Tip 1.
Do not give in with the first offer, if you are serious in paying off your debt, take the collectors name and phone number, wait a day or so call back and talk to someone different. You may get a better deal, continue the process for about a week: if not call the original person to settle out. Be carefull with settlements, because you have to file a 1099 form as earn income. You can get screwed easily when it comes to taxes.