I have credit card debt that was sent to a collection agency, do I pay them or my credit card.?
Answers:
You pay the amount due on your credit card debt to the collection agency. Your creditor has sold your uncollectible debt to the collection agency and now they are the ones who own the debt and must be paid.
Expect a 1099-C for the tax year in which you incurred cancelled debt. [If the collection agency offers to settle your debt for a smaller amount, you will get a 1099-C for the difference. After all, you bought 5,000 of stuff with the credit card and had full use of the items; you did not pay for the items purchased (in full) and now you will have the differing dollar amount added to your income as a 1099-C Cancellation of Debt.]--[One way or the other, you will pay for the stuff purchased.]
You pay the agency.
Keep in mind that you can negotiate for much less than what you owe.
Also, get a letter from them stating that if you pay the agreed upon amount, they will remove the debt from your credit report.
Talk to the credit card people be honest up front, maybe get a break
You should call the credit card company to find out. Someitmes they will let you pay them- but sometimes they will not even consider it, unless you can pay off the account immediately. It all depends. It is certainly worth calling to find out. Collection agencies can be quite nasty.
you pay to agency.
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