Where Can I Get Help With Credit Card Debt Over $10,000?

Credit card debt is one of those things that can hit you overnight, or it can creep up on you. Whether you get there from one big expense or a thousand small ones, it can be all too easy to accrue $10,000 or more in credit card debt.

No matter the cause, you have options for getting rid of your debt for good. We'll show you ways to get help with your credit card debt, and how to choose the best option for your situation.

How to Get Help with Five-Figure Credit Card Debt

The best strategy for getting rid of your credit card debt will depend on your specific situation. Here are a few potential options.

Financial counseling

Perhaps your debt isn't truly unaffordable, and you might be able to stay the course—if you just knew what that course was. Maybe guidance and advice are what you need to get your financial house back in order and your credit card debt under control. 

A financial counselor or advisor's job is to help you decide on that course. There are a lot of places to find affordable or free financial counseling. Your state or local government may offer resources, as might local nonprofits. It's also worth checking with your bank or credit union to see what type of financial counseling services they provide.

You can also look for a certified professional in your area. Accreditations or certifications to look for include:

• Accredited Financial Counselor (AFC)

• Certified Financial Planner (CFP)

• Chartered Financial Consultant (ChFC)

• Certified Public Accountant (CPA)

Debt management plan (DMP)

One specific type of financial counseling may come from nonprofit credit counseling agencies. Rather than general financial counseling, most focus on helping you set up a debt management plan (DMP). This is a structured debt repayment plan that consolidates your debts without a new loan.

The DMP restructures your debt, and credit counselors attempt to get your interest rates reduced and late fees waived. Then, you make one monthly payment to the counseling agency, which then distributes the payment to your creditors. 

DMPs usually take three to five years. You're typically required to close your credit card accounts as part of a DMP agreement.

Refinancing or consolidation

The reason credit card debt is so expensive is its high interest rates. But even if the debt fits into your budget just fine, juggling multiple credit card due dates can be its own source of stress. Refinancing and consolidating credit card debts with one new loan at a lower interest rate could solve both of those problems in a single move.

You could use a few different products to consolidate your debts:

• Personal loan. This is an unsecured installment loan that generally has a lower interest rate than credit cards but higher than secured loans. Personal loans typically have repayment terms of two to six years.

• Home equity loan. This is an installment loan that uses your home's equity (its value over what you owe on the mortgage) as collateral, or security. They generally have low APRs and long repayment terms, but your home could be at risk if you stop making payments.

• Home equity line of credit (HELOC). A HELOC is sort of like a credit card and home equity loan combined. They are secured by your home's equity, with the same risks as a home equity loan. But instead of receiving a single lump sum, you have access to a credit line you can use up to your credit limit, pay off, then reuse at will during the draw period.

While having good credit helps, you don't have to have a high credit score to consolidate your debts. A fair credit score—around 600 FICO Score or higher—might get you the loan you need if you have enough equity and income.

Debt settlement

Let’s say that despite your best efforts, your $10,000 in credit card debt is just too much for your budget. You can't afford your payments on top of your other bills, and you've already fallen behind. That's when debt settlement might be particularly worth consideration.

Debt settlement involves negotiating with your creditors to accept less than you owe. The creditor then forgives the rest of your debt. Creditors are often willing to negotiate if you prove you can't afford to repay your full balances due to financial hardship such as job loss or divorce.

You could negotiate with creditors on your own, or you could enroll in a professional debt relief program and have professionals negotiate for you. A debt relief program might settle your first debts in as little as a few months, and all of your enrolled debts in two to four years.

Bankruptcy

If your credit card debt seems unpayable, filing bankruptcy could be the best way to get rid of it. Bankruptcy is a route to settling your debts through the court. Chapter 7 bankruptcy, in particular, could eliminate your unsecured credit card debt in a matter of months. 

Chapter 7 is means-tested, so you typically won't qualify if you make above a certain income level. You usually need to liquidate (sell) assets if you have any, so this option is best for people with few to no non-exempt assets.

Chapter 13 bankruptcy may be an option, as well. It’s not means-tested, and is more akin to a three- to five-year court-ordered repayment plan. It does not require liquidation of assets, but you may have to repay most or all of your debt. Consult with a bankruptcy attorney licensed in your state to see if bankruptcy is a good fit for you.

How to a Pick Credit Card Debt Relief Option

So how do you pick the right method of handling your credit card debt? Here are a few questions you can ask yourself to help narrow things down:

• Can you afford your monthly payments? If you can afford your debts but aren't sure how best to tackle them, guidance might be what you need most. A financial counselor or advisor could set you on the right path. If you need guidance and help negotiating lower interest rates, a debt management plan might do the trick.

• Do you have good credit? If your credit is in good shape, then refinancing and consolidating your credit card debt at a lower rate could be just the thing to make your debt more manageable. 

• Have you fallen behind on payments? If you're struggling to make your minimums or have already fallen behind, counseling or consolidation might not cut it. You may be better off to consider debt settlement or bankruptcy.

No matter where your credit card debt stands, you have options for dealing with it. You don't have to live with it forever. Even if your first choice doesn't pan out how you hope, there are still other ways forward. The key is to never give up on your dreams of a debt-free future.