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- The main debt relief options are a do-it-yourself payoff plan, a debt management plan, a debt consolidation loan, debt settlement and bankruptcy.
- If you can still afford your minimum payments, the gentler options usually cost less and protect your credit.
- Debt settlement and bankruptcy can cut what you owe, but both do serious credit damage.
- Legitimate debt settlement companies cannot charge fees before they settle at least one of your debts.
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Numbers that frame the decision
- Average credit card interest rate: 22.36% on accounts charged interest (Q3 2026)
- Typical debt settlement fee: about 15% to 25% of enrolled debt
- Late payments stay on credit reports for up to seven years
- Bankruptcy can stay on credit reports for up to ten years
Rates from the Federal Reserve G.19 release; fee range reported by CBS News; credit reporting periods from the CFPB.
Debt relief options range from a simple payoff plan you run yourself to a court-supervised bankruptcy. Each one trades cost, time and credit impact differently.
Use the comparison below to narrow it to one or two, then read the detailed guide for each.
Debt relief options compared
| Option | Best for | Credit impact | Typical timeline |
|---|---|---|---|
| DIY payoff plan | Steady income, manageable balances | Positive over time | Depends on payment |
| Debt management plan | Can pay in full at lower interest | Mild; accounts may be closed | 3 to 5 years |
| Consolidation loan | Good enough credit for a lower APR | Small dip, then can improve | 2 to 7 years |
| Debt settlement | Cannot pay in full, want to avoid bankruptcy | Severe; missed payments | Often several years |
| Bankruptcy | Overwhelming debt, no realistic payoff | Severe; up to 10 years on report | Months (Ch. 7) to 5 years (Ch. 13) |
Which debt relief option fits you?
Can you afford your minimum payments right now?
If yes, start with a payoff plan, a debt management plan or a consolidation loan. These usually cost the least.
Is your credit score still fair or better?
A consolidation loan at a lower APR may work. See our guide to debt consolidation loans.
Are you already behind and the debt keeps growing?
Debt settlement or bankruptcy may be on the table. Read both guides before you sign anything.
Are collectors calling?
Learn your rights first in how to deal with debt collectors.
Talk through your debt relief options
SponsoredThe cost of waiting
At a 22% APR, a $10,000 credit card balance builds about $183 of interest in a single month. Every month spent deciding is another month of interest.
Our credit card debt relief guide shows how much faster a bigger monthly payment clears a balance.
See debt relief options available to you
Debt relief rules and programs vary by state. Add your ZIP code to see options that serve your area. Looking is free and commits you to nothing.
Red flags in any debt relief offer
- β Fees charged before any debt is settled
- β Promises to stop all collection calls and lawsuits
- β Guarantees that your debt will be cut by a set percentage
- β Pressure to sign the same day
- β Advice to stop talking to your creditors entirely
Read more in our guide to debt relief scams.
Frequently asked questions
What is the best debt relief option?
It depends on whether you can still afford your payments. If you can, a payoff plan, debt management plan or consolidation loan usually costs less and protects your credit.
Does debt relief hurt your credit?
Some options do. Debt settlement and bankruptcy cause serious damage. A debt management plan or consolidation loan has a much smaller effect.
Is debt relief a good idea?
It can be when debt is truly unmanageable. Compare the options, check fees and read the contract before enrolling.
Can I do debt relief myself?
Yes. You can call creditors to ask for lower rates or hardship programs, or negotiate settlements yourself without paying a company.
See debt help options for your situation
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