Many collection agencies buy bundles of bills that hospitals or credit card companies can't collect for only a fraction of the total charges. Others are paid a commission on what they collect.

As a result, bill collectors write-down 30% to 50% of your debt and still turn a profit. That's why bluntly asking, "How much do I have to pay to make this go away?" could result in a pleasant surprise.

But before you do that, let our 10 steps for dealing with debt collectors explain how they work and what you can do to get them off your back.