Editor's choice: National Debt Relief
- No cancellation fees
- Low minimum to enroll
- No upfront fees
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Best debt relief companies of 2021
Look for lowest fees and the widest range of services.
Debt relief companies are designed to act as a last resort before filing for bankruptcy. If they sound too good to be true, that’s because they sometimes are. But there are also some trustworthy companies out there.
Before you sign up, look into free options or even working as your own advocate. That could save you hundreds or even thousands, depending on how much debt you have.
5 best debt relief companies
- Best for student loans: National Debt Relief
- Best for debt management: Consolidated Credit
- Best for low-commitment debt relief: American Credit Card Solutions
- Best for low-cost debt settlement: New Era Debt Solutions
- Best for tax relief: CuraDebt
Best for student loans: National Debt Relief
$7,500
Minimum debt required
Minimum debt required
24–48 months
Typical turnaround
Typical turnaround
15–25% of total enrolled debt
Fees
Fees
This debt settlement company is one of the few that will work with private student loan providers — though federal loans are always off the table when it comes to student loans. Costs start relatively low, though they can run as high as 25% of your settled debt amount. And if you aren’t happy with your experience, National Debt Relief claims to offer a 100% money back guarantee. But it gets mixed customer reviews, especially compared to other debt relief companies.
- Accepts private student loans
- Low minimum to enroll
- 100% money back guarantee
- Mixed customer reviews
- Potentially high fee of 25% of settled amount
| Free quote or consultation | Yes |
|---|---|
| Services | Debt settlement |
| Minimum debt | $7,500 |
| Typical turnaround | 24–48 months |
| Direct or third-party negotiations | Direct |
| Fees | 15–25% of total enrolled debt |
| Types of debt | Unsecured debts, including private student loans on a case-by-case basis |
| Accreditations | AFCC, IAPDA, BBB |
| Ratings | A+ BBB rating, 9.4 Trustpilot rating. |
| Free resources or tools | Budget planner worksheet, debt relief calculator. |
| Customer service | Phone, email, live chat. |
Best for low-cost debt management: Consolidated Credit
None
Minimum debt required
Minimum debt required
Varies
Typical turnaround
Typical turnaround
Average monthly fee of $35
Fees
Fees
This debt settlement company charges fees as low as 16% of the debt you enroll in its debt settlement program. There’s also no minimum debt requirement — but the average customer brings over $750. The average turnaround is around two years — much faster than most debt relief companies. And it offers discounts of up to 4% for military personnel and veterans. But the types of debt you can enroll in are relatively limited. Medical bills, taxes and loans from credit unions are off limits.
- Fees as low as 16%
- Accepts private student loans
- No minimum debt requirement
- Doesn’t accept medical bills, taxes and credit union debts
- Not transparent about costs online
- Unavailable in IA, ME, OR and SD
| Services | Debt management and credit counseling. |
|---|---|
| Minimum debt | None |
| Typical turnaround | Varies |
| Fees | Average monthly fee of $35 |
| Types of debt | All major credit cards, store credit cards, store credit lines that have gone to collections, gas cards, unsecured personal loans and medical bills that have gone to collections. Does not accept payday loans or secured loans — like a mortgage or car loan — for debt management. |
| Accreditations | BBB accreditation; Association memberships: HUD member, accredited member of ANAB, member of Financial Counseling Association of America (FCAA), Certified ISO 9001 company |
| Ratings | BBB rating: A+; Trustpilot rating: 9.6/10 |
| Free resources or tools | Online webinars and seminars, local workshops, educational videos, financial calculators, self-help finance booklets and interactive financial education courses. |
| Customer service | Phone |
Best for low-commitment debt relief: American Credit Card Solutions
$10,000
Minimum debt required
Minimum debt required
Two to four years on average
Typical turnaround
Typical turnaround
No upfront costs — settlement fees range from 15% to 25%, depending on your state of residence and amount of debt
Fees
Fees
American Credit Card Solutions offers a 30-day trial period where you can pull out with full refund on any fees you’ve paid on enrolled debts that haven’t been settled. And the fees themselves start low, at 15% — but can also run as high as 25%, depending on your state. But it’s only licensed in 24 states. And it requires you to enroll at least $10,000 — high compared to many other companies.
- 30-day trial period
- Fess start at 15%
- Must enroll at least $10,000 of debt
- Only available in 24 states
| Services | Debt settlement |
|---|---|
| Minimum debt | $10,000 |
| Typical turnaround | Two to four years on average |
| Fees | No upfront costs — settlement fees range from 15% to 25%, depending on your state of residence and amount of debt |
| Types of debt | Unsecured debt, including unpaid credit cards, personal loans and medical bills |
| Accreditations | Better Business Bureau |
| Ratings | A+ rating and 4.9 out of 5 stars on the Better Business Bureau, 4.7 out of 5 stars on Trustpilot |
| Free resources or tools | Free initial evaluation within a few hours of filling out its online form, debt relief calculator, free monthly budget planner |
| Customer service | Phone, email |
Best for low-cost debt settlement: New Era Debt Solutions
No minimum
Minimum debt required
Minimum debt required
Average 27 months to complete program
Typical turnaround
Typical turnaround
16% to 20% fee on enrolled debts
Fees
Fees
This debt settlement company charges fees as low as 16% of the debt you enroll in its debt settlement program. There’s also no minimum debt requirement — but the average customer brings over $750. The average turnaround is around two years — much faster than most debt relief companies. And it offers discounts of up to 4% for military personnel and veterans. But the types of debt you can enroll in are relatively limited. Medical bills, taxes and loans from credit unions are off limits.
