In principle, it is very difficult to reschedule debt despite Social Welfare. This applies regardless of how high the debt is and whether only one or more creditors can be serviced. The Social Welfare benefit is so scarce that it leaves no scope for saving assets or repaying loans.
As understandable as the desire for debt restructuring in spite of Social Welfare may be, in most cases it cannot be realized and has to be postponed until the Social Welfare recipient has found work or a better paid job again. The latter factor plays a role above all because there are quite a few people who work part-time, part-time or full-time and still cannot make a living, with the result that they have to apply for supplementary Social Welfare.
Requirements for debt restructuring
In order to reschedule debt, the same requirements must be met that apply to initial borrowing. A solid and sufficiently high income is of fundamental importance. If the loan is to be taken out in Germany, positive or neutral private credit checker information is also essential. Even if the latter is with a Social Welfare recipient, it still does not meet the requirements to be able to receive a domestic or foreign loan. This also applies if an old loan is to be completely repaid or several loans are to be combined into one loan.
Alternatives for Social Welfare receivers
Under certain circumstances it would be possible to get a loan from the company or from the responsible job center. However, there must be serious reasons for this, such as those for rental or energy debts and defective household appliances. The desire to reschedule old loans is not sufficient to justify taking out a loan.
The only way to have a chance of rescheduling despite Social Welfare would be to ask your relatives or friends. Here, borrowing can be handled very discreetly and repayment can be regulated personally.