Compare Your Debt Relief Options
There is no single best way out of debt. The right choice depends on how much you owe, whether you are keeping up with payments, your income, your assets and how much your credit score matters to you right now. This page compares the five main paths side by side.
The options side by side
| Option | Reduces what you owe? | Credit impact | Typical timeline | Best for |
|---|---|---|---|---|
| DIY payoff (snowball or avalanche) | No | Positive | 1–5 years | People who can afford more than the minimums |
| Debt consolidation loan or card | No (lowers interest) | Small dip, then positive | 1–7 years | Good credit, steady income, still current |
| Debt management plan | No (lowers interest) | Neutral to mild | 3–5 years | Struggling with rates but able to pay monthly |
| Debt settlement | Yes | Significant negative | 2–4 years | Behind on payments, can save a lump sum |
| Bankruptcy | Yes (most debts) | Most severe | Months (Ch 7) to 5 years (Ch 13) | Debts you realistically cannot repay |
Which option fits your situation?
"I'm current on my payments, but the interest is killing me."
Start with a DIY payoff plan or a consolidation loan or balance transfer card. You are in the best position to protect your credit while cutting your interest costs. Try our Debt Payoff Calculator to see how fast you could be debt-free.
"I'm keeping up, but only just, and my credit isn't great."
A nonprofit debt management plan may lower your interest rates without requiring a good credit score.
"I'm already behind, and collectors are calling."
First, learn your rights and validate the debt. Then consider debt settlement, especially if you can save a lump sum.
"I'm being sued over a debt."
Do not ignore the lawsuit. Read our guide to what to do when you are sued for a debt, and act before the response deadline.
"There's no realistic way I can pay this back."
Bankruptcy may give you a genuine fresh start. Learn how Chapter 7 and Chapter 13 compare.
Questions to ask yourself before you choose
- What is my total debt, and how much of it is unsecured (credit cards, medical bills, personal loans)?
- What can I realistically afford each month after essential expenses?
- Am I behind on any payments? How far behind?
- Do I own a home or other significant assets?
- How important is my credit score over the next one to two years (for example, because I plan to buy a home)?
- How old are my debts? Could any be past the statute of limitations?
Get a second opinion on your plan
Talk to a debt remediation specialist about which option fits your situation, from DIY templates to full-service support.
