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Threatening letter from a lawyer reguarding collection agency, what do I do?
I have a debt from a collection agency of $8080. I have been trying to work on my credit and pay my debts. I have made payments of $50 for the last three months. The collection agency is not happy with the size of my payments but that is all I could afford. Now that I will be getting my taxes back I was hoping to pay my debt or settle my debt with them. Before I could do this I received a letter from a lawyer on their behalf saying I have 10 days to pay the debt or they will take me to court and I will have to pay the court costs. The amount of the debt that they put in the letter is over $10000. My three credit reports state my debt to be at $8080 and when I called the collector in November to get their address before I made my first payment the secretary gave me a balance on my account of $8230. I have made $150 in payments since then and my balance has gone down since then to the $8080. I am not sure how to proceed. I have some funds available now and I would like to offer them an amount of $4000 to settle the debt. This is all I have from my taxes after paying a few other bills and I would like to be done with them. Any advice would be appreciated.

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