How to Get Rid of Different Debt Types Quickly

Elizabeth Johnson

Financial Advisor
Updated: 07/2019

How to Get Rid of Different Debt Types Quickly

In This Article

Ways to Get Rid of Different Debt Types Quickly

No one likes being in debt. Unfortunately, most people are in some kind of debt. Additionally, there’s a lot of people that have more debt than they can handle. Therefore, it’s no surprise that so many people are interested in getting rid of debt quickly.

This article will go over the different ways to get out of debt. We’ll cover the idea of getting rid of debt for free. Additionally, a lot of debt elimination methods have credit implications, so we’ll look at those. Finally, we’ll go over the most common questions people have about getting out of debt quickly.

Use this information to get a better understanding of how to get out of debt now. It will help you secure a brighter financial future for yourself and the people you care about.

Get Rid of Debt for Free

Lots of people want to know how to get rid of debt for free. Unfortunately, it’s very rare that this is possible. Also, when it is possible, it has its own costs. These costs might not be monetary, but they’ll still add up.

The most common way to get out of debt for free is to find a service program that forgives debt. These programs mostly only apply to student loans. It will also cost you your time and your freedom to pick a career that doesn’t qualify for these programs

You can also just ignore your creditors and the collections calls and hope they eventually stop. However, this will have serious costs to your credit score. As a result, it will be harder to get loans and lines of credit in the future. You may also be taken to court and forced to pay your bills.

As you can see, there’s no good way to get rid of debt for free. However, that shouldn’t cause you to give up. Just because you can’t get rid of your debt for free doesn’t mean you can’t be debt free in the future.

Different Ways to Get Rid of Debt

There are several different ways to get rid of debt. Some of them are faster than others. Also, each one has its own different costs and benefits. The main ways to get rid of debt are consolidation loans, debt settlement, and debt forgiveness.

Consolidation Loans

Consolidation loans are one of the most effective ways to get out of debt. They work in a simple way. You take out a loan for the amount of your outstanding debt. You use that loan to pay off your other debts. This consolidates all of your debt in one place.

The consolidation loan should have a lower interest rate than your current debts. As a result, you’ll be able to pay it off much more quickly. You’ll also spend less on your debt over the course of your repayments. This can save you tens of thousands of dollars over your debt repayment.

Debt Settlement

Another option to get rid of debt is debt settlement. This strategy involves coming up with a lump sum of cash. You offer your lenders the lump sum of cash in exchange for them considering your debt to be settled.

There’s no law that says companies have to settle your debt. They might not be willing to do so. You’ll have to convince them it’s in their best interest to settle with you. You’ll also have to prove that there’s no way you’ll make your monthly payments. That means showing that the cash you have to settle the debt can only be used towards debt settlement.

Debt relief companies can help with this. They’ll tell you to stop paying your monthly bills. Instead, you pay the debt relief company. The company then keeps that money in an escrow account. You can’t access that account. Once you’ve accumulated a large enough settlement payment, the company will send it to your creditors to cover your debts.

Debt Forgiveness

The final option to get rid of debt is debt forgiveness. This is a very rare thing. After all, businesses that lend money are trying to make a profit. They will lose money if they just forgive debts. However, some companies are willing to forgive debts in certain situations. These might include total disability or traumatic loss. You’ll need to talk to the different companies to find out more. You can also get more information from student debt relief experts.

There are some government programs that can help you get debt forgiveness. However, these only apply to certain kinds of debts. The most common type of debt these programs work for is student loan debt. That’s good news considering that student loan debt is the second largest source of debt in the US. However, it doesn’t help everyone. It also limits the kind of career options you have. You might also have to spend time in a service organization where you won’t be making any money.

How to Get Rid of Different Debt Types Quickly

How Does Getting Rid of Debt Affect Your Credit?

The different options to get rid of debt have different credit implications. It’s important to keep your credit score in mind when you’re thinking about ways to deal with your debt. That’s because your credit score plays a huge role in your life.

Businesses use credit scores to approve or deny applications for loans and lines of credit. They also use them to screen potential employees. Many landlords do a credit check before they offer a lease to someone. Therefore, watching your credit score is extremely important. Let’s look at how the different ways to get rid of debt can affect your credit score.

Consolidation Loans and Credit Scores

Consolidation loans have the lowest impact on your credit score. In fact, depending on how your debt is currently structured, a consolidation loan can give your credit score a boost. You’ll see a slight initial dip when you get the loan. That’s because of the hard credit check that the loan requires.

