I am trying to improve my credit score and figure out which method is more effective. Is it more credit damaging to have 5 small collections or one large collection on your credit report i.e., five $1000 collections or one $5000 collection? Just trying to determine if I should pay the big one first, or pay the smaller ones to have less things in collections and then do the big one.
I'm like renee I would keep the one that you have had in collection the longest because it will come off first. Just make sure to send a pay for delete letter certified with the ones you pay off asking them to remove the negative item from your report once it is paid. Because if they don't then it is still listed as a negative item and can still affect your score for a total of 7 years. Maybe not as bad since it is paid but it still does. Your score should come up some because then you won't owe as much so your debt to income ratio will be less. Have you checked the SOL on the debts to make sure they haven't went past the collection stage? If not I would check that first if it has run out you need to send a letter to them letting them know they can no longer try to collect on the debt. Then you may even want to send a debt validation letter certified asking them to send verification that it is your dept. I have read on here that some collection agency can not provide proof so if that happens then you can send the letter with the receipt to the CA asking them to remove it. So I wouldn't pay anything until you do these steps first. Because if you do pay and the SOL has past it will start all over again.
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.