Are Debt Relief Programs Really Worth It?
Daniel Santos
Updated on January 27, 2026
The short answer: reviews are mixed. Debt settlement can help some people get out of debt at a cost that is less than what they owe. For others, debt settlement proves to be a costly mistake. Here’s how debt settlement works: you stop making payments to your creditors for a period of time, often six months or more.
How do the debt relief programs work?
It works like so: You sign up with a debt settlement company. They negotiate with your creditors to allow you to pay a lump sum that is less than the full amount that you owe. You then pay the program a specific amount each month. You may pay a lower, single monthly payment.
How do I pay off big debt with little income?
Find an additional source of income to help you pay debts faster
- Get a part-time job.
- Work more overtime.
- Sell some of your things.
- Rent out part of your house.
- Set your sights on and work toward getting a promotion.
How does a credit card debt relief program work?
Credit card companies will barely work with their clients. At times they may reduce the interest rate and temporarily lower monthly payments, but credit card companies rarely will offer long-term relief. For consumers who are experiencing extreme financial hardship, bankruptcy is often the first option they look for.
How does a credit card debt management plan work?
This video explains how a nonprofit debt management program works by consolidating your credit card debt payments into one payment and saving you by reducing your interest rates and fees. Debt management programs are one of the most effective debt-relief options on the market.
How can I pay off my debt on a debt management program?
A nonprofit debt management program will have low fees and work to secure interest rate reductions on your credit card debt, so that you are able to pay off your debt by making consistent affordable payments. How fast can I pay off my debt on a debt management program?
How does credit counseling help you get out of debt?
Consumer credit counseling services help overextended credit users eliminate high interest rate credit card debt. It’s their mission to help you regain financial stability. Certified credit counselors evaluate your debts, budget, and credit. Then they help you identify the best way to get out of debt in your situation.
