Whether to pay a debt, even if a collection on the debt has passed its credit report exclusion period, is of course a personal decision.
In future credit endeavors, you may be required to disclose and pay any delinquent debt, regardless of whether it remains in your credit report.
Not paying may result in roadblocks down the way.
Offering a PFD is usually the preferable first step, as if it is accepted, you get both satisfaction of the debt, and earlier exclusion from your credit report, with potential score improvement. If the SOL on the debt has expired, contact with the debt collector does not run the peril of alerting them unpon review of your file of need to make a decision on bringing legal action prior to expiration of SOL.
If they balk at a PFD, the next best result is that they will agree to settle the debt for less than its full amount, and agree not to report settled for less to the CRA.
That additional comment informs others that, in the past, you did not pay the full debt that you obligated, and if that pattern is reapeated, may make future creditors less likely to extend credit. Settled for less with the additional agreement not to report that fact to the CRA will make the debt appear to those reviewing your CR the same as if you had paid in full.
