DebtReliefCenter.org
America's Trusted Name In Debt Relief
Free estimate by phone 1-866-584-0769
People with multiple credit card debts may be surprised to see how much debt relief can save each month — AND how quickly they can get out of debt by qualifying for a debt relief program
— DebtReliefCenter.org
McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams
Privacy Verified
Security Seal
Need Affordable Credit Card Payments?
See how much lower your monthly credit card payment can be. It's fast and easy to see if you qualify...
  • $35,000 debt relief savings estimate 8 minutes ago in Petersburg, VA
  • $35,000 debt relief savings estimate 14 minutes ago in Whitehall, PA
  • $100,000 debt relief savings estimate 21 minutes ago in Los Angeles, CA
  • $100,000 debt relief savings estimate 22 minutes ago in Los Angeles, CA
  • $35,000 debt relief savings estimate 22 minutes ago in Columbia, MD
  • $35,000 debt relief savings estimate 22 minutes ago in Columbia, MD
  • $50,000 debt relief savings estimate 25 minutes ago in Rochester, NY
  • $50,000 debt relief savings estimate 26 minutes ago in Rochester, NY
BBB Accredited
Powered by Envoy

Debt Settlement Pros and Cons

If you are experiencing financial hardships and struggling with your credit card debts, you may be interested in finding out how settling your debts can help, and the pros and cons of this particular debt relief option. One pro of debt settlement might be that it could help you put an end to feeling overwhelmed with credit card debts. These debts can cause stress and anxiety to take over your and your family's life. If you sometimes feel that the money you do make keeps disappearing into thin air while your debts keep adding up - take heart - there are relief options available.

For many people, debt settlement may be a viable debt relief option as it allows them the opportunity to settle, or negotiate, with creditors for a significantly reduced amount as compared with their original debt. However, debt settlement is just one of several debt relief options available to you; another option is a process known as debt consolidation, where consumers work with credit counseling agencies to combine their credit card and unsecured debts into a single, more manageable, and more structured monthly payment.

Today, many consumers have made both debt settlement and debt consolidation popular alternatives to bankruptcy, which is also a form of debt relief - but has a more devastating and longer lasting impact on personal credit.

Explore your debt relief options now. Get a free debt relief analysis and savings estimate - start here.

Understanding Debt Settlement

As mentioned previously, many consumers who are overburdened with credit card debts can find relief through debt settlement - a process where they hope to settle or negotiate with their individual creditors for significantly less than what they originally owed. If you are considering debt settlement, a few words of advice: As the term "debt settlement" implies, credit card companies are certainly not legally required to "settle" or accept your settlement proposal.

In many cases, you will be advised to stop making payments on your credit cards so you can accumulate funds, over an extended period, that you can later use to make a reasonable settlement offer (or a lump-sum offer). During this period when you are not making payments to save funds, you are, generally, defaulting on the terms of your credit card agreements. As a result, you will typically see a decline in your credit score.

However, for many, in spite of the potential risks of debt settlement (pros as well as cons) it is a popular alternative to bankruptcy - which can have a more serious and longer-lasting effect on your personal credit.

Debt Consolidation Alternative

As noted earlier, if you are overwhelmed with credit card debts as well as other types of unsecured personal debts (for example, medical bills, gas charges, or department store charges), and are still assessing the pros and cons of debt settlement, you may find relief through another process known as debt consolidation, or a debt management plan (DMP). Debt consolidation typically involves consolidating, or combining, your multiple, high-interest credit card debts into a single, more affordable monthly payment made to a credit counseling agency.

Consumers who enroll in a debt relief via a debt management plan talk to credit counselors who make an assessment of their outstanding debt obligations and income. Once they have all the financial information that they need, credit counselors typically make proposals (on your behalf) to creditors requesting a reduction of interest rates, or the waiving or elimination of any late fees and other penalties.

Creditors that agree to the proposals are entered into the debt management plan. The goal is, with a more manageable and a more affordable payment plan, you can reduce your debts sooner than if you only continued to make the minimum payment at higher interest rates.

It's important to understand that while it is the credit counseling agency's responsibility to disburse funds to creditors, it is your responsibility to make sure that you have funds available in the account set up for your monthly payment. Reputable credit counseling agencies can typically provide you with a due date (the date that they draw money from your account) that takes into consideration, for instance, when you get paid or have the funds available in the account.

The bottom line is, if you are struggling with debts, there is help available - regardless of whether you consider debt settlement or debt consolidation. It is up to you to take the next step in finding out how debt relief may be able to help you regain control of your life and get off the debt treadmill.

Explore your debt relief options today. Request a free debt relief analysis and savings estimate - start here.

Saving thousands of dollars feels really good!
Know your debt relief options.
People helping people get the debt relief they need.

Creditors calling?

When you're falling behind with credit card debts and creditors are calling – it feels great to know that there's a debt program to lower your payments and get you out of debt much faster than you ever imagined.
Who we're helping right now...
$30,000 debt relief savings estimate
– Oceanside, NY

Unexpected bills

Credit card debts and unexpected medical bills can put you in a real bind. Fortunately, debt relief plans can reduce interest rates, lower monthly payments, and help you get out of debt faster.
Who we're helping right now...
$30,000 debt relief savings estimate
– Oceanside, NY

A brighter future

When you work hard to provide a bright future for your children, you don't want high interest credit card debts to get in the way. You need a proven path to become debt free as quickly as possible.
Who we're helping right now...
$10,000 debt relief savings estimate
– North Olmsted, OH

Debts piling up

When you own your own business, it's easy for credit card debts to become a problem – bills piling up, creditors calling, and you need a way out. The good news is, debt relief can help you save money each month and take control of credit card debts.
Who we're helping right now...
$90,000 debt relief savings estimate
– Norfolk, VA

Supporting a family

Credit card debts can add up quickly, especially when families run into unexpected expenses like medical bills, or loss of a job. The good news is there are credit card debt hardship programs that can help you.
Who we're helping right now...
$35,000 debt relief savings estimate
– San Francisco, CA

Financial hardships

When you go through tough times and credit card debt start closing in on you – it feels good to know there are debt hardship assistance programs to help you get back on track.
Who we're helping right now...
$20,000 debt relief savings estimate
– San Francisco, CA

Retire debt free

When you're planning for retirement, paying monthly credit card minimums will get in the way of your dreams. The good news is, credit card companies may be willing to reduce your interest rates, waive late fees or even settle debts for much less than you owe.
Who we're helping right now...
$50,000 debt relief savings estimate
– Rochester, NY