What is Debt Relief and How Can It Help You?
Carrying more debt than you can manage is stressful, and figuring out your options can feel just as overwhelming. This page breaks down what debt relief means and walks through the options that can help you get your finances back on track.
What is Debt Relief?
Debt relief (sometimes called “debt resolution”) can mean different things in different contexts. Debt relief is a general term for strategies that help you reduce, restructure, or eliminate debt when it becomes difficult to repay.
When people talk about a debt relief company like ClearOne Advantage, they're usually talking about a debt settlement company. ClearOne Advantage works with your creditors to negotiate your unsecured debt balances down. The goal is to help you reduce what you owe so that you pay less overall.
There are many different forms of debt relief, which we'll explore below.
Your Debt Relief Options
The most common strategies for finding debt relief include:
| Option | Description |
|---|---|
| Do-it-yourself repayment | If you have steady income and manageable debt, DIY payoff strategies like the Snowball or Avalanche method can help you pay it down faster. Bringing in more income is another way to speed things up. |
| Credit counseling | If you have steady income but feel like your debt is difficult to manage, working with a nonprofit credit counseling agency may be a good starting point. They'll typically create a debt management plan to help make your debt easier to pay off. |
| Debt consolidation (through a bank, credit union, or online lender) | A debt consolidation loan or balance transfer card replaces multiple balances with one loan, usually with a lower interest rate. This can be a good option if you have good credit. |
| Bankruptcy | If you want to eliminate your debt completely, you may be considering Chapter 7 or Chapter 13 bankruptcy, filed with the help of a bankruptcy attorney. Bankruptcy is a legal process for people who don't see a realistic path to repaying their debt and need a clean slate. It's the most aggressive form of debt relief and can significantly affect your credit and your ability to borrow in the future. |
| Debt settlement | If you feel like there's no realistic path to repaying your debts in full but you want to avoid bankruptcy, debt settlement may be a good fit for you. If you enroll in our program, we negotiate with your creditors on your behalf, working to reduce what you owe and settle each account. |
Related: Explore your debt relief options in more depth.
When Should I Consider Working with a Debt Relief Company?
Debt settlement isn't the right fit for everyone with a credit card balance. It's designed for people dealing with real, ongoing hardship, not just high balances. If you're not sure where you stand, ask yourself:
- Are you only able to make the minimum payment on your credit cards each month?
- Have you fallen behind on debt payments, or stopped making them altogether?
- Have you maxed out your credit cards with no realistic way to pay them down?
- Does it feel like no matter how much you pay, you're not making any real progress?
- Does it feel like your income just isn't enough to cover what you owe?
- Have you gone through a major life change (like losing a job, a divorce, or a medical emergency) that's made it harder to keep up with your payments?
If you answered “yes” to two or more of these, it may be worth talking to a professional debt settlement company like ClearOne Advantage.
How Much Can You Save with Debt Settlement?
Minimum payments can keep you in debt for years when interest rates are high. Debt settlement takes a different approach: negotiating reduced payoff agreements on eligible unsecured accounts, which may help you move forward when full repayment isn't realistic. A study by Harvard Kennedy School's Will Dobbie found that consumers who settled an account saved an average of $1,718 after fees, though that reflects outcomes for people who enrolled and successfully settled, not a guarantee of what you'll experience.
How the Process Works
Your ClearOne Advantage process starts with a free, 20-minute consultation with a Certified Debt Specialist at 888-335-0896. On this call, we'll answer your questions and build a plan tailored to your budget.
If you enroll, a Certified Debt Specialist works directly with each of your creditors to negotiate your balances down. Because you typically pay less than you currently owe, this can help you get out of debt faster than paying minimums alone.
ClearOne Advantage does not charge any upfront fees. We collect our fee only after you approve a settlement and have made at least one payment toward it.
We'll continue working through your enrolled debts the same way, negotiating and settling one account at a time, until every enrolled balance has been resolved. Each settlement is one step closer to being debt free.
Related: How Our Program Works
ClearOne Advantage Can Help
ClearOne Advantage has worked with thousands of clients across the country to help them settle their debt. We know how to help you regain control and work toward financial freedom.
If you've already tried tackling your debt on your own by paying more than the minimum, we can take a look at what's working and where a debt settlement plan might get you there faster. Our Certified Debt Specialists build your plan around your specific situation.
Getting out of debt is possible. Get a personalized debt relief plan from ClearOne Advantage at 888-335-0896 today.
FAQs
Unsecured debts are eligible for debt settlement, including credit card debt, personal loans, Buy Now Pay Later debt, and any other unsecured debt. Secured debts, such as mortgage loans or auto loans, are not eligible for debt relief.
Debt settlement can significantly reduce what you owe on enrolled accounts, but it doesn't erase your debt the way a bankruptcy discharge can. Instead, ClearOne Advantage negotiates with your creditors to lower your balances so you pay less overall.
Debt settlement carries real tradeoffs. Your credit may be affected, since enrolled accounts can become past due before they're settled, and settled accounts may still appear on your credit report. Creditors and collectors can continue contacting you, and in some cases pursue legal action, while your accounts are being resolved. Creditors also aren't required to accept a settlement offer, so results can vary. If part of your debt is forgiven, that amount may count as taxable income.
Your program length varies based on your total debt, your deposit schedule, and how your creditors respond. At ClearOne Advantage, the average program length across all enrolled clients is 24 to 51 months, based on individual program estimates and assuming you make all payments as agreed. Not everyone completes the program, so a Certified Debt Specialist can walk you through what's realistic for your specific situation.
