Last-resort choices
Settlement vs. Bankruptcy
Cost, speed, credit damage, taxes and lawsuit risk.
Pay less vs. pay all
Settlement vs. Credit Counseling
Paying less with credit damage, or paying it all with lower rates.
Lower your rate
Consolidation Loan vs. DMP
Two ways to cut interest, with very different requirements.
Good credit
Balance Transfer vs. Consolidation Loan
Zero interest for a while, or a fixed rate and payment.
All six at a glance
| Option | Best for | Typical cost | Timeline | Credit impact |
|---|---|---|---|---|
| Debt settlement | $7,500+ debt, already behind | 15–25% fees + settlements | 2–4 years | Significant |
| Consolidation loan | Credit 640+, steady income | Interest + 0–8% fee | 2–7 years | Neutral to positive |
| Credit counseling (DMP) | Steady income, any credit | Low monthly fee + lower interest | 3–5 years | Minimal |
| 0% balance transfer | Credit 670+, smaller balances | 3–5% transfer fee | 12–21 months | Slight dip |
| Snowball / avalanche | Room in the budget | Interest only | 1–10 years | Positive |
| Bankruptcy | No realistic path to repay | $313–$338 court fee + attorney | 4 months to 5 years | Severe, 7–10 years |