Collections Agency Advice

I have a past due balance on my tuition. I've had some money coming to me which is finally just now available but today I also received notice that after this final attempt my account will be sent to a collections agency. My husband mentioned that I may be better off waiting to be sent to collections because at that point they usually let you settle for a smaller amount of money. He said I would be given this opportunity before the situation would actually affect my credit and in this way I could end up spending less and have money leftover to put toward other debt. Can anyone advise me on this situation?

Collections Agency Advice

Unless the collection agency has bought the debt they do approve settlements. They have to go back to the creditor for approval. Why not just call the creditor and say hey I can pay xx in full or if you want the full amount it would have to be a payment plan.

If you get it before it goes to the agency the creditor saves the fee they pay the agency so they may go for it.

Re: Collections Agency Advice

I believe if it's sent to collections and they settle with you it will go on your credit report.

Collections Agency Advice

I would absolutely not do that. You want to pay it before it hits your credit report. An account in collections is a big fat red flag on a credit report.