(((Jen)))
I'm a little late on this, but in the same position.
I had one credit card that was turned over to a collection agency for $4000. I was out on the streets, smoking crack, and paid no attention to it. They sued me and won. I finally paid attention when an officer showed up at my door with court papers. They wanted $200 immediately then every month and at the time I didn't have it. I got prepaid legal, we wrote letters (to answer the court and take care of that) and it gave me a month. Told them I couldn't pay $200, but would do $100 and they were fine with it.
Not long after, got another call from a collection agency on a $7000 credit card debt. I didn't avoid them, and they are taking $50/month (I told them it was the best I could do) and they also knocked off $1500 from the amount.
A friend I work with has worked in finance industry and said that once you start making payments to a collection agency, they are far more willing to work with you. He says that after you've paid for a while, you can offer to settle for half what you owe and they almost always take it. They don't pay that much for the loan and would rather have the money in lump sum.
I don't know if I'll be able to do the lump sum...may be paying these off for 9 years, but at least I am paying. I work as a waitress for $3/hr plus tips, but have still managed to make some progress and raise my credit score back up from poor to good.
I'm actually much more responsible with my money than I ever have been...think it comes with practicing my recovery in ALL my affairs.
Hugs and prayers!
Amy