1. Credit Counseling & Debt Management Plans (DMPs)Best for: Credit card debt, steady income, want to protect credit
Why it works

• Run by nonprofit credit counseling agencies
• They negotiate lower interest rates and fees
• You make one monthly payment, they pay creditors
• Accounts are repaid in full (no settlement games)

Real results

• Faster payoff
• Less interest
• Minimal credit damage compared to other options

⚠️ Tip: Look for agencies accredited by NFCC or FCAA

2. Debt Consolidation (Loans or Balance Transfers)Best for: Fair–good credit, multiple high-interest debts
Why it works

• Combines debts into one payment
• Can drastically lower interest if you qualify
• Keeps accounts current

Watch out

• Doesn’t reduce principal
• Can backfire if you keep using credit cards

✅ Works best with budgeting + discipline

3. Debt Settlement (Negotiation Programs)Best for: Already behind on payments, hardship situations
Why it can work

• Creditors may accept less than owed
• Can reduce total debt by 30–60%

Real talk

• Credit score takes a hit
• You may owe taxes on forgiven debt
• Avoid companies that demand big upfront fees

⚠️ Must follow FTC rules—no results, no fees

4. Bankruptcy (Last Resort, But Powerful)Best for: Overwhelming debt with no realistic payoff path
Why it works

• Chapter 7 can wipe out unsecured debt
• Chapter 13 creates a court-approved payment plan
• Stops collections, lawsuits, garnishments immediately

Truth

• Serious credit impact—but so is endless delinquency
• Many people rebuild credit within 1–3 years

📌 Always consult a bankruptcy attorney before deciding
​​​​​👉 Get Your Credit Evaluation Today

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