Verified answer

It is not good to talk to collection agencies. They are not trying to help you, only want your money.

Unless they are willing to give you a signed statement with their signature and yours stating that they will remove the negative reporting out of your credit files, I would not talk to them any further. You don't want them to report "PAID COLLECTION"!!!!

Depending on how long it has been there, you can wait for it to fall off, or ask to speak to a supervisor and see if you can get anywhere with them. Sometimes the person you are speaking to really does not have the authority to approve your request. Most collection agencies are willing to work with you, and they may even offer you a lower settlement figure than what they were originally requesting.

They always say no first time round. They put pressure on you over the phone to agree to higher payments than you can afford and then hassle you further when you don't pay. This is standard practice. You have to keep on at them to convince them that you really can't afford to pay it in full. What usually works is to make a small token payment as a sign of good faith and then keep paying that small amount regularly. They will then grudgingly accept that as the basis for your repayment plan. For the utility company to have passed the debt to an agency you must have owed it for a long time. It is always better to talk to the electric company or whoever first and get them to agree to let you pay off the arrears gradually, before they pass it on.

Generally if you have made a reasonable offer to pay by installments then they have to give you that opportunity. Go to CAB or contact one of the other debt helplines for advice.

If it's from credit card debt, sure you can. If it's from a car note then they're probably trying to repo it already. NEVER allow a debt collection agency to automatically draft payments from your checking account. Remember, they WILL lie to you.

Go to the Citizens Advice Bureau, they will sort it out for you, they carry more clout than you as an individual.

Make sure you put your request in writing and have proof they received it. May come in handy later if they start to harass you.