Defaulted with Checksmart, now dealing with collections

Hi all,

I'm back again :) Thanks to the advice I've found or gotten on here, I've made some headway into getting out of the PDL cycle, but now I have another question.

I defaulted on a loan with Checksmart last month. The original check was written for 912.00 but with fees & all, the total I owe is now a little over 1000. I got a letter from Buckeye Lending regarding the debt & have been getting calls from an 866-354-0567 number. I called & talked to someone last night & explained that while I'm not trying to get out of paying, I don't have the money to pay it all at once & would like to work some type of arrangements out. The guy asked if I would be able to borrow it from someone. My response was if I knew anyone with that kind of money, I would have borrowed it from them in the first place & not gone to Checksmart. He then asked if I was getting a tax refund, since some people used those to pay off debt. I said I am sure they do but that was not an option for me. He also suggested that I go back to Checksmart, repay the loan then borrow back. I explained that was not something I wanted to do, as I am trying to get myself out of debt, not incur more.

As far as setting up arrangements, initially he told me they could split it in two $500 payments, one this upcoming Friday & the other in 2 weeks but it had to be paid by the end of the month. I told him there's no way I can pay off $1000 in a matter of weeks. He then suggested splitting it into 3 payments of 333.00. I could probably do that except I'm also in the process of paying off an $1800 loan from CashnetUSA at $480 every 2 weeks for 8 weeks. No way I can add an extra $333 to that & be able to pay all the bills & other expenses. I told him I'd have to look over my bills & see what I can afford.

So we talked today & now he says that they won't accept anything but 2 payments of $500 & if I don't pay it he will release it to the attorneys because it was given in one lump sum & they want it back. I told him the most I can pay is $200 & that's a stretch for me. He then said it's already gone further because in the state of Ohio they take action against bad checks.

Does anyone have any suggestions as to the best way to handle this? I'm not trying to get out of paying but can't afford what they're asking. I'm working with a debt management company who says they can send them a proposal to be added to my plan but I'm not sure if they'll agree to participate. Have I ever learned my lesson, once all this is done, no more PDL's for me ever again!!!