Debt and loan concept

The comprehensive list of where to turn for debt relief in 2024

If you are weighed down by heavy consumer debt, you might not know where to turn for debt relief. You might just be suffering under payments that you can’t handle and watching your situation slowly get worse. It’s not an easy thing to get out of debt

There are a lot more options out there for people who are looking fore help getting out of debt than you might realize. 

However, it’s important to be cautious because not all debt relief programs and debt relief options are created equal. Some may carry high fees, potentially hurt credit scores, and not deliver the promised results. 

It’s essential to carefully research and consider all available options. The best approach to manage consumer debt varies depending on individual circumstances, financial goals, and potential consequences.

Debt relief programs can go by various names and may be offered by different types of organizations. The following is a comprehensive list of where to turn for debt relief. 

Debt consolidation loan for debt relief

Debt consolidation loans are like financial tools to help people manage multiple debts more easily. It involves combining multiple debts into a single loan with a lower interest rate. This makes the debt more manageable to repay or allows you to repay those debts more quickly.

Here’s how they work: 

  1. First, you apply for a new loan, typically through a bank or online lender. 
  2. If approved, you use that loan to pay off all your existing debts, like credit cards or other loans. 
  3. Then, you’re left with just one loan to pay back, often with a lower interest rate. 

This can make your monthly payments more manageable and save you money on interest. But it’s important to remember that it’s not a magical solution; you still have to repay the consolidation loan. Also, managing your finances well and not accumulating more debt is crucial for it to be effective.

When using a debt consolidation loan, avoid consolidating debt that has a lower interest rate than the debt consolidation loan. Also, avoid extending out the term of the debt unless that is the only way you can afford to make the payments. 

If you are looking for a debt consolidation loan, you can use our marketplace page which will allow you to check with multiple lenders at once without it hurting your credit score. This will give you confidence that you are getting the best deal for your situation. Check out this article about how to pick the right debt consolidation loan. 

In certain circumstances, debt consolidation can be a positive thing for your credit score.

Debt settlement for debt relief

Debt settlement programs negotiate with creditors to reduce the total amount of debt owed. Debtors typically make lump-sum payments or structured settlements to clear their debts.

Debt settlement is a financial process to help people lower the total amount they owe to their creditors. Here’s how it works: 

  1. First, you stop making payments to your creditors, which can negatively affect your credit. 
  2. Move the money you would have spent on the payments into a separate account. 
  3. Then, negotiate with your creditors to accept less than the full amount you owe, often in a lump sum. 
  4. If an agreement is reached, you use the money you saved to make the payment. 

While it can reduce your debt, the following are cons to debt settlement:

  • Fees: A debt settlement company can charge as much as 25% of the debt enrolled in their program. That can amount to a lot of money that could be used toward your payments.
  • Credit score damage: The debt settlement plan involves intentionally missing your payments, so creditors will report late payments to the credit bureau. Because payment history is the single most important factor in your credit score, your credit score will be negatively impacted. 
  • Creditor contacts: During the process of negotiation, you won’t be paying your bills. That means companies will be contacting you for repayment. While there are legal limits to how much a creditor can contact you, it might still be an unpleasant process. 
  • Legal risk: By failing to pay your debts, there is a possibility that your creditors will refuse to negotiate the debt and instead sue you for repayment. Often companies feel like legal action costs more than they are likely to recover, but it does remain a risk. 

It’s essential to carefully consider the pros and cons. Consider seeking professional, indepentdent advice when deciding if debt settlement is right for you.

Credit counseling for debt relief

Credit counseling agencies offer financial counseling, budgeting advice, credit improvement and debt management plans to help individuals regain control of their finances. This is a service that helps people manage their debts and improve their financial situation. 

When you reach out to a credit counseling agency, they will review your financial information:

  • Debts
  • Income
  • Expenses

Based on this, they’ll work with you to create a budget and a debt management plan (DMP). This plan typically involves negotiated lower interest rates and a structured repayment schedule. 

Credit counselors then contact your creditors on your behalf to establish these terms. You make one monthly payment to the credit counseling agency, and they distribute it to your creditors. 

While credit counseling can help you manage your debts and budget more effectively, it’s important to choose a reputable agency and understand the fees and potential impact on your credit. 

Often the plans are created by nonprofit credit counseling agencies after they look closely at your personal finances. They create a plan for getting out of debt that you can afford. If you use a for-profit credit counseling company, they may charge as much as 25% of your outstanding debt to help you work through the process. 

Bankruptcy for debt relief

Bankruptcy is a legal process that allows individuals to discharge or restructure their debts under court supervision. You must retain a lawyer to manage your bankruptcy claim. 

Declaring personal bankruptcy is a complex process that involves several steps. 

