Should I pay off 5 collections that are due to fall off in 2008?

[Beledona]

Hi,

I have alot of collections that happened after I filed for bancuprcy in 2003. 

I have had a very bad patch and acquired 13 collections accounts all pretty much medical co-pays from Dr and hospital bills.  My student loan which was over $8000. last year in Feb will be paid off the 2nd week of July this year! I have been working hard of this.

My question is I have 5 collections that will fall off my account during 2008. Should I pay them off or not? 

What are the Pro's and Con's of paying them verses not paying them off?

Thanks for your help

[Anonymous]

If the collections are due to fall off your credit reports in 2008, it means your dates of first delinquency must be back in 2000-2001 or even earlier.  You filed BK in 2003.  Weren't these debts included in the bankruptcy? 

[Anonymous]

I would say don't pay them off.

Collection agencies are simply too big of a hassle to deal with. There are too many risks--that they'll try and reset the debt clock (they can't, but that doesn't stop some from trying), they'll lose your payment, they'll take your money and then re-sell your account, etc. Plus you'll take a hit on FICO for paying the debt.

There really are no upsides to settling when you're one year away from the accounts falling off.

[Beledona]

No these debts occurred after the Bancrupcy. 

The student loan is something that is never included. So that is why I needed to get my act together and pay it off. It was only 5000. but then there were  fees were added for  because they had to garnish my wages.

But as a result I decided to up the amount they were taking out and get it paid off  sooner. 

I am learning a little slow but I am learning.

I had the chance to see Suzi Orman in person in Livonia Michigan, this past Saturday.    Wow she tells it like it is.

No shame no blame, just trying to get it together. 

I am inspired to get my fico score up. Right now is it is only 590 and was 579.

 I don't even know if my fico score will be better for paying off the student loan but it will be paid. 

The other stuff that I did not mention doesnt falloff until 2011 2012, yikes

[Tuscani]

Don't pay. Let sleeping dogs lie. If you do decide to pay, get a PFD.

[Beledona]

what is a a pfd? 

I am new to all of this and so I am not sure what this means.  Thanks.

[Tuscani]

Pay for delete

PFD is a written agreement that says if you pay they (the company reporting) agrees to delete it from your reports. Remember, it needs to be deleted not just marked as paid!

[Anonymous]

some collection agencies are stubborn make sure you dispute the collection they may not be able to provide proof and may erase the debt entirely.

[Beledona]

I was just wondering how can I negotiate a PFD with a collection agency?  I would like to pay off several that are with 1 collection agency.

Thank you in advance for your help with this.

[Tuscani]

PM me and I will give you some sample letters.