College student with charged off verizon cell phone bill

I'm a just a graduated college student, and I got notice from Verizon who handed chanrges on my account to a collection agency. I couldn't pay it in full two months ago, and I called the collection agency the next day, trying to negotiate a payment plan. The only option they gave was a two credit card installments in the same month, or a direct full payment from a bank account. This happened on 12 March. I was in the middle of school work and lab work, and didn't know who to ask, and what to do. The balance is $259. I purchased DSL connection on February 4, 2007, and when I spoke to the representative, I asked several times if the contract is month-to-month and if there will be an early termination fee if I end it prior to one year because I didn't know if I will stay at my current address. His answer was no. The service was terminated by Verizon in December 2007. I paid my bills until September, then I called a month later to terminate the service, in the first week of October. Turns out the service was not terminated, and continued to accumulate charges. They also charged me an early termination fee $79. There was no dial tone in the outlet in November, but I didn't even check in October, and I assumed that they terminated the connection right away. They say they have no trace of my call to terminate the service. I don't know if I can prove that there was no dial tone. In your opinion is it more harm than good to dispute the charge, do I have anything to hang-on to, or should I just pay the full amount? They hired a collection agency, and they contacted me on March 12. It has been one month-and-half and I don't know how to pay the amount so that it does little damage to my credit score and report. I can pay it in full, but I would much rather pay it with my credit card over several months. Please advise!
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i would talk to verizon
beg plead
beg plead
ask for a manager beg plead
be willing to pay in full right then ask for a letter of paid in full and as agreed with no lates and that the collection be removed
signed on company letterhead if they want do the paid in full
pay them anywayand be donebut get something in writing that either the collection or the verizon comes off you credit if possible