I did try this system at the beginning of my adventure in DebtLand and it did not work with any of my creditors at first. My mortgage company, Countrywide (now acquired by Bank Of America), point blank informed me “We are not willing to accept anything less than the regular minimum payment. If you can’t make this payment we suggest you file for bankruptcy; otherwise we will initiate foreclosure proceedings.”
Yeah, they were very helpful; I can’t say enough bad things about my experience with Countrywide. Citibank eventually filed suit and when they finally decided I was serious about filing for bankruptcy agreed to a settlement (through the court system so I have that lovely black mark on my permanent record) for….exactly the amount I told them I could afford in the 1st place!
Also, I live if Miami, Florida. I see there is a company offering payday advance loans – I’m going to use their service. Will let you know how it goes. Elan finally agreed to accept my offer 6 months into the ordeal; they removed all of the penalties so I’m not exactly sure what they feel they accomplished by delaying things for 6 months.
The other creditors also refused my offers when I made the offer; all but 1 agreed to accept a proposal from my CCCS for close to the amounts I offered them. Compass Bank has never responded to any communications from me or the CCCS. I was prepared to file a complaint against Compass with the BBB but the CCCS asked me to wait another 30-45 days while they try one more time to contact Compass.