{"id":19691,"date":"2023-07-12T10:35:04","date_gmt":"2023-07-12T16:35:04","guid":{"rendered":"https:\/\/www.lexingtonlaw.com\/blog\/?p=19691"},"modified":"2024-05-06T13:47:40","modified_gmt":"2024-05-06T19:47:40","slug":"debt-relief-options","status":"publish","type":"post","link":"https:\/\/www.lexingtonlaw.com\/blog\/finance\/debt-relief-options.html","title":{"rendered":"8 debt relief options to overcome large amounts of debt"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"570\" height=\"191\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/07\/debt-relief-options.jpg\" alt=\"\" class=\"wp-image-19693\"\/><\/figure>\n\n\n\n<p><em>The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. <\/em><a href=\"https:\/\/www.lexingtonlaw.com\/disclaimer\" target=\"_blank\" rel=\"noreferrer noopener\"><em>See Lexington Law\u2019s editorial disclosure for more information.<\/em><\/a><\/p>\n\n\n\n<p><strong>Key takeaways<\/strong>:<\/p>\n\n\n\n<ul>\n<li>Debt relief options like debt consolidation, credit counseling or bankruptcy can help you tackle large amounts of debt.<\/li>\n\n\n\n<li>Some debt relief options might be better depending on your current credit score.<\/li>\n\n\n\n<li>Be careful to avoid debt relief scams when exploring your options.<\/li>\n<\/ul>\n\n\n\n<p>The average American has $101,915 in debt, according to <a href=\"https:\/\/www.experian.com\/blogs\/ask-experian\/consumer-credit-review\/#s4\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Experian<\/a>\u00ae. If you can relate, you\u2019ll know that being in a large amount of debt is extremely stressful.<\/p>\n\n\n\n<p>Debt relief options can give you the help you need to tackle overwhelming debt, but not every solution works for everyone. Here\u2019s everything you need to know about debt relief, what options are available to you and what to look out for so you can make the best decision for your financial situation.<\/p>\n\n\n\n<p><strong>Table of contents:<\/strong><\/p>\n\n\n\n<ul>\n<li>1. Make a budget<\/li>\n\n\n\n<li>2. Take out a debt consolidation loan<\/li>\n\n\n\n<li>3. Open a balance transfer credit card<\/li>\n\n\n\n<li>4. Speak to your creditors<\/li>\n\n\n\n<li>5. Look into credit counseling<\/li>\n\n\n\n<li>6. Enter a debt management plan<\/li>\n\n\n\n<li>7. Consider bankruptcy<\/li>\n\n\n\n<li>8. Negotiate a debt settlement<\/li>\n\n\n\n<li>What is debt relief?<\/li>\n\n\n\n<li>When should you seek debt relief?<\/li>\n\n\n\n<li>What to avoid when seeking debt relief<\/li>\n\n\n\n<li>FAQ<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-make-a-budget\"><a><\/a>1. Make a budget<\/h2>\n\n\n\n<p>Creating a budget and tracking your spending throughout the month can help you see where you may be overspending or identify recurring costs that you no longer need or weren\u2019t aware you had. Plus, every little bit of savings helps <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/credit-101\/whats-the-right-way-to-pay-off-debt.html\" target=\"_blank\" rel=\"noreferrer noopener\">pay off debt<\/a>.<\/p>\n\n\n\n<p><strong>Best for those who:<\/strong><\/p>\n\n\n\n<ul>\n<li>Spend freely or don\u2019t know where their money is going<\/li>\n\n\n\n<li>Don\u2019t already have a budget<\/li>\n<\/ul>\n\n\n\n<p><strong>How to start this debt relief option:<\/strong><\/p>\n\n\n\n<p>To create a budget, start by looking at your bank statements from the past few months and identifying your recurring expenses and average income. Then calculate how much you usually spend on groceries. Next, look at how much you spend monthly on eating out, shopping and other nonessential costs.<\/p>\n\n\n\n<p>Once you have a better idea of your spending habits, you can identify areas you can cut back, such as unnecessary subscription services. Keep tracking your spending habits and expenses to stay within your new budget. Consider these tips:<\/p>\n\n\n\n<ul>\n<li>Build a categorized spreadsheet.<\/li>\n\n\n\n<li>Connect your bank account to a budgeting app.<\/li>\n\n\n\n<li>Separate fixed expenses (costs that never change) from variable expenses (costs that change weekly\/monthly).<\/li>\n\n\n\n<li>Try to follow the 50\/30\/20 rule: 50 percent goes toward needs, 30 percent toward wants and 20 percent toward savings or paying off debt.