How To Pay Off Collections

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Settling with a collection agency will hurt your credit. Unfortunately, it can even hurt your score by updating the Date Of Last Activity (or DOLA). It can also re-start the clock on the Statute Of Limitations (or SOL), which is the period of time the collector has to take legal action against you.

If you're wondering why anyone would ever settle after hearing all of this bad news well, you'd be right! The moral issue of paying your debts back is also questionable since the original creditor will no longer accept your payment.

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