Anti-government spending apologists keep saying that politicians should run their budget like households...

(Also, I'm not saying you're one of them the way, but you happen to sound like one.)

... Negotiating debt settlements is the very first thing a financial advisor would tell you to do in case you (or an irresponsible family member) has contracted a huge debt. The fact that the lender denies your request doesn't say much about you besides your ability to negotiate. If you're dealing with a loan shark, that says more about them than it says about you.