Compare Debt Relief Options
See the trade-offs, costs, timelines, and credit impact for each path — from DIY payoff and consolidation to DMP, settlement, and bankruptcy.
Side-by-Side Summary
| Option | Best For | Typical Timeline | Monthly Payment | Credit Impact | Key Trade-Off |
|---|---|---|---|---|---|
| DIY Avalanche / Snowball | Steady cash flow & discipline | 6–36 mo | Highest (aggressive payoff) | Improves over time | Requires consistency; no rate relief unless 0% transfer |
| 0% Balance Transfer | Good/excellent credit, short window payoff | 12–21 mo promo | High (to beat promo) | Short-term dip from new credit, then improves | Must finish before promo ends |
| Consolidation Loan | One fixed payment, decent credit | 24–60 mo | Moderate | Small dip from new loan; stabilizes | Rate depends on credit; fees possible |
| Non-Profit DMP | High APR cards, need structured plan | 36–60 mo | Moderate | Minor, then improves as APRs drop | Accounts closed; program discipline needed |
| Debt Settlement | Hardship / behind on payments | 24–48 mo | Lowest vs. balances | Short-term drop; can recover post-program | Collections/late marks; taxes possible on forgiven debt |
| Bankruptcy (7/13) | Unmanageable debt or legal risk | 4–6 mo (Ch.7) / 36–60 mo (Ch.13) | Lowest (esp. Ch.7 discharge) | Major hit; rebuild starts after discharge | Court process; not all debts dischargeable |
This is educational, not legal/financial advice. Outcomes vary by creditor, state, and individual profile.
Option Details, Pros/Cons & Next Steps
DIY Avalanche / 0% Balance Transfer
Max savings if you can pay aggressively (especially with promo APRs).
- Pros: Lowest cost if paid on time; builds strong habits.
- Cons: Requires high payment discipline; promo expirations.
- Best For: Good credit and steady income.
Debt Consolidation Loan
Swap variable card APRs for a single fixed payment and clear end date.
- Pros: Simplifies payments; potential interest savings; predictable payoff.
- Cons: Rate depends on credit; origination fees possible.
- Best For: Fair–good credit, stable income.
Non-Profit Debt Management Plan (DMP)
Work with a certified agency to reduce card APRs and fees in a structured plan.
- Pros: Reduced interest; creditor cooperation; coaching/accountability.
- Cons: Card accounts closed; monthly program fee.
- Best For: High APR card debt + stable income.
Debt Settlement (Hardship Program)
Negotiate down enrolled unsecured debts when you can’t sustain minimums.
- Pros: Lowest monthly outlay vs. balances; resolves multiple accounts.
- Cons: Late marks/collections during program; taxes may apply on forgiven debt.
- Best For: Verified hardship, behind or about to fall behind.
Bankruptcy (Chapter 7 / 13)
Court-supervised relief for unmanageable debt or legal exposure.
- Pros: Stops collections; fastest legal discharge (Ch.7) or structured plan (Ch.13).
- Cons: Major credit impact; certain debts not dischargeable.
- Best For: Severe hardship, lawsuits, wage garnishment risk.
Credit Errors & Score Recovery
Dispute inaccuracies and fix utilization/aging to speed score rebound.
- Pros: Faster recovery if reports are inaccurate; protects future approvals.
- Cons: Won’t remove accurate negatives; results vary.
- Best For: Post-relief cleanup or thin files.
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Choose Your Path
Pick the option that fits your cash flow and timeline — or start with the free credit reset to protect your score.