Hello All! So I have 2 c.c in collections. One has about $1700 and the other has around $500. These debts originated the summer of 2010. I am trying to get some extra income to save towards paying these off but my schedule is proving difficult. So far I have taken the "bury head in the sand" approach.Some facts about me: I am self-sufficent and make around $900-1000/mo. I rent and have roommates and own my car. I am overwhlemed by what/how to conquer this. Do I need to save up $$ first to pay it all at once? I just feel lost.... Also my car is going to need to be replaced soon (1-2yrs). Should I pay off these debts or save for a new car first then worry about debts later? I can save around $200/mo. max. Thanks so much!!!

 If you don't pay off the credit cards first you will have mch higher interest on your car loan.  Insrance companies also look at your credit and if you have these as showing up unpaid, yor insurance company assumes you are irresponsible, which makes you at higher risk for an accident so they in turn, charge you more for your insurance.

What is the minimum amount due on the credit card with the highest balance?  Out of the  $200 you wrote that you could save per month, pay the minimum on the higher card.  Now, take every single dime that is left of the $200 and send it to the company where you owe the $500.  If you can scrap up any more, then send it too.  Once the smaller card is paid off, then send everything to the other.

You can have these issues resolved with in a year, which leaves a year to save before getting another car.

Honestly I am not sure what the minimum payments are. I have moved twice since this time and was honestly scared/tired of feeling harassed (calling me upwards of 16 times per day). I have a new address and new phone number and haven't heard from them. I suppose I could call the credit card company and they can tell me which collection agency holds my debt? Also I was definitly planning on buying a used car...I don't feel like I am in a good enough financial place to have car payments every month.

The used car is a good choice.  Even with that, best to pay off the bad credit card debt ASAP and Grame has outlined the basic method.  Poor credit is now an excuse to charge you more on car insurance so best to get rid of it even if you won't need a car loan.  As someone who once had debts, I can tell you that getting out of debt did wonders for my sense of well being. 

If you have anything at all that you might be thinking of selling, that could give you a little boost toward getting that debt paid off too.  Lots of people have worse debt and it sounds like you're an organized responsible person who can deal with this level, $2200, within a  year if you put 200$/month toward it.

If the cards are in collections, they may still do a monthly payment plan with you.  Most companies want to get their money so they will usually work something out but collection companies can be harsh.  I had a friend go through something similar.  She had a three credit cards and went through a bad divorce, etc.  The credit cards sold the debt to collection agency.  She finally called them and two of the three offered her a payoff amount for a fraction of the original bill but she had to pay it immediately to get the deal.  It showed on her credit report that she paid but settled for less than the amount due.  The third filed judgement on her in civil court and served her papers.  The sooner you call to make arrangements, the better it will be for you.  Be firm with what you can afford to pay and then stick to it.  Collection agencies are highly unregulated and use scare tactics but they do have rights.  But if you are willing to pay the debt, there are laws to protect you.

 Priority: Do NOT give a collector access to your checking account and debit card number EVER.  EVER.   

You will most likely hear from them that the only payment they will accept is to directly access your checking account or debit card number.  That is NOT true.  Don't cave in.  Tell them that you can pay them $X with a cashiers check or money order.   Alternative, is to set a new account specifically for that credit card and only put in the exact payment amount that is agreed upon.  This is less desirable though. 

Next: Go to annualcreditreport.com. You can view/print your credit report 100% free.  This will help you to know what is owed and to whom, and the balance. 

Then: Work out a payment arrangement with a collector. Do not send them ONE dollar until your payment arrangement is in writing and in your hands.  If the payment arrangement sent to you is incorrect, do not start paying on it. They will most likely tell you that they can't send a payment arrangement in writing. Tell them that you can't send in payments w/o a payment in writing.  Don't cave in on this. 

If it were me: I would start with the smallest debt as you can get that paid off the quickest.  You need that surge of YES! I CAN DO THIS!!!! motivation to stay the course and not let those collectors beat you up. 

ALSO, keep this website bookmarked: 

Fair Debt Collections Practices Act  http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm

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Vehicle purchase--definitely save cash to buy your next vehicle.  Why do you think you will need a car replacement in 1-2 years?

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Income--what can you do to earn more income?