If you’re among the many Americans juggling a piece of the $1.08 trillion in U.S. credit card debt or part of the 8% who’ve fallen behind, finding a way out could change everything. It could mean being stuck in financial quicksand or grabbing a lifeline toward a fresh start.
This is where debt relief companies step in. They take on the challenge of negotiating with creditors for you, aiming to cut down the total you owe and shape a repayment plan.
These efforts could help you reclaim control over your finances and start piecing your life together. Debt relief services offer solutions like negotiating balances and interest rates or consolidating debt.
But it’s crucial to choose the right partner for this journey. Below, you’ll find our top recommendations for debt relief companies, chosen based on various factors.
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7 Best Debt Relief Companies
- Freedom Debt Relief – Best Overall for Debt Relief
- National Debt Relief – Best for Fee Transparency
- Pacific Debt Relief – Best for an Established Track Record
- Accredited Debt Relief – Best for Quick Resolution
- Money Management International – Best Nonprofit for Debt Relief Help
- CuraDebt – Best for Tax Debt Relief
- New Era Debt Solutions – Best for After-Hours Customer Service
Freedom Debt Relief – Best Overall for Debt Relief
Freedom Debt Relief is our top pick for the best overall debt relief service. With decades of experience, this company has resolved over $15 billion in debt for over 850,000 clients over the past 20 years.
It boasts an impressive A+ rating from the Better Business Bureau (BBB) and a 4.49-star customer satisfaction score. Notably, it has no complaints filed with the BBB and enjoys an excellent 4.6-star rating on Trustpilot, based on nearly 43,000 reviews, reflecting high customer satisfaction.
Freedom Debt Relief assists with unsecured debts like credit cards, personal loans, and medical bills. The company works to negotiate with creditors, aiming to reduce the total amount owed and help clients escape debt.
Typically, clients with at least $7,500 in debt can expect to resolve it within two to five years. The company charges a fee ranging from 15% to 25% of the enrolled debt, with no upfront costs. You only pay once a settlement has been reached and agreed upon.
Pros
- No initial fees required
- Over $15 billion in debt successfully settled
- Offers an interactive client dashboard to track settlement progress
Cons
- Not available in every state
- Potential negative impact on credit scores
- The settlement process may extend up to 48 months
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National Debt Relief – Best for Fee Transparency
National Debt Relief is a strong option for those looking to address private student loan debt, thanks to its extensive experience, high volume of resolved debts, and satisfied clients.
The company offers convenient late and weekend hours for onboarding new clients, though these extended hours are unavailable to current clients. Like other top choices, it charges no upfront fees and uses a performance-based pricing model, ensuring your financial success remains the top priority.
With over 75,000 five-star reviews, National Debt Relief ranks among the highest-rated debt relief companies. Their certified debt arbitrators, trained through the International Association of Professional Debt Arbitrators (IAPDA), negotiate directly with creditors to reduce your overall debt. They have successfully resolved over $1 billion in unsecured debts.
You won’t owe National Debt Relief anything unless they settle your debt and you approve the settlement. After your first settlement payment is made, the company will then collect its fee. Typically, clients can expect to pay between 15% and 25% of the total debt enrolled.
For instance, if you enroll $25,000 in credit card debt, you can anticipate paying between $3,750 and $6,250 in fees, which will be drawn from your Dedicated Account.
Pros
- Has settled over $1 billion in unsecured debt
- Fees are charged only after a successful settlement
- Holds an A+ rating from the Better Business Bureau
Cons
- Fees are considered high
- Services aren’t offered in all states
- Extended hours are limited to onboarding and not available for existing clients
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Pacific Debt Relief – Best for an Established Track Record
Ideal for those who value customer service, Pacific Debt Relief shines in this area. Among the 1,456 reviews on Trustpilot, 84% have 5-star ratings, with another 11% earning 4 stars.
Many reviewers highlight the company’s exceptional customer service, which we find particularly reassuring. Facing debt is incredibly stressful, and sometimes, having a supportive voice guiding you through the process can make all the difference, helping you feel less alone and more hopeful about finding a solution.
Pacific Debt Relief has also introduced new technology to improve communication between clients and their teams, making case management smoother. Their team members receive regular training on the best practices and negotiation strategies with creditors.
You won’t pay any fees upfront with Pacific Debt Relief. The fees you’ll eventually pay range from 15% to 25%, depending on where you live and how much debt you manage.
