<prompt> Human: Hi all, I graduated last year May2013 and since then departed out of the country for an internship tailored to my career prospects. I returned home only to find that I had a delinquency of 92 days with Discovery Student Loans and my university has sent my balance due to a collections agency. I am beating myself up about it, I know I have made stupid decisions regarding my student debt. I suppose I am wondering how badly my credit history is damaged? I am planning on making the appropriate payments from now on to address these issues. These would be the first two stains on my credit history. Another question is that I have one private loan from Discover with a nearly 10 interest rate. And my balance due from my university 16,604 was sent to a collections agency Williams and Fudge. I have inquired about a payment method and was offered two. One: Pay amount in full. Two: Enroll in a 12 month payment plan 1,383. Both of which I am absolutely unable to do. I am thinking of taking another bank loan through my bank in order to pay these in full and enroll in an income based payment plan. Please advise.  <response>: A couple of thoughts on this: 1. Dont deal with the collections agency if you can help it. Dave Ramsey sums up debt collectors pretty well: You know they are lying if their mouths are moving. Most of them will do anythingseriously, anything!to make you pay your bills. They dont care whether you feed your family and keep your lights on. All they want is to be at the top of your priority list. Nothing else matters to them. It sounds like Williams and Fudge gave you two impossible options to choose from so that youd try to counter with one thats only nearly impossible. Theyd like that outcome. 2. So, give Discover a call and see if they still own the debt. Its only a year old, so the answer is probably yes. See if they have better terms for a payment plan. 3. Regardless of what you and Discover work out, send them meaningful regular monthly payments to pay down your debt. This wont stop you from being sued, but the good faith effort may look better for you if it does go to court. It will also stop Discover from reporting no payment to the credit agencies every month. Also, most importantly, its the right thing to do. 4. Dont skip out on future debts. Thats no way to live. 