Keep in mind that they probably purchased the debt for 10% of the total amount. So, you can often negotiate it far below the original debt and the collection agency will still make a tidy sum. They aren't typically motivated to settle for any amount in the first few months, hoping they can wring the entire thing out of you. After you have demonstrated a willingess to pay nothing at all and they look like they will be stuck with it, they will eventually get the number down pretty far. Keep in mind, this will hurt your credit, but no worse than it is right now. It's already probably on your report and it won't get any worse the longer it's there.