Your options, from least to most drastic
1. Budget rework + payoff strategy
If your income covers minimums, a focused payoff plan may be enough. Compare the two main methods with our free snowball vs. avalanche calculator, and see the credit card payoff calculator to set a date.
2. Nonprofit credit counseling & debt management plans (DMP)
A counselor may set up a DMP: one monthly payment, often with reduced interest rates negotiated with your creditors. You repay in full, typically over 3–5 years, with small monthly fees. Credit impact is modest. See our credit counseling guide.
3. Debt consolidation
Replacing several debts with one new loan at (ideally) a lower rate. It only helps if the new APR is genuinely lower and you stop adding new debt. Our consolidation guide and DTI calculator can help you judge.
4. Debt settlement
Negotiating to pay less than you owe — usually after months of missed payments, with significant credit damage and possible tax consequences on forgiven amounts. Federal rules bar for-profit settlement companies from charging fees before settling a debt. Read Is Debt Relief Right for Me? before considering this route.
5. Bankruptcy
A legal reset (Chapter 7 or 13) when the math truly doesn't work. Serious credit consequences, but sometimes the honest best option — talk to a bankruptcy attorney; many offer free consultations.
Know your rights
Debt collectors are bound by the Fair Debt Collection Practices Act — they cannot harass you, lie about what you owe, or threaten arrest. Learn the rules at the CFPB, and check your reports free at AnnualCreditReport.com — the only federally authorized source. Our guide to your rights as a consumer covers the essentials.
Red flags in the debt relief industry
- Large upfront fees before any debt is settled — generally illegal for for-profit settlement companies.
- "Guaranteed" results or promises to remove accurate information from your credit report.
- Instructions to cut off all contact with your creditors.
- Pressure to sign today. Legitimate options will still exist next week.
More on spotting predatory operators in our scam warnings guide, and in choosing a debt relief provider.