Is settling a debt better than paying it off in full?

I know this may sound like a silly question, but when I was in highschool to my early college years I got a few credit cards that have since been charged off. The debt collectors have offered a settlement for of course way less, but I have heard its worse on your credit. Right now I can't afford to pay off the entire debt so the settlement sounds really good to me. So is it better to take the settlement or pay in full.

Is settling a debt better than paying it off in full?
Paid in full is only slightly better than settled. Either is much better than unpaid. However, neither will actually improve your score. The charge off and collection entries have already done the damage to your score.





You can ask for delete for payment. But collection agencies can only remove their entry. The charge off by the original creditor will stay -- not that much help for your score.





In fact, any payment will probably drop your score temporarily as the payment will cause the account to be counted as current, including the negative parts.





Check the Statute of Limitations (SOL), the timeframe to bring lawsuit, for your state: http://www.fair-debt-collection.com/SOL-... If the debt is beyond the SOL, you could send them a certified, return receipt letter requesting they cease and desist all contact. They have to comply but will probably sell the debt to another collection agency. You would have to send out another cease and desist.





If you opt to setttle, make sure you get the agreement in writing and save it, along with your payment proof, forever. Do not give them direct access to your bank account.





The older the debt, the more likely to settle for less. If the debt is over 3 years old, offer 25%; 2 or 3 years old, offer 50%' less than 2 years old, offer 75%. Lump sum gets the best deals. Payment plans have to be short term.
Reply:A settlement means that you did not pay as agreed, which is bad. An open collection account is bad.





There is no really good answer to this.





I would be tempted to take the settlement and get the thing behind me. After about two years, it won't count all that much on your score and after seven it won't be there at all.
Reply:Its always better to pay in full. A settlement does not look good on your credit report,