5 Best Debt Relief Companies of 2024

Money’s Main Takeaways

• We only recommend debt relief when other, more favorable options aren't viable.
• Debt consolidation loans and credit counseling often make better financial sense for borrowers.
• Debt relief companies require that you stop paying creditors to try and increase their bargaining power, almost certainly to the detriment of your credit score.
• A debt relief program can enable you to settle your accounts for less than you owe.
• There's no guarantee your creditors will accept the settlement proposed by the debt relief company.

Our Top Picks for Best Debt Relief Companies of 2024

The companies listed below are organized in alphabetical order.

• Accredited Debt Relief - Best for Quick Results
• Community Tax - Best for Tax Debt
• Freedom Debt Relief - Best Free Consultation
• National Debt Relief - Best Reputation
• New Era Debt Solutions - Longest-Standing Debt Relief Company

Best Debt Relief Companies Reviews

Why we chose it: Accredited Debt Relief offers some of the quickest results among the services we evaluated, claiming it can get you out of debt in as little as 24 months.

While the company’s claimed timeframe sounds amazing, bear in mind that becoming debt free will depend on your situation — and it may take more than 24 months. Accredited offers a free consultation where you can speak with a specialist to help you decide if debt settlement is the right option for you. If it turns out it isn't, Accredited can connect you with one of its consolidation loan affiliates. These loans range from $1,000 to $100,000, with APRs between 4.9% and 35.99%, origination fees from 1% to 6% of the financed amount, and terms of 4-84 months.

Read our full review of Accredited Debt Relief.

Learn more on Accredited Debt Relief's Secure Website.

Why we chose it: Founded as a tax company, Community Tax employs a team of enrolled agents, CPAs and attorneys who specialize in tax services, from prep to filing to relief.

Community Tax first offers a free analysis, followed by an investigatory period during which the company builds your case. Finally, the resolution phase involves creating an in-depth tax proposal to submit to the IRS or your state. The company provides 9 different tax liability resolutions, including different types of installment agreements, penalty abatements and offers in compromise. It also has a 14-day money-back guarantee.

Community Tax Relief also provides services in Spanish.

Read our full review of Community Tax Relief.

Learn more on Community Tax's Secure Website.

Why we chose it: While other debt relief companies also offer free consultations, Freedom Debt Relief has the most comprehensive no-risk evaluation of all the services we considered.

During the initial consultation, Freedom Debt Relief's consultants determine if debt relief is the best choice for your financial situation, or whether bankruptcy or a debt management plan may be better choices. If you opt for debt relief, they’ll explain the money you could expect to save, and the estimated timeframe of the debt relief process.

While an accredited member of the AFCC, the company did settle a lawsuit with the Consumer Finance Protection Bureau in 2019, for charging consumers without settling their debts as promised and otherwise misleading them.

Freedom Debt Relief also offers debt relief and consolidation services in Spanish.

Read our full review of Freedom Debt Relief.

Learn more on Freedom Debt Relief's Secure Website.

Why we chose it: National Debt Relief is one of the best-known debt relief companies in the industry, with accreditations by both the American Association for Debt Resolution (AADR) and Platinum Accredited by the International Association of Professional Debt Arbitrators (IAPDA).

National Debt Relief (NDR) stands out in the industry thanks to its holistic approach to debt resolution and personal finances, called Whole Human Finance™. Aside from the initial consultation, during which a company representative will look at your income and budget to determine a manageable payment plan, an NDR rep will also offer educational resources on debt management and other financial issues.

This latter process is coordinated with the company's Financial Wellness Board, composed of financial experts Dasha Kennedy (of "The Broke Black Girl") and Marc Russell (of Better Wallet).

Finally, NDR offers resources in Spanish.

Read our full review of National Debt Relief.

Learn more on National Debt Relief's Secure Website.

Why we chose it: Founded in 1999, New Era Debt Solutions has one of the longest track records in the debt relief industry.

New Era Debt Solutions is one of the most transparent companies on our list. Its website frankly addresses the reputation debt relief and debt settlement companies have, as well as the laws created by the CFPB to deal with the bad actors in the industry. It also provides a large resource and education library for consumers, including a debt reduction calculator that can give you an idea of how much money using their services might help you save.

Consultants, resources and services are all available in Spanish, but the company doesn't offer services in Iowa, Maine or Oregon.

Learn more on New Era's Secure Website.

Other debt relief companies we considered

JG Wentworth Debt Relief

JG Wentworth is best known for its structured settlement business, but the company also provides debt relief services. It also has very positive reviews on multiple consumer websites.

However, while JG Wentworth is transparent in disclosing that creditors are under no obligation to negotiate, there is no mention on the website about the likely effects debt settlement will have on your credit and financial health. What’s more, it’s not clear what fees JG Wentworth will charge, or the minimum and maximum debt they can accommodate.

Learn more on JG Wentworth Debt Relief's Secure Website.

