Collection Agency may sent my account to 'LEGALS' dept.

[PADebtor101]

What is the name of your state? Pennsylvania.

I am a recent college graduate who about 2 years ago incurred credit card debt. Total with interest owed is about $7300, collection agencies (2 cards, so 2 agencies) are willing to 'settle the account' for about $5100.
I currently work part time and will be moving to another address soon.
Because of that, I cannot be approved for a personal loan to settle.
I have practically no money to my name, but I am working very hard to reach a solution.
I was told that I need to settle by the end of the month to avoid my account being sent to their 'legals dept'
My question, what, if anything can 'legals' do, and what can I do? I am paying them as much as i can when i can, but until i get a better job, it isn't much. thank you

 

[Ladynred]

The threat of it 'going to the legal dept' is a typical scare tactic and its mostly bullcrap. They want to scare you into paying. All debt collectors think everyone who owes a debt is a deadbeat who took out credit with no intention to ever pay it back. Don't let them intimidate you. PA does not allow wage garnishment. If you have no assets and no money, there's nothing they can take away from you - at least for now. IF they do sue, you deal with it then. If you can manage to make an settlement arrangment at a later date, do so, but do everything in writing only.