Collection came up after 7 years. What should I do?

Last week my credit union granted me $12K loan to pay off my payday loans and past due accounts. Well, I was thrilled, my prayers had been answered. Today I open the mail and there is a letter from a collection agency. I phone the agency, since I did not recall the bill and it was not on my credit report. Well, it turns out that the bill was from the 90s. It originally was a $2200 bill that my husband was suppose to pay in the divorce. Now they had added interest so the bill is $6200.00.

I am not trying to ignore my problems or bills. If I had known about this bill I would have put it in my consolidation loan. I wrote a letter informing the collection agency that I did not have $2200 to pay the lump sum for the settlement. I am requesting that they reduce it to $1500 and allow me to pay $100 per month for 15 months.

I just do not know why this bill appeared after all these years, and what happens if they do not take the $1500 offer?
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validate that debt
with vigor
1990's means it is more than 7 years old.

if they can't call your state attorney general, the ftc, the bbb