Settling collections… good thing or bad?

Settling collections… good thing or bad?Settling collections… good thing or bad?
Niikolay asked 5 years ago

Hi all,

 

The check is in the mail on this so the decision is made (because it’s what’s right for my financial health…)… but I’m curious on how this might impact my credit. 

 

I originally had 5 student loans with Wells Fargo. They all hit severe delinquency, lets say 180 days, and then show as referred to a collection. 

Then there are the 5 collection accounts showing as open w/ ECMC – total balances come to about $ 35k. 

I’ve just offered a settlement of $ 24k and it was accepted as settle-in-full.

 

So… closing down these collections… a good thing? 5x accounts showing as “settled for less than balance” – a bad thing?

 

Overall getting this debt off my shoulders and saving $ 10k in the collection charges basically is an incredibly good thing. But what about FICO Smiley Happy 

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