<prompt> Human: Without going into specifics I have a credit score of 515. I do not have any debt from loans, properties or cars. I have one open CC which I use and was opened in 2007. But I have 2 other CCs I opened in 2015 and unfortunately I have not been able to pay off. Both accounts are closed, so do I contact them and pay it off directly? Or do I pay the amount thats offered to me by collections which is smaller? It also says the accounts are charged off in my credit report. Also, I understand that secured CCs are the way to go in helping me build my bad credit up. Would that be the only way to help fix it? Especially a couple years down the line when Im looking into buying a car or a house. While having no idea what I was doing with my life, I also did not value how important my financial future was. I am a dumbass.Edit- I want to apologize for everyone getting this post sent to them while they sleep. I dont know why they picked this one. Also, I want to thank those who still gave me advice!  <response>: TL;DRIdentify bad spending habits.Make a budget and stick to it.Consolidate the high interest rate credit cards into one loan with set term and repayments or pay them off with cash sooner than later.Not sure what country you live in but is Australia 515 is a mid range score which isnt great but not bad. Also not sure the financial products available to you, or policies or servicing criteria you will be subject to.Without telling you your business and not knowing why you got the credit cards in the first place, you should start with preventing this from happening again.My father always said live below your means!Just because you make 500 a week doesnt mean you need to spend 500 a week.Put together a budget, they arent just for businesses!Make sure you are putting enough aside for your:- bare minimum weekly living expenses e.g. groceries- rent and utilities- other billsFigure how much you can put into savings a week and set yourself a goal e.g. deposit on a house. Or maybe a holiday!Whatever you have left over is your entertainment social allowance for the week. If you have any of this left over by the end of the week put it into your savings.Put your living expenses and entertainment allowance into a transaction account, linked to a debit card that you can use as a credit card. If this runs out 3 days into the week, tough shit, eat rice and tell your mates you cant go out for a pint.For your bills put the money into a separate account and pay them weekly. By the end of the month quarter the balance should be small or in credit.Put your savings into a separate account and do not touch unless it is an emergency or you achieved your savings goal.Revisit your budget regularly so you can tweak it and dont forget log the data so you can track your performance. Youre responsible for your financial stability, no one else is!I do this weekly to identify cash flow issues before I lose too much, it only takes 5 mins. You could do it monthly or quarterly if weekly seems overkill.Onto the credit cards.If you have the money on hand and can afford it I recommend trying to pay the bank credit card company direct. If debt collectors get involved it can cause further damage to your credit score. In aus credit events stay on your file for 7 years.Otherwise I suggest you get a personal loan with a fixed term of 5 - 7 years with fixed repayments e.g. 200 per month. The interest rate should be lower and fixed. its easier to budget a known payment and there generally no penalty for paying it off early.The above worked for me. 29 y.o. have a house w mortgage. I dont live lavishly but I dont go with out and generally get to have a holiday every year. I havent owned a credit card but do work in the finance industry and can safely say unless used correctly credit cards are cancer! 