Debt consolidation combines several debts into one new loan or payment, ideally at a lower interest rate. You still repay the full balance, just more simply. Debt settlement negotiates with creditors to accept less than you owe, paid from a dedicated savings account over time. Bankruptcy is a legal process through federal court that can discharge or restructure debt, and it requires an attorney. Each has a different cost, timeline, and credit impact.
It mostly comes down to your income, how much you owe, and how far behind you are. If you are current and have decent credit, consolidation often makes sense. If you are behind and cannot afford the full balance, settlement may fit. If debt is far beyond what you could ever repay, or you face wage garnishment, bankruptcy may be the cleanest path. A free debt review helps you weigh them honestly.
Most programs run between two and four years. The length depends on how much you owe, how much you can deposit each month, and how quickly creditors agree to settle. The calculator above shows estimated terms and monthly deposits based on your actual balances.
It can be. When a creditor forgives $600 or more, they may send you an IRS Form 1099-C, and the forgiven amount can count as income. If you were insolvent at the time, meaning your debts exceeded your assets, you may be able to exclude some or all of it. Talk with a tax professional about your specific situation.
Yes. Enrolling in a settlement program does not stop a creditor from calling, sending accounts to collections, or filing a lawsuit. Many creditors prefer to negotiate, but it is not guaranteed. If you are sued, let us know right away so the account can be prioritized.
Unsecured debts usually qualify: credit cards, medical bills, personal loans, payday loans, and some private student loans. Secured debts such as mortgages and car loans do not, and neither do federal student loans, child support, or most tax debts.
It is an estimate based on the balances and lenders you enter, using the same formula as our partner's quote sheet. Final terms depend on creditor negotiation, your state, and a full program review. Savings are not guaranteed.
Settlement programs are provided through our licensed partner, Encompass Recovery Group. Solid Ground Consultants helps you understand your options, gather your information, and choose a path, then stays with you as a point of contact. Start with a free debt review.
