script type="application/ld+json"> { "@context": "http://schema.org", "@type": "Product", "name": "Delancey Street", "aggregateRating": { "@type": "AggregateRating", "ratingValue": "5", "reviewCount": "10" } } What are the best credit card debt relief options? | Delancey Street

 

Fed Up With Credit Card Debt? Explore These Relief Options

Drowning in credit card bills? You’re not alone – millions of Americans struggle with credit card debt every year. If those piles of statements have you feeling hopeless, know this: you have options to regain control. From debt consolidation to debt settlement programs, certain strategies can help dig you out, IF executed properly. Let’s cut through the jargon and break down the most effective debt relief solutions.

Debt Consolidation Loans: Streamlining Multiple Debts

Consolidating credit card balances into one new loan with a lower interest rate can simplify monthly payments. Personal loans, home equity loans, or balance transfer credit cards roll your debts into one place. Just ensure the new rate reduces interest costs overall.

Example: You owe $15,000 across 4 credit cards at an average 22% interest rate. A debt consolidation loan at 12% APR could reduce interest fees and let you pay it off faster with one level payment.

Pros:

– One simple payment on a fixed schedule
– Potential interest rate deduction
– Avoids default or bankruptcy

Cons:

– Requires good credit to qualify
– Using home equity puts your house at risk
– Mismanagement can restart the debt cycle

Debt Management Plans: Third-Party Assistance

Nonprofit credit counseling agencies provide debt management plans (DMPs) to consolidate bills into one payment. They negotiate with creditors for reduced interest rates and fees. Around 20-25% of the total debt is paid in fees, usually over 3-5 years.

“Debt management plans require you to make deposits every month with the credit counseling organization, which then disperses those funds to your creditors.” – Federal Trade Commission

Pros:

– One affordable monthly payment
– Reduced fees and interest charges
– Counseling resources included

See also  NYC MCA Lawyers - NYC Business Debt Settlement Lawyers

Cons:

– Initial setup fees around $25-$50
– May re-age remaining debt on credit report
– Debt shown as “enrolled in debt management plan”

Debt Settlement: Negotiating Directly With Creditors

For-profit debt settlement companies negotiate lump sum payoffs with creditors for less than the full balance. The client funds a dedicated account until there’s enough to make settlement offers.

However: “Debt settlement companies may misstate or fail to disclose key facts about their services, including how much the services cost and how long resolution will take. And some may engage in outright deception.” – CFPB

Pros:

– Potentially major debt reduction
– Eliminates individual creditor calls

Cons:

– High fees up to 25% of enrolled debt
– Severe credit score damage until settled
– Creditors may refuse to negotiate

Bankruptcy: An Absolute Last Resort

If you’re truly unable to pay your debts through any other means, bankruptcy allows federal court judgments to wipe out or consolidate debts into an affordable payment plan.

“Bankruptcy has serious long-term consequences, so use it as a last resort. In the meantime, you may want to explore options for dealing with debt.” – USA.gov

Each option involves costs and tradeoffs. Carefully research solutions and read the fine print to select the credit card debt relief approach best for your unique financial circumstances.

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
Leo
$500,000 MCA Restructured Over 3 Years
"Thanks for helping me in literally 24 hours"
Jason
$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
Mary
$350,000 MCA Restructured Over 2 Years

In The Media

Delancey Street CEO discusses ways to reward employees
Delancey Street CEO discusses the benefits of franchising on Forbes.
Delancey Street CEO discusses management on AMEX.
Beat Ctc Debt Collector

  Crush That CTC Debt Collector: A Merciless Gameplan They’re…

Is Pacific Debt Relief a reputable debt relief company?

  Is Pacific Debt Relief a Reputable Debt Relief Company?…

How is it possible for a bad credit to be fixed?

  Climbing Out of the Bad Credit Hole Sick of…

What is the effect of an AR factor on cash flow?

  The Brutal Truth: How AR Eats Into Your Cash…

What are the best credit card debt relief options?

  Crushing Credit Card Debt? Explore These Relief Pathways If…

Delancey Street simply gets it. You're talking to experts.
Steven Norris
Get Help Today

Ready To Get Started?

If you have questions, feel free to shoot us an email, or fill out our live chat.

Schedule Consultation