Best Debt Relief Companies

Ready to escape the debt trap? Explore the best debt relief companies that can help you slash your debt and reclaim your financial future.

Debts can become difficult to pay off. What's worse, interest, penalties, and fees make them more expensive over time.

You may pay twice the original amount you borrowed if you can only afford the minimum every month.

Fortunately, your case isn't hopeless.

Read this guide to find the best companies that offer debt relief. Some can negotiate with creditors to reduce your debt by as much as half of the original amount.

8 Best Debt Relief Companies

Each company supports different types of unsecured debts and has a minimum debt requirement.

Here's a company that supports the most number of debt types.

National Debt Relief: Best Overall

Minimum debt to apply: $7,500^[1]
Fees: 15–25% of total enrolled debts^[2]

National Debt Relief is one of the largest debt relief companies. It started in 2009 and offers debt settlement, helping over 550,000 clients resolve unsecured debts.

You can save as much as 46% of your debt (not including fees) and become debt-free in 24–48 months.^[3]

What's more, National Debt Relief has a wide network of partners for other debt relief services. You can qualify and get referrals for debt consolidation loans, credit counseling agencies, and bankruptcy services.

Qualified debts:

• Major credit cards
  
• Retail cards
  
• Gas cards
  
• Bank loans from prior banks
  
• Installment loans
  
• Finance companies
  
• Unsecured personal loans
  
• Repossessions
  
• Selected business debts
  
• Bank, overdraft, and associated fees
  
• Cellphone bills (not current)
  
• Credit unions (members are not federal or military employees)
  
• Veterinarian bills over $500
  
• Judgments past 6 months (requires documentation)
  
• Back rent (not current resident)

Pros + Cons:

Imagine Living Life Without Debt

Click Here to Apply for Debt Relief

• Get a free savings estimate today
• See how quickly you can be debt free
• No upfront fees and no obligation

Although National Debt Relief can help you with debt consolidation, this next option may be better at it.

Accredited Debt Relief: Debt Consolidation

Minimum debt to apply: $10,000
Fees: Usually 25% of total enrolled debts^[5]

Accredited Debt Relief has helped over 300,000 clients. On average, clients save 55% of their debts (not including fees). It has resolved over $1 billion worth of unsecured debts since 2011.^[6]

If you enroll in Accredited Debt Relief's debt settlement program, specialists negotiate with your creditors. You can be debt-free in 24–48 months.

On top of that, Accredited Debt Relief can qualify you for debt consolidation loans offered by its affiliates, ranging from $1,000–$100,000. This way, you can consolidate your debts, settle them at once, and focus on a loan with lower interest and fees.

Qualified debts:

• Credit card debt
  
• Personal loans
  
• Department store credit card
  
• Medical debt

Pros + Cons:

Say, you're worried about creditors taking action against you. This next debt relief company can help you out.

Freedom Debt Relief: Free Legal Services

Minimum debt to apply: $7,500^[8]
Fees: 15–25% of total enrolled debts^[9]

Freedom Debt Relief offers debt settlement and has been in the industry since 2002. It has helped over 1 million clients settle debts for a lower amount and has resolved over $18 billion in debts.

On average, Freedom Debt Relief settles around 45,000 accounts monthly. The company has a team of over 500 consultants and 200 certified debt specialists for debt negotiations.^[10]

Additionally, Freedom Debt Relief partners with the Legal Partner Network. You can get legal services from partner attorneys without paying extra professional fees. In case any of your creditors sue you for unpaid debt, these attorneys can assist you.

Qualified debts:

• Credit cards
  
• Medical bills
  
• Department store cards
  
• Unsecured personal loans
  
• Selected private student loans

Pros + Cons:

Is the time to pay off your debts your main consideration? Americor boasts the fastest settlement period.

Americor: Fastest Settlements

Minimum debt to apply: $7,500^[12]
Fees: 14–29% of total enrolled debts^[13]

Americor has been offering debt relief since 2009. It has helped over 200,000 clients and, in turn, has resolved over $2 billion worth of unsecured debts.

On average, you can get your first settlement within 3–6 months of enrollment. You can save 40–50% of your enrolled debt (not including fees) and finish your program within 24–48 months.^[14]

Apart from debt settlement services, you can qualify for debt consolidation loans offered by Americor's partner lender, Credit9. You can be eligible and borrow up to $45,000 to pay off several debts simultaneously.^[15]

Qualified debts:

• Credit cards
  
• Payday loans
  
• Medical bills
  
• Private student loans
  
• Personal loans
  
• Lines of credit
  
• Personal business debt

Pros + Cons:

Given that you're dealing with money, maybe a company's time in business is your main consideration. Try JG Wentworth.