Pacific Debt Relief

Pacific Debt Relief helps qualified applicants consolidate and reduce their debt by up to 50% and can help settle multiple types of debt, including credit card debt, student loan debt, medical debt, business debts, personal loans, payday loans and more. To qualify, customers must have a minimum of $10,000 in unsecured debt. However, Pacific Debt Relief is less accessible than competitors, as customers don't have an online account or portal.

Learn more on Pacific Debt Relief's Secure Website.

CuraDebt

CuraDebt helps customers with the debt settlement of credit cards, lines of credit, personal loans, medical bills, business debts, some secured debts, back taxes and IRS debt. While CuraDebt’s tax debt relief services are available in every state except Pennsylvania, its other debt relief services are unavailable in 15 states.

CuraDebt doesn’t charge monthly or upfront fees. Its website states that its costs are 20% or less of the total amount of debt on average.

Learn more on Curadebt's Secure Website.

DMB Financial

DMB Financial is a debt settlement company that will work with your creditors to help you restructure your debt and create a manageable time frame for debt repayment. The company offers a free consultation through one of its certified program consultants. However, DMB Financial doesn’t list prices for its services online.

The Consumer Financial Protection Bureau (CFPB) filed a lawsuit against DMB Financial in December 2020 for charging consumers unlawful fees, which resulted in a $5.4 million penalty.

Learn more on DMB Financial's Secure Website.

Simple Debt Solutions

Simple Debt Solutions is a marketplace that specializes in debt consolidation loans, but also offers other debt relief services. Primarily, Simple Debt Solutions connects prospective borrowers with its large network of lenders in order to find them the best deal. This is noteworthy, as a debt consolidation loan is always a better financial option to debt settlement if the customer is able to qualify.

For those who cannot qualify, Simple Debt offers debt settlement and other debt consolidation options. On one third-party review site, the company has positive customer feedback, and on another consumer website, has received an A+ grade.

Learn more on Simple Debt Solutions's Secure Website.

Debt Relief Guide

Debt relief companies — also called debt settlement or debt resolution companies — claim they can negotiate with creditors to reduce the amount of debt owed by their clients. The industry isn't without controversy, and there are risks you need to be aware of. However, if you’ve been unsuccessful with other debt consolidation methods and haven’t found success, you might want to consider it as an option.

Before deciding on a company, you should understand how debt relief works, its pros and cons and the other options available to you. This guide should also help you make the best decision.

• What is debt relief?
• Alternative options to debt relief programs
• How to choose a debt relief program
• How to apply to a debt relief program

What is debt relief?

Debt relief is the overall reorganization or restructuring of your high interest debt. When you're struggling to make on-time payments, debt relief companies can help negotiate with your creditors, though you may face some negative consequences.

Some indicators that you may want to consider debt relief include:

• You’re late on or are missing payments
• You’re having trouble budgeting for your payments
• You’re not making any progress on paying off your debts
• Your debts keep growing
• You’re considering bankruptcy

To learn more, read our full guide on what debt relief is and how it works.

What is a debt relief program?

A debt relief program is a plan, usually created by a debt relief or debt settlement company, to help you pay off your debt by negotiating with creditors to get them to accept less than the amount they're owed.

Does debt relief hurt your credit?

Going through any debt settlement process will almost certainly hurt your credit. Payment history is one of the biggest factors the credit bureaus use to determine your credit score. When you stop paying creditors as part of the debt relief company’s strategy, you’ll be dinged for late and missed payments.

Further, if and when your creditors close your accounts, this will negatively affect your credit utilization ratio, which is another significant factor in your credit score. Closed accounts marked as “settled” means the creditor had to alter the conditions of the initial agreement.

Debt resolution can also take months, if not years. And, during the entire time the company negotiates with your creditors, you'll still be incurring late fees and likely receive harassing phone calls.

Finally, there's no guarantee a given creditor will accept a debt relief company’s settlement offer, which could lead to a debt collection lawsuit.

Differences between debt settlement and debt consolidation

Debt consolidation is the process of applying for a personal loan or balance transfer credit card with better rates and more favorable terms those of your current debt structure. Your debts are then transferred to the new account, allowing you to make just one monthly payment.

Debt consolidation simplifies your personal finances and will generally improve your credit in the long run if you keep current on payments and don’t incur more debt. While you'll still pay the entire amount you owe, it's ideally in a shorter time with less interest.

If you’d like to learn more about consolidation, check out Money’s debt consolidation guide.

Is debt relief right for you?

Because of its impact on your credit score and associated risks, debt resolution may not be the best choice for everyone. Getting a debt consolidation loan, a balance transfer credit card or working with a credit counselor or other debt management program may be preferable to get out of debt.

On the other hand, if you're overwhelmed by debt, can’t keep up with payments and can't secure a loan or credit card with a more favorable rate, debt settlement may be a viable option.

Below, we’ll discuss some of the alternatives to debt relief programs.

Alternative options to debt relief programs

There are several other options you should consider before employing the services of a debt relief or debt settlement service. Some of these will be less risky and less likely to negatively impact your credit score. In fact, many of them can have a positive effect in the long run.

