Of course it is not a bad idea as if you are right, you can nip the evil in the bud, and stop creditors phone calls. If you are behind on your debts, the debt collectors for each of your creditors may already be calling or writing you. You can be successful, if acting on your own behalf, you start calling them. Ask for the credit department, explain your intent to pay back the loan, and ask for either forbearance or instalment pay back. You can also go to their office and offer to resolve the collection account. Make sure you always ask for and write down the name of the person you needed to talk or the one who is calling you. Ask each creditor to agree with a voluntary plan for the repayment of your debts. In dealing with them, ask if they can reduce the balance, drop the fees, or waive the delinquent amount. If you agree and pay the whole thing, make sure you write that “it has been paid in full, final and complete satisfaction of your account, including the front and back of your check. Some creditors may be unwilling to give you more time. Some of these collection agencies have credit counseling programs which are affiliated with them and you can negotiate your debts after consultation with them.
May be you can contact some of the non profit agencies. Be careful as lots of them claims as such. Be careful again, if you choose a non profit agency. Ask upfront their fees. Always on the lookout for predatory loan counselors.
Consolidate your debt:
You may also buy time and avoid bankruptcy by consolidating your debts, by taking a big loan to pay off your smaller debts. You have to get answers to questions like what would your payment be? What would be the interest rate? Is there a prepayment penalty? What would you have to give up? If you lower your payments by consolidation, you will not accomplish anything if you continue to use your cards and accumulate more debts during this process.