How do I negotiate with collection agencies to pay off debt past due debts, that are not going anywhere within the statute of limitations. For instance, say I owe $100 can I agree to pay $50 and the debt be settled? How does all that work?
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Once a bill goes into collections on your credit report it will NOT improve your credit score if you pay them. It does not matter what your balance is, it is still rated as collections!
But yes most companies will make you an offer to settle. It will then appear settled as agreed on your CR as opposed to paid as agreed. Which if is not under Collections but only Closed, and is still on your CR it will give you less points of an increase. But the difference is only a few points.
Depending on the type of bill that it is, if it is under Collections on your CR, you should dispute it first before paying it because more often than not the credit reporting agency will remove it, especially if it is medical. Because due to HIPPA laws a collection agency cannot verify the information. They are not given the specifics of the procedure or illness and are legally not allowed to have it without your permission.
Just some words of advice from personal experience and being a member of numerous financial blogs.
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I would like to know as well!
Looking for any useful info on the topic
