Debt Relief Services
Real Solutions For Your Debt Problems
Debt can be a heavy burden to bear, and for many individuals, it can quickly become overwhelming. The constant stress of mounting bills, high interest rates, and creditor calls can take a toll on your mental and financial well-being.
At CreditSolver, we partner with the country’s leading debt relief specialists to help you find the best solution for your debt problems. Depending on your situation, you may qualify for debt settlement, debt consolidation, or other debt-relief options.
Debt Settlement vs. Debt Consolidation
Two of the most common debt relief options are debt settlement and debt consolidation. With debt settlement, your unsecured debt is settled for less than you owe. Debt consolidation, on the other hand, combines several debts into one monthly payment at more favorable terms. Both come with pros and cons, so it’s best to review each carefully before deciding which is best for you.
| Things to Consider | Debt Settlement | Debt Consolidation |
|---|---|---|
| Impact on Credit Score | If you aren’t making payments or are in collections, your credit score will suffer. Additionally, any amount settled will remain on your credit history for 7 years. | There will likely be a small decrease in your credit score when taking out a new loan to pay off your debts. |
| Total Debt Owed | You may save as much as 80% off the debt you currently owe. | You will still need to repay the full amount owed but save money on interest fees. |
| Good Credit Required? | No. Your approval is not based on your credit score. | Yes, if you want favorable interest rates. The lower your score, the harder it will be to secure a loan. |
| Costs/Fees | Most debt settlement companies charge enrollment and maintenance fees, as well as a percentage based on enrolled debt (15% – 60%). | Fees will vary by loan lender, but typically range between 1% and 8%. |
| Will I Owe Taxes? | Yes. Any amount forgiven (reduced) should be claimed as taxable income. | No, but you could be hit with early withdrawal penalties if you take a 401(k) loan and default. |
| Learn More About Debt Settlement | Learn More About Debt Consolidation |
Other Debt Relief Options
In addition to debt settlement and debt consolidation, there are other debt-relief options available.
Debt Management Plan
A debt management plan is a service typically provided by nonprofit credit counseling agencies where you make a monthly payment to them, and they distribute the money among your creditors. Although you’ll likely get a reduced interest rate, your accounts will be closed, which will negatively impact your credit score.
Home Equity Line of Credit (HELOC)
If you own a home, you may be eligible to take out a home equity loan to pay off your debt. Just be aware that your credit score may take an initial dip when you open the new loan. Additionally, if you continue to use your credit cards or take out other loans, you could end up in even more debt. Plus, you risk losing your home if you don’t pay the loan back.
Retirement Withdrawal
If you have a 401(k) or other retirement account, you might consider taking an early withdrawal to pay off your debt. Although this helps keep your credit in good standing, you’ll have to pay hefty penalty fees and taxes if you’re younger than 59 ½ years old.
Bankruptcy
If eligible, you can erase most unsecured debt (credit cards, medical bills, and personal loans) by filing Chapter 7, but it will hurt your credit score and stay on your credit report for up to 10 years. Creditors may also seize some of your assets to repay the debt. Chapter 13 provides a repayment plan (3 to 5 years) where any remaining unsecured debt is discharged at the end of the term. This remains on your credit report for up to 7 years.
Regardless of which debt relief option you choose, be sure to do your research and make an informed decision before moving forward.
Don’t Get Overwhelmed by Debt
Many people struggle with debt due to circumstances beyond their control. We understand how easy it is for an unexpected job loss or other hardship to throw your finances into a tailspin. Thankfully, you don’t have to go through this alone.
At CreditSolver, we’ll work with you every step of the way and create a customized plan to help you take back your financial freedom. To learn more about your debt relief options, contact us today for a free debt consultation.
Thank you for your interest in our debt settlement program. Unfortunately, you do not qualify at this time. Please visit the Federal Trade Commission for more information on how to get out of debt on your own.
Thank you for your interest in our debt settlement program. One of our credit consultants will be contacting you soon. If you’d like to speak with someone immediately, please call 904-490-9087. We look forward to connecting with you soon.