I have 2 negative items on my credit report that have been there for about 4-5 years now. I've been a broke college student and have been unable to make payments. These account have been in collections for a while now. I am a recent college grad and am simply trying to take care of my finances. Therefore I am just starting out with all this credit ordeal. My question is; I can now pay my debt, but I have also heard alot of negative rumors about giving your money to the collection agencies. Shoud i pay the collections agencies? Is this the best way to see an improvement on my credit? Or is this just an attempt for them to get there money?? Is it legel/safe to pay over the phone? How long will it take for me to see the change on my credit reprot/score? Is there anything i need to request from them at the time of payment etc. forms.
1 Answer from Attorneys
If the debts are 5 years old, they are past the statute of limitations. Negotiating with the collection agencies may re-start the statute. DO NOT DO IT. If the debt is 4 years old, it may be past the statute depending on the timing. You should talk about those with an attorney.