Should you ever pay for help with your credit card debt?

Paying for professional debt help is a common route borrowers take, but the cost won't be worth it in every situation. William_Potter/Getty Images

Americans are carrying more credit card debt than ever before, with the total credit card debt nationwide sitting at a record-high of $1.21 trillion and the average cardholder owing over $7,000 across their card balances. With credit card interest rates hovering above 21% on average, though, and minimum payments that barely touch the principal, it's easy to end up in what feels like an endless cycle of payments. If you're only making minimum payments on the average card balance at today's rates, you could end up with thousands of dollars in interest charges and decades of monthly payment obligations.

When you're staring at those mounting balances and sky-high interest rates, and the increasing timeline for paying off what's owed, the idea of pursuing debt relief with the help of an expert can start to look a lot more appealing. From debt relief companies to credit counseling services, there's no shortage of debt-related businesses promising to help you escape this type of debt trap. But there's a question you may want to ask yourself before making any moves: When does it actually make financial sense to pay someone else to help you tackle your credit card debt?

Find out what debt relief options are available to you here.

Should you ever pay for help with your credit card debt?

While it varies based on a wide range of factors, the short answer here is yes, there are situations in which paying for professional debt help can be a smart financial move — one that saves you money in the long run. These services can provide valuable expertise, negotiation power and structured solutions that you might not be able to achieve on your own. Here's when it could make sense to pay for help from one of these companies:

When you're drowning in high-rate debt across multiple cards

If you're juggling payments across several credit cards with different due dates, minimum payments and interest rates, getting help from a professional could make sense. For example, the debt management plans offered by credit counseling agencies can consolidate your payments into one monthly amount, often with reduced interest rates and fees that are negotiated directly with your creditors. These services can help simplify the repayment process (and make it more affordable in the process), but they aren't free. A credit counseling agency will typically charge a modest monthly fee to those enrolled in debt management, but the interest rate reductions you get in return could save you a lot more than you pay over the life of your debt.

Learn more about how working with a debt relief expert could benefit you now.

When you need professional negotiation leverage

Credit card companies are more likely to negotiate payment terms, interest rate reductions or even debt settlements when dealing with established debt relief professionals rather than individual borrowers. So, if you're not sure about handling the negotiations on your own, it could make sense to use a debt relief expert to handle the process instead. Or, if you're already behind on payments and facing increasingly serious consequences because of it, the negotiation expertise might be worth the fees.

Debt relief companies, for example, can often negotiate better settlements than you could with a DIY approach, as they have established relationships with many creditors and debt collectors and know how to approach the process. Their fees are typically a percentage of your enrolled debt, and the savings you get by having a portion of your debt forgiven could outweigh the costs incurred to employ them.

When you need accountability and structure

Some borrowers also need the external structure and accountability that comes with a formal debt management or debt relief program. If you've tried multiple times to pay down your debt on your own but keep falling back into old spending habits, a structured program with regular check-ins and a clear payment schedule might be worth the cost. After all, the psychological benefits of having a clear roadmap and professional guidance can be invaluable for certain personality types.

When bankruptcy is the alternative

If your debt-to-income (DTI) ratio is so high that bankruptcy seems like the only option, debt settlement or debt management services might be worth trying first. While these services come with fees and can impact your credit score, the long-term consequences of either option are generally less severe than what you'd face if filing for bankruptcy. A legitimate debt relief company might be able to lower your debt by 30% to 50% or more in return for a lump-sum payment, so you could come out ahead compared to the full bankruptcy process, even after the fees.

The bottom line

Paying for debt relief can be a smart financial decision, but only in specific circumstances and only when using legitimate, transparent companies. If you're overwhelmed by multiple high-rate debts, have tried managing things on your own without success or are facing bankruptcy, professional help might save you money, even when accounting for the fees. The key to making a decision is doing your homework. Avoid any company that makes unrealistic promises, charges large upfront fees or pressures you to sign up immediately. And, make sure you're pursuing a path that aligns with both your financial reality and long-term goals.