What should I do regarding an account in collections?

Question

I'm trying to rebuild my credit and am in a situation where a credit card I had defaulted on ended up with a collection agency. They have told me that I could settle the account if they basically get a majority of the money. Should I go for a settlement or pay the full amount of what I owe?

Answer 1

If you are able to pay a reduced amount in a one time settlement, do it.

That's a much better idea than dragging the debt out any further.

Answer 2

If you can't pay the full amount, take the settlement.  Write 'paid in full' on the check, and don't lose the copy you get back from the bank.  I just had a collection agency try to bill me for an account I settled in 1995! Keep your documentation.

Answer 3

If you have the money pay the full amount. If not do the settlement. Be sure to get everything in writing before sending a cashiers check. No electronic access to your account.

Answer 4

Take the settlement. That's what they offer and will be happy with. Then you'll be in the clear.