Back in college I opened up a couple credit cards just to get me by the school years. Of course being a college student in all, I didn't keep up with the payments and they went into collections with a bunch of other charges. This was about 2 years ago but now I am now ready to get rid of this debt and start building some credit. I'm not quite sure how I go about doing this.

What is the difference between debt settlement and debt consolidation? I have a few bucks saved up that I will be willing to spend to clear up this debt, but what would be the best option for me and for my credit as well? If I pay off the entire debt, will it show as a positive mark on my credit? Thanks in advance for any advice...