 TITLE: How to Pay Off Debt Collections CONTENT: As we've gone over, the best ways to pay off debt that's gone to collections are to negotiate a lump-sum payment or set up a payment plan. Starting the process of paying off the debt is a big step toward saying goodbye to debt collectors and, eventually, to the debt.\nWhen you're weighing a lump-sum payment or payment plan, go over all of your debts. Make a list of what you owe on all your loans and credit cards, and note the interest rates and monthly payments for each debt. Then, add up how much you owe on all of these debts each month. Checking your credit report allows you to see your debt balances in one place.\nOnce you've completed that list of debts, calculate all of your other expenses. This includes rent, groceries, utilities and gas. Some of these expenses vary from month to month, so you'll want to come up with a monthly average for non-debt expenses based on that spending over the past several months.\nNext, subtract your after-tax income from the combination of your monthly debt and non-debt expenses. If your income total is higher than your expense total, you can put the difference toward clearing the debt that's in collections. If the leftover amount falls short of what you owe, look for ways to cut spending, earn extra income or both.\nPrioritizing the debt that's in collections can help avoid further harm to your credit and can get rid of your debt collection headache. END