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missymcd0827

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Best way to pay collectors?
I have two accounts that went to collections a couple years ago. I haven't paid anything on them yet. I would really like to take care of it, and improve my score, but I can't afford to pay off the full amount. Will my credit score improve if I just set up automatic small monthly payments to them? I've also heard that it's not always beneficial to "settle" and amount. Is that true?

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No, it would not help your credit to get set up with payment arrangements with the debt collector, NOT one bit. There is nothing wrong with "settling", the collection account is still a collection account whether paid in full or settled and both are bad. I do not advise entering into payment agreements with the debt collector as it could possibly restart the clock to be sued for the debt (statute of limitations) and that would lengthen the time that you have this debt hanging over your head (in the legal system). The best thing that you can do at this point is to start saving money for the debts and do as much reading on this topic as possible. Read and save, read and save, repeat, until you have the money and knowhow to attempt a "pay for delete agreement" and also have the knowledge to not cause yourself any further hardship with this by making any wrong actions. Sit tight for now and read all that you can.

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Thank you for the insight. That changes my mind with jumping in and making payments to them. I appreciate it. I will keep educating myself.

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You are very welcome!

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