Credit card debt
Credit card debt that keeps growing
When most of your payment goes to interest, it can feel like you're running in place. Here's how to think through your options.
Free consultation. No obligation to enroll.
Signs it may be time to look at options
- You're mostly making minimum payments
- Balances stay the same or grow even when you pay
- You're using one card to help pay another
- Interest charges are a large part of each statement
Options to consider
A budget and payoff plan
Ordering payments by interest rate or balance can work when your income comfortably covers more than the minimums.
Credit counseling
A nonprofit counselor may set up a debt management plan with reduced interest rates, typically paid over several years.
Consolidation
A lower-rate loan or balance transfer can simplify payments if your credit qualifies and you avoid new balances.
Debt settlement
Negotiating to pay less than the full balance. It carries real risks, including credit damage, possible lawsuits and taxes.
Before you decide: what you should know
All disclosuresYour credit may be affected
Debt relief programs can have a negative effect on your credit, especially if accounts become delinquent during the program.
Creditors don't have to negotiate
Creditors are not required to participate or to accept a reduced amount. Some may not.
Collection activity may continue
Creditors and collectors may keep contacting you, and interest, late fees and penalties may continue to accrue.
Lawsuits are possible
A creditor may sue to collect a debt, which can lead to judgments, garnishment or other remedies allowed by law.
Results aren't guaranteed
Not every debt is resolved, and no specific savings, settlement or timeline can be promised.
Taxes may apply
Forgiven debt may be considered taxable income. Consult a tax professional about your situation.
Stopping payments has consequences
Stopping payments to creditors can lead to late fees, collections and credit damage. Understand this fully before deciding.
You don't have to figure this out alone.
Start with a free conversation. We'll learn about your situation, answer your questions and help you understand what options may be available.
Free consultation • No obligation