Is credit counseling a good option for $15,000 in credit card debt?

If you’ve racked up a substantial amount of credit card debt — let’s say $15,000 or more, or about twice the national average — you may be struggling to keep up with your payments in today’s high-rate environment. At an average rate of 23%, credit cards are some of the most convenient — but also some of the most budget-busting — borrowing tools you can use. That high rate isn’t the only factor that plays a role in the high costs, either. The way that interest compounds on credit card debt is also a major driver in how quickly your card balance can grow. 

When you’re facing this level of credit card debt, it makes sense to explore all possible solutions to the issue. And, while there are lots of debt relief strategies to consider, credit counseling is one of the more commonly recommended options. When you choose this strategy, you get professional financial guidance from a credit counselor and the potential for debt relief via a debt management plan, which can help reduce your interest rates and fees, making it easier and more affordable to pay off what’s owed. But is credit counseling truly effective for someone with $15,000 in credit card debt, or are there better alternatives?

Chat with a debt relief expert about your options now.

Is credit counseling a good option for $15,000 in credit card debt?

Credit counseling can be a great tool for some people, but it’s not a solution that works for every situation. Generally, it’s most effective for cardholders who are committed to repaying their debt in full but need help managing payments, lowering their interest rates or fees and getting on a structured repayment plan. 

Here’s when credit counseling might make sense for someone with this amount of debt:

• You can afford the payments: Debt management plans require you to make a structured monthly payment. If you have steady income and can commit to a set amount each month, this type of plan might be helpful.
• Your interest rates are the biggest issue: Credit counseling agencies primarily work to negotiate lower interest rates with creditors rather than settling your debt for less. That makes this solution most appropriate for those who are concerned primarily about the interest on their debt.
• You want to avoid bankruptcy: If you’re determined to pay off your debt without legal proceedings, credit counseling offers a structured alternative to bankruptcy — one that can have much less of an impact on your credit.
• You need help with budgeting: Many credit counseling services include financial education, which can help you develop better spending and saving habits to prevent future debt problems.

However, this type of debt relief may not be ideal if:

• Your debt is too overwhelming: If you’re barely making ends meet, a debt management plan still requires payments that may be too high for your budget.
• You need immediate relief: Credit counseling doesn’t reduce the principal balance; it only helps manage repayment. If you need to lower your total debt amount quickly, there may be better options.
• You don’t want to close your credit cards: Most debt management plans require you to close the participating credit card accounts, which could impact your credit score and financial flexibility, at least temporarily.

See what debt relief options are available to you here.

What other options should you consider with $15,000 in credit card debt?

If credit counseling doesn’t seem like the best fit, there are several other options to explore:

• Debt consolidation – Taking out a loan to pay off multiple credit cards can simplify your payments and potentially lower your interest rate. This option works best if you have a good credit score and can qualify for a low-rate loan.
• Balance transfer credit card – If your credit is strong, transferring your balances to a 0% APR card can give you a temporary break from interest, making it easier to pay down your balance.
• Debt settlement – This involves negotiating with creditors to settle your debt for less than what you owe. While it can significantly reduce your total balance, debt settlement requires you to make or save up for lump-sum payments and may negatively impact your credit.
• Bankruptcy – While it should be a last resort, filing for bankruptcy can offer relief if your debt is completely unmanageable. Chapter 7 can discharge unsecured debts like credit cards, while Chapter 13 allows you to repay a portion through a court-approved plan.

The bottom line

Credit counseling can be a smart move for those struggling with $15,000 in credit card debt, but it’s not the right solution for everyone. If your main issue is high interest rates and unorganized payments, a debt management plan might help you regain control. However, if you need more significant debt reduction or financial relief, other options like debt consolidation, debt settlement or even bankruptcy might be worth considering.

To determine whether it’s the best option for you, it can help to carefully evaluate your financial situation, compare the strategies available to you and choose the path that aligns best with your goals. Whether you opt for credit counseling or another debt relief strategy, though, it’s important to take action now, before the issue compounds even further.