Paying a collection agency often is painful because the product or service associated with the debt has long since been consumed. If you’re debating if you should pay a debt you owe, here are five benefits of getting the collections agency off your back for good. Paying the collection won’t automatically remove it from your credit report, but the money it costs to bring the balance to $0 might be well worth it if it that debt is what was standing between you and the need for a home or a car. Settling an a collection by paying a lower amount may be an option, but it’s not the same as paying in full. Some lenders still may view a lower negotiated payoff as an example of a potential borrower who didn’t fully take care of a debt—even if your balance shows $0 owed. A lawsuit could lead to a court judgment, a public record that will tarnish your credit report for seven years. And if you still don’t pay up, the collector may get court permission to garnish your wages.
