Question:

What should I do regarding an account in collections?

by  |  earlier

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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?

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4 ANSWERS


  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.




  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.

  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.

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

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