Collection of debt in NYC

[lilik]

Hi all,

need some help while trying to restore my credit history.

I have recently noticed an account bought off by a collection agency in April of 2008. Called them to only find out this is an old utility bill opened in 2001 and closed in 2002 in Brookline, Mass. The $852 bill was on my name, but was to be paid off by my then roomate.

I called the collectors and they offered to settle for $500 but told me that it will stay on my record until 2012.

My questions is what should I do then?

If it takes 7 years to delete the debt from credit and if results will be the same (old debt), same whether I paid it off or not, is it worth spending $500?

Other question is what if they take me to court?

Can someone help? I am doing my best to clear old college and roommate debt but it is adding up and no one's giving me a break.

thank you