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Compare options

Compare debt relief options

Debt settlement, consolidation loans, debt management plans and bankruptcy, side by side. Including the cases where one of the others is the better choice for you.

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We do not sell loans, so we have no reason to steer you to one

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Side by side

Four options, one table.

What each option is, what it costs, how long it takes, what it does to your credit, and who it fits.

What we compare What we do
Debt settlement		Consolidation loanDebt management planBankruptcy
What it isWe negotiate each debt down; you pay the settled amounts from an account in your name.A new loan pays off your old debts. You still owe the full balance.A nonprofit credit counselor arranges lower interest; you repay the full balance.A court process that can erase or restructure debt.
What it costsThe settled amounts plus our fee, charged only after a settlement is reached and shown as its own line. Forgiven debt may be taxable.The full balance plus interest on the new loan, and any loan fees.The full balance, usually with a small monthly fee.Court and attorney fees.
How longMost programs run 24 to 48 months.The loan term, often several years.Often 3 to 5 years.Months (Chapter 7) or 3 to 5 years (Chapter 13).
Credit impactYour score will drop during the program.Needs good credit to qualify; can help if paid on time.Usually a smaller dip; enrolled cards are often closed.The largest impact, reported for 7 to 10 years.
Who it fits$10,000 or more of unsecured debt you can't keep up with.Good credit and income steady enough to repay in full.You can repay in full if the interest comes down.Debt you cannot repay in any realistic time. Talk to a bankruptcy attorney.

If a debt management plan or bankruptcy fits you better, we will tell you so. Free nonprofit credit counseling is a good first call for many people, and we will point you there when it is.

Who each option fits

The honest verdict, option by option.

Debt settlement

What we do

Fits if

  • $10,000 or more of unsecured debt you cannot keep up with
  • You are already behind, or close to it
  • You can save one steady monthly amount

Watch out for

  • Your credit score will drop, and creditors can sue
  • Fees apply, and forgiven debt may be taxable
  • Not all creditors settle

Consolidation loan

Fits if

  • Your credit is still good
  • Your income can cover the full balance at a lower rate
  • You want one fixed payment

Watch out for

  • You still owe every dollar, plus interest and loan fees
  • It only helps if the cards stay paid down
  • A missed payment hurts your credit
Read the full comparison

Debt management plan

Fits if

  • You can repay in full if the interest comes down
  • You want a nonprofit counselor to deal with the creditors
  • You want a smaller dip in your credit

Watch out for

  • Plans often run 3 to 5 years
  • Enrolled cards are usually closed
  • A small monthly fee is common
Read the full comparison

Bankruptcy

Fits if

  • Your debt is beyond any realistic repayment
  • You need the court’s protection from lawsuits or garnishment
  • You have talked to a bankruptcy attorney

Watch out for

  • The largest credit impact, for up to 10 years
  • Court and attorney fees
  • Some debts cannot be discharged
Read the full comparison

Related

The full comparisons

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Which questions decide it for you?

Four honest answers usually point to the right option. Write them down before you talk to anyone, including us.

  1. Could you repay everything in about five years if the interest came down? If yes, look at a debt management plan (NFCC, opens in a new tab) or a loan first.
  2. Is your credit still good enough for a low-rate loan? If yes, a consolidation loan (CFPB, opens in a new tab) may cost less.
  3. Are you already behind, with no way to catch up? Then settlement or bankruptcy are the realistic options.
  4. Are you being sued, or is your pay being garnished? Talk to an attorney about bankruptcy (U.S. Courts, opens in a new tab) before anything else.

Things you should know

The downsides, stated plainly.

Read these before you enroll anywhere, including with us. They apply to every debt settlement program.

  • Your credit score will drop during the program, and late payments stay on your credit report.
  • Creditors may keep collecting while you save, and they can sue. The program does not stop legal action.
  • Interest and late fees can keep adding to your balances until each account settles.
  • Forgiven debt may be taxable income. A creditor may send you IRS Form 1099-C.
  • Fees apply. The fee is a percentage of your enrolled debt, set individually, and charged only after a settlement is reached.
  • Not all creditors agree to settle, and not everyone completes the program.
  • We do not guarantee any amount, percentage or timeline.
  • Debt settlement is not available in all states. We are not a nonprofit or a credit counseling service, and we do not lend money.
  • We do not give legal or tax advice. Talk to an attorney or a tax professional about your situation.

Notes on the figures and claims above

  1. 1These comparisons are general. What each option costs you depends on your debts, your credit, your income and your state. Your credit score will drop during the program. Creditors may continue collection activity and can sue. Forgiven debt may be taxable income (IRS Form 1099-C). Fees apply. Not all creditors agree to settle. Most programs run 24 to 48 months.

Straight answers

Comparing options, answered straight.

Rather hear it from a person? 866-659-7966

Is debt settlement better than a consolidation loan?

Not for everyone. A loan usually costs less and hurts your credit less if you can qualify and repay it. Settlement fits when you cannot.

Is a debt management plan the same as settlement?

No. In a debt management plan you repay the full balance, usually at a lower interest rate, through a nonprofit counselor. In settlement you pay less than the full balance, with a bigger hit to your credit.

Is bankruptcy worse than debt settlement?

It has the largest credit impact, but it also gives you court protection that settlement does not. If you are being sued or garnished, talk to a bankruptcy attorney.

Why would you tell me to pick something else?

Because we do not make or sell loans, and we only earn a fee when we settle a debt you enrolled. If another option fits you better, the honest answer is the useful one.

Sources

Where the facts on this page come from. Each link opens the original in a new tab.

  1. 01 CFPB What is a debt relief program and how do I know if I should use one? (opens in a new tab)
  2. 02 CFPB What do I need to know if I’m thinking about consolidating my credit card debt? (opens in a new tab)
  3. 03 NFCC National Foundation for Credit Counseling (opens in a new tab)
  4. 04 U.S. Courts Chapter 7: Bankruptcy Basics (opens in a new tab)
  5. 05 U.S. Courts Chapter 13: Bankruptcy Basics (opens in a new tab)
  6. 06 CFPB How long does information stay on my credit report? (opens in a new tab)

Next step

If settlement fits, see your numbers.

Check your state and see an illustrative estimate, fee included. If another option fits better, we will say so.

Online enrollment is open in Florida, Georgia, Texas and California.

Four short steps

Your estimate first. Contact details last.

  1. 1How much you owea close guess is fine
  2. 2What kinds of debtpick all that apply
  3. 3Which state you live inchecked before anything else
  4. 4Your estimate, then a real person if you want one
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