If I have a credit card bill about to go into collections, should I try a payment plan or let it go to collections and pay it off at discount?

Asked in Atlanta, GA · January 17, 2017
I'm 35 and make little money to pay it all.

Advisor answers

Which foot do you want to shoot yourself in?

If you can pay it, pay it and keep your credit score from taking a nosedive. If you can't pay it ask the creditor if they will settle for less. At least it keeps it out of collections.

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Linda Jacob

Linda Jacob


Paying the debt before it goes to collections would be optimal. If the payments are too high, consider contacting a Non-Profit Credit Company. They will most likely have a Debt Management program that can help.

When you go through a Debt Management Program, the company can usually get a lower monthly payment for you, a lower interest rate, or sometimes both! They also are designed to get you out of debt in less than 5 years. You can find a credit counseling company in your area by going to nfcc.org/locator. Or you can contac...

James Kinney

James Kinney


Agree with the others. Talk to the credit card company BEFORE it goes into collection and ask for some kind of restructuring. A lower interest rate perhaps, or a reduction in principle. Tell them your situation, and what you can afford to pay (after paying for life's essentials) and see if they will work with you. Be persistent. Most of what the credit counseling agencies will do, you can do yourself for free if you work it hard enough. Remember, the bank does not want to send it to collections, they will have to give up a share...