.   If you plan to take on old debt you need to take into consideration the status of each of the debts.  Debt with a status of Charge off are beyond fixing.  Even if you contact them, if they are legit lenders, they will not even deal with you on the debt any longer.  They will state it is closed and sold or charged off.  The new debt holder, the junk collectors, are a different story.  If they are posting monthly as though it is a truely active debt, then you need to do something about it like fight it as being legit (wite validation letters for instance), or pay if off.  However, you also need to take into consideration the length of time it has been on your report.  Normally, your report will state when the entry will stay on your report for.  If the time extends beyond when you want to get a loan, then you probably should settle it or fight it off your record as it will look better being resolved then liguring there.   Also confirm the length of time is within your state's statues of limitation. Taking on old debt can take sometime but you have resources and options available such as settle offers, lawyers, state attorney general, etc.  It all depends on how you want to handle the entry.