Negotiate To Pay Less
It's a 50/50 shot that the creditors will settle but it definitely worth a shot!
Collection Agencies often buy debt for pennies on the dollar, so sometimes they may be willing to settle for less than the debt owed.
Average score increase (per collection) if you take care of a collection in the first 2 years
Paid in full
Settled for less
1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr
Collection Drop Off
What happens if you leave your collections alone?
A collection should fall off 7 years after it's added to your report, but your legal responsibility is calculated differently. (It makes you a bad pay)
If you choose to leave it alone and wait 7 years,
don’t interact with the collection agencies since that can reset the length of time that the collection gets to "legally" stay on your report.
Only Medical Debit can be removed after you pay the full amount.
This would definitely be a good idea if...
You need better credit right away to take out a big loan or buy a home a
If it won’t drain your emergency fund or create financial hardship