Paying $35 per month will take you more than 20 years but, yes, you can pay something every month, they won't send it back, but it won't prevent a lawsuit if they can get a lot more out of your paycheck with a judgment.
Collection agencies don't have to be licensed in Georgia.
Sure, you can sue him for indemnification which means you can sue him for what you actually pay.
If you are having other financial difficulties you might want to consider bankruptcy.
By the way, if you paid by credit card, see if the credit card covers damage to the rented vehicle.

