What is the benefit of settling before it goes to collections?

a collection account can drop your credit score up to 100 points. Then depending on what collection company gets your account, depends on how much you will fight to clear it up. If you have the funds to settle with the original, I would settle.

it is always better to settle with the origional creditor before charge off because like the above posted its better on your credit, but yet on the other hand you can usually get a better settlement through the collection agency. so if your score is already crap it really doenst matter so you misewell go for the best deal just my opinion but yet you also want it done asap so you dont end up in court. you are USUALLY good for the first year after that things start to get complicated.