We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. If you’re overwhelmed by debt, debt settlement is one option that may reduce the amount of money you owe. The best debt relief companies don’t charge upfront fees, but enrolling in a debt relief or debt settlement program comes with other risks, including severe damage to your credit. A debt management plan offered by a nonprofit credit counseling agency is the safer choice. But if you’ve exhausted all your options and have decided to pursue debt settlement, it’s important to know which debt relief companies are legitimate and offer the best service. To help you narrow down your options, we evaluated debt relief companies based on fees, time in business, customer reviews, customer service options, and other factors. Best Debt Relief Companies Best Debt Relief Companies Final Verdict Compare Providers How To Choose Debt Settlement vs. Credit Counseling Alternatives to Debt Settlement Frequently Asked Questions (FAQs) Methodology Why We Chose It National Debt Relief has many satisfied customers and offers an array of online resources to help consumers understand the debt relief options available to them. Pros & Cons Pros Excellent customer reviews Member of the American Association for Debt Relief Cons Does not disclose account management fees Must be experiencing financial hardship to qualify Company Overview National Debt Relief has helped more than 600,000 customers since 2009. The company is accredited by the Better Business Bureau and has an average customer rating of 4.7 out of 5 stars on Trustpilot, with more than 37,000 reviews. What’s more, the company is a member of the American Association for Debt Relief, which holds its members to high standards. You need to have at least $7,500 in debt and be experiencing financial hardship to qualify. The company works with most types of unsecured debt, and the program can be completed in as few as 24 to 48 months. You’ll need to keep your money in a dedicated account with Global Holdings LLC during the debt settlement process, and National Debt Relief doesn’t disclose whether there are account maintenance fees. The company charges a fee of 15% to 25% of your enrolled debt, which you’ll only pay after the company settles your debt. Your funds during settlement with National Debt Relief will be held by Global Holdings LLC, a company that the Consumer Financial Protection Bureau (CFPB) took action against for helping debt settlement companies charge millions in illegal fees. Why We Chose It Freedom Debt Relief offers flexible payments and extended customer service hours. The company has decades of debt relief experience and guarantees the settlement cost with fees will not exceed what you owe. Pros & Cons Pros Excellent customer reviews Website discloses account maintenance fees Founding member of the American Association for Debt Relief 21 years in business Cons Must have experienced hardship to qualify Regulatory action taken against the company Company Overview Founded in 2002, Freedom Debt Relief has helped more than 850,000 people settle their debts. It is a founding member of the American Association for Debt Relief. The company uses proprietary technology to develop a debt settlement strategy for each customer and allows for flexible payments along the way. What’s more, Freedom Debt Relief will refund the difference if your debt settlement cost exceeds the total debt you enrolled. Freedom Debt Relief charges between 15% and 25% of your enrolled debt and only collects once a settlement is authorized. You’ll also pay a $9.95 account setup fee and a monthly fee of $9.95 to maintain your dedicated account. The company offers a convenient client dashboard and extended customer service hours, including weekends. And more than 39,000 customers rated the company an average of 4.6 out of 5 stars on Trustpilot. The CFPB settled a lawsuit in 2019 with Freedom Debt Relief regarding illegal upfront fees and other violations. The company paid $20 million in restitution to customers. Additionally, the New York Attorney General settled with the company in 2011 for misleading advertisem*nts and again in 2020 for failing to comply with the 2011 agreement. Why We Chose It Accredited Debt Relief helps some clients become debt-free in as little as 12 months, a shorter timeline than most companies promise, although the company doesn’t guarantee you’ll finish the program that quickly. Pros & Cons Pros Program length as short as 12 months Also offers debt consolidation Excellent customer reviews Extended customer service hours Cons Fewer years in business than competitors Misleading claims flagged by the BBB Confusing and opaque website lacks resources Company Overview Accredited Debt Relief, a division of Beyond Finance LLC, has enrolled more than 300,000 clients in its 12-year history. The company is a member of the American Association for Debt Relief and has a Trustpilot score of 4.9 out of 5 stars from more than 5,000 customers, one of the highest in the industry. In addition to debt settlement, Accredited Debt Relief also offers debt consolidation loans. But the website offers few resources to help consumers understand their debt relief options. Once a settlement is authorized, Accredited Debt Relief charges between 15% and 25% of your enrolled debt amount. The company does not disclose whether there are fees associated with the dedicated account. You’re required to have at least $10,000 in debt to qualify for the program. Accredited Debt Relief boasts a shorter minimum program length than many other companies, but the time it will take to settle your debts depends on your financial situation. The National Advertising Division of