Debt Strategies

Everyone’s debt is different, so we encourage you to learn more about other options before you decide if our program is right for you.

Overview of debt options

Many people find themselves struggling with huge debt and no way to manage it. A sudden change in income, emergency, or other unforeseen event can knock anyone off their financial feet. Here, we compare 6 different strategies for managing debt. For more in-depth information about how to control your debt, download our free debt management guide.

A counselor reviews your financial situation, sets up lower interest rates with your creditors if possible, and creates a debt management plan for you to follow.
  • One monthly payment
  • Lower rates and fees
  • No collection calls
  • Lenders may view you as credit risk
  • Principal debt not reduced
  • Credit card accounts closed
You take out one loan to pay off all your debt. This loan may carry a lower interest rate than your debts. You make fixed monthly payments on the loan until it is paid off.
  • One predictable monthly payment
  • Flexible terms
  • No credit impact
  • Need good credit
  • No reduction on principal
  • Results vary
Requires you to work with a mortgage lender. You refinance your mortgage, taking out additional cash beyond the mortgage balance. You use that money to pay your debts.
  • High interest debts paid off
  • Reduced monthly payments
  • Tax-deductible interest payments
  • Need to own a home
  • Increased foreclosure risk
  • Adds to mortgage debt
Working with a company, you make monthly deposits into an account. The company negotiates with your creditors to accept less than the debt owed. That amount is then paid to creditors, from the account you deposited into, until the debt is resolved.
  • Significant savings over making minimum payments
  • One low monthly program deposit
  • Much faster than making minimum payments
  • Debt collection calls
  • Legal risk, impact to credit
  • Results vary
A legal process. All your assets are evaluated and used to pay off your debts. Chapter 7 and Chapter 13 are most common options used by individuals. Once bankruptcy is complete, you are relieved of the debt obligations you had before filing bankruptcy.
  • Debt obligation could be cleared (Chapter 7)
  • Creditors are barred from attempting to collect on debts
  • Process takes only 3-6 months (Chapter 7)
  • Significant, long-term damage to credit
  • Loss of all credit cards
  • Chapter 7 may be difficult to qualify for
Using various online and offline tools, you determine the exact payments required for each debt and track your progress as you go.
  • Optimized payments
  • No required costs
  • No credit impact
  • Requires strict budgeting
  • Interest rates don’t change
  • No reduction on principal

Whichever strategy you choose, know that you are not alone. Millions of Americans are struggling with high interest rates, stagnant wages, and unstable employment, but not all of them are actively looking for a solution like you are right now. So keep going!

If you need help understanding the differences between these options, give us a call. One of our Certified Debt Consultants would be happy to answer any questions you have.

Which is the best strategy for you? Find out now.