Pros
- No upfront fees required
- A+ rating from the Better Business Bureau
- Regular updates every few weeks from your account manager
Cons
- Services not available in all states
- Possible negative impact on credit score during the program
- A minimum of $10,000 in unsecured debt is required to qualify
Accredited Debt Relief – Best for Quick Resolution
Accredited Debt Relief is dedicated to helping clients achieve debt freedom within 24 to 48 months. The company offers free consultations to educate clients and operates on a performance-based fee structure.
You only pay if they successfully reduce your debt, ensuring you won’t waste money on a program that doesn’t deliver results.
When you choose to consolidate your debt with Accredited Debt Relief, they link you with affiliates offering loans with Annual Percentage Rates (APR) ranging from 4.9% to 35.99%. Besides the APR, there’s an origination fee between 1% and 6%. The overall fee, which is 25%, is tied to the success of the loan.
On average, clients with Accredited Debt Relief pay about 55% of their enrolled debt before applying fees. However, when you factor in these fees, the overall savings might not be as substantial.
Pros
- No upfront payment is required
- Over $1 billion in debt successfully settled
- A+ rating from the Better Business Bureau
Cons
- High fees
- Not available in every state
- Risk of lawsuits and collections by creditors
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Money Management International – Best Nonprofit for Debt Relief Help
MMI’s impressive track record, stellar consumer reviews, and solid reputation make it our top pick for debt relief services. MMI stands out as a full-service organization offering credit repair options when considering debt solutions, especially those that could negatively impact your credit score.
This makes it an attractive choice for those seeking comprehensive financial flexibility. What’s even better? MMI is a nonprofit, which means its primary focus is on your financial well-being, not profit-making.
They aim to help clients achieve long-term financial stability, setting them apart from many for-profit debt relief companies.
When you enroll in an MMI debt management plan, you’ll be responsible for a setup fee and a monthly fee, which vary based on the amount of debt and your location. On average, clients pay around $25 per month and $33 for the setup fee.
A standout feature of MMI is that it caps these costs. You’ll never pay more than $75 for setting up your debt management plan, and your monthly fees won’t exceed $59, regardless of how much debt you’re repaying or where you live.
Pros
- Nonprofit organization
- Services available 24/7
- Over $10 billion in debt was successfully repaid
- Average credit score increase of 85 points four years after enrollment
Cons
- Not all creditors may participate in the program
- Temporary decrease in credit score due to closing of credit accounts
- Physical locations aren’t available in every state, though phone support is 24/7
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CuraDebt – Best for Tax Debt Relief
CuraDebt offers tax debt relief, a service not commonly provided by most debt settlement companies. Their specialized tax team includes enrolled agents with IRS credentials, giving them a unique edge.
The company offers free initial consultations so clients can explore their options without any upfront costs. With over 20 years of experience, CuraDebt is a trusted option for those looking to manage and reduce their debt.
While CuraDebt’s customer support hours are somewhat limited (Monday to Friday, plus Saturday), they still offer decent accessibility, including a live online chat on their website. Customer reviews are positive, with a 3.3 out of 5 rating on Trustpilot and a 4.8 out of 5 on BBB.
The main attraction of CuraDebt is its debt settlement services. Like other debt settlement companies, they don’t charge any upfront fees. You’ll stop making payments on your debts and instead contribute monthly to a third-party account to build a settlement fund.
While these accounts often come with fees, CuraDebt doesn’t specify the cost. If CuraDebt successfully settles any of your debts, they’ll charge a settlement fee of 15% to 25% of the original amount of those debts.
Pros
- Provides live chat support
- Accredited by the AFCC and IAPDA
- Capable of handling various types of debt
Cons
- The website is confusing and outdated
- Services are limited to 26 states and Washington, D.C.
- Settlement fees are calculated based on the initial debt amount, not the settled amount
New Era Debt Solutions – Best for After-Hours Customer Service
New Era Debt Solutions operates on a performance-based fee model, meaning you only pay fees after a successful settlement. There are no monthly administrative fees, and you won’t be charged for delivered services.
New clients can speak with a debt specialist Monday through Saturday until 8 p.m. PT or by appointment. This company is ideal for those seeking a straightforward and effective route out of debt.
New Era Debt Solutions is refreshingly transparent about the process, offering honest details that other debt relief companies might avoid. They even have a dedicated page outlining average settlement amounts, reasons why some clients left the program before completion, and the typical time frame for completing the program.
