Quick Answer: Credit relief settlement involves balance reduction but always damages credit scores, making it impossible to achieve both goals simultaneously. Someone with $85K in credit card debt who is current on payments should explore alternatives like debt management plans or balance transfers before considering settlement — though a DMP on $85K could mean years of payments and real retirement savings given up compared to a bankruptcy discharge — and settlement itself typically takes 2-4 years and severely impacts creditworthiness.
“Dear Steve,
my wife and I have approx. 85K in credit card debt. We are current on all payments, however, are making little to no progress to pay these cards down. We would be interested in a debt settlement that would lower our interest rates on the debt so we could pay them off over a matter of time (say 5 or 6 years) without negatively affecting our credit rating. We live in california and are looking into credit relief settlement companies.
What would you suggest to resolve the above situation? Any thoughts on a good debt relief company?
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Dear Michael,
I understand what you are asking for but you are asking for two things which are diametrically opposed. You can’t get balance reduction with no credit impact.
I would suggest your use the free How to Get Out of Debt Calculator to review your options.
Once you do that, come back and let me know what seems to make sense for you and let’s discuss.
Please post your responses and follow-up messages to me on this in the comments section below.
Dealing With Debt? Understanding your options is the first step. See how all your debt relief options compare — including ones most sites won’t tell you about. The Find Your Path quiz gives a recommendation based on your actual numbers, and the Scam-O-Meter checks any company’s complaint history before you sign. Federal Reserve research shows bankruptcy filers recover faster than those who don’t file.
