If you call them up and tell them that you would like to settle the matter they will work with you and set up a payment plan or they will drop the interest and tell you to pay the balance. But you have to call them and let them know you want to pay.
Also, cash advance loans and especially website ErgLoans you mentioned in your question seem to be trustworthy a good option. Just remember to borrow responsibly.
Also, I don’t know what happens if you are being sued, but I think if they can save money by not taking it to court, they may talk to you. Contact the creditor directly, see what they can settle with you and get it in writing BEFORE you send them any money. Maybe you have a Legal Aid type thing where you live and they may be able to help you…not sure how it works. People on this board have mentioned that the remaining balance is reported as income, but I don’t know anything about it. I never settled a debt, but that is the way I would handle it.
Good Luck. Amazing how they contact everyone you have ever known. Once, a long time ago when I couldn’t pay my bills on time, the creditors called my uncle, who I wasn’t really close to but I ran his TV repair business for a month while he was out of the country. They called him asking how much money he could send them to pay my debt.
What I did was called the office that was filing the law suit. They knocked off very little, and I was able to pay the amt. they asked for in full and avoid court. I did get a paper, that said the court date was settled before hand or something like that. At first they did offer me a monthly payment plan, however, they were still going for the judgment. All I could do to avoid the judgment was pay it in full. Well, with the amount they were allowing to discount. I think it was around $400 dollars discount on a $2500 bill. So my advice is call and see what’s up to avoid going to court. If you have the $$ and that is what you want to do.