Small debt but I need advice

Im a young stay at home unmarried mom. I never got credit cards or any forms of credit ever because I never needed themand never wanted toplac myself in a bad situation of debt. My only mistake was during a last minute move I opened a storage facility to hold some items I had no space for.I made good on the storage for many years,but after becoming pregnant I was told to leave my job by my boss. I then moved again far from the storage and couldnt get the items out.
At the time this was an OK decision. I had saved enough to live & I continued paying my storage rent until this spring when I literally had nothing left to give. I allowed it to default and be sold at which point the debt was $130ish + $10 newspaper listing fee then minus whatever the items sold for. At this point I no longer had a phone. So I never recieved any calls.
I recently (1-2months ago)got a notice from a debt collection agency (I dont know if it was working on behalf of the storage place or bought the debt) which I ignored for the amount of $319(where they got the amount I dont know). And yesterday a letter from a local attorney acting as a debt collector on behalf of "their client" threatening to file suit if I dont pay in the amount of $319 whether in payments or in full.

I know in my state they cannot threaten suit without actually intending to. I do want to make good on this problem, I really wish I could. I'd rather not go to court, but I at this point have nothing, I do not work, I have no assests(the only thing I own is a couple fish tanks and a bed), I have one frozen bank account (due to an unauthorized charge, which is another matter being worked out now I hope) and another with precisely $21. My daughter is supported by her father,and Im in the process of moving in with family and trying to go back to school.

Any insight would be greatly appreciated.

 

Since I did not want to drag this out,I finally went through my old paperwork and realized that the storage never had my SS#. I dont know if that means it wont show up on my credit report (but Im crossing my fingers). Above all, I did not want to go to court. I couldve been considered Judgement proof as like I said above, I have no income, or assests. However, I do want to make good on this. Nevermind the fact I cannot get a babysitter to go to court, nor do I have a vehicle, and Im in the process of moving 1/2way across the state in with relatives.

I then called up the storage facility for a breakdown of all the fees and costs charged, the amount the lot sold for and the total amount owed. They were very helpful. I asked if the creditor was working on their behalf or sold to them, to which they replied the creditors/lawyer are working for them.

I called the lawyers office today, and reached a secretary said she handles the calls. They offered me the choice of 2, a settlement in a lump sum(payed in full by Dec 1) or a payment plan. She said they will not offer both a settlement price & lump sum. As I currently cannot pay a lump sum, I said I could do payments.She informed me the absolute lowest they'd go is $50mnth. I said I am unable to, at this point in time, afford that much. I explained Im unemployed, but should the situation change I would increase my payments. At which point I put an offer of $25mnth on the table which she accepted.I said I'd like a payment agreement mailed to me, then I would make my first payment & she said it would be in the mail tomorrow.

After reading through the forums I found them very helpful in lowering my stress levels about the situation. I doubted they'd haul me into court for $300, or even if they were willing to, that they'd be less agressive over a small amount when working things out over the phone. I guess Im surprised after so many horror stories from friends about creditors that all the people Ive contacted concerning my debt were so professional and willing to work with me. I suppose if I held out or gave a sob story beyond just "im unemployed" I couldve worked something out more to my advantage, but these terms are totally acceptable for me.

 

I havent received it yet, but hopefully if it does contain those I can talk the lawyer/law office into taking it off the agreement.

 

I got my agreement yesterday, its probably the shortest letter Ive ever seen.

it has To: My name , From: Attorneys name , Date(nov 14) Re: Outstanding balance owed to...
File: *referance #*


Settlement agreement

This notice confirms you have this day agreed to enter into a payment plan withmy office to the above referenced matter.

Balance: $319
Minimum Monthly Payment: $25
*Beginning Dec 1 08

Kindly sign & date below with your first payment starting upon reciept of this agreement. *Attorney Address & make check payable info*


In the 2nd letter it basically states there will be no further correspondence unless I fail to uphold the agreement.

 

Bleh, they did get my credit report with this. Reported on experian.
I didnt discuss the options of credit reporting on the phone or in the agreement.

Date Opened:
03/2008
Date of Status:
09/2008
Reported Since:
09/2008
Last Reported Date:
09/2008


Type:
Collection
Terms:
10 Months
Monthly Payment:
$0
Responsibility:
Individual


Credit Limit:
$319
High Balance:
N/A
Recent Balance:
N/A
Recent Payment:
N/A

 

Ew, you think they'd dip right into my account?

It actually asks for money order or cashiers checks only anyways on the first letter.