What is the best way to settle a collection account?

If an account is in collection, chances are you have been contacted by a collection agency. The collection agency likely does not own the account, but is merely attempting to collect the debt. Collection agencies are paid a percentage of what is collected as a fee. Also, collection agencies oftentimes have wide latitude to settle an account. That is, discounts are available to you if you ask. Careful attention should be paid to the age of the account. If the account is approaching its 7-year anniversary, the better way to handle this account is to allow the 7th year to pass, then require the credit reporting agencies to remove the stale item (entries over 7 years old can be legally removed from your report). If you elected to pay the item, the payment would begin the 7-year clock anew. This item would then haunt you for an additional 7 years. The newly reported negative item could possibly hurt your score more than an older negative entry. The credit repair attorneys at Garg & Associates are experienced in debt negotiation and are able to counsel you about settling a collection account.