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Skiwantsout

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Debt Consolidation
Would it be wise to take out a personal loan, if possible, to pay off all my debt that is in collections?

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Top Contributor
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Sure, if you feel that you can pay it back without any problem and if you can get a loan with collections on your reports. If you are able to get a loan to pay off the collections, be sure to fully understand "pay for delete agreements". A "pay for delete agreement" is when you get the collection company to agree to remove the account from your reports in exchange for your payment, this is done PRIOR to paying them. It is important to work hard to get the collections completely removed because a paid collection is still a collection and is not much different from an unpaid collection. You should also first see if these collections are within the Statute of Limitations to be sued for them in your state. You should also see how much longer they will remain on your reports according to the 7 year reporting period. If they are fairly recent and will remain on your reports for a long time you may want to act to get them removed. If they will be falling off your reports in one or two years, it may be best to let them go and let them fall off, because old collections are not as damaging as recent ones.

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