Following are some points that will help you to handle a debt collection agency:
Don’t be afraid to talk to your debt collectors If a debt collection agency calls you always attend the call.
Try to work out a payment plan with them if possible. Depending on the amount, a payment plan can be arranged. Work out your finances in a way that you are able to pay that amount.
It is reasonable to not refuse to pay the debtor, and it is also reasonable to not agree to a payment plan if the payment plan is going to be impossible to honor.
If you genuinely have a financial problem, talk it out with them. They might give you a discount depending on your case.
If you are dealing with an insurance company's debt collection department, your credit score is not impacted; however once it reaches an external collection agency, your credit score is affected.