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Anonymous
Anonymous asked in Business & FinanceCredit · 3 months ago

Is it nonsensical to pay a debt collector?

This assumes it is for a relatively low amount that they are unlikely to sue over.

By the time the company or entity you owe money to has turned the matter over to a collection agency, it is already on your credit report.

And if it's already on your credit report, paying the debt collector doesn't cause it to go away, it's there for 7 years.

And if it's already on your credit report, then you've already taken the consequence of not paying that bill.

And if you've already taken the consequence of not paying that bill, then you might as well actually have the benefit of not paying it.

5 Answers

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  • 3 months ago

    Much better to have a "paid" collection on your credit, than an unpaid one for 7 years.

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  • A
    Lv 7
    3 months ago

    You should pay it because it is your bill, you got the benefit of what ever you charged. While it will stay on your credit report if you pay it off, any who looks at your credit report will note that you were responsible and paid it. so pay up especially since you say it is a low amount.

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  • 3 months ago

    Not so fast. They can turn the charged off amount over to the IRS. The IRS will send you a form 1099

    You have to claim the charge off as income and you have to pay taxes on it

    So pay it off before you get the IRS snooping around your tax return

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  • Anonymous
    3 months ago

    Where that can & does come back to bite you is lets say you rebuild your credit and don't dupe anyone else, get a good job and want to buy a house. Your score is good enough but NO LENDER will approve the loan until its paid in full.

    Plus, you MAY be able to negotiate a pay for delete. Not always and certainly not guaranteed but possible. The collection agency cannot remove another companies pay for delete so if you ask for that, you would want to get it IN WRITING and for small amounts, its more trouble than its worth which is why they won't usually do it for small amounts.

    Finally, I'm not sure that a paid former collection does not look better and help your score more than an unpaid one. So it might actually help your score by paying it.

    I know, you cant see 2 years from now. But in 21 months you will be able to.

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  • 3 months ago

    There is a moral duety of be an honest person so that society is a better place instead a worse place.

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