Do I settle outstanding debt or pay bill off?Medical collection

[elong]

I have a $2600 old hospital bill that I just recently was summoned to go to court for. I called the credit agency law firm and they said I can settled for 70% of the total amount. What's the best way to go about things so it won't have any more negative effect my credit score? Take it to court, pay the 70%, or pay it completely off? What's the difference of paying it completely off or settling for it or is it a difference in regards to my credit rating/score?

[hiblues]

You asked, "What's the best way to go about things so it won't have any more negative effect my credit score?"

The ONLY way for it not to affect your score is to have it completely removed from your file. Even Paid Collections are a negative hit on your FICO.

Try to negotiate a PFD (Pay For Delete) with them. Since they are willing to accept 70%, they may be willing to do a deletion as well. If they don't like that arrangement, then offer to Pay in Full (PIF) for a deletion.

Any agreement, whether it be PFD, or them accepting less than the full amount as a PIF must be made in writing. Don't just take their word for it because oral agreements carry no weight in a court of law.

[aunieandreg]

Here is what I did. I called the hospital ( the debt was almost 3 yrs old)

and ask if I set up a payment plan with you will you remove CA from my

credit report. They said sure send in the first payment and we will contact the CAs and have it taken off. But please get everything in writing.

I owe 2,300.00 so at $100.00 a month it was still worth it.

hope this helps