the Better Business Bureau recommended that Accredited Debt Relief stop using several misleading advertising claims in 2022. Why We Chose It CuraDebt is the only company we reviewed that offers tax debt relief for both state and federal taxes and has 23 years of experience applying a comprehensive approach to tax relief. Pros & Cons Pros Works with federal and state tax debt Member of the AADR 23 years in business Cons Doesn’t disclose program fees Not available in some states Company Overview Since 2000, CuraDebt has been working with individuals and small businesses to offer state and federal tax relief and business debt settlement in addition to traditional debt settlement. The company’s tax team has experience working for taxing authorities. The company is also a member of the American Association for Debt Relief. While CuraDebt doesn’t disclose its program fees online, the company guarantees that it will beat competitors’ fees. Upon completion of the program, customers also get free credit restoration from a top company. CuraDebt has only a few mixed reviews on Trustpilot. CuraDebt is not BBB-accredited but has strong reviews there. The company offers few online educational resources for consumers, but you can view examples of real debt settlement letters online. Why We Chose It New Era Debt Solutions offers the lowest fees of the companies we reviewed. The company also brings years of experience and is relatively transparent about its results. Pros & Cons Pros Low fees capped at 23% of enrolled debt 24 years in business On-staff attorneys to help with negotiation Cons Not an AADR member Does not disclose dedicated account fees Customer service during business hours only Company Overview New Era Debt Solutions has been in business since 1999, making it the oldest of the companies we reviewed, and has settled more than $250 million in debt. The company has excellent reviews on Trustpilot, with an average rating of 4.9 out of 5 stars, but has a relatively small number of reviews. New Era Debt Solutions is relatively transparent about its results—only 1.15% of clients drop out due to dissatisfaction, and the program has an average completion time of just 27.73 months. The company settles debts at an average of 47.77% of the enrolled balance, after the growth of fees charged by creditors, but before program fees. The company has lawyers on staff to help with negotiation. The company does not disclose fees for maintaining a dedicated account, however. Furthermore, New Era Debt Solutions is not a member of the American Association for Debt Relief. Customer service hours are also limited—existing clients can’t reach the company on evenings or weekends. Why We Chose It Pacific Debt Relief offers flexible monthly payment plans designed to fit your budget and is well-reviewed by customers. Pros & Cons Pros Flexible monthly payments Excellent customer reviews Cons Limited customer service hours Only available in 32 states Company Overview Since 2002, Pacific Debt Relief has settled more than $300 million in debt for customers. The company has an average rating of 4.8 out of 5 stars on Trustpilot out of more than 1,200 reviews. Pacific Debt Relief offers flexible monthly payment plans, but does not disclose account maintenance fees. Its settlement fees range from 15% to 25% of the enrolled debt amount. Debt arbitrators at Pacific Debt Relief receive training from the International Association of Professional Debt Arbitrators. Plus, every customer is appointed a personal account manager. However, Pacific Debt Relief is not a current member of the American Association for Debt Relief. And the company website offers limited educational resources for consumers. Why We Chose It GreenPath offers free debt counseling and low-cost debt management plans, with evening and Saturday counseling hours and plenty of online resources, including courses, webinars, and calculators. GreenPath is not a debt relief company, but rather a nonprofit credit counseling agency. Pros & Cons Pros Currently 18 branches for in-person counseling Plenty of online educational resources Phone support in the evenings Offers housing services, debt management, and more More than 60 years of experience Cons No phone hours on Sundays Company Overview GreenPath is a nonprofit credit counseling agency, approved by the U.S. Department of Justice, with more than 60 years of experience providing services like debt counseling, debt management, student loan counseling, home-buyer counseling, foreclosure prevention and support, and more. In 2022 alone, the company helped prevent foreclosure for more than 18,000 households and helped consumers repay more than $185 million in debt. GreenPath offers a vast array of online resources, courses, and calculators that consumers can use free of charge, in addition to free debt counseling services. A GreenPath debt management plan won’t reduce what you owe, but it will stop collection calls and save you money on interest and fees. For example, GreenPath estimates that a customer with $10,000 in debt could save $4,408 and get out of debt 67 months sooner by enrolling in a debt management plan. This is just an illustrative example, and your individual results may vary. Program fees for a debt management plan range from $0 to $75 monthly, plus a $0 to $50 setup fee. Unlike debt settlement, a debt management plan with GreenPath won’t destroy your credit, though it may cause an initial score dip due to closed accounts. For most people, a debt relief company won’t be the best option for getting out of debt. But if you understand the risks and have decided debt settlement is the path you want to take, some companies are better than others. All