Debt and student loans

If you get a personal loan for these things, you will not be completely out of debt. You can shift it around to whichever debt instrument you like, but you will still be in debt until it is all paid off or forgiven.

First, I would start by calling/emailing any accounts that have gone into collections. Email first so you have a paper trail. Just simply ask for your debt to be reduced. Sometimes, depending on how long the bill has been outstanding, they may lower it if you agree to pay them in full the reduced amount.

Second, pay off your bills. Small bills, big bills, these all need to be paid in a timely fashion. If you can't pay your bills, then you are not financially stable.

Third, depending on who your student loan is from, you may wish to pay steady amounts on it until it is paid off. If this is your only debt after the medical and other bills, use every extra dollar you have to pay this down. The interest rate on my $10,000 student loan was around 3.5%, so I just paid chunks down until it was all gone. Would a personal loan have helped me? Probably not because the interest rate would not have been as good. But, depending on your interest rate, it may make sense. Having my student loan open actually helped my credit increase because it was an open account in good standing. When I paid it off, my score dropped a little because I only had revolving credit left. It was only a minor hit, so I wouldn't worry about it too much.

The way to improve your score is to get the negative stuff off of your record, make timely payments on debt in good standing, and keep on trucking!