Lower Your Debt With These Top Debt Relief Programs for 2022

Tired of being in constant debt? Have a hard time getting out of debt?  If so, then this is the right place for you.

Financial experts prove the following programs may eliminate debt and help anyone quickly get out of, or significantly reduce financial hardship. That’s why It is important to know your options for debt relief in 2022. You can do that by looking at all the available choices like Bankruptcy, IRS tax relief, and consolidating your debt into a low-interest credit card. It is also possible to hire a company to deal with the debt.

Debt And Stress Go Hand in Hand

It’s no wonder most Americans are feeling overwhelmed.  According to CNBC, the average household is carrying around$17,000 in credit card debt and $90,460 in overall debt.

And if you have any debt – no matter how small – then you know only too well how it may adversely impact your mental health and can leave you feeling depressed, anxious, and overwhelmed.   As a result, anytime you’re required to spend money, even on simple things like food to eat or gas for your car, can cause even further stress. 

Today’s times dictate a new level of financial awareness, especially after a number of hard-working Americans lost their jobs due to pandemic-related layoffs and business closings. But, unfortunately, getting out of debt often becomes impossible for people choosing not to use some form of a debt relief program.

There are many options for debt relief, but not all of them are right for everyone. 

Debt Relief Companies:

A debt consolidation company works on your behalf to lower and eliminate your debt with your creditors. Debt consolidation can make a lot of sense for people with a high level of debt or paying a lot of bills. In these tough economic times, many Americans are faced with significant credit card debt and are looking for help reducing their monthly payments. Debt consolidation is often used in this situation and helps consumers simplify their budgets.

Debt Consolidation Loans:

The basic premise behind debt consolidation is to trade all of your debts for a single new one at a lower interest rate. Debt Consolidation Loans make it possible to pay off your old loans with higher rates with money from the new loan at a lower rate. In many cases, people trade in a credit card rate of 24% into a new loan rate of just 1.4%.  It also consolidates all of that information into making it easier to track your debt repayment progress.

Which Is The Best Debt Relief Option For You?

0%  Interest Credit Cards:

The average American household has over $17,000 in credit card debt alone. As we mentioned, earlier many people are paying upwards of 24% interest. If you have reasonably good credit, there are plenty of credit cards out there offering zero percent interest. Apply today, and you’ll see how quickly you’ll be able to pay off your credit card in no time.

Filing for Bankruptcy

In the past, many people looked upon bankruptcy as an adverse event. However, using bankruptcy wisely may help you lower your debt, and in no time at all, you will be back in a much stronger financial position. But, before making such a move, learn the facts behind this popular form of debt relief.

  • Chapter 13 allows people with a steady income to keep their property. This bankruptcy plan allows filers to keep a mortgaged house or car they might otherwise lose in the bankruptcy process.
  • Chapter 7 is known as straight Bankruptcy. It involves liquidating all assets not exempt under federal or state law.    

Negotiate Back Taxes With The IRS

The IRS offers several different programs to help you get back on your feet and reduce or eliminate your tax debt. Over 1 million people have used these programs to settle their tax debt for less than they owe.

Filing for bankruptcy is one option for debt relief. Bankruptcy is a significant decision, and it’s not one to be taken lightly. However, there are two types of bankruptcies available to you, and they each have their benefits and drawbacks. Therefore, it would be best to weigh the pros and cons before making your final decision.

Using Bankruptcy Wisely May Help You Lower Your Debt

Chapter 13 might take years to complete, but it’s not a comprehensive debt settlement program like many people think. Unfortunately, this is the most common misconception when considering bankruptcy to relieve excessive debts. You may have heard of “Chapter 7,” which involves liquidating assets such as cars or homes. Still, other options are available that don’t involve selling off your belongings just yet!

Pros to filing bankruptcy include:

• Most of your debt is discharged and removed from your credit.

• An automatic stay is granted, preventing creditors from pursuing further collections.

• Wage garnishment & seizure of your property are disallowed.

And most importantly…

•  You are granted the ability to start your financial life anew.

The IRS offers tax debt relief options for U.S. taxpayers suffering from financial hardship.

Did you know the IRS is aware of the COVID-19 pandemic and its impact on your finances? The truth is, there are a few tax debt relief options available to those who qualify. We’re here to help you understand what these options are and how they can benefit your situation so that you can get back on track with life again. So check the options below to learn more about your tax debt relief options today!

Taxes are already complicated, and things can get messy if you get behind on paying them. When taxes are delinquent or overdue — typically from previous years — they are referred to as “back taxes.” And if you owe them, you might be wondering about tax relief.