of the companies on our list currently abide by the law and are not scams. National Debt Relief and Freedom Debt Relief are both members of the AADR and have sufficient experience with debt arbitration and strong customer reviews. Accredited Debt Relief may provide a shorter program, but there are no guarantees. If you have tax debt, you’ll want to choose CuraDebt, and if your income fluctuates, Pacific Debt Relief and Freedom Debt Relief each offer flexible payments. If you’re aiming for the lowest fees, New Era Debt Solutions is your best bet when it comes to debt settlement companies. However, the vast majority of people will be better served by GreenPath or another credit counseling agency. Debt settlement is the process by which a debt relief company attempts to negotiate with your creditors to charge off your debt for less than you owe. Before a debt arbitrator reaches out to your creditors, you’ll be asked to put money into a dedicated bank account every month to save for your settlement amount. You may be charged account maintenance fees. You’ll also be asked to stop paying your credit card bills, which can result in collection calls or even lawsuits against you. By the time the debt relief company settles your debt, which typically takes one to four years, your credit score will have taken a beating. The debt relief company will also charge you a percentage of your enrolled debt once a settlement agreement has been reached, which is typically between 14% and 25%. The debt relief company may not be able to settle all your debts. For debts that aren’t settled, late fees and penalties can add up, canceling out some of the savings on your settled debts. It’s possible to end up in deeper debt than before you started working with the debt relief company. It’s illegal for a debt relief company to charge you upfront fees, and they must allow you to cancel for any reason without penalty. Debt relief companies also can’t promise to eliminate your debt or misrepresent their services in other ways. If the company you’re considering engages in any illegal practices, it may be a scam operation. Read more on the dangers of debt settlement, and learn where to find a legitimate debt relief program. Unlike debt relief companies, nonprofit credit counseling companies will not ask you to stop paying your credit card bills, and they won’t negotiate a reduction of what you owe. But if you enroll in a debt management plan, the credit counseling company will work with your creditors to reduce your interest rates and remove fees, which can save you thousands. They’ll also help you budget for a single monthly payment, which they’ll distribute to your creditors on your behalf. Rather than charging a percentage of your debt, credit counseling companies charge monthly fees for the duration of the debt management program. Aside from debt management plans, credit counseling companies also typically offer a number of free services to help you manage your money. Debt settlement is a process debt relief companies use to negotiate paying less than you owe to clear your debts. During the process, you’ll stop paying your credit card bills and put money in a dedicated account instead. This will damage your credit. Because debt relief companies ask you to stop paying your bills, the missed payments and increasing debt balances have a negative impact on your credit. You can expect a significant score drop by the time you complete a debt relief program. The companies on our list are all legitimate debt relief companies. If you’re considering another company, look for red flags, like upfront fees or too-good-to-be-true guarantees. Research the company’s background and check customer reviews as well. You can also check to see if the company is a member of the American Association for Debt Relief. According to our research, debt relief companies charge performance-based fees ranging from 14% to 25% of your total enrolled debt. No. If a company advertises a new government program to help you get out of debt, it’s likely a scam operation. We looked at nearly two dozen debt relief companies for this review. The companies at the top of our list are accredited by the AFCC and IAPDA or the NFCC, offer transparent pricing and qualifications, and provide free financial education resources. Plus, they’re stable businesses with a long history of operations. We gave companies a score of zero to one in four main categories: You can read ourfull methodologyfor a complete description of how we reviewed each company. Article Sources Trustpilot. “National Debt Relief.” American Association for Debt Relief. “Code of Conduct.” Consumer Financial Protection Bureau. “CFPB Takes Action Against Global Client Solutions for Processing Illegal Debt-Settlement Fees.” Trustpilot. “Freedom Debt Relief.” Consumer Financial Protection Bureau. “Consumer Financial Protection Bureau Settles Lawsuit Against Freedom Debt Relief.” Office of the New York State Attorney General. “Attorney General James Secures $3.6 Million for New Yorkers From One of the Nation’s Largest Debt Settlement Companies.” Trustpilot. “Accredited Debt Relief.” Better Business Bureau. “National Advertising Division Recommends Accredited Debt Relief Discontinue Quantified Performance Claims About Debt Relief and the Format of Its Website.” Trustpilot. “CuraDebt.” Better Business Bureau. “CuraDebt.” Trustpilot. “New Era Debt Solutions.” Trustpilot. “Pacific Debt Relief.” GreenPath.”2022 Annual Report.” Consumer Financial Protection Bureau. “What Is a Debt Relief Program and How Do I Know If I Should Use One?" Federal Trade Commission. “Debt Relief Services & the Telemarketing Sales Rule: A Guide for Business." Consumer Financial Protection Bureau. “What's the Difference Between a Credit Counselor and a Debt Settlement or Debt Relief Company?" American Association for Debt Relief. “Financial Outcomes for Debt Settlement Programs: Estimates for 2011–2020.” myFICO. “What's in my FICO Scores?” Consumer Financial Protection Bureau. "What Do I Need To Know About Consolidating My Credit Card Debt?" Federal Trade Commission. “Signs of a Debt Relief Scam.”Best Debt Relief Companies of 2024
