If you cannot pay the minimum balance on your debts, it's time for you to settle your debts. Debt settlement is where you negotiate with creditors/collection agencies and try to reduce your debt.
Here is a step-by-step guide to settling your debts by yourself:
How to settle your debts yourself if the debt is held by the creditor
How to settle your debts yourself if the debt is held by a collection agency
- Proof that the CA has been assigned to collect the debt by a creditor.
- Detailed payment history starting with the original creditor.
- Copy of the original signed debt agreement or credit card application.
- If the reply is not satisfactory, inform the CA that they are violating the Fair Debt Collections Practices Act and they need to remove the collection listing from your credit report or you will sue them.
If you aren't comfortable dealing with creditors/CAs, you can get help from a debt settlement company/law firm who will negotiate on your behalf and help you to settle your debts. You need to go for a no-obligation free debt counseling session with the company you choose so that they can assess your financial situation and then decide how much you can offer your creditors.