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-take-out-a-debt-consolidation-loan\"><a><\/a>2. Take out a debt consolidation loan<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.lexingtonlaw.com\/blog\/loans\/debt-consolidation.html\" target=\"_blank\" rel=\"noreferrer noopener\">Debt consolidation<\/a> lets consumers combine multiple debts into one new debt. Ideally, debt consolidation will result in a lower-interest debt to help lower payments and speed up repayment. One option for debt consolidation is a debt consolidation loan.<\/p>\n\n\n\n<p>A debt consolidation loan (or a personal loan) will let you choose a new repayment term. You could set a longer repayment term to help bring your monthly payment down or a shorter repayment term that would increase your payments but help you pay off the debt faster.<\/p>\n\n\n\n<p>Either way, the loan would have a lower interest rate than your current debts and help you manage it with one monthly payment.<\/p>\n\n\n\n<p><strong>Best for those who:<\/strong><\/p>\n\n\n\n<ul>\n<li>Have different kinds of debt<\/li>\n\n\n\n<li>Have good to excellent credit scores<\/li>\n\n\n\n<li>Can make on-time payments on the new loan<\/li>\n<\/ul>\n\n\n\n<p><strong>How to start this debt relief option:<\/strong><\/p>\n\n\n\n<p>If you\u2019re considering a debt consolidation loan, browse your loan options. The prequalification process won\u2019t hurt your credit and can help you see which lender could offer the best terms. Make sure to review terms, APRs and potential fees.<\/p>\n\n\n\n<p>Once you find an offer that works for you, you can formally apply for the loan. The application may temporarily drop your credit score by a few points, but making timely payments on the loan will help lessen the effect over time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-open-a-balance-transfer-credit-card\"><a><\/a>3. Open a balance transfer credit card<\/h2>\n\n\n\n<p>If your main form of debt is credit card debt, opening a balance transfer credit card may be a good option. Like a debt consolidation loan, a balance transfer credit card combines multiple lines of debt into one new debt, but just for credit cards.<\/p>\n\n\n\n<p>The bonus of a balance transfer credit card is a period of 0 percent APR, generally around 12 \u2013 21 months. You can make payments without additional interest accruing, ideally speeding up repayment.<\/p>\n\n\n\n<p><strong>Best for those who:<\/strong><\/p>\n\n\n\n<ul>\n<li>Have multiple lines of credit card debt<\/li>\n\n\n\n<li>Have good to excellent credit scores<\/li>\n\n\n\n<li>Can make on-time payments on the new credit card<\/li>\n<\/ul>\n\n\n\n<p><strong>How to start this debt relief option:<\/strong><\/p>\n\n\n\n<p>Start by comparing balance credit card offers. Consider the length of the intro APR offer and the APR after the offer ends. You\u2019ll also want to check if the card has any balance transfer fees, ranging from 3 to 5 percent of the balance you\u2019re transferring.<\/p>\n\n\n\n<p>Another important factor to consider is the credit limit you would have on the new card. You can\u2019t transfer a balance higher than the credit limit on the new card.<\/p>\n\n\n\n<p>Additionally, if your transferred balance is more than 30 percent of your credit limit, you may hurt your credit score by having too high of a credit utilization rate. However, your <a href=\"https:\/\/www.lexingtonlaw.com\/education\/credit-utilization\" target=\"_blank\" rel=\"noreferrer noopener\">credit utilization rate<\/a> may already be high if you\u2019re in debt, so weigh the options to figure out what is best for your situation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-speak-to-your-creditors\"><a><\/a>4. Speak to your creditors<\/h2>\n\n\n\n<p>Your creditors may have debt relief options available, and it never hurts to reach out and check. If you explain your situation, they may be able to offer payment modifications, due date changes or extensions and other alterations.