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Best debt relief companies of October 2024

Updated Oct 24, 2024

What to know first: The best debt relief companies can help you settle at least $7,500 of debt for a reasonable fee and give you tools to help get your finances back on track. Debt relief programs typically also include some combination of credit counseling, debt consolidation and debt management plans to help you avoid bankruptcy.

Debt Relief

National Debt Relief: FEATURED PARTNER AND BEST OVERALL DEBT RELIEF COMPANY

National Debt Relief
Rating: 4.4 stars out of 5
4.4
  1. Checkmark Icon Client dashboard for 24/7 debt settlement monitoring
  2. Checkmark Icon Available in 46 states across the US
  3. Checkmark Icon No upfront fees
  4. Checkmark Icon A+ Rating with the BBB
  5. Checkmark Icon Minimum debt: $7,500

Debt Relief

Accredited Debt Relief: Best for CUSTOMER SATISFACTION

Accredited Debt Relief
Rating: 4.8 stars out of 5
4.8
  1. Checkmark Icon Over $1 billion in debt paid off
  2. Checkmark Icon Over 500,000 clients enrolled
  3. Checkmark Icon Minimum debt: $10,000

Debt Relief

CreditAssociates: Best for straightforward plans

CreditAssociates
Rating: 4.1 stars out of 5
4.1
Bankrate Review
  1. Checkmark Icon No upfront fees
  2. Checkmark Icon 4.9 rating on Trustpilot
  3. Checkmark Icon Available in 33 states
  4. Checkmark Icon Customized plans and fees depending on your debt
  5. Checkmark Icon Accredited by the International Association of Professional Debt Arbitrators (IADPA) and American Association For Debt Resolution (AADR).

Debt Relief

Pacific Debt: BEST FOR EDUCATIONAL RESOURCES

Pacific Debt
Rating: 4.1 stars out of 5
4.1
  1. Checkmark Icon Free online quote and program estimate
  2. Checkmark Icon 20 years of experience helping consumers resolve debt
  3. Checkmark Icon Minimum debt: $10,000

Debt Relief

Freedom Debt Relief: BEST FOR PROGRAM COST GUARANTEE

Freedom Debt Relief
Rating: 4.1 stars out of 5
4.1
  1. Checkmark Icon $18 billion+ in debt resolved
  2. Checkmark Icon Over one million customers served
  3. Checkmark Icon A+ rating with the BBB
  4. Checkmark Icon No upfront fees
  5. Checkmark Icon Minimum debt: $7,500

Debt Relief

JG Wentworth: BEST FOR DEPTH OF CREDIT RELIEF EXPERIENCE

JG Wentworth
Rating: 4.3 stars out of 5
4.3
Bankrate Review
  1. Checkmark Icon Free Consultation & No Risk.
  2. Checkmark Icon Make one affordable monthly payment.
  3. Checkmark Icon 30+ Years experience in financial services.
  4. Checkmark Icon A+ Better Business Bureau rating.
  5. Checkmark Icon Minimum Debt: $10,000

A closer look at our top debt relief companies 

Each debt relief company has a feature or two that makes it stand out from the rest. Get a deeper look at each one before deciding which to work with.

National Debt Relief: Best overall debt relief company

National Debt Relief
Rating: 4.4 stars out of 5
4.4

Overview: Since its inception in 2009, National Debt Relief has helped over 550,000 customers resolve over $1 billion in unsecured debt. Although the company is headquartered in New York City, it serves customers nationwide and offers multiple perks, like scholarships and individualized assistance. 

Min debt required
$7,500
Time frame
24 to 48 months after enrolling in the program.
Fees
Closing fee of 15% to 25% of your enrolled debt.

Accredited Debt Relief: Best for customer satisfaction

Accredited Debt Relief
Rating: 4.8 stars out of 5
4.8

Overview: Since 2011, Accredited Debt Relief has serviced over $1 billion in debt and has over 500,000 clients enrolled. Its terms are similar to those of other debt relief companies, but its focus on debt consolidation, credit counseling services and financial resources set it apart.

Min debt required
$15,000
Time frame
12 to 48 months after beginning the program.
Fees
A closing fee of 15% to 25% of your enrolled debt.

CreditAssociates: Best for straightforward services

CreditAssociates
Rating: 4.1 stars out of 5
4.1

Overview: Credit Associates offers straightforward debt settlement services in 44 states and Washington, D.C. It doesn't have a lot of bells and whistles compared to competitors.

Min debt required
Minimum $10,000 in unsecured debt
Time frame
24 to 36 months after enrolling in the program
Fees
Standard 25% fee of enrolled debt

Pacific Debt Relief: Best for financial education resources

Pacific Debt
Rating: 4.1 stars out of 5
4.1

Overview: Pacific Debt Relief has been offering debt relief services for over 20 years and has a great reputation for customer service. It can help with several different types of unsecured debt but specializes in credit card debt. The Consumer Debt Relief Initiative accredits the company.

