Explanation:It is possible to contact creditors directly and negotiate a payment plan where you pay a certain amount each month to pay off your debts. In some cases, creditors may agree to accept significantly less than the full amount owed.

Requirements:

You will need to contact each creditor individually and negotiate a payment plan.
It's important to have creditors sign a written agreement that confirms they will report to the credit bureaus that you have paid off the debt in full once the final payment is made.

Advantages:

You can work directly with creditors to ensure that interest stops accumulating (or decreases) and that late fees and penalties are waived.

Disadvantages:

The difference between the original debt amount and the negotiated payment may be considered taxable income.

Option 5: Negotiate a Debt Payment Plan on Your Own

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