Debt Relief Options

DebtBlue is here for you and wants you to understand
your options for getting out of credit card debt.

Getting Out of Debt:
A Look at Debt Relief Options

So, you are buried in credit card bills. The late fees are piling up. The double-digit interest rates are making it nearly impossible for you to pay down the balance. And you are ready to do something about it? Congratulations! This is an empowering place to be. DebtBlue is here for you and wants you to know about all your options for getting out of credit card debt.

Option 1: The Do-It-Yourself Program

You can begin working to reduce your credit card balances in several ways on your own.

Option 2: Debt Consolidation

If you have several high-interest credit cards and the interest rates and fees are getting too high, you can look for a consolidation loan.
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Option 3: Credit Counseling

A Credit Counselor will help you create a budget called a Debt Management Plan. This is essentially a payment plan to help…

Option 4: Bankruptcy

The biggest advantage of bankruptcy is the fact that many of your debts will be written off and discharged. The downside is…

Option 5: Debt Settlement

DebtBlue is a professional Debt Settlement firm. Debt Settlement is the process of having an expert Debt Negotiator negotiate

Credit Counseling

Credit counseling is a debt management tool that can help you manage your money and create a plan to pay off your debt. Credit counselors work with you to create a strategy to manage your credit and pay off your debt. Learn more.

Pros

  • One monthly payment
  • No collection calls
  • Lower interest rates

Cons

  • Credit card accounts closed
  • Principal debt not reduced
  • Lenders may view you as credit risk

DIY Debt Relief

You can begin working to reduce your credit card balances in several ways on your own. This method generally starts with cutting up your credit cards. Learn more

Pros

  • No credit impact
  • No fees
  • Optimized payments

Cons

  • No reduction of interest rates
  • Timeframe can be lengthy
  • No reduction of principal

Bankruptcy

The biggest advantage of bankruptcy is the fact that many of your debts will be written off and discharged. Your debts are legally waived. The downside is that bankruptcy can remain on your credit report for 10 years. Learn more

Pros

  • Process takes 3-6 months
  • Debts could be forgiven (Chapter 7)
  • Creditors cannot collect on debts

Cons

  • Difficult to qualify for Chapter 7
  • Cannot qualify for a mortgage
  • Significant, long-term damage to credit

Debt Consolidation

Debt Consolidation combines all of your outstanding credit card debts into one or “consolidates” your debts into one single debt. It’s a loan. But the goal is that the new loan amount… Learn more

Pros

  • Flexible terms
  • No credit impact
  • One fixed monthly payment

Cons

  • Results vary over life of loan
  • No reduction on principal balance
  • Need good credit and debt-to-income to qualify

Debt Settlement

Debt Settlement firms negotiate with creditors on your behalf to get them to forgive, settle or take an offer for less than you owe. Learn more

Pros

  • One low monthly program deposit
  • Quicker timeline for completion
  • Significant cash savings over making minimum payments

Cons

  • Negative impact to credit
  • Results vary for program length
  • Enrolled credit card accounts are closed
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