What if the creditor doesn report to services, like a freind or relative I owe the money to?
A. These generally call for friendly debt workouts. Here personal relationships play a strong role. It may be payment in full seems a small price to pay compared to the strain of dealing with a friend or relative you can’t pay back. If the relationship means that much to you it probably means just as much to the other party and they will understand if the terms of your loan need to be modified. In most of these situations I see the loans end up paid in full but not under the original terms. I would call this a debt workout too.