JG Wentworth: Most Established Company

Minimum debt to apply: $10,000
Fees: 18–25% of total enrolled debts^[16]

JG Wentworth has been around the longest, offering debt relief services since 1991. On average, clients save up to 50% of their debts (not including fees). And you can pay off your debts as fast as 24–48 months from enrollment.^[17]

Given that it's been around for 3+ decades, it now has established relationships with the biggest creditors from various industries.

Additionally, JG Wentworth offers personal loans through its partner, Engine by MoneyLion. You can qualify and borrow a bigger loan with lower interest and fees. Use it to pay off several high-interest debts simultaneously.

Qualified debts:

• Credit card debt
  
• Store card debt

Pros + Cons:

If you're on a tight budget and are worried about fees, this next company offers the lowest percentage.

New Era Debt Solutions: Lowest Fees

Minimum debt to apply: $10,000
Fees: 14–23% of total enrolled debts^[18]

New Era Debt Solutions has resolved over $275 million in unsecured debts since 1999. Its debt relief specialists can help you become debt-free in 28 months (on average).

Clients have reduced their debts by up to 48% (excluding fees). And you can expect your first settlement offer within 6 months.^[19]

What's more, New Era Debt Solutions charges the lowest fees among debt relief companies. So you can potentially save more with this option.

Qualified debts:

• Credit card debts
  
• Department store card debts
  
• Signature loans
  
• Personal credit lines
  
• Old repossessions
  
• Other unsecured debts
  
• Old judgments
  
• Private student loans in default

Pros + Cons:

More interested in the amount of debt a company can cut off? Try Pacific Debt Relief.

Pacific Debt Relief: Highest Potential Savings

Minimum debt to apply: $10,000^[21]
Fees: 15–25% of total enrolled debts^[21]

Pacific Debt Relief has been in the business since 2002. And it has settled over $500 million worth of unsecured debts via debt settlement services.

You can save up to 50% off your debts (not including fees), which is slightly more than what you can save with most debt relief companies. Plus, you can settle your debts within 24–48 months.^[22]

Qualified debts:

• Credit cards
  
• Personal loans
  
• Lines of credit
  
• Medical bills
  
• Store cards
  
• Collections
  
• Repossessions
  
• Business debts

Pros + Cons:

If you're most interested in dealing with your tax debts, then CuraDebt is the expert to go for.

Curadebt: Tax Debt Relief

Minimum debt to apply: $5,000 for tax debts; $7,500 for other unsecured debts
Fees: average of 20% or less than the total enrolled debts^[24]

CuraDebt is a debt relief company that negotiates with creditors to lower unsecured debts. Even better, it specializes in tax relief, which most debt relief companies don't cover.

This means if you owe money to the IRS or your state, CuraDebt is your best solution. Its team of certified tax professionals can assist you and provide legal solutions for tax debts.

The company has been around since 2000 and has helped over 300,000 clients. On average, you can save anywhere from 40–60% of your debts with CuraDebt.^[25]

Qualified debts:

• Tax debts
  
• Credit cards
  
• Medical debt
  
• Department store cards
  
• Signature loans
  
• Unsecured lines of credit
  
• Payday loans
  
• Personal loans
  
• Revolving charge accounts
  
• Collections debt
  
• Repossessions
  
• Certain business debts

Pros + Cons:

Now that you know your best options for a debt relief company, it's also best to understand how they do the work.

What Is Debt Relief?

Debt relief involves strategies to make repaying your debts easier and less costly. It helps reduce the overall amount you owe or make your payments more manageable.

That said, here are some debt relief methods you can consider:

• Debt settlement
  Debt relief companies negotiate with creditors to reduce the principal debts you need to settle. Certified debt negotiators correspond and negotiate with creditors on your behalf.

• Debt consolidation
  Debt consolidation involves merging multiple debts into one. You can achieve this by taking out a debt consolidation loan to pay off several debts at once. That way, you can focus on one monthly payment with lower interest and lower fees.
  Does debt consolidation hurt your credit?
  Debt consolidation can cause a temporary dip in your credit score. Paying off multiple debts increases your total credit utilization and reduces the number of open accounts. However, your credit score will gradually improve as you make timely payments on your debt consolidation loan.

