Low credit scores are bad, having your bills sent to collections is even worse. With that being said, take this piece of advice: pay anything on your account. Even if it is just the minimum payment, paying something is better than paying nothing. Once your debt has been sent to collections, your bills have been stamped as “seriously delinquent” and it will be reported as a separate account on your credit report, a move that will undeniably lower your credit score and make it nearly impossible for you to remove yourself from. Debt collections remain on your credit history for almost 7 years before the delinquency is removed completely. After some time, and continuous payments, the collections may affect your credit score a little less. And though this can seem like a bright spot in the middle of a dark
cloud, avoiding a collection account applied to your credit history is obviously the much better option.
Debts do not go away and neither do debt collectors. So why put yourself through all the hassle of this possibility because you don’t pay your bills? Collections affect you far more negatively than a low credit score. You will be denied for future credit cards and even loans. In other cases, some employers won’t hire you and you will absolutely be rejected for any lease you apply for. Pay. Pay. Pay. Pay. Even if you do find yourself in the unfortunate situation of having a bill sent to collections: PAY. There have been some cases where people do leave their debt on the backburner and wait the entire seven years to have it removed from their account – but their credit history is never restored. If you find yourself in a position to
settle the account and pay a different price instead of in-full, keep in mind that negotiated debts are still viewed negatively to lenders and you may still be at risk of being rejected for loans and credit cards.
If you find it a little difficult to keep track of all the bills then budget, set reminders, stick your statements to the refrigerator so you can stare at them every time you go to the kitchen for a snack. Try everything in your power to be on top of all payments, but most importantly do not turn your cheek when it comes to paying any bill you receive. It would be much more preferable for you have to strain your paycheck thin temporarily in order to ensure that everything is paid on time.
Debt collections follow your credit report around for years and affect you at every angle. Is it worth it? No. Should you avoid it? Yes. Can you be helped throughout the collection time period? Also yes. Personal Tradelines can offer services to help you boost your credit score even if a debt has been sent to collections. But, let’s still try to avoid it.