IRS payment plans:

If you need more time to pay your tax bill, the IRS will probably give it to you in the form of a payment plan. A payment plan will allow you to pay back your overdue tax bill (plus accrued interest and fees) as installments over a period of time.

The IRS offers two types of installment plans — short-term and long-term.

Tax Relief: How to Get Rid of Your Back Taxes

Offers in compromise:

You might be able to find tax relief through what’s called an “offer in compromise.” This lets you settle your back taxes with the IRS for less than you owe. According to the IRS, it may be an option if you absolutely can’t pay your tax debt or if doing so creates a financial hardship.

People owing less than $250,000 are now permitted to set up installment plans without the need for prior authorization or additional income verification. The IRS also facilitates an Online Payment Agreement where taxpayers with Direct Debit Installment Agreements are permitted to request lower monthly payment amounts and different recurring due dates.

Are you drowning in debt?

If so, you’re not alone. The average American is $8,400 in credit card debt, and over 1/3 of Americans live paycheck to paycheck. But, it doesn’t have to be this way. Debt Relief companies out there can help reduce your outstanding debts with a regulated plan that will get you back on track financially.

Debt relief is a confusing topic. There are so many companies, and they all promise to help you get out of debt. But how do you know who to trust? How much will it cost? And what’s the best option for your situation?

It would be best to have an expert opinion on debt relief options to help answer those questions. Debt settlement is an agreement with a creditor to pay less than you owe but still have the debt considered satisfied.

The first step in debt settlement is to gather as much information about your debts as possible. You’ll need to know the balance, the interest rate, and the minimum monthly payment for each debt. This information will help you create a  budget and debt payoff plan.

How to Settle Your Debt for Way Less Than You Owe

The next step is to create a budget. You’ll need to list your total income and expenses and make sure you have enough money to cover your monthly debts. If you don’t, you’ll need to find ways to reduce your spending or increase your income.

The next step is to create a debt payoff plan. You’ll need to list your debts in order from smallest to largest and figure out how much money you can afford to put towards your debts each month. You should also make sure you have a savings account with at least $1,000 in it. This will help you cover unexpected expenses. 

And, most importantly, you’ll need to ask creditors to lower your interest rates and set up a plan for paying off your debts. If they refuse an offer, don’t give up right away. You may need to contact your creditors multiple times before agreeing to a settlement. 

Debt settlement isn’t appropriate for everyone, so you should consider all of your options before pursuing debt settlement.

Are you feeling overwhelmed by your debt? Then, a debt management plan might be the solution. This debt payoff tool puts you on a path to pay off your debts — typically from credit cards — over three to five years. With a DMP, several debts are rolled into one monthly payment and creditors reduce your interest rate. 

In exchange, you agree to a payment plan that usually runs three to five years. Note that interest rate cuts are standardized across credit counseling agencies, based on your creditors’ guidelines and your budget.

Debt Management Plans

Debt management plans pros:

  • Can cut your interest rate by half or more.
  • It helps pay off debt faster than doing it yourself.
  • Consolidates several debts into one payment.


  • Startup fees and monthly fees are common.
  • It may take three to five years to repay your debt.

Debt management plans roll several debts into one monthly payment at a reduced interest rate. It works best for those who are struggling to pay off credit card debt but don’t qualify for other options because of a low credit score.

Unlike some credit card consolidation options, debt management plans don’t affect your credit score. However, if your debt is more than 40% of your income and can’t be repaid within five years, then bankruptcy may be a better option.

You can find a debt management plan through a nonprofit credit counseling agency.

A debt relief option for people with good to great credit is to consolidate debt using low-interest credit cards.

Many credit cards are good because they offer low to no interest balance transfer deals. However, sometimes this is only for a temporary period. This is why it is essential to read the entire proposal before signing anything.

Consolidate Your Debt Using Low-Interest Credit Cards

Balance transfer card


  • 0% introductory APR period.


  • Requires good to excellent credit to qualify.
  • Usually carries a balance transfer fee.
  • Higher APR kicks in after the introductory period.

Also called credit card refinancing, this option transfers credit card debt to a balance transfer credit card that charges no interest for a promotional period, often 12 to 18 months. You’ll need good to excellent credit (690 or higher on the FICO scale) to qualify for most balance transfer cards.

A good balance transfer card will not charge an annual fee, but many issuers charge a one-time balance transfer fee of 3% to 5% of the amount transferred. Before you choose a card, calculate whether the interest you save over time will wipe out the cost of the fee.

Aim to pay your balance down completely before the 0% intro APR period is over. Any remaining balance after that time will have a regular credit card interest rate.

This method of debt relief requires discipline, attention, and planning. However, consolidating your debt using low-interest credit cards is an outstanding way to obtain debt relief when done correctly.