paying collection agency & debt gets higher!

What is the name of your state?I live in North Carolina. Background information:
3/1/04 - CitiBank wrote that my account was about to be charged off.
3/30/04 - Received letter from LTD which stated that CitiBank was their client and they were a collection agency. The amount due was the same as the last CitiBank statement.
3/31/04 - I wrote back stating that I was on Social Security Disability and was unable to pay what CitiBank required. That a CCCS told me they were unable to design a payment plan that would be within my capability and I have no other resources that I could draw upon. I wrote I could only pay what I could afford. and I enclosed a money order for $10.
4/19/04 - LTD sent back a statement crediting my $10 to the prior amount and saying $15 was due 5/15/04.
5/5/04 - I sent LTD a money order for $15, since I could afford this much but no higher.
5/10/04 - LTD sent back a statement verifying my last payment and saying $15 was due 6/15/04.
It didn’t credit my last payment to the balance due though. Instead, the balance due was now $93.70 higher than the previous statement ! I thought I’d try to at least pay something but it seems I’m just getting deeper in debt! The small amount I’m paying is coming out of my living expenses, and I can’t afford for this to continue. I thought I was beginning to pay off my debt.

My questions: Is this legal? Does interest and stuff continue when it gets in a collection agency? Did I enter into a contract with them by making a payment? Can they sue me for the higher amount? When does the SOL begin?

[Shay-Pari'e]

Yes, it is legal. You are paying the interest on the delinquent account.

[bigun]

If CCCS can't help, you're really in deep trouble. Is Bk an option? Post some specifics on the BK forumif you like.