Yep, pay them one at a time, and as you pay them, get a receipt faxed and mailed to you.  And get an authorization code or confirmation code.  Then go back to your credit report and dispute it as paid with a zero balance.  Include date and authorization or confirmation code with your dispute information, it will make the information easier to verify.  

If you decide to settle an account, get it in writing that the amount is agreed upon and that it will take care of the full balance, and do that before you send any money.  Then once you have that, send the money.

What about debt reduction companies That negociate with credit card co to lower your interest and principle?

Many people suddenly find that various companies are offering them credit cards. First and foremost, we should look for guidance from the Fair Credit Reporting Act to avoid bad credit that will affect more than your money. These days many people can get into bad credit situation if they do not keep track of their income and expenditures. In this current economic situation, there needs to be some kind of viable way to repair credit lines and get the economy moving again. Treasury Secretary Paulson’s Troubled Asset Relief Program, or TARP, doesn’t seem to cover enough. The FDIC’s chairperson, Sheila Bair, has set up her own strategy; a $24 billion plus plan for the 1.5 million homeowners facing foreclosure. Her idea is to give a stimulus of $1,000 to lenders for each renegotiated loan to owners in danger of heading to foreclosure. In the event of default, the FDIC will take on up to half of the burden. Paulson hates it, straight away, and proclaims that its just more spending that will lead to the bankruptcy of the FDIC. Some others view Bair’s actions as one of the first real attempts to help repair credit of the banking system and get cash flowing again. Click to read more on <a title="What is Credit Repair?" href="personalmoneystore.com/.../">Credit Repair</a>.

Ex left me in a credit mess. I got a secured credit card through Orchard Bank, they report to all three credit reporting companies. Also they don't charge interest on daily balances, only if you don't pay in full monthly. I have a $300 balance. I take money from my paycheck and pay the outstanding, on -line. Then use that to buy groceries,gas, whatever and that way I am using and paying and building my credit. I also belong to a credit union that allows employees four $500 loans per year, the payback is taken directly out of my check and they too report to the credit companies. Within the past year I have increased my credit score from 451 to 631.

I have a couple things on my report, such as credit card, hospital, etc that are now in collections. I lost my job and thats how I got in this mess. Now I have a great job and the money to pay them back. Do I pay the creditors or should I contact the company itself? I want to make sure I am paying right person so it will show on my credit!