Help Did I just make a huge mistake?

Anonymous · ‎07-06-2015

I had 5 accounts in collections today I pulled my credit report and paid 3 accounts totaling in 2,098 dollars and set up a 2 other accounts to be taken out of my account on my next payday. Only one account was paid for the original amount...the other 4 were settled as paying a lesser amount...I just messed up by paying all of these off in one month didn't I? 😩

thomasjm99 · ‎07-06-2015

This all really depends on the details behind the CAs...

Who are they with? How old are they? What type of debt was it originally?... ETC...

Most folks on here will try like mad to the get the CA to agree to a PFD (Pay for Deletion) before paying the collection. However some companies are known for very rarely agreeing to this and others also like to sue you so it does make sense to pay certain collections as you don't want a judgment on your record...

Once you have paid them, however, I would start a GW letter campaign asking them to remove the account until they agree. Sometimes persistence pays off and the CA firm will actually grant your request.

Anonymous · ‎07-06-2015

Paying off delinquent debt, is never really a "bad idea", unless its VERY old debt (IMO).

Anonymous · ‎07-06-2015

The collection ranged from 2013-2015...ranging from $48 to $1196...phone bill, cable, a loan, and a medical bill.

Anonymous · ‎07-06-2015

@Anonymous wrote:
The collection ranged from 2013-2015...ranging from $48 to $1196...phone bill, cable, a loan, and a medical bill.

I would define "Very old" as beyond both SOL and reporting time - whats generally referred to as "zombie debt".

It was definitely a good idea for you to settle those debts. No matter the immediate score impact, you are definitely better off in the long run.

Anonymous · ‎07-06-2015

I am just wondering if I settled some of these accounts for the lesser amount or discount if it was going to be a negative impact on my score as compared to if I would have paid these accounts I'm full and not have settled for the discount.

Anonymous · ‎07-06-2015

@Anonymous wrote:
I am just wondering if I settled some of these accounts for the lesser amount or discount if it was going to be a negative impact on my score as compared to if I would have paid these accounts I'm full and not have settled for the discount.

No, Settled vs PIF do not effect scores one way or the other.