Why bother to pay?

[Anonymous]

On this link:  http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654
it says:

"1. Paying off a collection account, late pay or derogatory item will not remove it from your credit file. It will stay on your file for seven years along with any dollar amount associated with the past due."

What I want to know is, if something bad is on my credit report because I didnt pay it, (for example I have an old credit card that I stop paying on because I lose my job and get behind and then can't catch up, then it goes to collection, then sold again and again and now because of all the fees and charges it's beyond my capacity to pay, then I stupidly give up) so now it is on there for seven years no matter what I do, then why should I bother to pay it up? In other words, it gives me zero incentive to settle up, if I know that if I knock myself out trying to pay a $3500 debt (this has happened to me, on a credit card that I never used more than $1000 on,) AND it does not come off my credit report, why should I bother? Why not just simply sit it out, try to outlive it, since it will negatively affect my report whether I pay it or not?

Maybe I am missing something here. Please tell me what it is.

[John060675]

If it is old and past SOL, then I would wait it out.  I had an old charged off account (6 years old) taken off my EQ report and it did nothing for my score either positive or negative.

[Anonymous]

I know, I know- it doesn't make any sense. You get penalized for doing the right, ethical and honest thing by going back and paying your debts- yet most of the time if you don't negotiate a  PFD in advance- you can end up hurting your score. 

I definitly do not understand it- I strongly feel MORE people would pay if they knew that it would be deleted after paying - especially if there were to be some rule that they could PIF minus collection fees or interest fees added on after it went delinquent.

I dont' know what else to tell you, expect I think that is why a lot of people don't pay- because it might not helpl their scores.