I need some help. I have an account that was through MBNA that I defaulted on. I owe about $5700.00. The account was turned over to their collection agency (Portfolio Recovery Associates). After playing phone tag with these people to set up some sort of payment arrangement ($100.00 per month is all I can afford). I decided to send payments to them through their website. After two months of making payments of $100.00 per month. I received a letter from their "attorneys" (Eskanos and Adler) basically stating that if I didn't make contact with them to set up arrangements that was satisfactory with their client, that I will face arbitration.
I contacted E&A and spoke to the gentleman was in charge of my account about making some sort of payment arrangements ($100.00 per month) and was told that in order to not to face any further legal action I would need to pay 20% immediately followed by monthly payments of 10% per month (this would amount to about $475.00 per month which I cannot afford).
My question is this: Should I not make a $100.00 payment as I have done in past and wait for the litigation? Or should I send a payment and hope that by doing so, it would possibly prevent my wages from being garnished.
Thanks for any advice!