Debt Collector & Garnishements

I missed a call while I was at work, then 10 minutes later got a call from my brother saying someone left him a voicemail saying he was trying to get ahold of me to serve me. I check my voicemail and sure enough it’s the same thing. I called the number the guy left in the voicemail (different from the one he called on) and was routed to “Alliance Recovery Inc”. They told me they are going to sue me for a loan I took out in 2021 (I have literally no recollection of this) but apparently they verified it was my debt and they want to garnish my checks according to him. He told me I can set up a payment plan and I panicked and agreed. He wants me to pay $500 a month for the next 6 months and stated that’s all they could take to prevent me from being taken to court. He wants me to make my first payment on 3/28 (2 days from now). Afterwards they took my card information and told me if the payments don’t go through they will add an additional charge to my case “falsifying banking information” and charge me more.

When I spoke with a few people they said it sounds like intimidation tactics to get me to pay and suggest I cancel my debit card (I provided it for payments bc I was scared of getting in legal trouble). I applied for free legal help but it takes time to get someone on the phone. So I’m hoping someone on here can ease my mind or give me a suggestion on if I should make this $200 payment on Thursday?

TLDR; A company called me threatening me with garnishment, manipulated me into giving up my banking info and threatened if I don’t make payment by 2/28 they will add more charges to my case.