How to Money · Monday, July 13, 2026
Nick from Texas is facing a $40 bill in collections and is concerned about its impact on his credit score. Hosts Joel and Matt advised him to negotiate with the collection agency for removal of the item from his credit report in exchange for full payment. They stressed the importance of getting this agreement in writing.
“But Nick, it would be better to pay the bill in full and negotiate for something else, right, negotiate with the debt collector to keep this bill off your credit report, which which is something you can do.”
“That's because this event will stand your credit report for seven years to come, making it even more difficult for you to raise your score, which is a big goal of yours, right, especially especially for the first year or two. It damages you the most, and so it's going to be harder to make progress.”
“And having this written down, so whether it be an email or something that they mail you, this is important because that person can verbally just be like, yeah, sure we can do that. Of course we'll do that for you, mane, and then just not follow through because there are very few incentives for them to actually do that.”