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If you’re among the many Americans carrying part of the $1.08 trillion in U.S. credit card debt, or perhaps one of the 8% falling behind on payments, finding a way out could be life-changing. It could mean the difference between ongoing financial hardship and a fresh beginning.
This is where debt relief companies step in. They negotiate with your creditors to reduce the amount you owe and help you develop a plan to pay it off. With their help, you could regain control over your finances and start rebuilding your life.
These services offer solutions like lowering balances, negotiating interest rates, and consolidating debts into a more manageable plan. It’s crucial to choose the right provider. Below, you’ll find our top picks for debt relief companies, evaluated across various factors, to help you make the best choice for your situation.
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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 stands out as our top pick for the best debt relief service overall. With decades of experience, the company has resolved over $15 billion in debt for more than 850,000 clients over the past 20 years. It boasts an impressive A+ rating from the BBB and a 4.49-star customer satisfaction score.
Additionally, with nearly 43,000 reviews, it has earned a stellar 4.6-star rating on Trustpilot, reflecting high levels of customer satisfaction.
This company focuses on helping with unsecured debts like credit cards, personal loans, and medical bills. Freedom Debt Relief works directly with your creditors to reduce the amount you owe, aiming to help you achieve financial freedom.
Typically, clients with at least $7,500 in debt can resolve it within two to five years, according to the company. They charge between 15% to 25% of the enrolled debt, with no upfront fees. Payment is only required once you’ve agreed to a settlement.
- Interactive client dashboard to track settlement progress
- No upfront fees
- Over $15 billion in debt settled
- Not available in all states
- Settlements may significantly impact credit scores
- The process can take up to 48 months
For those looking to tackle private student loan debt, National Debt Relief is an appealing choice, thanks to the vast amount of debt they’ve resolved and the large number of clients they’ve helped.
Their extended hours, available during late nights and weekends, are particularly helpful for new clients getting started, though existing clients won’t have access to these extended hours. Like other top options on our list, they charge no upfront fees, and their performance-based pricing model aligns with your financial interests.
National Debt Relief is one of the most highly rated companies in the industry, with over 75,000 five-star reviews. Their debt arbitrators, all certified through the International Association of Professional Debt Arbitrators (IAPDA), work directly with creditors to reduce the amount of debt owed. They’ve successfully resolved more than $1 billion in unsecured debt.
You won’t owe National Debt Relief anything until they settle your debt and you’ve approved the settlement. Once you’ve made your first settlement payment, then National Debt Relief will collect its fee, which typically ranges from 15% to 25% of the total debt enrolled.
For example, if you have $25,000 in credit card debt, you can expect to pay between $3,750 and $6,250 in fees. This payment will come from your Dedicated Account.
- Over $1 billion in unsecured debt settled
- You only pay if they settle your debt
- A+ BBB rating
- Not available in every state
- Extended hours are only for onboarding new clients, not for existing ones
- Fees can be on the higher side
Ideal for those who value exceptional customer service, Pacific Debt Relief has garnered impressive feedback on Trustpilot, with 84% of its 1,456 reviews being 5 stars and another 11% rated 4 stars.
Most of these reviews highlight the company’s vital customer service, which is a big plus. Dealing with debt can be incredibly stressful, and sometimes just having a supportive person to guide you through the process can make all the difference, helping you feel less alone and more hopeful.
Pacific Debt Relief also leverages new technology to enhance communication between clients and their teams, making case management even smoother. Additionally, their team undergoes regular training on the latest best practices and negotiation strategies with creditors.
There are no upfront fees with Pacific Debt Relief; fees range from 15% to 25%, depending on your location and the amount of debt involved.
- Regular communication from your account manager
- No upfront fees
- A+ BBB rating
- Not available in all states
- Potential for negative credit score impact during the program
- Must have over $10,000 in unsecured debt to qualify
Accredited Debt Relief is dedicated to helping clients achieve debt freedom within 24 to 48 months. They offer some significant advantages, including free consultations for client education and a fee structure tied to performance.
Accredited Debt Relief ensures you only pay if they successfully reduce your debt, so you won’t waste money on a program that doesn’t deliver results.
When you consolidate your debt through Accredited Debt Relief, they connect you with affiliated lenders, offering loans with annual percentage rates (APR) ranging from 4.9% to 35.99%. Along with the APR, there’s an origination fee between 1% and 6%. The service fee, which is 25%, is based on the successful completion of your loan.
Accredited Debt Relief reports that, on average, clients pay about 55% of their enrolled debt before fees are applied. However, when fees are added, the overall savings might not be as substantial.
- No upfront fees
- Over $1 billion in debt settled
- A+ BBB rating
- Not available in all states
- You could still face lawsuits and collections from creditors
- Fees are relatively high
MMI’s strong track record, outstanding customer reviews, and longstanding reputation make it our top pick among debt relief companies. When considering debt solutions, it’s important to think about the potential negative impact on your credit score.
MMI stands out as a full-service organization that also offers credit repair solutions, making it especially attractive for those looking to achieve complete financial flexibility.
What really sets MMI apart? It’s a nonprofit. This means that MMI prioritizes your financial well-being over profits. Their goal is to help clients reach long-term financial stability, not just boost their own bottom line, which distinguishes them from many other for-profit debt relief companies.
When you enroll in an MMI debt management plan, you’ll encounter a setup fee and a monthly fee. The cost of both depends on the amount of debt you’re repaying and where you’re located. According to MMI, clients typically pay an average of $25 per month with a $33 setup fee.