- Fees as low as 16%
- Accepts private student loans
- No minimum debt requirement
- Doesn’t accept medical bills, taxes and credit union debts
- Not transparent about costs online
- Unavailable in IA, ME, OR and SD
| Services | Debt settlement. |
|---|---|
| Minimum debt | No minimum |
| Typical turnaround | Average 27 months to complete program |
| Fees | 16% to 20% fee on enrolled debts |
| Types of debt | Credit or department store card debt, signature loans, personal lines of credit, old repossessions, old judgments, private student loans in default and other unsecured debts. No medical bills, mortgages, taxes, car loans, credit union debts, federal student loans or other unsecured debts. |
| Accreditations | Awards: Trustlink Best of 2017; Best Company Top 10 |
| Ratings | A+ BBB rating |
| Free resources or tools | Client dashboard. |
| Customer service | Phone, email. |
Best for tax relief: CuraDebt
$10,000
Minimum debt required
Minimum debt required
3 years
Typical turnaround
Typical turnaround
20% of enrolled debt or less, no upfront fees
Fees
Fees
CuraDebt is one of a handful of companies that offers tax relief. And while CuraDebt’s 20% fee is on the high end, the savings might make up for it. It claims to have settled up to 100% of some of its clients debts in the past. How? It goes after the legality of the debt, rather than just trying to negotiate it down. But its customer service is lacking — we couldn’t get a straight answer from customer service. And it doesn’t have a lot of basic information available online.
- Goes after legality of debt
- Track record of high debt settlements
- Works with tax debt
- Not upfront about costs
- High fee compared to other companies
| Services | Debt relief, debt settlement and tax relief |
|---|---|
| Minimum debt | $10,000 |
| Typical turnaround | 3 years |
| Fees | 20% of enrolled debt or less, no upfront fees |
| Types of debt | Unsecured debt or tax debt. No lawsuit debt or student loans, except in special cases. No utility bills, mortgages, car loans or government loans. |
| Accreditations | Memberships. AFCC, IAPDA, NetCheck, HonestE Online, US Chamber of Commerce. |
| Ratings | No BBB ratings. |
| Free resources or tools | Online client account. |
| Customer service | Phone, email and live chat. |
How we picked these providers
Our team vetted and reviewed nearly 20 debt relief companies before we came up with this list. We considered factors like fees, typical turnaround time and debt enrollment minimums. We also looked at the types of services offered and types of debts they work with, as well as any additional perks — like discounts for service members.
What is debt relief?
Debt relief covers a wide range of services that are designed to help reduce your debt or come up with a strategy to pay down your balances. The following types of programs typically fall under debt relief:
- Credit counseling.Meet with an expert to go over your budget, bills and credit account to decide how to move forward.
- Debt consolidation.Take out a loan or balance transfer credit card with a lower rate to pay off your credit accounts.
- Debt management.Hire a company to negotiate the rates and terms of your accounts for repayments that fit your budget.
- Debt settlement.Hire a company to negotiate down your balance in exchange for a lump-sum payment — sometimes referred to as debt negotiation or debt relief.
- Bankruptcy services.Hire legal representation to help you navigate the bankruptcy process.
Debt settlement is often the most common type of debt relief out there — but also the most risky. You canread our guide to debt relieffor more information on how each type works.
How to find a legit debt relief service
Debt relief has earned itself a somewhat shady reputation, thanks to the rise of scam companies in the early 2000s. Althougha 2010 federal crackdowncleaned up the industry in part, scammers are always creating new ways to take your money.
It’s possible to avoid a scam by doing some research first. When considering a debt relief company, ask yourself the following questions.
Is it legal in your state?
Some state regulations limit or outright prevent debt relief services from operating in that state. Be sure to know whether or not you can sign up.
What’s the cost and how will you pay?
Fees are usually a percentage of the debt you enrolled, often from 15% to 25% of that amount. For credit counseling or debt management, you might pay a monthly fee of around $35.
It’s illegal for debt relief services to charge you a fee before they’ve provided results. Most legit companies also won’t ask for fees all at once, preferring steady payments toward settlement accounts and services.
Is it accredited?
Many legit debt relief company are accredited with the American Fair Credit Council or the IAPDA, which set and maintain industry standards.
How long has it been around?
While not always the case, older more-established businesses feel less pressure to engage in unsavory business practices to stay afloat.
How transparent is it?
