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Credit Card Debt Relief Calculator

Compare every real way out of credit card debt side by side: what each costs per month, how long it takes, the total you'll pay, and what it does to your credit.

✓ Hardship Plan
✓ Debt Management Plan
✓ Consolidation Loan
✓ Debt Settlement
🚩 There is no government program that pays off credit card debt. Ads promising one are scams, and the FTC says only scammers guarantee results from a "government" debt relief program. Here's what actually exists, with your numbers.

💳 Compare Your Debt Relief Options

Enter your total card balance. Results update as you type.

⚙️ Adjust the assumptions (optional)

Defaults are typical figures. Settlement fees usually run 15% to 25% of enrolled debt. Use real quotes when you have them.

Your Real Debt Relief Options, Explained

1. Hardship program with your card company

Call the number on the back of your card and ask for a hardship program. Many issuers will lower your rate or fees for a set time if you explain a job loss, illness or other setback. It's free, and your credit stays intact if you keep paying. The catch: the lower rate is usually temporary, and the card may be frozen.

2. Debt management plan (credit counseling)

A credit counselor works out lower rates with your card companies. You make one monthly payment to the counseling agency, and it pays your cards. Plans usually take 48 months or more, and you'll likely stop using the cards. Look for a nonprofit, accredited agency, but the FTC notes that nonprofit doesn't automatically mean free, so ask about fees first.

3. Consolidation loan

A personal loan pays off all your cards, leaving one fixed payment and a set payoff date. It only helps if the loan's rate plus fees is lower than your cards, and if you don't run the cards back up. Avoid putting your home up as collateral to pay off cards.

4. Debt settlement

A for-profit company negotiates with your card companies to accept less than you owe. You usually stop paying the cards and save into a separate account instead. It can cut what you pay, but the FTC lists real risks: late fees and interest keep growing, you can be sued or have wages garnished, your credit takes a serious hit, not every debt gets settled, and forgiven amounts may be taxable. Settlement companies can't legally charge you a fee before they settle a debt.

5. Bankruptcy

When none of the above can work, bankruptcy can wipe out or restructure credit card debt. It has the biggest credit impact and its own costs, so talk to a bankruptcy attorney; many offer a free first consultation.

How to Spot a Debt Relief Scam

Report scams at ReportFraud.ftc.gov or to your state attorney general.

📋 Sources: FTC: How to Get Out of Debt (Dec 2025) · CBS News: what debt settlement companies charge. This page explains options in general and isn't legal, tax or financial advice.

Frequently Asked Questions

Is there a government program for credit card debt relief?
No. There is no government program that pays off, forgives or bails out personal credit card debt. The FTC warns that only scammers guarantee results from a "government" debt relief program. The real options are a hardship program with your card company, a debt management plan through a credit counselor, a consolidation loan, debt settlement, or bankruptcy.
What is debt in simple terms?
Debt is money you borrowed and have to pay back, usually with interest. With a credit card, interest is added every month on the balance you carry, so a balance you don't pay off grows over time.
How does debt affect you financially?
Debt takes part of every paycheck before you can spend or save it, and interest makes everything you bought cost more. High balances also lower your credit score, which raises the cost of future loans, car insurance in many states, and even some apartment approvals.
How can I consolidate my credit card debt?
The most common ways are a personal consolidation loan, a 0% balance transfer card, or a debt management plan through a nonprofit credit counselor. A loan or balance transfer only helps if the new rate and fees are lower than what you pay now, and if you stop adding to the cards.
Does debt settlement hurt your credit?
Yes, usually a lot. Settlement programs often ask you to stop paying your cards while you save, so accounts go late, fees and interest pile up, and you can be sued. Settled accounts also show up on your credit report. That's why it's usually a last resort before bankruptcy.
Is forgiven credit card debt taxable?
It can be. The FTC notes that any amount forgiven in a settlement could count as income. Creditors generally send a Form 1099-C when they cancel $600 or more. If you were insolvent when the debt was forgiven, some or all of it may not be taxable, so talk to a tax professional.

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