  1. You will need to retain the help of an attorney.
  2. You need to decide whether to file for Chapter 7 or Chapter 13 bankruptcy, depending on your financial situation. 
  3. Then, you’ll need to complete a bankruptcy petition, which includes detailed information about your debts, income, expenses, assets, and financial history. 
  4. You’ll also need to attend credit counseling before filing. 
  5. Once the paperwork is filed, an automatic stay goes into effect, protecting you from debt collection efforts. 
  6. You’ll also meet with a bankruptcy trustee who will review your case, and in Chapter 7, may sell some of your non-exempt assets to pay off debts. In Chapter 13, you’ll create a repayment plan to pay back your debts over three to five years. 
  7. After completing all requirements and meeting court approval, you’ll receive a bankruptcy discharge, which means your eligible debts are forgiven. 

It’s crucial to remember that bankruptcy has long-lasting financial consequences and should be considered only after careful evaluation of your options and with the guidance of a legal professional.

Debt negotiation for debt relief

Similar to debt settlement, debt negotiation programs aim to reduce the amount owed by negotiating with creditors for lower settlements. Creditors will sometimes take a reduced payment or payoff if they don’t believe you will be able to repay the debt in full. 

Negotiating personal debt can be a challenging but important process to regain control of your finances. The process looks something like this:

  1. To start, you should reach out to your creditors and express your financial difficulties honestly. 
  2. Then, you can propose a debt repayment plan that you can afford, such as lower monthly payments or reduced interest rates. 
  3. Creditors may accept, reject, or counter your offer. 
  4. Get the terms in writing if a settlement is reached.
  5. Follow the plan carefully, making payments as agreed. 

While this process can be done on your own, many people find negotiating proves difficult. You can consider working with a credit counseling agency, a debt settlement company, or even consult a legal professional to guide you through the process. 

Remember that effective debt negotiation requires open communication, patience, and persistence.

For-profit debt relief organizations

There are also for-profit companies that provide debt relief services, including debt settlement and consolidation, often for a fee. These companies might approve you for a debt consolidation loan or might enroll you in a program where they earn a fee on the amount of debt they get discharged. 

It’s important to be cautious when dealing with for-profit debt settlement companies. Here’s why: 

  • These companies may promise to help lower your debts, but they often charge high fees. Sometimes even before they’ve achieved any results. It is not uncommon for your first few “payments” are actually paying their fees. These fees can be as high as 25% of the enrolled debt.
  • They may also advise you to stop making payments to your creditors. This can damage your credit score and lead to legal actions.

Some people do benefit from debt settlement but there are risks involved. It’s crucial to understand the potential downsides and consider other debt relief options. Alternatives include credit counseling and debt management plans offered by non-profit organizations. These tend to have more consumer-friendly practices and lower fees. 

Always research and consider your choices carefully before working with a for-profit debt settlement company.

Nonprofit debt relief organizations

Nonprofit organizations offer debt relief services, such as credit counseling or DMPs, with a focus on helping individuals overcome debt challenges. Several non-profit organizations provide credit counseling and debt relief services to individuals facing financial challenges. Some of these organizations include:

  • National Foundation for Credit Counseling (NFCC): The National Foundation for Credit Counseling is the largest and most well-known network of non-profit credit counseling agencies in the United States. They offer counseling on budgeting, credit management, debt repayment, and more.
  • Financial Counseling Association of America (FCAA): Financial Counseling Association of America is another association that represents non-profit credit counseling agencies. They focus on promoting professional standards and ethical practices in the industry.
  • Consumer Credit Counseling Service (CCCS): Many local Consumer Credit Counseling Service agencies provide credit counseling, debt management plans, and financial education to individuals and families. These are often affiliates of larger non-profit organizations.
  • Apprisen: Apprisen is a non-profit financial counseling agency that offers a range of services, including credit counseling, debt management, and housing counseling.
  • GreenPath Financial Wellness: GreenPath is a non-profit organization that offers credit counseling, debt management plans, and financial education to help individuals improve their financial well-being.
  • Money Management International (MMI): Money Management International is a non-profit credit counseling agency that provides credit counseling, debt management plans, and other financial education services.
  • American Consumer Credit Counseling (ACCC): American Consumer Credit Counseling  offers credit counseling, debt management, and financial education programs to help individuals take control of their financial situation.
  • provides credit counseling and debt management services to help individuals with debt and financial challenges.
  • Local organizations: Check for small, local organizations in your area. Often you can find a group that is devoted to helping people in their communities. 

Services of nonprofits

These organizations offer a range of services, including credit counseling, debt management plans, and financial education. Their goal is to help individuals make informed financial decisions and manage their debt effectively. 

When seeking assistance, it’s important to choose a reputable non-profit organization that aligns with your needs and financial goals. Always verify the credibility of the organization you choose and confirm that they have the necessary certifications and accreditations.

Keep in mind that non-profit organizations are not always free. You will want to be aware of what they might charge as part of your evaluation as to whether they are the best option for your situation. 

