i found working out a payment plan is best. i take a page out of dave ramsey and i flat out tell them what i can pay based on my budget. they'll hem and haw, but they have to pay money to collection agencies. they're more likely to accept you paying regularly.

i told them (back when i had a lot) that 'i can pay you $50/month' and she'd say 'well that's not enough' and i'd say 'that's all i have. i can't pay you what i don't have.' and then they'd accept it grudgingly. it took me a long time, but i paid it off.