Settle Before or After Accounts go to Credit Collectors?

Is the goal to settle before the accounts go to collection agencies? I don't have any money to settle and I haven't paid most of my credit cards for more than two-three months. I'm unemployed and have only been working in the Census to make ends meet. The Census is almost over so I won't have that cash anymore. What my husband makes is only enough to pay mortgage/car payment/car insurance/food/utilities. I believe I will get a refund for my Tax Return but that's not till next February. Will it be too late to settle then?

Thanks and best regards,
Ruby