Best Overall : National Debt Relief
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Runner-Up, Best Overall : Freedom Debt Relief
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Best for Short Program Length : Accredited Debt Relief
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Best for State and Federal Tax Debt : CuraDebt
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Best for Low Cost : New Era Debt Relief
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Best for Budget-Aware Payments : Pacific Debt Relief
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Best for Credit Counseling : GreenPath
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Final Verdict
Compare the Best Debt Relief Companies
Company Debt Management Plans Debt Settlement Fees National Debt Relief No Yes 15% to 25% Freedom Debt Relief No Yes 15% to 25% Accredited Debt Relief No Yes 15% to 25% CuraDebt No Yes Undisclosed New Era Debt Solutions No Yes 14% to 23% Pacific Debt Relief No Yes 15% to 25% GreenPath Yes No $0 to $75 monthly plus $0 to $50 setup How Debt Settlement Works
Debt Settlement vs. Credit Counseling
Pros & Cons of Debt Settlement
Pros
Cons
Alternatives to Debt Settlement
Frequently Asked Questions
What is debt settlement?
Does debt relief ruin your credit?
How do you know if a debt relief company is legit?
How much do debt relief companies charge?
Is there really a government debt relief program?
Methodology
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FAQs
Do debt relief companies actually help? ›
These companies can help you manage certain types of debt, but they won't be the right solution for everyone. Debt relief companies can't help with secured loans, which usually include mortgages and auto loans.
Which is better, freedom debt relief or national debt relief? ›National Debt Relief is a Better Business Bureau (BBB) accredited business with an A+ rating. Its average customer satisfaction rating is 4.73 out of 5. Freedom Debt Relief is also a BBB-accredited business with an A+ rating. Its average customer satisfaction rating is 4.56 out of 5 (both as of Mar.
Who is better, national debt relief or accredited? ›Accredited Debt Relief has a higher debt minimum than National Debt Relief, $10,000 compared to $7,500, so it's only a contender if you have at least that much debt. It's not available in every state. And it tends to charge a higher fee than NDR, usually 25% of the settled debt.
What is the national debt relief program? ›Founded in 2008, National Debt Relief is a debt settlement company that negotiates the reduction of unsecured debt.
Is there a legitimate debt consolidation company? ›The best debt consolidation company overall is LightStream because it offers debt consolidation loans of up to $100,000 with an APR range of 5.95% to 20.24%. LightStream does not charge an origination fee, and it offers the possibility of getting the loan funded the same day you apply.
How do I find a legitimate debt consolidation company? ›Reputable debt consolidation companies should belong to a national trade association that sets service standards for its member businesses. Accreditation by the Better Business Bureau (BBB) is another good way to identify reputable debt consolidation companies. The BBB also rates companies on an A to F scale.
Who is the best person to talk to about debt consolidation? ›A good credit counselor will spend time reviewing your specific financial situation and then offer customized advice to help you manage your money.
Why is debt relief bad? ›Creditors are not legally required to settle for less than you owe. Stopping payments on your bills (as most debt relief companies suggest) will damage your credit score. Debt settlement companies can charge fees. If over $600 is settled, the IRS will view this debt as a taxable income.
Is it worth doing a debt relief program? ›Debt relief will also often give you a fixed payment plan and a set payoff date, which can also make it worth considering — as streamlining your payments can make it easier to manage while helping you save money on interest. "One of the biggest advantages of going through a debt relief program is the savings.
What does jg wentworth Debt Relief do? ›Our Debt Resolution Program negotiates with the institutions you owe, aiming to substantially lower the total debt you owe. Our customers save an average of 51% of their enrolled debt (before our 25% program fee) and pay it off in as few as 24-48 months.
Does debt relief hurt your credit? ›
Debt relief services may have a negative impact on your credit score, but that impact may not be as big as you think — and in some cases, it can help your credit. How these services impact your credit depends on the debt relief option you choose.
Does debt consolidation hurt your credit? ›Consolidating your debt can lower your monthly payments, but it can also cause a temporary dip in your credit score.
What debt relief does not affect your credit score? ›These methods won't crush your credit score: Consolidation loans from a bank, credit union, or online debt consolidation lender. Balance transfer(s) to a new low- or zero-rate credit card. Borrowing from a qualified retirement account, such as an IRA or 401(k).