re: How f***ed am I?

Get the full amount of what they say you owe. Then try to secure 40, 50, 60, 70% or whatever amount you can pay at once to settle the debt immediately. A lot of times, these places will take whatever they can get. I'd offer them 30-40% right now to settle the debt completely. You can always work out a payment plan and then call back and offer to pay X percent right now to settle the debt. They have very low expectations to getting anything out of people so they'll likely work with you if you pay something.