Using a nonprofit organization for debt relief programs can often be a better choice for several reasons

  • Mission Alignment: Nonprofit organizations typically have a mission to provide financial education and support to individuals in need. Their primary focus is on helping people overcome financial challenges rather than generating profits for shareholders.
  • Lower Fees: Nonprofit organizations often charge lower fees, if any, for their services compared to for-profit companies. This can significantly reduce the overall cost of debt relief.
  • Credibility and Accountability: Nonprofits are subject to strict regulations and oversight to ensure they operate in the best interests of their clients. They are accountable to regulatory authorities and donors, which can enhance their credibility.
  • Education and Counseling: Nonprofit organizations often emphasize financial education and counseling as part of their services. They aim to empower individuals to make informed financial decisions and develop healthy financial habits.
  • Transparent Practices: Nonprofits tend to have transparent fee structures and practices, making it easier for clients to understand the costs and benefits of the services they receive.
  • Ethical Approach: Nonprofits are less likely to engage in aggressive or unethical practices that some for-profit debt relief companies may use. They are more focused on the well-being of their clients.
  • Objective Advice: Nonprofit counselors provide objective advice based on the client’s financial situation. They don’t have a financial incentive to steer clients toward particular debt relief solutions.
  • Limited Conflicts of Interest: Nonprofits typically have fewer conflicts of interest compared to for-profit companies. Sometimes for-profit companies will prioritize profits over the best interests of clients.

Student loan debt relief options

Several organizations and programs can help individuals with student debt relief. Some of the prominent ones include:

  • Federal Student Aid (FSA): FSA, part of the U.S. Department of Education, provides information on federal student loan repayment plans, loan forgiveness programs, and options for loan consolidation.
  • Income-Driven Repayment Plans: These federal programs, such as Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Saving on a Valuable Education (SAVE) Plan, are designed to make student loan payments more affordable based on your income and family size.
  • Public Service Loan Forgiveness (PSLF): Public Service Loan Forgiveness is a federal program that forgives the remaining student loan balance for individuals who work in qualifying public service or nonprofit positions and make 120 qualifying payments.
  • AmeriCorps and Peace Corps: Participants in these programs may be eligible for student loan forbearance, deferment, or loan forgiveness, depending on the program and service term.
  • Teacher Loan Forgiveness Program: Designed for teachers working in low-income schools or educational service agencies, the Teacher Loan Forgiveness Program is a federal program which offers forgiveness of a portion of their student loans.
  • State-Based Programs: Many states offer their own student loan repayment assistance and forgiveness programs. Especially for those in certain high-demand professions.
  • Student Loan Ombudsman: The Consumer Financial Protection Bureau (CFPB) has a Student Loan Ombudsman who can assist with resolving disputes and complaints related to student loans.
  • Loan Servicers: The loan servicer managing your federal student loans, can provide information about available repayment options and assistance programs.
  • Nonprofit Organizations: Some nonprofit organizations offer student loan counseling and assistance, such as the Institute of Student Loan Advisors (TISLA).
  • Employer Assistance: Some employers offer student loan repayment assistance as part of their benefits package.

It’s essential to research the specific requirements and eligibility criteria for these programs and organizations, as they may vary based on factors like your loan type, career, and financial situation. Before enrolling in any student debt relief program, it’s advisable to consult with a financial advisor or student loan expert to ensure you make informed decisions that align with your individual needs and goals.

Tax debt relief options

Several organizations and resources can assist individuals with tax debt relief, including:

  • Internal Revenue Service (IRS): The IRS offers several programs to help individuals manage and resolve their tax debt, such as installment agreements, offers in compromise, and temporary delay of collection. They also provide information and guidance on tax relief options.
  • Low-Income Taxpayer Clinics (LITCs): Low-Income Taxpayer Clinics are independent organizations that receive funding from the IRS to provide free legal assistance to low-income individuals facing tax issues. They can help with disputes, audits, and other tax-related problems.
  • Taxpayer Advocate Service (TAS): The Taxpayer Advocate Service is an independent organization within the IRS that assists taxpayers experiencing financial hardship or significant problems with the IRS. They can help individuals navigate the tax resolution process.
  • Enrolled Agents and Tax Professionals: Hiring a tax professional or enrolled agent can be beneficial in negotiating with the IRS and helping you find the most suitable tax relief options.
  • Local Legal Aid and Nonprofit Organizations: Some local legal aid organizations and nonprofits may offer assistance to low-income individuals dealing with tax debt and related issues.
  • State Departments of Revenue: State tax agencies may have their own tax debt relief programs or resources for individuals facing state tax debt issues.

When seeking assistance with tax debt relief, it’s crucial to ensure that you are dealing with reputable and experienced professionals or organizations. 

Watch out for potential scams and always verify the credibility of the resource you choose to work with. It’s often advisable to consult with a qualified tax professional or attorney to assess your specific tax situation and help you determine the best course of action for resolving your tax debt.

Be cautious about what debt relief you use

It’s essential for individuals seeking debt relief to carefully research and understand the specific program or service they are considering, as the effectiveness, costs, and potential consequences can vary widely. Be cautious of scams and unethical practices in the debt relief industry, and consider seeking advice from reputable financial professionals or organizations.

With a little care, you can choose from the many debt relief options that can help you achieve your goals to be debt free and live your best financial life.

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Jonathan Walker