<\/p>\n\n\n\n<p>For example, if you\u2019re behind on house payments, your mortgage lender may be able to work out a mortgage modification. This option rolls your outstanding balance into your loan amount and readjusts your payments accordingly. You may also be able to negotiate waived fees or a modified payment plan.<\/p>\n\n\n\n<p><strong>Best for those who:<\/strong><\/p>\n\n\n\n<ul>\n<li>Haven\u2019t contacted creditors about debt relief options<\/li>\n\n\n\n<li>May benefit from a different due date or an extension<\/li>\n\n\n\n<li>Have debt that hasn\u2019t gone to collections yet<\/li>\n<\/ul>\n\n\n\n<p><strong>How to start this debt relief option:<\/strong><\/p>\n\n\n\n<p>Find the phone number of your debt lender(s). Contact information may be on your bills or online. Explain your situation and politely ask if they could offer you any options to help pay off your debt. You can do this with mortgages, credit cards, student loans, medical bills and more.<\/p>\n\n\n\n<p>Negotiating can work in your favor if you\u2019ve previously been on time with payments. Remember, the worst that could happen is your creditors say no.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"722\" height=\"1472\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/07\/image-6.png\" alt=\"\" class=\"wp-image-19696\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-5-look-into-credit-counseling\"><a><\/a>5. Look into credit counseling<\/h2>\n\n\n\n<p>Many nonprofit organizations with counselors trained in credit, money and debt issues offer credit counseling, also known as debt counseling. They can offer advice on managing your debt, help you create a budget and provide free educational resources.<\/p>\n\n\n\n<p>Reputable credit counseling organizations will have low fees and won\u2019t make promises. But they can help you create a personalized debt management plan plus fully understand and tackle your financial situation.<\/p>\n\n\n\n<p><strong>Best for those who:<\/strong><\/p>\n\n\n\n<ul>\n<li>Don\u2019t know where to start<\/li>\n\n\n\n<li>Need advice or resources from a qualified professional<\/li>\n<\/ul>\n\n\n\n<p><strong>How to start this debt relief option:<\/strong><\/p>\n\n\n\n<p>There are a few places you can find a credit counselor near you, such as:<\/p>\n\n\n\n<ul>\n<li>Your <a href=\"https:\/\/www.usa.gov\/state-consumer\" target=\"_blank\" rel=\"noreferrer noopener\">state attorney general<\/a><\/li>\n\n\n\n<li>Credit unions<\/li>\n\n\n\n<li>Universities<\/li>\n\n\n\n<li><a href=\"https:\/\/www.nfcc.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">National Foundation for Credit Counseling<\/a> (NFCC)<\/li>\n\n\n\n<li><a href=\"https:\/\/consumer.ftc.gov\/now-leaving?external_url=https%3A%2F%2Fwww.militaryonesource.mil%2F&amp;back_url=https%3A%2F%2Fconsumer.ftc.gov%2Farticles%2Fhow-get-out-debt\" target=\"_blank\" rel=\"noreferrer noopener\">Military personal financial managers<\/a><\/li>\n\n\n\n<li><a href=\"http:\/\/nifa.usda.gov\/extension\" target=\"_blank\" rel=\"noreferrer noopener\">U.S. Cooperative Extension Service<\/a> branches<\/li>\n<\/ul>\n\n\n\n<p>Keep in mind that a reputable organization will send you free information about their services before meeting with you and won\u2019t charge you in advance. Before moving forward with this one, you can schedule intro calls or meetings with potential counselors. Make sure to review any contract details before signing, noting that any fees should be low and clearly laid out.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-6-enter-a-debt-management-plan\"><a><\/a>6. Enter a debt management plan<\/h2>\n\n\n\n<p>Some credit counseling organizations offer debt management plans. These plans combine your debts into one installment to your counselor, who then pays your creditors. Sometimes credit counselors have existing relationships with creditors and can get interest rates lowered or fees waived.<\/p>\n\n\n\n<p>A debt management plan can last 3 \u2013 5 years and may have a starting or recurring fee. They\u2019re also only for unsecured debt, or debt not \u201csecured\u201d with collateral like a house or car. You\u2019ll have to make timely payments and may not be able to apply for or use additional lines of credit while enrolled in the plan.<\/p>\n\n\n\n<p><strong>Best for those who:<\/strong><\/p>\n\n\n\n<ul>\n<li>Can commit to a long-term payment plan.