I have a question regarding my bad credit.?

I owe about $5000 which includes 1 credit card, 1 medical bill, a bank, and 3 loan companys. I want to better my scores so I can buy my own home next year. If I pay off at least $3,000 of this which would be the loans and the bank, would this better my credit scores for next year or am I still in the same situation. Also my score is about a 520, will it go up and how much?