Need advice with a collection debt

Question

I have a high amount collection (4,000) that I can't pay until maybe arranging payments. If this goes unpaid what will happen to my credit? If I pay it what will happen to my credit? The debt is four years old and the collector has finally contacted me in regards to this, any advice?

Answer 1

If it is already 4 years old it has done about as much damage as it can to your credit.  If I were you I would try to wait it out another 3 years when it will be written off.   If you were to pay it, the most you could hope for would be a very slight repair of your credit, but it will still show up as unpaid for years.  When a debt is sold to a collection agency they paid pennies on the dollar for it (like 9 cents/$1) .  If you really wanted to pay it off, try offering the collection agency a fraction of what you owe.. like $500, but make sure you get it in writing that that would settle the debt completely.

Answer 2

that depends... do you feel the social obligation to pay it or are you done with it and dont care?

If you start messing with it now (paying it) it is going to show back up on your credit "radar" if you will.  After 7 years it is gone for good....

Since it is so old chances are you can settle it for half.. if not better.

If you have the money and can get a letter from them stating that you settled for full amount... it could be worth it.  

When talking to them about payment.  Make sure you get the employee id # from anyone you talk to so you can track who says what to you and when.   VERY IMPORTANT...   they like to go back on what they say.   Get them to settle for half+ and get a letter stating that it was paid in full so you can send it to the credit agencys...  that is if you care... again... after 7 years....(long as it isnt government) you dont have to worry about it.

Answer 3

Well the collector may do something drastic like get a judgment placed on your credit report.............which can prevent you from getting any type of new lines of credit

Many times collectors don't want to arrange monthly payments

First dispute the claim ----check your state's laws about old debt

Ask for a write off amount--------- a lump sum that they will accept to write off the debt----many times they will take that

For $4,000-----offer $1500 or $2000 in one lump sum