Worked with a debt settlement company, but I now have the money to pay full amount. Which is better?

You don’t mention exactly how much money is involved, so it’s impossible to give a definitive answer. As a general matter, the con, or disadvantage, of even successful debt settlement is that it usually results in a negative mark on your credit; most of the time, debt settlement counts as not paying a debt in full, so it can cost someone up to n100 – 150 points off their credit score. That negative impact will remain for 7 years.

The pro, or advantage, of successful debt settlement is that you save money—you literally have to pay less. (Though note: any savings you get from debt forgiveness have to be reported to the IRS and may be taxable, which can reduce the effective savings by the amount of taxes.)

Therefore in deciding whether it is better to pay the full amount or to go ahead with debt settlement, you have to weigh the amount you save vs. the impact on your credit, which will make it more difficult (and costlier) to borrow for years to come. To us an example: say you earn $40,000/year. I suspect that for many people in that situation, saving $800 would not be worth the negative credit impact—but saving $8,000 would. You need to evaluate you financial situation, including potential savings, versus your anticipated near- and mid-term need for access to credit.

Talk to a Debt Settlement Attorney to find out what options you have, and how you can deal with the creditors and avoid legal issues.