If it’s difficult to keep up with your high-interest debt, you may have considered enrolling in a debt relief service. These services can offer substantial relief, often through negotiations – either of the balances you owe or the interest rates you’re charged. 

But, debt relief services typically aren’t free. For example, if you opt for debt settlement, you’ll usually pay between 15% and 25% of your enrolled balance as a service fee following successful negotiations. And, other types of debt relief services charge fees, too. Moreover, some debt relief services may harm your credit score, making it difficult to borrow money in the future. 

So, what should you do if your debt is overwhelming but you don’t want to deal with the financial and credit-centric repercussions of a debt relief service? We’ve outlined a few alternatives to consider below. 

Learn more about your debt relief options now. 

4 alternatives to a debt relief service to know

Debt relief services aren’t the only effective ways to save time and money while you pay off your debt. Here are a few alternatives to consider: 

Home equity loans

A home equity loan can give you the money you need to pay your high-interest debts off at a competitive interest rate. Today’s average home equity loan interest rate is just 8.60%. That rate could offer significant savings compared to the 20% or higher interest rate you may be paying on credit cards. 

And, with over $200,000 in equity available, if you’re like the average American homeowner, you shouldn’t have any issues accessing enough to pay your debts off if you have good credit. 

Say goodbye to your high-interest debt today. 

Debt consolidation loans

Debt consolidation loans are a common tool people use to cut the cost of high-interest debt. These loans may simplify the debt payoff process, and make it possible to save money as you do. But, if you take this approach, it’s important to ensure your new debt consolidation loan offers a lower interest rate than you’re already paying.

Financial hardship programs

Many financial institutions offer short-term financial hardship programs to help borrowers find security amid financial hardships. These programs may temporarily reduce your interest rate and payments. While lower payments may help you get back on track, financial hardship programs are not a long-term solution.  

Negotiate on your own

Negotiations could be your path to a lower interest rate or lower balance. And, you don’t necessarily need a debt relief expert to handle your negotiations for you. All you may need to do is call your lenders and start the negotiation process. But keep in mind that while lenders may be willing to negotiate interest rates on accounts in good standing, you’ll typically need to be delinquent to negotiate a lower balance. 

When to consider a debt relief service

Though dealing with your debt alone may seem like the best approach, that’s not always the case. The truth is that professional services may be able to produce better results for you than you would on your own. So, how do you know when to reach out to an expert? Here are a few signs that it may be time to do so: 

• Your lenders aren’t willing to negotiate with you or you’re unable to reach reasonable terms. 
• You’ve tried financial hardship programs but they don’t provide enough relief. 
• You don’t qualify for a reasonable home equity loan rate. 
• You don’t qualify for a debt consolidation loan with meaningful interest savings. 
• You can’t comfortably make your payments on time. 
• You don’t expect to be able to pay your debts off within the next three years. 

If any of the above signs describe your situation, contact a debt relief expert. They should be able to help get you out of debt in a reasonable amount of time. 

The bottom line

Debt relief services may not always be the best way to pay off your high-interest balances. Home equity loans, debt consolidation loans, financial hardship programs and self-negotiations are all viable debt relief alternatives. On the other hand, there are some situations where debt relief services make sense. If you’re having trouble making ends meet and have already taken the do-it-yourself approach with little relief, you should consider contacting a debt relief expert today.