Start by considering if you can get a partial reduction in debt. This means that part of the debt is cleared. You agree on a repayment scheme to repay the balance. Should you be credited with this, it will incur less interest and you will be able to get better opportunities to pay the debt.
Often, you will agree to pay down the debt over a certain period (which may be five years, for example), and then have the rest of the claim cleared. This is an alternative that corresponds to the normal scheme of the Debt Settlement Act. Another possibility is to ask for the payment of the main claim and that interest and costs be deleted.
Perhaps an option for you would be to get a new agreement with the creditor as described above, to refinance the debt. So you can take out a new loan to pay off the old one. Just remember that the debt with this is not paid! The benefits of refinancing can be:
So you get a delay with the payment. Costly recovery can be avoided in connection with outlay and forced auction. If you take out a large loan and pay off small loans, you will only have one creditor to deal with and cooperate with. The interest rate may be lower. Therefore, first compare the interest rate for the new loan with the interest rate on the loan you have.
Check if you can get a full debt cancellation
One last attempt is to ask for debt cancellation. It may sound impossible, but you may ask for it if you have no opportunity to pay anything, and if the chances of a future improvement in your ability to pay are very unlikely. The assumption must be that any attempt to recover will be useless with such debt, or that the creditor nevertheless has nothing to gain by upholding the claim. However, it is almost impossible to get the creditor to agree to a full remission of the debt.
Of course, a generally good tip for you with a lot of debt would be to not promise too much.
The goal of contacting the creditor is to establish a new agreement. Therefore, you should have thought carefully about how much you can pay per month.