However, if your debt is mostly in the form of credit cards, then you also might see an immediate jump in your credit score. That’s because of the way that credit scores are calculated. A large part of your credit score is based on how much of your credit limit you use. That means when you pay off your credit cards with a consolidation loan you’re lowering your credit utilization.

A consolidation loan can also help if you have accounts that aren’t current. They’ll become current when you pay them off. The consolidation loan then helps you build credit through consistent on-time payments.

Debt Settlement and Credit Scores

Debt settlement can have a huge negative impact on your credit score. It also might not. It depends on whether or not the company you settle your debts with reports the debt settlement to the credit reporting agencies.

If the company reports that the debt was settled for less than owed, then you’ll see a big drop in your score. Usually, you can get the company to agree to not report the debt settlement to the credit reporting agencies. Make sure you get such an agreement in writing.

Debt Forgiveness and Credit Scores

Debt forgiveness works with your credit the same way that debt settlement does. The most important thing is how it gets reported. If the company just writes off the debt as bad debt and reports it as such, then you’ll take a hit to your credit score. However, government programs and similar types of debt forgiveness probably won’t impact your credit. You’ll need to talk to a lawyer or debt relief organization for more information about your specific situation.

How to Get Rid of Different Debt Types Quickly

Getting Rid of Debt General FAQ

This section helps you understand the general strategies for getting rid of debt. Use it to form a foundation for more specific approaches to debt elimination.

How to Get Rid of Debt for Free?

There’s no good way to get rid of most types of debt for free. The exception is student loan debt. This type of debt has government sponsored programs that give student loan forgiveness.

How to Get Rid of Debt Collectors?

There are a few different ways to get rid of debt collectors. Most debt collectors buy debt for very cheap. As a result, they can settle the debt. You can also just tell the debt collection company to stop calling you. However, they may take you to court to get paid.

How to Get Rid of Debt Collector Phone Calls?

You can stop debt collector phone calls by telling them to stop calling you. Once you tell them that they’re only allowed to communicate with you through writing. However, you will still owe your debt.

How to Get Rid of Your Unwanted Debt?

Consolidation loans are the best way to get rid of unwanted debt. They allow you to pay it off at a lower interest rate. That means your monthly payments will be lower. You’ll also pay it off faster.

What is the Best Way to Get Rid of Debt?

The best way to get rid of debt is through a consolidation loan. A consolidation loan will allow you to pay your debt down much more quickly than you are currently doing. That’s because of the lower interest rates you’ll get.

How to Get Rid of Debt and Save Money?

You can save money every month while getting rid of your debt when you use a consolidation loan. This will allow you to save money because your interest will be lower. Therefore, your monthly bill will be lower and you’ll get out of debt faster.

How to Get Rid of Unsecured Debt?

Getting rid of unsecured debt depends on what kind of debt it is. If it’s student loan debt, then service programs for debt forgiveness are always an option. Otherwise, consolidating your debt or using a balance transfer credit card are your best options.

How to Get Rid of $10,000 Debt?

$10,000 of debt is a good amount to use a consolidation loan on. If your debt is in the form of credit cards, then you’ll pay much less over time with a consolidation loan. That can also be true for student loans and personal loans.

How to Get Rid of $50,000 in Debt?

$50,000 of debt is very hard to get rid of. However, you can do it. It just won’t be very fast. The best option for you is a consolidation loan. You can also try to combine the different debt elimination strategies. See if you can get some settlements, some forgiveness, and consolidate the rest.

Getting Rid of Different Types of Debt 

This section will cover how to get rid of different types of debt. We’ll put the most common types of debt in their on mini sections to help you easily navigate them.

Getting Rid of Credit Card Debt

Credit card debt can be the most vexing of all debts. It has a high interest rate and always seems to grow. This section answers your questions about how to pay off credit card debt.

How to Get Rid of Credit Card Debt Legally?

The best way to legally get rid of credit card debt is through a consolidation loan. This will lower your interest rates and allow you to pay off your debt much faster. It will also be much cheaper to do so.

How to Get Rid of Credit Card Debt?

The two primary ways to get rid of credit card debt are through a balance transfer credit card and a consolidation loan. Both of these will allow you to make payments at a very low or no interest rate. You can also try to settle the debt with the company.

How to Get Rid of Credit Card Debt Without Paying?

It’s not usually possible to get rid of credit card debt without paying. One option would be debt settlement. You’ll still have to pay, but you won’t have to pay the full balance that you owe.

