No one wants to deal with having debt in collections. Along with  being contacted repeatedly by phone, email and even social media with attempts to collect the debt, your credit will suffer. By the time debt is in collections, many people wonder if they should even bother to pay it. Although it may be tempting to let the debt get charged off, it won’t help matters. Let’s find out if paying a debt collector helps credit scores.

When Does Debt Go to Collections?

When most types of unsecured debts go unpaid, the original lender will send it to their internal collections department or a collection agency to collect the debt. This usually happens when payments are at least six months past due.

They types of debt that could potentially end up in collections include credit card debt, medical debt, student loans, personal loans and more.

What Are the Effects of Debt in Collections?

By the time debt reaches the collection stage, you’ve already done significant damage to your credit. Your credit score will suffer and the notation of having debt in collections can be a red flag to potential lenders. Prospective employers, landlords and others who factor credit reports in their decision-making process will also take note. In addition to the negative impacts on your credit, the stress of having debt in collections can also affect your physical and mental health.

Does Paying a Debt Collector Help Credit Scores?

Many factors go into determining your credit score, but payment history makes up the largest portion of the formula. Any time you pay off outstanding debt — even debt in collections — it will ultimately help your credit score. The positive effects won’t be instantaneous, but over time, lowering the total amount you owe and working to improve your payment history will show positive changes in your credit score.

What Happens if I Don’t Pay Debt Collectors?

The longer you go without paying debts you owe, the worse the effects on your credit will be. Rules for how long collectors can attempt to collect a debt vary by state, but these efforts can potentially last years. Or collection efforts may start and stop unpredictably as the debt is sold to different collectors.

How Can I Pay Off Debt Collectors Quickly?

When you’re struggling to make ends meet, it’s hard to prioritize paying debt collectors when you have other urgent expenses. To make paying collections debts easier, consider a debt management plan.

Nonprofit credit counseling agencies manage these plans that consolidate all your debts into a single, manageable monthly payment with a lower interest rate that allows you to pay off debt faster. Plus, once you’re enrolled in the plan, all contact from creditors and collection agencies stops, which provides stress relief and peace of mind.

Find out if a debt management plan is the right solution for you by talking with a certified credit counselor. You can also complete our free, confidential online financial review.

Find out more about how to deal with debt collectors.