When dealing with problems such as solving your credit status you may be confronted with issues that have reached a collection agency. These unpaid bills usually relate to medical or utility bills or unpaid credit card expenses.
In most cases credit repair agencies will dispute the unpaid bill every thirty days with the credit bureaus until finally the item is erased from your credit report. However, this item can reappear on your credit report if the collection agency reports it later on. It can be extremely useful to dispute against collection agencies especially if you intend to purchase a home a need a good credit score for a loan. Sometimes this technique will not repay as the collection agency will not give in, in this case you had better pay the debt off, but it is worth a try.
Most negative items will fall off after a period of seven years that is if the collection agency no longer reports them to the credit bureaus. If there is no record of it being reported let it alone. However, if the collection agency keeps reporting it then it is wise to negotiate.
Call the agency directly and tell them you want to intend to settle any large debts you may have, but that unfortunately you do not have much money to advance and that you only have it available for a short period, this is why you are contacting them before it is too late.
When they hear that you have some money they may offer you a settlement amount and if you are lucky they may even ask for just half of the total amount, although that is rare. Try and be the first to offer the payoff amount and offer half or any amount you feel you can handle. They will most likely react with a negative response, to which you should simply answer that this is all you can afford now and maybe for a long period after, but that you are really are set on paying your debt. If they refuse try calling them a few days later with the same offer.
Should they agree have them put it down in writing or they may collect your money only to send you a receipt notifying you that you still have the rest to pay. You can have the signed agreement sent to you by mail or fax, clearly stating that you no longer owe them money after they have received the payoff agreed on. Make sure you ask for a receipt of payment as you will need it for further steps.
You will next have to remove your unpaid item from your credit report as a paid collection will be noted on the latter. With the receipt of payment in hand ask the credit bureaus to remove the item from your credit report. You can dispute this by fax or mail and send all agreements received and the receipt. If after some time the item is still on your credit report, then dispute it once more until you are sure it is no longer there.