Debt Relief
If unsecured debt has gotten ahead of you, structured relief programs can lower payments, reduce interest, or settle balances. Compare consolidation, settlement, and counseling options — they're not interchangeable, and the right pick depends on your situation.
Debt relief basics
- Programs
Consolidation vs Settlement vs Counseling
Consolidation rolls debts into one lower-APR loan with a fixed payoff date. Settlement negotiates reduced payoff amounts (hurts credit). Counseling restructures payments via a nonprofit. Each fits a different situation.
By Maya Patel, CFP®
- Math
When Consolidation Saves Money
When the new APR is meaningfully lower than your weighted-average rate, AND you don't run up the cards again. The math is straightforward — but behavior is what trips most people up.
By Priya Shah
- Credit impact
What Debt Settlement Does to Your Score
Settled accounts mark your credit report as 'settled for less than full balance.' Score impact is significant (50-150+ points), and the mark stays 7 years. Use only when bankruptcy is the alternative.
By Maya Patel, CFP®
- Free vs paid
Nonprofit Credit Counseling is Free or Cheap
Approved counseling agencies are required to provide free initial counseling. DMP enrollment usually $25-50/month. Watch for for-profit 'debt relief' companies that charge 15-25% of enrolled debt upfront.
By Avery Cole
Frequently asked questions
What's the typical APR range for Debt Relief today?
Rates depend on credit profile, loan amount, and the lender's funding model. The lenders listed above show their disclosed APR ranges; pre-qualifying with two or three usually produces the most accurate read for your situation.Will checking my rate hurt my credit score?
Pre-qualification uses a soft credit pull, which doesn't affect your score. A hard pull only happens after you formally apply — so you can compare offers from multiple lenders first.How long does funding take after approval?
Most lenders listed fund within 1-5 business days of accepting your offer. Debt Relief can take longer when underwriting requires additional documentation (income verification, asset statements, etc.).What credit score do I need?
Minimums vary by lender. Some accept scores in the high 500s; others require 680+ for the best published rates. Check each lender's "Min credit" column above.