Compare Your
Debt Relief Options
As you may know, there is more than one way to get out of debt. The right debt relief option for you largely depends on two factors — how much debt you have and the kind of debt it is. Choosing the wrong option can easily cost you thousands of dollars, extend the time it will take to get out of debt, and result in years of unnecessary stress. (See our Debt Slide for a graphic illustrating how to choose the right debt relief option.)
If you qualify, our debt negotiation and settlement program can help you get out of debt in 12 to 36 months for significantly less than the amount you currently owe.
See for yourself how we compare:
Projection based on four debts owed to different creditors: two $3,000 debts, a $10,000 debt, and a $14,000 debt. Actual results vary depending on what you owe, how much you can pay per month, and for what percentage your creditors are willing to settle.
If you qualify for debt settlement, we hope you choose our program because we know what happens when serious debt problems are ignored. But just being in debt does not qualify you for debt settlement.
Debt settlement is certainly not for everyone and you should review your different debt relief options to determine which solution is best for your particular situation.
If you are experiencing a financial or personal hardship that is hampering your ability to pay your bills, some of your debt relief options include:
Debt Consolidation Loans
Keep in mind that this option does not get you out of debt, it rearranges your debt. A debt consolidation loan can be a good option for people with good credit and sufficient equity in their homes. A debt consolidation loan is typically obtained by using the equity in your home to consolidate your other smaller loans into one big loan. However, if you have overwhelming debt, then you might not have good credit. In addition, it is very important to make sure you understand the risks if you are unable to repay the loan.Consumer Credit Counseling Services
These programs can be good for people who want help organizing their debts. It may not be the best option for consumers with overwhelming debt. Consumer credit counseling may take 6 years or longer to complete and you still pay back 100% of the debt, plus interest and the agency’s fees. In some cases, you also may be kicked out of a credit counseling program if you miss a payment.Debt Management Programs
Sometimes offered through consumer credit counseling agencies, debt management programs involve the careful budgeting and management of funds as a way to repay your debts. This can be a good option for people who can afford it; unfortunately too many people incorrectly believe that they can.Bankruptcy
While filing bankruptcy is a legitimate way to get out of debt, like all debt relief options, it has certain drawbacks. Bankruptcy can be invasive, expensive and stay on your credit report for up to 10 years. Before choosing bankruptcy, it is important to understand the different types, the consequences, and the costs. Sometimes bankruptcy is the best option for debtors, but it is generally considered a last resort.Pay on Your Own
If you can afford to pay off your debt on your own then this is the best option for you. However, by continuing to pay only the minimum monthly payments to your creditors, it can take decades to repay the full debt, cost thousands in interest alone, and require you to pay back over three times what you now owe. Unless you are able to repay the entire debt relatively quickly, this is one of the slowest and most costly ways to get out of debt.
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Debt Shield’s Debt Negotiation and Settlement Program
If you have a legitimate financial hardship, debt settlement can be one of the quickest, most effective ways to help eliminate your debt at a fraction of the cost of other debt relief options. To learn more about debt settlement, complete our online application to see if Debt Shield is right for you.
