Good question. Keep saying you want to settle. If that's what you want to do don't budge from it. If you want to settle tell them. They may try to convince you not to, but if you've done your homework then that is exactly what you want to do.

Then comes negotiation. Before you call have a number in mind that you can pay and how long it will take you. So what you're going to say is that you will pay less than this amount. For instance if you are able to post 2 grand over 6 months tell them you can do 1 grand over 9 months. If they're any good they'll come back with a higher offer. If they're not any good they accept your offer and you'll win. However they'll come back with an offer. Then you'll say I can't do that I can do 1500 over 7 months.

Then they'll come back with either an acceptance or another offer. If they have another offer say you'll do 2k over 8 months. Don't agree to pay more. This is your limit.

Now coming up with a particular number. Realistically depending on how long it has been in collections the collector is likely to be authorized to take about half off of what is due.

But only agree to what you can do. So if what you can do is under half of the balance or takes more than a year to pay off just let them know that that's all you can do.

They may say they have to get it approved by bank. That's fine. They'll come back a week or so later and tell you that it has it hasn't been approved. If they say it hasn't and that's all you can do just tell them that. They may approve it or they may set you up on payments to start paying the balance until it gets lower. If they're good collectors they will attempt to get you to pay off the balance. Over a period of a couple years.

But remember when you're making payments towards the balance the balance is lower. So I'm bringing this up because since the balance is lower your previous settlement offer may get approved. So let's say you're 2k offer ok the 8k balance was denied.

So what you'll do is set up payments every month for whatever you can afford. Let's say 200 a month. So the best approach for me at least if to be honest. Just tell the collector that you want to set up 200 dollar payments for 6 months. Say that's all your comfortable doing for now. After 6 months call them and offer the settlement again.

Hope this helps. Merry Christmas