Informal Agreement with Creditors
To reach an informal agreement with your creditors you will first need to work out a manageable budget to calculate what you can reasonably afford to pay in total towards your combined debts after accounting for your essential living expenses.
Generally, you can work out how much to offer each creditor on a pro-rata basis based on the amount you owe each creditor and negotiate with them individually to seek their agreement to your offer which they are not obliged to accept.
Your debts must be paid in full with no fixed term and no debt forgiveness; however, creditors may agree to freeze interest and charges on the debt but this is at their own discretion and is not guaranteed.
You will be responsible for administering all the payments yourself to each of your creditors but there is the advantage of minimising costs with no third-party management fees to be paid or Court costs. You can also re-negotiate your payments at any time.
Your creditors can still contact you and take court action such as applying for a Charging Order over your property which may place your home or assets at risk.