How to Get Rid of $30,000 Credit Card Debt?

A consolidation loan is the best way to get rid of $30,000 in credit card debt. The consolidation loan will have a much lower interest rate. That means your monthly payments will be lower. As a result, you can pay the debt off faster. You’ll also save money over your repayment.

How to Get Rid of $5,000 Credit Card Debt?

If you’re trying to get rid of $5,000 in credit card debt then your best option is probably a balance transfer card. Find a card that has zero interest on balance transfers for at least 12 months. Transfer the balance to that card and pay it off as quickly as you can. The debt won’t grow because of the interest free period.

How to Get Rid of $20,000 Credit Card Debt?

It can be hard to get rid of $20,000 in credit card debt. Your best option is probably a consolidation loan. This will lower your interest rates. That means more of your money will go towards paying the balance and less will go to interest.

How to Get Rid of Credit Card Debt Without Bankruptcy?

Consolidation Loans and balance transfers are the best way to get rid of credit card debt without going into bankruptcy. These options give you a much lower interest rate. That means you can pay your debts off faster. Your monthly balances will also be smaller.

How to Get Rid of High Interest Credit Card Debt?

High interest credit cards can be a pain to deal with. Balance transfer cards and consolidation loans have much lower interest rates. Balance transfer cards may even have 12-18 months of deferred interest. That means you can pay off the whole balance without accruing any new interest.

How to Get Rid of Different Debt Types Quickly

Getting Rid of Medical Debt

Medical debt can be a real pain. This section covers different ways to get rid of medical debt.

How to Get Rid of Medical Debt Without Paying?

Debt forgiveness can be one way to get rid of medical debt without paying. However, it’s not very likely. Your best option is to seek a debt settlement agreement with your creditor.

How to Get Rid of Hospital Debt?

Most hospitals will offer debt settlement agreements. They’ll also offer reduced interest payment programs to help you cover your bills.

Getting Rid of Student Loan Debt?

Student loan debt is the second largest source of debt in the US. This section answers your questions about getting rid of student loan debt.

How to Get Rid of Student Loan Debt?

The two best ways to get rid of student loan debt are through a debt forgiveness program and a student loan consolidation loan. These options will either remove your debt entirely or allow you to pay it off much faster.

Can Student Debt Expert Get Rid of Loans?

Sometimes. There are lots of rules and regulations governing student debt. You’ll need to talk to an expert about your particular situation to get an answer.

Can You Get Rid of Student Loan Debt?

Sometimes. There are lots of different laws about student loan debt. A lawyer can help you understand your options. You can also engage in a student loan debt forgiveness program.

How to Get Rid of Student Loans Debt Without Paying?

The only way you can get rid of student debt without paying is by using a student loan forgiveness program. Thankfully, there are lots of options available for these programs if you search.

How to Get Rid of Federal Student Loan Debt?

The federal government has many different options for student loan debt forgiveness. You should look into the options to see if one of the programs applies to you.

Getting Rid of Other Types of Debt

There are lots of other types of debt that you might want to get rid of. These section covers all of those types of debt.

How to Get Rid of Car Loan Debt?

Getting rid of car loan debt can be a tough challenge. The best option is to make extra payments on your debt so you can pay it off before you get too much interest. You can also include the car loan in a debt consolidation loan to get rid of it.

How to Get Rid of IRS Debt?

Debt with the IRS is hard to navigate. Unlike most other types of debt, tax debt is a federal legal issue. Your best option is to talk to a qualified tax attorney to understand what you can do.

How to Get Rid of Council Tax Debt?

Tax debt is much trickier to deal with than commercial debt. That’s because tax debt is a matter of law. You’ll want to talk to a lawyer to understand the options for your specific situation.

How to Get Rid of Personal Loan Debt?

Consolidation loans are the best way to get rid of personal loan debt. They allow you to group all of your personal loans into one loan. It will have a lower interest rate so you can pay it off quickly.

How to Get Rid of Charge Off Debt?

Charge off debt is debt that has been sent to a collection agency. These agencies are usually willing to do a debt settlement program.

How to Get Rid of Old Debt?

It depends on how old the debt is. There are different rules about how long someone can legally attempt to collect on debt. Contact a lawyer for more information about your specific debt.

How to Get Rid of Overdraft Debt?

The best way to get rid of overdraft debt is to talk to your bank. Most banks will be willing to get rid of overdraft charges for customers.

