Received a phone call from an outside collection agency

Send a debt validation letter. It will do two things for you: 1. It will stop any further collections and 2. Give you some time if you actually owe the debt to get some money together and pay it. If AFTER they have validated your debt and you can't pay all in one lump sum, then send a payment arrangment letter. Maybe they'll work with you.

Be sure to get the debt validated as said by dcashwell3. It is very important to know the details of your accounts. In most cases, the charges are disputed that makes the total amount look huge. Besides, you also need to confirm if the CA is making legitimate collections. So, have everything in writing first before you make a commitment.

Send your letter through certified mail with return receipt requested. You will get the green copy signed by them. You are safe after they have received your letter. The CA has to come up with all the details first. If they intend to take the matter to the court, you will have a proof of your inquiry about the debt account before making the payment.

SIF's can usualy be extended or broken up into parts depending on the amount avaliable. A collections agency does not have to extend a settlements to you. Keep in mind this is a curtesy extended twards you to help you out out of a difficult situaton.

Depending on the agency as well could mean that there will be legal action or not. A collections agency by law is not to threaten action they have no intention of taking.