Does Payment to Collectors End the Debt?

Cheryl says one of her husband's credit cards was turned over to collections. They've offered her three payment options. If she accepts it, does it mean the original creditor accepts this agreement as well?

QUESTION: Cheryl from My Total Money Makeover says one of her husband’s credit cards was turned over to collections. They’ve offered her three payment plan options. If she accepts it, does it mean the original creditor accepts this agreement as well?

ANSWER: It shows a settlement on a defaulted credit card, which is a normal process on that. It’s a ding on your credit. You’ve already got a ding on your credit. I would accept it. And yes, the collection agency is representing. They either own the debt or they’re representing the credit card company, so you’re just fine to do this deal. I would go forward with it.