What to know before choosing a debt relief strategy
Debt relief can reduce what you owe, but the wrong strategy could also cost you more than you ultimately save.
Credit card debt is on the rise, with Americans owing $1.26 trillion in the second quarter of 2026, according to Federal Reserve data. Interest rates on credit cards are also high, averaging over 22%. This makes it difficult to pay down debt without consuming a large portion of monthly payments. Rising household expenses can make the situation even worse.
Debt relief may seem like a solution, but it's not a one-size-fits-all approach. Different strategies have varying costs, requirements, savings and credit impacts. Before choosing a strategy, consider the type of debt, your financial stability, the impact on your credit score, fees and costs, and the timeline involved. A debt relief strategy should be chosen based on a thorough understanding of these factors, rather than simply looking for the fastest way to eliminate debt.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
