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  1. #1
    Join Date
    Aug 2017
    Posts
    2

    Default Old Debt Collection Agency Wants to Settle

    My question involves collection proceedings in the State of: Colorado and Utah, I have three accounts all in collections with the same agency. Totally $5977 I have fallen on hard times and these debts were closed as charged off as bad debt Dec 2013 and last payments were Dec 2014. I have recently received letters in the mail to settle these accounts all for roughly $1.5k for all 6k of debt.
    My question is what advice should I do for the best options for my future? I currently have a credit score of 693 which I've worked hard to get back up with a very basic credit card haven't missed payments and trying to get credit back.

    Since these debts are old should I allow the debt to go the 7 yrs and drop off unpaid?(2021)
    If I settle the debt will my credit drop a lot since its already been on my report for so long?
    If I start making payments again and get this closed account paid off will it help my credit score go even higher or leave it the same?

    Thank you so much for the help. I just don't know what to do, I am just starting a family and my debt is one thing I want to get figured out but still my funds are very limited :'(

    If any additional question or answers are needed I will answer!

    Thank you

    - Joe

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,825

    Default Re: Old Debt Collection Agency Wants to Settle

    Paying off a debt that is in collections does not change the 7-1/2 year clock for the debt's appearance on your credit report, that starts from the date of default. Paying off a debt or settling a debt as payment in full will normally improve your credit score. If you make a partial pay-off in settlement of the debt, the fact that the debt was not paid in full will be reflected on your credit report until the debt drops off.

  3. #3
    Join Date
    Aug 2017
    Posts
    2

    Default Re: Old Debt Collection Agency Wants to Settle

    Thank you for your response, to be certain I understand. If I settle on the debt, it will reflect settled and not paid off until 2020, as the accounts were closed 2013? Is this correct?
    Thanks again

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