<\/li>\n\n\n\n<li>Are willing to close lines of credit.<\/li>\n\n\n\n<li>Have multiple forms of debt that are hard to manage.<\/li>\n<\/ul>\n\n\n\n<p><strong>How to start this debt relief option:<\/strong><\/p>\n\n\n\n<p>You should already be meeting with a credit counselor when exploring this option. A reputable credit counselor will never say a debt management plan is the only option for debt relief. They should only recommend a plan as one option after diving into your finances.<\/p>\n\n\n\n<p>If you and your counselor think a debt management plan is the best option, the next step would be to develop a payment plan with your counselor and creditors. Your counselor should also clearly outline any fees that may come with the plan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-7-consider-bankruptcy\"><a><\/a>7. Consider bankruptcy<\/h2>\n\n\n\n<p>Sometimes repaying your debt isn\u2019t feasible. In those cases, you may want to consider <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/negative-items\/bankruptcy-vs-debt-relief.html\" target=\"_blank\" rel=\"noreferrer noopener\">bankruptcy<\/a>. This may seriously damage your credit, but will allow you to rebuild your credit faster than being in a cycle of trying to repay debt and not being able to do so.<\/p>\n\n\n\n<p>There are two commonly filed types of consumer bankruptcy:<\/p>\n\n\n\n<ul>\n<li><strong>Chapter 7: <\/strong>Your assets are liquidated to pay off your debts, and any remaining unsecured debts are erased. You must meet income requirements through a means test to qualify.<\/li>\n\n\n\n<li><strong>Chapter 13: <\/strong>You create a 3 \u2013 5 year court-approved repayment plan. If you can complete the plan, your remaining debts will be erased. <strong><\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Best for those who:<\/strong><\/p>\n\n\n\n<ul>\n<li>Can\u2019t get out of debt any other way<\/li>\n\n\n\n<li>Can pass the means test<\/li>\n\n\n\n<li>Already have bad credit<\/li>\n<\/ul>\n\n\n\n<p><strong>How to start this debt relief option:<\/strong><\/p>\n\n\n\n<p>Don\u2019t navigate bankruptcy alone. Consult a bankruptcy attorney to see if bankruptcy is right for you and if you meet the filing requirements. You will also need to attend a debtor education class and submit a certificate of completion.<\/p>\n\n\n\n<p>If you file for <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/life-events\/chapter-7-bankruptcy.html\" target=\"_blank\" rel=\"noreferrer noopener\">Chapter 7 bankruptcy<\/a>, the process will take about 4 \u2013 6 months and will stay on your credit report for 10 years. If you file for <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/life-events\/chapter-13-bankruptcy.html\" target=\"_blank\" rel=\"noreferrer noopener\">Chapter 13 bankruptcy<\/a>, the process will take 3 \u2013 5 years, depending on the length of your repayment plan, and will stay on your credit report for seven years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-8-negotiate-a-debt-settlement\"><a><\/a>8. Negotiate a debt settlement<\/h2>\n\n\n\n<p>You can pursue a <a href=\"https:\/\/www.lexingtonlaw.com\/education\/debt-settlement\" target=\"_blank\" rel=\"noreferrer noopener\">debt settlement<\/a> on your own or through a debt settlement company, although we caution against hiring a debt settlement company. This method is a form of <a href=\"https:\/\/www.lexingtonlaw.com\/blog\/finance\/debt-forgiveness.html\" target=\"_blank\" rel=\"noreferrer noopener\">debt forgiveness<\/a> in which you or a company will negotiate a settlement, or lump sum less than what you owe, with your lender.<\/p>\n\n\n\n<p>Debt settlement companies will often ask you to stop making payments on the debt while they negotiate with your creditor. However, this method isn\u2019t guaranteed to work, and it may result in additional fees, damage to your credit and even legal action.<\/p>\n\n\n\n<p>Institutions claiming to offer debt settlement often charge their fees and may be scams. To avoid this risk, you can try to reach a debt settlement on your own.