How to Get Rid of Your Renters Debt?

Debt settlement is the best option to get rid of renters debt. However, there are many laws that govern how landlords can collect from you. A rental attorney can help you understand your options.

How to Get Rid of Child Support Debt?

Child support debt is hard to get rid of. You can’t discharge it in bankruptcy and you can’t usually settle it. You’ll need to talk to a lawyer to understand the options for your situation.

How Can I Get Rid of Payday Loan Debt?

Payday loan debt has an incredibly high interest rate. A consolidation loan can help you get rid of that debt and let you pay it off much faster and cheaper.

How to Get Rid of Collection Agency Debts?

Collection agencies will almost always be willing to settle debt with you. Talk to the agency to discuss your options to get rid of your debt.

How to Get Rid of Different Debt Types Quickly

 

Getting Rid of Debt in Different Situations

There are also lots of different situations people find themselves in when they want to get rid of debt. This section covers those questions.

How to Get Rid of Debt With No Money?

It’s hard to get rid of debt with no money. You can try to petition for debt forgiveness or for a debt settlement. However, your best option might be bankruptcy.

How to Get Rid of Debt on Low Income?

Most companies will work with you if you’re having debt problems on a low income. They’ll reduce your interest rates or make a new payment schedule to help you make your payments.

How to Get Rid of Debt Without a Job?

The best way to get rid of debt without a job is by talking to your creditors. Most businesses will work out a new payment plan for you that allows you to keep your debt current.

How to Get Rid of Debt With Bad Credit?

There are a lot of consolidation loan companies that are willing you work with you if you have bad credit. It depends on the size of your debt and other factors like your income.

Does Filing Bankruptcy Get Rid of Tax Debt?

Sometimes. You’ll need to talk to a lawyer to get more information about your specific situation. Tax debt is far more complicated that most debt.

How to Get Rid of Debt Collectors Without Paying?

There’s no real way to get rid of debt collectors without paying. Your best option is to seek a debt settlement with the debt collectors.

How to Get Rid of Debt Without Ruining Credit?

A consolidation loan is the best way to get out of debt without ruining your credit. It can actually boost your credit if your debt is mostly on credit cards.

How to Get Rid of Debt on Your Own?

Getting rid of debt on your own can be tricky. Your best option is to use good budgeting and make extra payments when you can. You can also seek a consolidation loan to help lower your payments.

How to Get Rid of Debt Without Bankruptcy?

A consolidation loan can help you get rid of debt without going into bankruptcy. It will lower your monthly payments and lower the amount you’ll pay over the course of repayment.

How to Get Rid of Identity Theft Debt?

You’ll need to talk to a lawyer and/or credit repair specialist to help you get rid of debt that was incurred because of identity theft. You’ll need documentation to prove your identity was stolen.

How to Get Rid of Bad Debt on Credit Report?

Credit repair experts and lawyers are the best places to look for help getting rid of bad debt from your credit report.

Is it Better to Get Rid of Debt or Invest?

That depends on your specific situation. You should talk to a financial planner or financial advisor to help you understand the benefits of different approaches.

How to Get Rid of Debt to Buy a House?

A consolidation loan is the best way to get rid of debt to buy a house. You can pay your debt off faster while boosting your credit score to get a better rate on your mortgage.

Getting Rid of Debt in a Timeframe

Lots of folks want to know how to get out of debt fast. This section answers their questions.

How to Get Rid of Debt Fast

The fastest way to get out of debt is to seek a debt settlement. It will allow you to be debt free before a debt forgiveness program or debt consolidation loan can be paid off.

How to Get Rid of Credit Card Debt Fast

A debt consolidation loan is the best way to get rid of credit card debt fast. You can pay all your credit card debt instantly and consolidate it in a loan with lower interest rates.

How to Get Rid of Debt in 6 Months

Careful budgeting and a combination of debt elimination strategies can help you get rid of your debt in 6 months. There are non-profit financial advisors that can help you budget to achieve your goals.

How to Get Rid of Debt in a Year

It depends on your debts. You should talk to a debt management or debt relief organization in order to set a budget to get debt free in a year.

Elizabeth Johnson


Elizabeth is an expert on Debt Consolidation as she provides helpful advice to people who are dealing with debt problems. She graduated college with a BS in Finance. After college, she took a job working at a non-profit debt counseling program. It was at this position where Elizabeth honed her expertise for helping people understand how different financial products work and finding ways to help people pay off their debts.

 

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