I need advice fast!

We owe C. One about $16,000. We are behind about 6 months even though my most recent payment was in July. We were turned over to Creditors' Interchange. We didn't even know until last Friday! I recieved the phone call and the guy kept saying that C. One would begin the lawsuit on Monday if I didn't set up a payment that day. He started with 40% and then finally said that we could pay 25% and then make a $600 monthly payment at 29%. He mentioned garnished wages and lawsuit every other breath. He told me that I could buy a few weeks if I set up a check by phone. (postdated for the 26th of this month) Stupid me did it. Thirty minutes later my neighbor calls me (who we barely know) and tells me that some guy from this same agency called her and told her we were being sued by C. One. He even gave her the case #. This is the first time that we have heard from these people and they call my neighbor because I didn't get home from work fast enough? I am mortified and angry. We have just now recieved a written letter from Creditors' Interchange and it is a week later. We have tried calling C. One and our calls go straight to Creditor's Interchange. We can't pay that money this month. We made an appointment with the credit counseling Services (United Way) but we can't get in until October 7th. We don't dispute the balance, we just can't pay what they are asking. What do I do? We don't have the money for a lawyer. My husband thinks we should involve one since they notified my neighbor. Please help!

Jen :cry: