Bankruptcy is typically a faster, cheaper option than a debt settlement plan.Debt management plans, offered through consumer credit counseling services for a monthly fee, usually bring reduced interest rates on credit card balances.
If your debt load is small — you can pay it off within six months to a year at your current pace — and you’d save only a negligible amount by consolidating, don’t bother.
Try a do-it-yourself debt payoff method instead, such as the debt snowball or debt avalanche.
If the total of your debts is more than half your income, and the calculator above reveals that you can’t pay off your debt in five years, you’re better off seeking debt relief than treading water forever.
More When consolidating debt, balance transfer cards let you shift over debts from other cards and charge no interest for a limited time.
Personal loans allow you to pay off your creditors yourself, or you can use a lender that sends money straight to your creditors.
More Debt consolidation can help your credit if it helps you make on-time payments or shrinks balances on revolving accounts, especially if credit card balances were near their limits.