<\/p>\n\n\n\n<p><strong>Best for those who:<\/strong><\/p>\n\n\n\n<ul>\n<li>Don\u2019t qualify\/don\u2019t want to file for bankruptcy<\/li>\n\n\n\n<li>Can pay a large lump sum<\/li>\n\n\n\n<li>Are prepared to pay potential taxes on the difference owed<\/li>\n<\/ul>\n\n\n\n<p><strong>How to start this debt relief option:<\/strong><\/p>\n\n\n\n<p>To reach a debt settlement agreement with creditors, you should start by knowing how much you can offer as payment. If successful, your owed amount would decrease from the original balance, but you\u2019ll have to pay that money up front as a lump sum. Prepare by figuring out how much you could realistically pay or make a saving plan if needed.<\/p>\n\n\n\n<p>Once you know what you can offer, you can call creditors and begin negotiating. Explain your situation and consider lowballing your first offer (suggest less than what you can afford to pay), so you have some room to negotiate. Remember that you may have to be persistent, and it could take months to reach an agreement.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1022\" height=\"845\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/07\/image-5.png\" alt=\"\" class=\"wp-image-19695\" srcset=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/07\/image-5.png 1022w, https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/07\/image-5-768x635.png 768w\" sizes=\"(min-width: 767px) 600px, calc(100vw - 35px)\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-debt-relief\"><a><\/a>What is debt relief?<\/h2>\n\n\n\n<p>Debt relief can be as small as changes to your interest rate or due date extensions or as large as erasing debt through bankruptcy. There are many options for debt relief and the best option depends on your financial situation and circumstances.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-when-should-you-seek-debt-relief\"><a><\/a>When should you seek debt relief<\/h2>\n\n\n\n<p>It may be time to weigh serious debt relief options like debt management plans, debt settlement or bankruptcy if:<\/p>\n\n\n\n<ul>\n<li>You can\u2019t realistically repay unsecured debt (credit cards, medical bills, personal loans, student loans) in the next five years, even if you made drastic spending cuts<\/li>\n\n\n\n<li>The total of your unsecured debt is equal to half or more of your yearly gross income<\/li>\n<\/ul>\n\n\n\n<p>If the above doesn\u2019t apply to you and you think you could repay your debt within five years, debt relief options like debt consolidation, credit counseling and budgeting may work for you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-avoid-debt-relief-scams\">How to avoid debt relief scams<\/h3>\n\n\n\n<p>There are a lot of bad actors and scams throughout the debt relief industry. In the wrong hands, you could wind up with more debt than you had in the first place. Before entering into any debt relief agreements, you should understand and verify:<\/p>\n\n\n\n<ul>\n<li>Qualification requirements<\/li>\n\n\n\n<li>How much you will pay in fees<\/li>\n\n\n\n<li>Which creditors you are paying and how much<\/li>\n\n\n\n<li>Who currently owns your debt if your debt is in collections<\/li>\n\n\n\n<li>Tax implications<\/li>\n<\/ul>\n\n\n\n<p>Additionally, here are some red flags that you may be dealing with a scammer:<\/p>\n\n\n\n<ul>\n<li>They want you to pay them up front before they\u2019ve done any work.<\/li>\n\n\n\n<li>They promise to settle all your debts or secure fast forgiveness.<\/li>\n\n\n\n<li>They don\u2019t review your financial situation before offering a specific service or trying to enroll you in a program.<\/li>\n\n\n\n<li>They promise results from a \u201cnew government program.\u201d<\/li>\n\n\n\n<li>They tell you to stop paying and communicating with your creditors.<\/li>\n\n\n\n<li>They promise to stop all debt collection calls and legal action.