According to the book "Money Troubles: Legal Strategies to Cope with Your Debts," it is certainly possible to negotiate with a collection agency. Just be sure you do not agree to terms you cannot afford. Determine the maximum amount you can afford to repay and stick with it. As you negotiate a debt settlement, request the collection agency remove any negative information about the debt from your credit file. Do not be surprised, however, if the collection agency says they cannot make this decision and that only the original creditor can do so. In this case, ask for the name and phone number of a contact person for the original creditor who has decision-making authority. We would like your feedback on this Personal Finance Frequently Asked Question.

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