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Question By
chefdanielfortier

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i have an account in collections should i to make payments on it or to take the settlement
i have an account years ago the went to collections and just got a letter from them again with a settlement offer should i take the offer or make payments on the whole balance and dose it affect my score either way

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If you have a desire to pay or settle the bill KeesdeWit is right. But one caution. You mention that the debt is years old. Bad debts generally roll off our credit record seven years from the day they first went bad. In the early months and years, it may be worth your while to pay or settle. However, if you contact the collection agency and offer to pay or settle now, you risk re-aging that old debt -- and thus ending up with it on your record for another seven years. This is a terrible flaw in the credit system, but it's a fact that, very often, simply waiting out an old debt is better for your credit than paying it or settling. So be careful.

Reply by
djmcdonald

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I have a debt that is almost at the 7 year mark, but there have been multiple collection agencies buy it in those 7 years. Does that time start over every time a new agency buys the debt, or is it from the time the last payment was recieved from me?

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If you have cash to settle, settle.

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get it in writing, no electronic access to your checking account, get a cashiers check and send it through Fedex or UPS.

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I have been making monthly payments to a utility company that I originally owed $800+ dollars to, and have been for over a year now.  The debt was/is part of a legal issue where a person I have an injunction against did not pay his part.  I'm unemployed and unable to pay more than $50 a month to this company.  Recently I received a letter stating that I was placed in collections.  This is the first I've heard from this company since I called them over a year ago and arranged to make the monthly payments until this account is settled. Now, I see that this company is on my Credit Report as in collections for much more than I originally owed.  I should be down to around $300 owing by now.  What should I do first?  What is going on?  Are they legally able to send me to collections dispite my monthly payments?

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