I had an outstanding (disputed) debt with SBC. I don't care to go into details (public forum after all), but it did appear on my credit report as a collection. These have a nasty tendency to kill your credit, as I'm sure you're well aware. My anger ran so deep over this, that I flatly refused to pay it. Ever.
The problem is, I really can't afford to have my credit screwed up over this. So, here's what I did:
1. As far as I'm concerned, if they have the power to add something to my credit report, they have the power to remove it. Turns out I'm right.
2. I negotiated a reduced amount (saved $150).
3. I negotiated payment contigent on recieving confirmation IN WRITING that the debt would be REMOVED from my report (all three agencies), not simply shown as paid.
4. They agreed, and I got the letter.
5. They got paid.
6. Today, I pulled my report and it has completely vanished from my credit report. It's like it was never there.
I'm pissed over having to pay it to begin with, but sometimes you've got to lose a battle to win the war. Paying them was cheaper than higher interest rates, or an attorney.