I occasionally hear a radio commercial saying that if you call a business, that they can help you with your “right” to lower your debt. You do not have any right to lower your credit card and tax debt. That is a fallacy. You might have an option to negotiate lower debt, but that might not be the best option.
If you owe $20,000 to a credit card company, it is because you bought $20,000 dollars worth of stuff. You bought it. The company did not force you to buy it. If a credit card company negotiates a lower balance with you, it looks really bad on your credit report. It might feel like you are saving money, but you are probably doing much more harm in the long run.
When a company “forgives” debt, they are writing off the debt as a loss. This is reflected on your credit report. A write off looks much worse than a late payment. Late means you still paid. Write off means you did not. It is that simple from the eyes of a lender.
The same goes for taxes. A tax settlement might get you out of some of your debt, but it looks really bad. To get to the point of settling, you probably already went through a rough spot and collections. All of these things look bad on your part. It is no one's fault but yours.
I know it might sound hard if you are in a tough spot, but you should figure out a budget and figure out how to pay off your debt. Once it is paid off, you have that much more cash to save and pay for your life. It is a short term struggle with long term benefits.