Finance House

What is the name of your state? PA

I have been contacted by a collection agency and they say that I owe $2350,I told them that this bill was submitted to the wrong address,and they resubmitted it and then they said that the insurance company said that this was my co-pay etc. I am on disability with an income of abot $1100 a month for a family of three, the collection agengy demands that I pay the 10% a month until this is paid off, I told them that I could probably give them $10.00 a month but I probably could afford about $25.00 a month.They told me no way its 10% or nothing, they said they are going to put this on my credit report if I don't pay at least the 10% a month,and that they are going to take legal action against me. What can I do? I can only afford about $25.00 a month? Please help I'm going bonkers!!