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Onmyown214

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What to pay first?
I recently came in to a sum of cash that I wasn't expecting and want to pay off some of my debts (it's not enough for all but can put a large chunk down). My ex husband was a terrible money manager and has left me with a mess to clean up unfortunately. I owe:

$4,085 in "collections" accounts that are past due and unpaid. (Sources vary some medical bills one is an old cell phone bill my ex apparently never paid for). I could call to try to settle these for less than owed if that's a good idea but I'm not sure about that one.

$3,890 on a credit card with a $4k limit it's been maxed for maybe 2 years but before that was paid off in full. I've had the account going on 8 years now. It is my only credit card.

$1,800 on an installment personal loan from my bank (this is new-ish and I pay more than the min on it monthly)

I also have a large medical bill for surgery I had in 2012 that I pay on monthly and will probably pay on monthly for all eternity.

I have $3,500 to put towards these debts that I wasn't expecting to have and want to get the max benefit I can out it. I've paid off one personal loan in full ( (originally was $1,500) along with my car loan (which was originally for $16k) in the last year and it has helped my score some (from 520's to 575- which is still terrible). I will also be putting my tax refund this year towards the remaining debt but I don't want to count on this money as I don't actually have it yet.

The eventual goal is to be able to buy a house at some point in the next 3-5 years.

Any help or guidance provided would be greatly appreciated!

Thanks :)

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I would try to settle with the collection accounts and pay down the credit card so that your utilization on it is below 30%.  Also, you don't have to wait for good credit scores to get a home, you can go through naca.com, they are a great non profit resource.  Best of luck.

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