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

[Beledona]

I am sorry I do not know how to do this PM, (what is that?)  But if you tell me I will do it.   I do appreciate your time on this.  I am trying to get it together and I think this will help me to get some of the stuff paid off.  I have to go to the store for right now.

[Tuscani]

click my name and then "Send this user a private message"

[Beledona]

I did try for the PFD but no luck.  I just paid off 2 of the collections and disputed another 2 of them with experian. This will leave me with 2 more  (one which is $1300.) if they take those 2 items off.   The big collection is for an utility bill.  Their collection agency called me 1 time and told me I could not pay the company directly.  Is this true?  I can see why they would not want me to pay the utility company directly because they would lose $$$, but if I go to the company could I still negotiate for a PFD? and for less money. I can't afford to pay $1300.  My own fault though I rented a house and had to split the heat and electric bill with the tenant who lived upstairs.  I paid the minimum to keep the heat going in the winter, she didnt pay most of the months, it was in my name so it falls to me.  Live and learn. But now I gotta do something because it looks so bad on my credit.. Any suggestions???   Do you think that the OC would accept payments?  The CCA would not even talk with me about taking a payment plan and the guy was very snotty when I told him I was going to visit a credit counselor, he said we dont work with them at all ever. I told him wow, even if this means the bill would get paid he said absolutely not!  I told him I didnt have time to haggle over this and hung up. This was the last I've heard from this place. However, I dont see a collection agency listed for the utility company.  So I am not sure why I couldnt pay them directly?  Thinking out loud....

[Anonymous]

You can try a PFD with the Original Creditor-
If they still "Own" the debt. If they don't want to deal with you they will tell you so.

Student loans do not have a SOL so paying them is fine after attempting PFD. I question paying the other unless it was for "Ethical" reasons as you WILL take a score hit.

[Beledona]

My student loans will be paid in full next month. The utility bill I know falls to me. I just "ignored" the bill. It ended up in collections.  My own fault that now it is on my credit as a collection.  BUT now I am getting my act together and taking responsibilty for my credit record.   The collections that I've disputed I know one of them is actually the wrong amount the other one I dont think is mine period.  Next year at this time I want a clean record in the sense that there will be no new collections and all the past collections will be paid and the credit I do have will be in good standing with low util showing.    I am almost there. In the big scheme of things I've come a long way since a year ago Feb when I started paying off my student loans.   I know there isnt a quick cure for my bad credit. But time will heal. Time and money....

[Anonymous]

I have a score of 599. I paid $200 of a $419 revoling debt. I asked to have the item updated to show the payment. I tried to get the company to remove the item completely if I paid it in full. If it shows payments made and it is not listed as a charge off...will that help my score any???

[Beledona]

Charge offs hurt your credit.

Lowering the amount that you owe is always smart.

You don't say if this is an account in good standing, if it is then lowering the amount you owe should raise your score.

PFD may work if you get this in advance, it is a like a contract between you and the credit card or whatever place you owe that says if you pay they delete.  This must be offered before.  But if not you could Good Will Letter them and request them to remove the item. 

[johnpalley]

i thought credit card companies cant delete the record. i thought only transunion, equifax, and experian can delete it?

[Anonymous]

Credit card companies/creditors are able to change what they report....or ask for a TL to be deleted.

[Anonymous]

Beledona wrote:

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?

If you pay them off, your credit score will go down.  Once the payment is processed the activity date will be more recent and these collection items will carry more weight on your score.  A PFD would remove them from your report assuming they actually comply with your request.  I would wait it out.