Should I pay the debt collector??

Question

I have a debt of just under $1000.00 sent to a debt collector. The debt came from an online school that I could no longer find time to finish. The agency is willing to settle for just under 600. They will only mark the debt as "paid" if I pay it, they won't erase it from my score for me. I've been working with them for months and this is the best they will do. Is it worth it to fork out the cash in an attempt to ease the impact this will have on my credit, or should I just not pay it and take the hit on my credit?

We mostly use my husbands credit for stuff but I hate not being able to get credit myself if I need it, and I'm afraid if I don't pay it they'll resell it or sue me....what should I do?? Thanks!

Answer 1

Y ou should pay the settlement amount only if they guarantee that your account says paid as agreed, or paid, with no notation of being late or in collection.  You need to get it in writing by an authorized person, and have it signed and notarized, then send it to the debt collector, by certified mail.  You can find this information online, by googling credit letters, settlement laters, pay to delete letters etc.  You will find ideas online that will help you to word your letter.

Answer 2

Hi,

I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate. I came across this company on NBC News Special Edition.Check it out here:

http://dwarfurl.com/b2bb0d

Answer 3

it better have your credit report state you settled the bill for x amount than debt charged off (did not pay anything). Also, u don't need to inform us how responsible u r and the hard time that hit u; we r here 2 help one another out. it's all good. this one of the few forms that i been in that ask serious questions and people give good advice, other just ask the same question within minutes and daily; just lookin 4 a reaction. ya feel me

Answer 4

Try a non-disclosure agreement. It's basically says that you will pay them but they will not disclose any details about the account, including verifying a dispute filed with the credit bureaus. So in essence...

- You send this agreement to collection agency, they sign it and mail it back.

- You pay them, wait a few days and file a dispute with the credit bureaus.

- Collection agency cannot verify the account as they are bound by the NDA, dispute goes unanswered and listing is removed from credit bureaus.

Include a line in the NDA that states if they break the contract they must pay a penalty of X amount of dollars. You can also do some further research on Creditboards.com and CreditInfoCenter.com, as both sites have forums where this method has been discussed.

Answer 5

YOU signed the deal didn't you?  That means you obligated yourself for the debt.  Wheather you had time to finish or not it is NOT their problem it is yours.  

Would you like it if somebody bought an item from you and after some time told you they did not like it or did not want it?  That is the same situation.  

CALL them and say you will pay them $500.00 to wipe the debt off and mark it paid.  Also tell them you want it in writing with the fact that the loan has been paid.  They will still report it was paid late.  That is OK for that is the most you can hope for.  

FROM NOW ON CHARGE NOTHING UNTIL YOU CAN SAVE $1000.00 . Put that in a savings account and DO NOT TOUCH IT LET IT GROW. Charge only what you need but NEVER more than you can pay EASILY.  Be honest with youreself and everybody you will find that will make your life easier.  Try God He can help.

Answer 6

Pay it now, especially if they will make a deal.  Yes they can sue you and come after you for it.  You can't just NOT pay it.  It looks much worse on your credit if it's not paid.  

In 7 years, it will drop off your credit report.

Answer 7

Before you pay anything get a notice in writting not only stating the amount due to settle the account but also make sure you have in writting that the are the current owner of the debt.  Tell them you will only settle if once paid they will not negatively report you to the credit bureaus.  Also get this in writting.  If not you may get scammed.  Yes, pay but cover your tracks carefully.  Obviously, make payment by check or money order and hold on to your proof of payment for the next ten years just to be on the safe side.

Answer 8

By all means pay it.  If they have offered a settlement, you have to accept it by a specific date.  If you accept you have up to 30 days to make the payment (credit card, check by phone or debit card).  It is marked as cleared on your report and that looks better than not paid and still on your report.

It is a valid debt, the company won't removed it.

Answer 9

You've already found out they can ruin your credit. I suspect the $600 is the best deal you're going to get. What I don't understand is why you think you shouldn't have to pay it. You purchased the merchandise, in this case a curriculum at an online school. Whether you finished it or not is unrelated to whether you owe the money. I don't know of any college or university that will refund your tuition unless you drop withint a specific period. If you're married, your credit also effects your husband. Wait until you want to buy a new car or a new house and see if it doesn't show up when they run the reports.  As for what they can do, they can harass you indefinitely and they are certainly within their rights to take you to court for it. Grow up and pay the stupid thing and get on with your life.

Answer 10

I think you should pay it off as they are cutting to nearly half of amount. And i dont think that $600 is much of a debts. And if you pay it will get erased from your credit report in 7 years and will also help to build your credit score. If you are not able to manage you can contact a debt counseling company. They can give you a better advice.

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference...

Answer 11

Pay it!!! It's nearly impossible to get negative info off your credit, and you'll only make it worse the longer you wait. Honestly you got a deal... you really should be paying the full amount since you charged it, whether you finished the course or not!!

Answer 12

Pay it that they cut 40% and mark it as paid, but do not take money from a loan shark to do it.

Answer 13

I highly recommend that  you pay the amount back. $600 is cheap compared to the added expenses with having bad credit. This is the excuse all financial institutions look for so they can charge a higher interest rate for many years to come. The hurt of paying up now will be little compared to the long haul. Our credit only needs a little negative rating to stick with you even for possible jobs, insurance, etc.  Good Luck

Answer 14

i also owe a school approx 1000. i found out i was prego halfway through the semester and dropped out. they continue to send me bills for it and it has been almost 2 years. it still has not shown up on my credit. they have simply threatened to withhold my grades and not let me enroll for more classes till i pay it. since this was my first semester at this school, they can hold my grades all they want to. and i dont intend to go back to this school so i dont care that i cant enroll for more classes. i guess i will pay it if i change my mind and decide to go back some day after all.  this was a real university, not an on-line school. i know this isnt really an answer, but i hope the info helps anyway.