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Just starting to re-build.. Settle with collection agencies?
I am finally trying to get a handle on my credit after wrecking it the past several years. I currently have 9 open collection accounts totaling about $6,000. I know this isn’t a substantial amount, but I hope to raise my credit enough to purchase a new vehicle in November. Our family is growing and I need a larger one.
2 of these accounts will fall off this year. I also have a few medical bills on there. I have a plan to clear the smaller accounts ($300 each) over the next 2 months, but my question is with the bigger accounts. I have two different ones that are close to $1,000 and one at $1,400.
My question on this is, should I settle these for a lower amount? I’ve read a lot of mixed reviews on settling debts. I don’t know if I’ll have the money to pay them off by the time I need to and I would think that settling them would look better than having them not paid at all. These are less than two years old, so they are still fairly recent.
I just got a secured credit card, which is how we fixed my husband’s credit a few years ago.
My current credit score is 579 TU and 569 Exp. I need at least a 640 to get the same rate I have with my current auto loan.
Any suggestions on the best way to handle this?

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