Debt relief involves reducing your balances, or negotiating a lower interest rate or a lengthier repayment term. Debt consolidation and debt settlement are two common types of debt relief. Consolidating debt involves replacing high-interest debt with a lower-interest loan, while debt settlement involves working with a debt settlement company to negotiate your balances. For those in dire financial straits, bankruptcy is another option. Keep in mind that bankruptcy can have a severe, harmful impact on your credit. Learn more about how debt relief works.