Hi, I have a serious question. I have quite a few old collection accounts and I am trying to clean up my credit/ raise my score. So a few of the accounts are with emdiocre balances ( 6, 7, $800 or over $1000) that I cannot pay right away. They are however, offering settlements for some of the accounts. So... I am trying to figure out if I should settle with some of these accounts. I do have larger accounts that I know I will need a payment plan for ( student loans), so I don't know what is best to do. If I set up a payment plan, it will take at LEAST one year to pay these accounts off, if not quite a few years. So is it more important that creditors see that a balance has been settled and taken care of ,or does it look better for a creditor to see that the balance has been taken care of without settlement a longer time later?


Help please!

Everything I've read says it's better not to settle because your credit report will state that the account was settled. If you pay in full, the credit report will say "Paid in full". That's always better. Also, with a payment plan, make sure you pay on time every month and that will help your score. I'm in the same boat, trying to raise my score out of the dismal range! A lot of mine is medical debt, so I'm paying what I can on that, and paying the highest to my credit card debt since it accumulates interest. Once those are paid, I'll concentrate on the medical. Even now, though, I'm paying at least $5 per month on the medical just to show I am trying to pay it. You may want to talk to a credit counselor to be sure that's really the best way to go, but everyone I've talked to and everything I've read on the Internet says it's better in the long run to pay the debt in full.

How old are the accounts ? When you said old, if they are past the SOL without you paying on any of them, they have no legal recourse to sue you to ever get their money. Next after about 7 years they drop off your credit report. So if they are close to this, actually not paying them is the best way to clear them up.

Hi, Kia!

Have you negotiated a payment plan with all of the creditors?

Thanks!

My accounts are about 2-4 years old, so they are not about to drop off anytime soon. Theyh are also persoanl loan accounts, old cable bill, old tickets, and one secured credit card. I have made arrangements for the old secured card and a student loan. I have not done anything on the others yet. I guess I will try to negotiate a payment plan, even if it is really low. Thanks!

PS - any other suggestions/ feedback would be great:)