Every situation is different. Here's a plain-English look at the four main paths — what each one means for your balance, your credit, and your timeline.
We negotiate with your creditors to accept less than the full balance — typically 40–60% reduction. No upfront fees.
Combine multiple debts into one loan or payment at a lower interest rate. You pay the full balance — but simpler and often cheaper.
A nonprofit agency works with your creditors to reduce interest rates and create a structured repayment plan. You pay the full balance over 3–5 years.
A legal process that provides debt discharge or reorganization through the courts. Significant long-term credit impact, but a genuine fresh start when needed.
Every situation is different — but this table gives you a starting point.
| Factor | Settlement | Consolidation | DMP | Bankruptcy |
|---|---|---|---|---|
| Amount you pay | 40–60% of balance | Full balance | Full balance | Partial or none |
| Credit impact | Temporary | Minimal | Low | Severe (7–10 yrs) |
| Timeline | 24–48 months | 2–5 years | 3–5 years | 3–6 months (Ch. 7) |
| Upfront cost | $0 | Loan fees | Monthly fee | Attorney fees |
| Credit score needed | Any | Good (650+) | Any | Any |
| DebtHelp involvement | Full service | Advisory | Advisory | Referral only |
Talk to Alex — our free AI advisor — for a direct, no-pressure recommendation in minutes.