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Personally speaking, it is better to settle with a collection agency rather than making monthly payments. Theres only one ceveat....you must pay the collection agency in full. Example, lets say you owe $1000 to a credit card company. A collection agency will say, pay $600 NOW and this will settle the balance. So, if you dont have $600, its a 'catch-22'. You are better off making the monthly payments until the $1000 is paid.

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Related Questions

Is it better to finance an auto purchase with a small down payment and high monthly payments or high down payment and small monthly payments?

It is better to finance an auto purchase with a high down-payment and a low monthly payment, because it is less likely for you to fall behind on your payments and acquire debt.


How can I refinance my home to potentially lower my monthly mortgage payments?

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How can I refinance my house to potentially lower my monthly mortgage payments?

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