Is it better to have an account go to a creditor so it doesn't show late payments anymore or to just pay the payment?
You'll need to sign in or create an account to connect with an expert.
usually the creditor has the right to pursue payment. if the creditor "forgives" the debt (you would get a 1099-C) you could end up with taxable income. however, any payment would be more than the income taxes on the amount forgiven.
not paying or late paying the debt will be on your credit report for 7 to 10 years,
for your FICO credit score payment history makes up 35%
I have to wonder whether the original poster meant "go to a collection agency" instead of a creditor.
In that instance, it would be better to continue paying the creditor.
Debt card is better than it goes straight to bank this showing monies will be paid with account right away
All things I pay with debt cark is paid with in minutes
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
HighTide
Level 1
Jesselew
New Member
gjgodwin
New Member
121212
New Member
javiergfelix
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.