With your credit cards - relationship with the bank doesn't matter, they have hardship policies for a reason When I was out of work before getting this job, I called our credit card provider and, after filling in their mountains of paperwork, we were given a 3 month 'holiday', where no interest or fees were charges, and no payments were expected. Of course, we couldn't use the card in that time, but that was fine, I didn't want to. For the record, that particular card was worth $6k, and we were overdrawn by just over $400 when they gave us the 'holiday'.

Debt collectors - stand your ground hunny! You know what you can afford to pay, don't let them bully you. As you said, there is absolutely NO point entering into an arrangement you know you can't fulfil. I like the idea of calling the company who have referred it - and I would also recommend keeping a written record of ALL communication with the companies you have outstanding debts with. Owing money is no reason to be treated unfairly or disrespectfully, and if you have taken note of who said what, you would be surprised how much help the complaints dept can be.

I also just wanted to say something in general : These days, being in debt is nothing to be ashamed of. Particularly in the last few years, it has been ridiculously easy to get into a huge amount of debt, which may appear manageable when you sign on the dotted line, but when faced with a surprise baby, a redundancy, a car accident - things change fast and finances get out of control VERY easily. Please don't let embarrassment stop anyone from getting the help they need, because the sooner they seek help, the easier it will be