I'm a college student, and my first credit card was with Discover. It had a $750 limit, and I opened it in 2019/2020, during my freshman year. I always made regular payments and was never late. In 2022, I called Discover to request a limit increase, and they told me they'd sent an email with a form/link to verify my identity. I agreed to check my email and complete the form, but when I searched my inbox, there was nothing from Discover.

Side note: I found it odd that after being with them for almost three years, they suddenly needed me to verify my identity and expected me to do it through email.

I called them back and told them I hadn't received the email. They said they’d resend it but mentioned the deadline was approaching. I checked my account later and noticed something was wrong, so I called again, and they informed me the deadline had already passed. I explained I never got the email, and they transferred me to a representative who was really rude. I told her the email address they had on file was incorrect, but then she hung up on me.

So, the account got closed. At first, I continued making payments, but then interest and late fees started piling up, and the balance grew from $750 to $1,000. I stopped paying, intending to settle later. To make things more complicated, the address they had on file was my home address, but my family had moved to another state while I was still away at university.

Fast forward to February 2024—I get served (well, they gave it to my roommate or something since I wasn't home), and when I finally saw it, it said I had to appear in court during spring break and that I owed them $2,000. Apparently, they'd been sending notices to my old address, which was strange because I had a Discover debit card linked to my student address.

I went to court, and they settled for a little over $1,200. I told them I could only afford $50 a month, but they insisted on $100 a month. From March to August, I couldn’t make any payments, and now the balance has grown to almost $1,600. They’ve sent me a final notice, and I don’t know what to do.

I’m desperate for advice. I make $15 an hour, work 40 hours a week, and take 18-23 credits per semester. I don’t have any support from my parents, and my rent is $900 a month. My car is technically owned by my mom, but I’m responsible for every other bill. I’m living paycheck to paycheck and can’t stretch my budget any further. What should I do?