Scared about a collection agency.

I am in a real pickle right now.

I took some pay day loans out in the summer and they debited my checking account but I don't have the funds in there. So now my bank was closed and I received a letter from Malan Williams of SRA ASSOCIATES and she called me on the phone .

Now she wanted me to make two payments but wasn't able to pay and I told her that. Then she called me back and I told her that I wasn't going to be able to pay. Then I got a call from her and said they were able to get me a payment of three installments of 490 dollars. So I said okay I can do that because I thought I was going to get my tax refund and it turns out that I am having problems due to past tax issues so she called me to make sure I was still going to do it and I told her I wasn't able to and she said this is the reason why she doesn't bargain with people because they make up lies. So then she said well the only thing she can except is a payment of 375 dollars but still couldn't do that.

Now she said she was going to tell Bank of America that they should proceed and that they are going to send me a letter about going to court and if I will represent myself or get an attorney and how the balance is going to get higher.

I mean I don't know what to do at all. I really don't want to go to court because what if they lock me up or garnish my wages.

Is there any way to get around this and pay at pace I am comfortable with and can afford.

Is there any way this can go to a debt consolidation program and they help me reduce the monthly payment.

I mean I can really use as much helpful advice as possible.

Thanks for the help!
mc h0ney