Debt relief refers to an umbrella of services that are concerned with managing, minimizing, or eliminating debt for qualifying individuals. There are several forms of debt relief that an individual may qualify for including debt consolidation, credit counseling, bankruptcy, or debt forgiveness.

Depending on the type of debt relief sought or achieved, there can be a varying impact on an individual’s credit score. Credit counseling or debt consolidation are unlikely to have an impact on an individual’s credit score. By contrast, debt settlements can negatively impact credit scores and declaring bankruptcy can cause a credit score to plunge.

The amount of time to complete a debt relief program depends on the type of relief. For chapter 13 bankruptcy or debt settlement plans, the relief could take the form of years of agreed upon payments as part of a plan. Other debt relief methods such as debt management plans or debt consolidations will continue until the debt is paid. However some forms of debt relief, like applying for debt forgiveness or filing chapter 7 bankruptcy can be faster, if more dramatic, pathways.

Debt relief can range in cost from free, to several hundreds or thousands of dollars. If a debt management company or bankruptcy attorney is retained, there may be additional costs incurred during the relief process.