These options include credit counseling, debt management, debt consolidation loans, negotiating with lenders yourself and bankruptcy.

• Credit counseling - Credit counseling is usually provided by non-profit credit organizations that employ certified counselors in budgeting, money management and debt management. Credit counselors can also help advise you on the best ways to improve your credit score, repair bad credit and deal with your overall debt problems. When finding a credit counseling service, a good place to start is the National Foundation for Credit Counseling.

• Debt management - A credit counseling agency may help you set up a debt management plan. This plan could involve the counselor negotiating directly with creditors on your behalf to lower interest rates, waive fees and minimize payments.

• Debt consolidation loans - A debt consolidation loan is a personal loan that combines and consolidates other high interest debts into one monthly payment. Ideally, the loan rate will be lower than your current debts allowing you to pay less in the long run.For more information, check out our top picks for the best debt consolidation companies.

• Negotiate with creditors - It is possible to negotiate with each of your individual creditors yourself. Essentially, you are doing the same thing as the debt settlement agency, only without the experience and negotiating muscle. It also requires determination, follow-up and a lot of hard work on your part.

• Negotiate with debt collectors - If your debt has been sold, you may be able to negotiate with the debt collector. And since debt is usually acquired at a significantly reduced value than its original amount, you have the opportunity to engage with the collection agencies and find a middle ground between your initial debt and the price they paid for it.

• Bankruptcy - Filing for bankruptcy isn’t something to take lightly. You can use bankruptcy to help with your debt problems, but it will have a significant impact on your credit report.

How to choose a debt relief program

Selecting a debt relief company requires careful consideration. Thorough research is essential, as even legitimate companies need to be vetted.

Beware of potential scams. Red flags to watch out for include a provider that guarantees debt reduction, asks for upfront fees or for set-up fees before providing services.

When choosing a debt relief company, consider the following:

• Reputation and accreditation - Legitimate debt settlement or debt resolution companies should have an American Fair Credit Council (AFCC) accreditation, which you can find on the company’s website or ask about with a representative. The AFCC is an organization that monitors and holds companies to the highest standards as well as educates consumers on the subject of debt resolution.

• Customer Reviews - Review customer feedback on the Better Business Bureau (BBB), Trustpilot and other sites. Occasional bad reviews are typical, but consistent negative patterns may warrant concern. Assess how the company addresses complaints; active engagement and resolving issues indicate reliability.

• Fees - By law, debt relief companies cannot charge upfront fees. They can only charge you once creditors agree to the settlement. Avoid companies requesting money upfront, and verify all fees and payment details before committing. These companies typically charge a percentage of the settled debt; confirm this with a representative in advance.

• Accessibility - How easy is it to get hold of a company rep? Given the impact a debt settlement program could have on your financial health, you should be able to contact the provider on the phone or through chat, email or text, and they should be responsive to your questions. It's also a bonus if there's an online dashboard so you can monitor your progress.

How to apply for a debt relief program

As it comes in many different forms, applying for debt relief will depend on the option you decide to pursue. If you decide to do so, your debt relief will depend on your eligibility for one of their programs. You can also try to get debt relief by consolidating your debts, speaking directly with your lender or declaring bankruptcy.

How We Chose the Best Debt Relief Companies

We analyzed the top debt relief companies available to support our recommendations. To decide which companies were best, we employed the following methodology:

• Cost: We chose debt relief companies that provide the best services for their given cost. Companies generally charge 15 - 25% of the debt they settle for you. By law, they cannot charge you anything up front and can only begin charging once the creditor has accepted the settlement.

• Customer support: We highlighted companies that are responsive to customers and offer assistance via phone, email, text and online form. Companies that offer the ability to track the debt settlement process via an online dashboard or mobile app also fared well with us.

• Legal actions: We researched legal actions via the Consumer Financial Protection Bureau (CFPB) and news outlets. Companies with a pattern of legal issues or unsettled legal actions were disqualified from our list.

• Services and offerings: We favored companies that offer the most options when it comes to debt settlement. Most services will be able to work with credit card and unsecured personal loan debt, but it’s less common for them to offer help with medical bills, utility bills, rent and judgments.

• Third-party ratings: We looked at trusted third-party rating sites to determine how satisfied previous customers were with each service. We considered BBB accreditation and how likely the company was to respond to complaints in a productive way. We also considered the percentage of successfully closed complaints. Additionally, we took a look at other customer review websites specific to the debt relief industry in order to identify any pattern of similar complaints lodged against a given company.

• Transparency: We only considered programs that are transparent about their pricing structure and don’t trick you with hidden fees.

Summary of Money’s 5 Best Debt Relief Companies of 2024

The companies listed below are organized in alphabetical order.

• Accredited Debt Relief - Best for Quick Results
• Community Tax - Best for Tax Debt
• Freedom Debt Relief - Best Free Consultation
• National Debt Relief - Best Reputation
• New Era Debt Solutions - Longest-Standing Debt Relief Company