Another advantage of MMI is that they cap the fees you’ll pay. You’ll never be charged more than $75 to set up your debt management plan, and your monthly fees will never exceed $59, regardless of your debt amount or location.
- Nonprofit organization
- Available 24/7
- Clients experience an average credit score increase of 85 points four years after starting
- Over $10 billion in debt repaid
- 24/7 availability by phone, but not all states have physical locations
- Temporary credit score drop as accounts are closed
- Not all creditors participate
CuraDebt stands out by offering tax debt relief, a service not commonly provided by most debt settlement companies. Their specialized tax team includes IRS-credentialed enrolled agents, adding a layer of expertise. They also provide free initial consultations, allowing clients to explore their options without any upfront cost. With over 20 years of experience, CuraDebt has established itself as a trustworthy option for managing and reducing debt.
While CuraDebt’s customer support hours are somewhat limited (Monday to Friday, plus Saturday), they remain fairly accessible, including live online chat through their website. Customer reviews are generally positive, with Trustpilot rating the company at 3.3 out of 5 and BBB at 4.8 out of 5.
The primary focus of CuraDebt is on debt settlement services, and like other companies in this space, they charge no upfront fees. Instead, clients stop making payments to their creditors and deposit funds monthly into a third-party account to build up a settlement fund. While there are often associated fees, CuraDebt does not specify the exact costs.
If CuraDebt successfully negotiates your debts, they charge a settlement fee of 15% to 25% of the original debt amount.
- Can assist with various types of debt
- Offers live chat support
- Accredited by the AFCC and IAPDA
- Available in only 26 states and D.C.
- Website can be confusing and outdated
- Settlement fees are based on the original debt amount rather than the settled amount
New Era Debt Solutions operates on a performance-based fee model, meaning you only pay after a settlement is successfully reached. There are no monthly administrative fees, and you’re not charged for services until they’ve been delivered. Additionally, new clients can easily reach a debt specialist Monday through Saturday until 8 p.m. PT, or by appointment.
This service is ideal for those looking for an honest and effective path out of debt. New Era Debt Solutions doesn’t sugarcoat the process; they provide the unvarnished facts that other debt relief companies might avoid when trying to win your business.
They even have an entire page dedicated to these realities, sharing their average settlement amounts, reasons some clients have left the program early, and the typical time it takes to complete the program. This level of transparency helps potential clients make informed decisions, fostering trust and credibility.
With a team of debt specialists guiding the settlement process, New Era can customize strategies to fit each client’s financial situation. They also partner with Consumer First Legal Network, extending their capabilities to include legal insight when needed.
- Customized debt relief programs
- No upfront service fees
- A+ BBB rating
- Not available in all states
- Credit scores may drop
- Fee transparency could be improved
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, aren’t eligible for relief.
However, some private student loans might qualify, depending on the debt relief company and your particular situation.
Most debt relief companies require that you’re experiencing a significant financial hardship, like a divorce or job loss before they’ll take you on as a client.
While debt relief can help you get out of debt, be aware that your credit score will likely take a hit in the short term. This is because, to negotiate with creditors, the payments you’d usually make toward your debt will instead be directed into an FDIC-insured trust account to build up. This results in missed payments and continued collection calls. After all, why would a creditor agree to negotiate if you’re still making your payments on time?
It’s also worth noting that you don’t necessarily need a debt relief company to negotiate with creditors. Plenty of online resources can guide you through the process on your own.
If you’re not confident in your negotiation abilities, hiring an expert can save you time, money, and stress. This way, you avoid agreeing to unfavorable terms or misinterpreting any legal aspects of the agreements.
How to Choose a Debt Relief Company
Selecting a debt relief company requires careful consideration, as the last thing you want is to find yourself in an even worse financial position. Here are some key questions to ask when evaluating potential debt relief companies:
- Is the company accredited by any industry organizations?
- Does it openly share 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 do they rely on external legal support?
Watch out for Debt Relief Scammers
The harsh reality of the debt relief and credit repair industries is that scammers are lurking, ready to exploit the vulnerable. They target those desperate for an easy escape from overwhelming debt, often by making promises that sound too good to be true.
Be cautious of companies that charge upfront fees (which the FTC prohibits), claim your credit score won’t be affected (it likely will if you’re settling), or promise to settle your debt for pennies on the dollar (which is unrealistic). Some scammers even use robocalls to reach out to those in debt proactively.
To protect yourself, ensure the agency you’re dealing with is accredited and has a proven track record of success. Conduct independent research on platforms like Trustpilot and BBB. Look up the company’s name and website to check for negative reviews and any lawsuits.
Remember, a legitimate debt relief company cannot charge you upfront fees or guarantee to stop all debt collection calls. If something they’re offering seems too good to be true, it probably is.
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Best Debt Relief Companies – FAQs
Conclusion
Before engaging with any financial company, including debt relief firms, it’s essential to do your research. The Consumer Financial Protection Bureau (CFPB) recommends contacting your state attorney’s office and local consumer protection agency to check for 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 managing your financial difficulties, negotiating lower debt balances, and easing your debt load.
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Patrick is a financial expert with deep knowledge in trading, technical analysis, and market structure. His analytical skills and ability to simplify complex topics have made him a trusted advisor for firms looking to navigate the financial markets effectively. Recognized for his insightful reports and strategic market analysis, Patrick has earned high praise from industry professionals. He is also the host of a widely-followed podcast, where he delves into market trends, options trading, and value investing, providing actionable insights for investors and professionals alike.