This level of transparency helps potential clients make informed choices, fostering trust and credibility. With a team of debt specialists ready to help settle, New Era can customize strategies to fit each individual’s financial situation.
Additionally, they collaborate with Consumer First Legal Network, expanding their reach and providing legal insights when necessary.
Pros
- Offers personalized debt relief programs
- No upfront fees are required for services
- A+ rating from the Better Business Bureau
Cons
- Not available in all states
- Likely to cause a decline in credit score
- Lack of transparency in rate structure
Best Debt Relief Companies – Buyer’s Guide
What to Know About Debt Relief Companies
The first thing to understand about debt relief companies is that not all types of debt are negotiable. Debts backed by the federal government or secured by collateral, such as federal student loans, mortgages, and auto loans, are ineligible for relief.
Some private student loans might qualify, depending on the company and your situation. Most debt relief companies require that you’re experiencing a financial hardship, like a divorce or job loss, before they’ll take you on as a client.
While debt relief can help you become debt-free, be prepared for your credit score to take a hit in the short term. To negotiate with creditors, the payments you’d normally make toward your debt will be redirected into an FDIC-insured trust account to build up funds.
This leads to missed payments and continued collection calls since creditors have little incentive to negotiate if you’re still paying on time. It’s also worth noting that you don’t necessarily need a debt relief company to negotiate with creditors.
There are many online resources available if you prefer a DIY approach. However, hiring an expert can save you time, money, and stress if you're unsure about your negotiation skills, ensuring you don’t agree to unfavorable terms or overlook legal details.
How to Choose a Debt Relief Company
Selecting a debt relief company requires careful consideration, as you don’t want to find yourself in a worse situation than before. Here are some key questions to ask when evaluating potential debt relief companies:
- Do any industry organizations accredit the company?
- Does it provide its success rate? What about its failure rate?
- What are the fees involved?
- How long does the program typically last?
- How will you be informed about the progress of your settlements?
- Does the company have an in-house legal team or rely on external legal support?
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Watch Out for Debt Relief Scammers
The harsh reality of the debt relief and credit repair industries is that scammers are eager to take advantage of vulnerable individuals. These fraudsters target people desperate to escape overwhelming debt by offering unrealistic promises.
Be cautious of any company that demands upfront payment (the FTC prohibits this), guarantees that your credit score won’t drop (it will if you settle), or claims they can settle your debts for mere pennies on the dollar (they can’t). Some scammers even use robocalls to target those in debt actively.
To protect yourself, ensure the agency you’re dealing with is accredited and has a proven track record of success. Conduct your own research on sites like Trustpilot and the BBB. Look up the company’s name and website for negative customer reviews or lawsuits.
Remember, a legitimate debt relief company will never charge fees upfront or guarantee they can stop all debt collectors from contacting you. If something sounds too good to be true, it likely is.
Best Debt Relief Companies – FAQs
Will My Credit Score Improve by Using a Debt Relief Company?
In the short term, your credit score will probably take a hit. Since you won’t be making payments on your debt, credit bureaus will record these as missed payments. Instead, the funds you’d normally use for payments will be placed into an FDIC-insured trust account to build up until there’s enough to settle.
Once a settlement is reached, the debt relief company will use the money from the trust account to pay off that debt. However, in the long run, as those missed payments fade from your report and your debt decreases, your credit score is likely to improve.
Do Debt Relief Companies Charge Upfront Fees?
No, it’s against FTC regulations for them to charge you before settling your debt. Instead, these companies charge a fee based on the amount they’ve successfully settled for you. Typically, this fee ranges from 15% to 25% of the settled amount, charged after an agreement is finalized.
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Can Debt Relief Companies Stop Collection Calls?
No, you’ll likely continue receiving collection calls even while working with a debt relief company. Since you’ll be missing payments, creditors are legally allowed to keep attempting to collect the debt you owe.
How Does Debt Relief Work?
Debt relief can take various forms to reduce or eliminate your debt. Typically, debt relief companies negotiate with your creditors to lower your overall balance, then work with you to create a more manageable payment plan, often at a lower interest rate.
Conclusion – Best Debt Relief Companies
It's important to research any financial company, including debt relief firms, before committing to work with them. The Consumer Financial Protection Bureau (CFPB) recommends contacting your state attorney's office and local consumer protection agency to see if there are any complaints against the company you’re considering.
If the debt relief company has a solid track record and you feel confident in their services, they could assist you in tackling your financial challenges, negotiating lower debt balances, and easing your debt burden.
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