Can you find answers to most of your questions with a few clicks online? Is it clear what services it provides, and is that information consistent? What happens if you call in?
If you can’t get a straight answer before handing over sensitive information, it’s time to consider other options.
How much control will you have?
Debt settlement companies work by having you pay into an account from which the company then pays your debt settlement fee. By law, you control these funds and can even withdraw from them without a penalty.
Is there a minimum debt?
Debt management companies shouldn’t enforce a minimum enrolled debt amount. Better debt settlement companies are willing to work with debt on the lower end — from $7,500 to $10,000.
What types of debts does it settle?
Established debt relief companies can settle private student loans and even some secured debt, but most only handle basic unsecured debts like medical bills, personal loans and credit cards. It’s illegal for debt settlement companies to settle federal student loans.
What timeline does it advertise?
Typically, debt settlement programs take two to four years. Try to avoid longer terms — it increases your risk of facing a lawsuit or not completing the program.
How much will I save?
It’s impossible to know how your negotiations will go, but some companies will disclose how much past clients have saved to get a ballpark idea of what you’re in for. If it promises 100% savings — or really any amount of savings — it could be a scam.
How did you hear about them?
If the company solicited you for its services, make sure advertised promises are true. Otherwise, it’s not following government regulations.
What do customers say?
Look for reviews and complaints on sites like the Better Business Bureau (BBB), the Consumer Financial Protection Bureau and Trustpilot to get an idea of what you can expect as a customer.
While reviews tend to represent extreme situations, they can give you an idea of red flags to look out for. And you can find out if there have been any government actions against the company on the BBB website.
What is the International Association of Professional Debt Arbitrators?
The IAPDA is a professional organization that trains and certifies individuals in debt settlement and accredits trusted debt settlement companies. Accreditation by the IAPDA means that a significant number of individuals in the company are certified debt consultants, but it’s always a good idea to make sure your personal consultant is certified, even when working with a trusted and accredited company.
Beware of the consequences of debt settlement
Debt settlement can be useful in certain situations when you’ve exhausted all other ways to get your debt under control, like applying for a balance transfer credit card or debt consolidation loan. However, there are a few drawbacks to debt relief you should consider before signing up.
First and foremost, debt settlement will damage your credit score and isn’t guaranteed to work. In fact,only around 10% of people who enroll in debt relief programs actually complete them. And with many programs, it’s difficult to continue paying your creditors while also putting money toward your debt settlement escrow account. This puts you at risk of being sued by your creditors.
If you do complete the program, any settled debt will be considered taxable income. Add fees and interest that accumulated while you’re in the program, and you might not save as much as you thought you would.
Compare more debt relief companies
Before you sign up with a debt relief company
Debt relief companies typically charge a percentage of a customer’s debt or a monthly program fee for their services. And not all companies are transparent about these costs or drawbacks that can negatively affect your credit score. Depending on the company you work with, you might pay other fees for third-party settlement services or setting up new accounts, which can leave you in a worse situation than when you signed up.
Consider alternatives before signing up with a debt relief company:
- Payment extensions. Companies you owe may be willing to extend your payment due date or put you on a longer payment plan if you ask.
- Nonprofit credit counseling. Look for free debt-management help from nonprofit organizations like the National Foundation for Credit Counseling.
- Debt settlement. If you can manage to pay a portion of the bill, offer the collection agency a one-time payment as a settlement. Collection agencies are often willing to accept a lower payment on your debt to close the account.
Are there any free or low-cost alternatives?
Yes, you don’t have to pay for the results you’d get from a debt relief company.
Nonprofit credit counseling
Some credit counseling companies are free, since the Department of Justice (DOJ) requires you to enroll in credit counseling as a part of some bankruptcy proceedings. Look for a nonprofit agency orvisit the DOJ’s websiteto find a low-cost or free agency near you.
Government debt relief programs
The federal government offers some debt relief programs for federal loans and mortgages that can help slash or reduce your debts.
- Making Home Affordable.Agovernment mortgage assistance programthat can help reduce the amount you owe. This program is also called HAMP, HAFA and HARP.
- Federal student loan forgiveness.Forgiveness programslike Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness allow you to wipe out all or part of your debt in exchange for working in public service for several years.
- Government grants.Low-income individuals might qualify for agovernment grantto cover costs — especially if you’re faced with an unexpected expenses. You may be able to use these funds to pay down your debt.
DIY debt negotiation
Be your own advocate and negotiate down your balances or ask for a better term from your creditors. While you won’t have as much experience as a professional, you’ll avoid potential scams and know that you have your own best interests in mind.
Read our step-by-stepguide to settling debt without an expertto learn what to expect.
Bottom line
Debt relief can be a legitimate path to get out of unmanageable debt situations — but only when approached carefully and using the most reputable services.
If you have the creditworthiness to qualify for a debt consolidation loan or balance transfer credit card, that might be a better option for you. But if you’re dealing with a debilitating amount of debt and trying to improve a low credit score, be sure tocompare all of your debt relief optionsbefore choosing the company that’s right for you.
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