You should consider the following factors before you decide whether or not to pay a collection agency. It may be good not to pay a collection agency in the following circumstances:
You don’t have any income or assets, and you don’t plan to change that.
You don’t owe that debt.
Your plan is to settle the debt for less than what you originally owed.
The statute of limitation on debt has expired, meaning the collection agency can no longer pursue legal action against you.
The collection agency cannot prove that they own your debt.
However, it may be wise to pay a collection agency in the following situations:
You do owe the debt, and the collection agency can prove they own the debt.
You want to resolve the debt quickly and you have the funds to do so.