Overview of debt strategies

Many people find themselves struggling with huge debt and no way to manage it. A sudden change in income, emergency, or other unforeseen event can knock anyone off their financial feet. Here are 6 different strategies for managing debt.



Credit counseling

A counselor reviews your financial situation, sets up lower interest rates with your creditors if possible, and creates a debt management plan for you to follow.

Debt consolidation

You take out one loan to pay off all your debt. This loan may carry a lower interest rate than your debts. You make fixed monthly payments on the loan until it is paid off.

Loan refinance

You refinance your personal or student loans to lower the interest rate you are currently paying.

Debt settlement 

Working with a company, you make monthly deposits into an account. The company negotiates with your creditors to accept less than the debt owed. That amount is then paid to creditors, from the account you deposited into, until the debt is resolved.


A legal process. All your assets are evaluated and used to pay off your debts. Chapter 7 and Chapter 13 are most common options used by individuals. Once bankruptcy is complete, you are relieved of the debt obligations you had before filing bankruptcy.

Do it yourself

Using various online and offline tools, you determine the exact payments required for each debt and track your progress as you go.

If you need help understanding the differences between these options, give us a call. One of our Certified Debt Consultants would be happy to answer any questions you have.