• Credit counseling
  Many nonprofit credit counseling agencies can advise you on budgeting, debts, and credit. These credit counseling agencies can refer you to debt settlement companies, enroll you in DMPs, or connect you with bankruptcy attorneys.

• Debt management plan (DMP)
  A DMP is a repayment plan that lasts 3–5 years. Credit counseling agencies create a DMP, negotiate with creditors to enroll your debt, reduce interest, and waive fees.

• Bankruptcy
  Bankruptcy is a process that helps you legally dissolve debts or restructure debt payments. Bankruptcy is complex, and the assistance of a bankruptcy attorney may be best if you want to file a bankruptcy petition.
  A bankruptcy record can last up to 10 years in your credit reports. It also becomes a public record. Consider this carefully before deciding to use bankruptcy for debt relief.

How Does Debt Relief Work?

Given your options for debt relief, most debt relief companies primarily offer debt settlement services. Here's how it works.

1. Sign up for a free consultation
   All debt relief companies offer free consultations to help identify the best way to reduce your debts. Use this session to discuss your current financial situation.

2. Review your personalized program
   A debt specialist will create a personalized program based on your eligible debts, budget, and timeline. Your monthly payments will be based on your program.

3. Stop paying your debts
   You must stop paying your debts before you enroll in your personalized program. Your creditors will be more open to reducing your debts than risk you paying nothing at all.

4. Set up an escrow account/dedicated account
   You'll need to create an escrow account where you will deposit your monthly payment.

5. Debt negotiations occur
   The debt relief company will negotiate with your creditors. Debt negotiations can last from a few weeks to a few months.

6. Pay off reduced debt
   Once you receive your new settlement offer, you can use the accrued monthly payments to settle the debt.

   If you don't approve the new settlement, tell your debt relief company to renegotiate with your creditors. You can try renegotiating for a new term or further reducing your debt.

On the fence about debt settlement? Consider these pros and cons first before you sign up.

Pros And Cons Of Debt Settlement

Pros:

• Reduce debts and interest and waive fees
  
• Professionals are negotiating on your behalf
  
• Settle debts faster
  
• No upfront fees
  
• Personalized programs
  
• No credit requirements
  
• Avoid bankruptcy

Cons:

• Minimum debt requirement
  
• Credit score impact
  
• Fees can be expensive the more you owe
  
• Creditors can take legal action for unpaid debt
  
• Creditors are not required to settle
  
• Debt savings can be taxable (if $600 or more)^[26]

Does Debt Relief Destroy Your Credit?

Yes, debt relief can impact your credit. For debt settlement, you must stop paying your debts, which can add negative items to your credit reports.

Additionally, your credit will temporarily decrease once you enroll in a DMP or apply for a debt consolidation loan.

Having said this, should you still consider debt relief?

Is It Worth Doing A Debt Relief Program?

A debt relief program can be worth it since it can help reduce your debts. Most companies that offer debt settlement have experience in negotiating with major creditors.

They have reduced millions of debts and helped thousands of clients over the years. That said, debt relief may not suit everybody's needs.

First off, most debt relief companies only qualify unsecured debts. Additionally, signing up for debt relief can decrease your credit score and add negative items to your credit reports.

Lastly, creditors may take legal action against you for unpaid debts.

Methodology

We selected debt relief companies with more than 10 years of experience in debt negotiations. They have a track record of helping thousands of clients by resolving millions or billions of dollars.

Additionally, these experienced companies have established relationships with many creditors. This way, debt negotiations can go smoother and they can settle your debts faster.

Plus, several organizations regularly audit and assess debt relief companies. So, we chose companies with accreditations and certifications from organizations, such as:

• American Association for Debt Resolution (AADR)
  
• International Association of Professional Debt Arbitrators (IAPDA)
  
• Consumer Debt Relief Initiative (CDRI)

As a result, these companies continuously get trained, vetted, and certified to keep up with the best practices. Many professionals part of these companies undergo certifications and assessments.

Bottom Line

Ignoring your debts makes them harder to settle and damages your credit. Fortunately, some companies can negotiate debt reductions with creditors.

Just check their minimum debt requirements and the types of debts they handle before signing up. Their expertise may help you pay up to only half of your original debt, helping you gradually regain financial control.

References