Gift Card Consolidation

My credit card balance was $ 26K in December 05 with Amex. I tried to put on a plan to consolidate debt, but AMEX refused and sent it instead of their collection company. Is it wise for me to try to pay the balance since it has already reported that to go to collections on my credit report. Does it improve my FICO score if I pay with the company collections? I want to buy a house next year. How mortgage lenders see it? I will take a deposit of 30% (gift) by the time I'm ready to do so. Is that help?

AMEX is doing the same thing to me years ago. They call the shots. I can not tell you whether you should pay, but I can tell you that haunt you more than 7 years, as it will continue to be "sold" and therefore, will remain forever.

For that much money in debt, you probably will not get a loan (unfortunately). As indicated, enter into an agreement with the collection company. If they take off the negative mark then you make payments. They have that right and if they say they do then they are lying to you.
Nevertheless, the collection will remain on your credit record for 7 years of delinquency. If you do not pay it will still come off. If you pay still stands, but you pay money into something that hurts you anyway. I would check Statue of Limitations also because after a certain number of years, the law firm collection / Amex can not sue you for the amount. Currently, they can and probably will because it's a GREAT balance.
I really want to see if they may have taken this brand of your credit file and then start to pay ... you and the collection company will be happy because they are paid and it will not ruin your credit.
If you do not believe me about the collecting society can take your credit file, look at the Fair Credit Reporting Act, all there.

Good luck!

Of course, you must pay the balance. You borrowed money and you owe the company credit card. What is questionable about it? (End rant moral)

Who will give you a mortgage next year if you can not make payments on the $ 26k now?

After your down payment is a gift not a good thing by trying to get a loan.