govt debt I only have 1 day to call back! Help please!!

State: Ohio

I'll be very brief. My husband and I left military with a debt $2610.00 (mine) and 1584.00 (his) in 1995. I contacted them to make payment arrangements in 1995 & was advised taxes would be garnished. They did garnish the taxes BUT it was for my husbands account only as I called two days ago to get balance due and was advised $4383....after I picked myself up the collector and I came to the conclusion that my husbands account was the only account that was garnished. The collector is giving me an opportunity to pay this debt (which at this time has not been reported to any credit reporting agency). HOWEVER, this is the catch... I only have until 5pm tomorrow to get back to him to accept his offer... monthly payments of $243.52 for 18 months!! He stated he can not deduct any of the finance charges... remember the original debt amount $2610! This payment of $243.52 monthly will break us BUT allowing him to garnish our taxes again and send to reporting agency will get us NO WHERE!! He claims he can deduct the finance charges only if I PIF - yeah right!! Any suggestions as to how I should handle this!! NEED IMMEDITATE RESPONSES PLEASE!!!
Thanks!

Can you get a bank loan for the original amount? It would be nice if you could just pif and save a couple thou. I know at our bank we can get really quick loans, instant in fact. That would still leave you with about $175 or so per month, but better than the alternantive. Just an idea. Good luck.

Imagine this: today I contacted the creditors on my account the ONLY option I was given was to pay $100 (posted check for 10/31) and to agree to the $243.50 payment each month. The creditor stated they will only deduct $400 from total amount due if TODAY I paid in full...no pressure there,huh?. Needless - to- say I paid the $100 and agreed to pay $243.50 each month to avoid them garnishing my taxes.

I have a question....I'm trying desperately to clean up my credit. I have an auto loan at 21% ($296.50 month) then this $243.50 and rent at $910.00 plus our other regular monthly (water/utilities/insurance) throws us over the 30% ratio for trying to apply for a mortgage for a home....any suggestion as to how I can go about applying AND getting someone to lower the auto loan.?

THANKS TO ALL>>>>