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1029\" height=\"1218\" src=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/07\/image-4.png\" alt=\"\" class=\"wp-image-19694\" srcset=\"https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/07\/image-4.png 1029w, https:\/\/www.lexingtonlaw.com\/blog\/wp-content\/uploads\/2023\/07\/image-4-768x909.png 768w\" sizes=\"(min-width: 767px) 600px, calc(100vw - 35px)\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-to-avoid-when-seeking-debt-relief\"><a><\/a>What to avoid when seeking debt relief<\/h2>\n\n\n\n<p>Being in debt is overwhelming, especially since it could be because of a stressful situation like medical issues, unemployment or pressure from debt collectors. It can be hard to know what to do, but here are some things to avoid:<\/p>\n\n\n\n<ul>\n<li>Don\u2019t prioritize unsecured debt (credit cards, medical bills, personal loans) over secured debt (car payment, mortgage). Secured debt has collateral that creditors could take away from you if you fail to pay, whereas unsecured debt doesn\u2019t.<\/li>\n\n\n\n<li>Don\u2019t borrow against the equity of your house. Doing so can put your house at risk of foreclosure, and you may be replacing unsecured debt that bankruptcy can erase with secured debt that it can\u2019t.<\/li>\n\n\n\n<li>Don\u2019t choose which debt to repay first based on which collector pressures you the most. Make sure to research your options and choose the best plan for you.<\/li>\n\n\n\n<li>Don\u2019t take money out of your retirement savings to repay debt. You\u2019ll not only harm your chances of retiring financially secure, but you\u2019ll also face tax implications on that withdrawn money.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faq\"><a><\/a>FAQ<\/h2>\n\n\n\n<p>Have more questions about debt relief? Read the answers to these common debt questions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-the-best-option-to-get-out-of-debt\">What is the best option to get out of debt?<\/h3>\n\n\n\n<p>The best option to get out of debt depends on each individual\u2019s financial situation and circumstances. Some people\u2019s debt and credit score may be in a state that calls for a more serious debt relief option like a debt management plan or bankruptcy. Others may be able to repay their debt in a few years with budgeting or credit counseling.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-is-there-a-real-debt-relief-program\">Is there a real debt relief program?<\/h3>\n\n\n\n<p>Although results aren\u2019t guaranteed, there are real debt relief programs and companies. Remember to do thorough research and look out for red flags before entering into any debt relief agreement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-can-i-settle-my-debt-without-paying\">How can I settle my debt without paying?<\/h3>\n\n\n\n<p>The only legitimate way to settle debt without paying is Chapter 7 bankruptcy, although you do have to pay in a way by liquidating your assets. Any company that claims they can settle your debt without you having to pay anything is most likely a scam.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-are-the-three-biggest-strategies-for-paying-down-debt\">What are the three biggest strategies for paying down debt?<\/h3>\n\n\n\n<p>The three biggest strategies for paying down debt are:<\/p>\n\n\n\n<ol type=\"1\" start=\"1\">\n<li>Create a budget.<\/li>\n\n\n\n<li>Don\u2019t take on additional debt.<\/li>\n\n\n\n<li>Pay your bills on time and in full.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-debt-relief-can-improve-your-credit\"><a><\/a>How debt relief can improve your credit<\/h2>\n\n\n\n<p>While some debt relief options may damage your credit in the short term, they can help you bounce back faster in the long term than if you were to stay stuck in a cycle of debt. Even on-time payments on your debt can help your credit, since payment history is a large factor in your credit score.<\/p>\n\n\n\n<p>Lexington Law Firm has a team of professionals who can help you work to repair your credit after it\u2019s taken hits from debt or debt relief. Read more about <a href=\"https:\/\/www.lexingtonlaw.com\/our-services\" target=\"_blank\" rel=\"noreferrer noopener\">how we can help you stabilize your credit<\/a> today.<\/p>\n\n\n\n<p><a aria-label=\"undefined (opens in a new tab)\" href=\"https:\/\/lexingtonlaw.com\/disclaimer\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>Note:<\/em><\/strong><\/a><em> Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are many different debt relief options. 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