What Can I Do If I Can't Afford My Credit Card Debt Anymore?

Please read Advice on Pay Day Loan Collections to learn more about your rights as a consumer.

My husband and I got ourselves in to a horrible mess with Payday Loans. We paid them faithfully for about two years. We finally realized that we were just digging ourselves into a deep grave. We closed our checking accounts so that they would not be able to process the checks that we had given them. We signed up with a Consumer Credit Counseling Program run through the local YWCA and have started making payments. The total amount we owe in payday loans is about $8,000. Some of the companies have been calling us and have told us they do not work with consumer credit counseling programs. They did not return the money that they received from us through the program. They have told us it is not enough. We have told them repeatedly that we are responsible for the debt and have every intention to pay them however, we are unable to do it on there terms. Today I got a call from one of the creditors. At first he offered to manipulate the computer system so that I could go in and get another loan so that I could pay off the delinquent loan and just start paying the outrageous interst on a new loan!! I could not believe that he made me such an offer!! I told him that there was no way that I would do that. He then offered me a settlement of $900 on a loan of $1200. He told me it would have to be paid by the end of the month and that I had to call him by tomorrow if I wanted to accept the offer. If I do not call him by tomorrow they would file for a Judgment. I do not own my home or a car, nor do I ever have much money in my account. The only time there is money is when I get paid and the bills haven't cleared! I usually have negative balances and live paycheck to paycheck. If they sue us what would be the possible outcomes considering that we have decent jobs but no assessts? They also called my supervisor today and asked her to have me call them. I called them and asked them not to call my employer and asked they call me and that I would call them as soon as I could. He stated that they nor call my supervisor again to get in touch with me but could continue to call my employer to obtain demographics. When I asked what he meant by that, he stated they could call to ask for verification of my work schedule so that they could serve me? Is this true? Thank you for your help. I love your website!