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When you're struggling with credit card debt, it's natural to want a fast solution. Debt relief companies often promise to eliminate your debt for less than you owe—and while that might sound appealing, the reality can be far more damaging than many people realize.

At Envista, we believe in helping our members make informed financial decisions. That’s why we want to break down how debt relief programs really work—and why there may be better options available that protect your credit and your financial future.

How Debt Relief Programs Work

Debt relief or debt settlement programs typically involve signing an agreement with a third-party company that promises to reduce the amount you owe to your creditors—usually credit card companies. Here’s what typically happens:

1. You stop paying your credit card bills.
   The debt relief company will tell you to stop making payments so your accounts go into default. After about six months (roughly 180 days), your creditors may charge off the account—marking it as a loss in their records.

2. Your accounts go into charge-off status.
   Once your accounts are charged off, the debt relief company begins negotiating settlements with your creditors. This often means paying less than the full amount owed, but only once a lump sum is available.

3. You make monthly payments—into their account.
   Instead of paying your creditors, you’ll make monthly payments into a dedicated account managed by the debt relief company. When there’s enough money saved to cover a negotiated settlement, they’ll pay the creditor—but they’ll also take a fee of about 25% of the settlement amount.

4. You keep making payments for months—or years.
   Until all of your accounts are settled one by one, your credit cards remain in charge-off status. This can cause severe and lasting damage to your credit score.

5. The credit impact lasts for years.
   Even after a debt is settled, your credit report will show “settled for less than the full balance,” which remains for seven years. Charge-offs from missed payments also stay on your credit report for seven years from the date of the first missed payment.

The Hidden Costs

What many borrowers don’t realize is that debt relief programs are not free—far from it. A 25% fee on each settled debt is essentially like paying a 25% interest rate, often without the protections or benefits that come with traditional financing. You’re also paying while your credit score drops and your financial reputation takes a hit.

In our experience at Envista, most people who have used these programs didn’t fully understand the consequences until it was too late. And in many cases, we’ve been able to offer smarter, safer solutions that help members pay down their debt faster—without wrecking their credit or paying unnecessary fees.

There Are Better Options

If you're overwhelmed by credit card debt, you’re not alone—and you’re not out of options. At Envista, we’re here to help you explore solutions that actually improve your financial well-being. From debt consolidation loans and home equity options, to personalized budgeting tools and financial counseling, our team can help you create a plan that works for you, not against you.

Let's Talk Before You Sign

Before you sign with a debt relief company, talk to us. We’ll walk you through your options, help you understand the true impact on your credit, and work with you to build a path forward that gives you control—not more stress.

Start a Free Debt Check-In