Min debt required
$10,000
Time frame
24 to 48 months after entering the program.
Fees
Closing fee of 15% to 25% of your enrolled debt

Freedom Debt Relief: Best for program cost guarantee

Freedom Debt Relief
Rating: 4.1 stars out of 5
4.1

Overview: Freedom Debt Relief has helped settle over $18 billion in debt since 2002. Freedom boasts over 1,600 employees nationally and has over 300 customer service representatives.

Min debt required
$7,500
Time frame
24 to 48 months after signing up for the program.
Fees
One-time fee of $9.95 to set up your savings account.

JG Wentworth: Best for depth of experience

JG Wentworth
Rating: 4.3 stars out of 5
4.3

Overview: Known for its popular — and catchy — 877-CASH-NOW commercials, JG Wentworth has been in the industry for more than 30 years. Along with debt relief services, the company also offers personal loans, credit cards, structured settlements and other financial services. Debt relief clients can receive assistance seven days per week, as late at 10pm on weeknights.

Min debt required
$10,000
Time frame
24 to 48 months after starting the program.
Fees
Closing fee of 18% to 25% of your enrolled debt.

What is debt relief?

Debt relief generally refers to any service, program or product that helps you better manage troublesome debt. This type of assistance is often handled by companies that work directly with your creditors to settle balances, lower rates or consolidate accounts on your behalf.

These companies focus on helping you get your credit under control, pay off debt faster, reduce your monthly payments and avoid bankruptcy. In exchange for their services, debt relief companies charge a fee ranging between 15 and 25 percent of your enrolled debts once they’re settled.

How do debt relief programs work?

Most programs offer the same basic services, including negotiating with your creditors and developing a debt management you can afford. However, each debt relief option has important differences that may affect your credit scores and ability to borrow money in the future.

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Bankrate insight on bankruptcy

If debt relief options don’t make sense based on your financial situation, bankruptcy may be your only option. You’ll typically need an attorney’s help to get the legal protection against creditors that bankruptcy gives you. Chapter 13 or Chapter 7 bankruptcies put a court-ordered halt to creditor collection activities, which debt relief companies can’t offer. 

Although bankruptcy can provide a fresh start if you have unmanageable debts, it comes with major risks. Your assets can be seized during the process to pay off creditors and bankruptcy remains on your credit report for up to 10 years (depending on the type). Declaring bankruptcy should be a last resort to avoid the long-term financial consequences.

Pros and cons of debt relief 

Seeking debt relief through a third-party company can be a great option if you’re deep in debt. Weigh the pros and cons of debt relief before making a decision.

Green circle with a checkmark inside

Pros

  • Get out of debt faster: Most plans can be completed in four years or less.
  • Let a third party work on your behalf: You don’t have to deal with negotiation phone calls yourself.
  • Simplify your debt: Replacing multiple debts and payments with one payment plan makes it easier to manage your budget.
  • Avoid bankruptcy: Debt relief can keep you from the long-term credit damage caused by bankruptcy.
Red circle with an X inside

Cons

  • Credit score could fall: Because debt relief companies require you to be behind on payments, the late payments will sink your credit scores.
  • High fees: Debt relief companies typically charge between 15 and 25 percent of the amount settled, which could be hefty if you’re thousands of dollars in debt.
  • Potential tax liability: Any forgiven amount over $600 is subject to taxes.
  • It may not work: Creditors and lenders aren't obligated to work with debt settlement companies and could deny the proposed settlement offers.
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The author’s expert insights

"Debt relief scams are low-hanging fruit for financial predators. Desperate consumers in financial distress are easy targets for high-pressure sales pitches that promise guaranteed results as long you pay a hefty upfront fee. If you, a friend or a family member are contacted by a debt relief company using these tactics, run — don’t walk — away. A legitimate company should provide you with plenty of testimonials for people they’ve helped, and shouldn’t collect a dime from you until your debt is settled."

- Denny Ceizyk, Bankrate Senior Loans Writer

When is debt relief a good idea?

The decision to apply for debt relief has serious potential benefits and consequences. Knowing what to do before you apply and what to expect once you do can help you choose the right relief for your situation and avoid pitfalls along the way. 

Don’t apply until you’ve asked yourself whether it’s the best solution for your circumstances. In most cases, debt relief only makes sense if:

  • You’re behind on payments or are struggling to pay each month.
  • You have thousands of dollar’s worth of unsecured debt, such as credit cards, medical bills or personal loans.
  • Your credit isn’t in the best shape to qualify for a debt consolidation loan.
  • Your debt payments eat away half or more of your monthly earnings.
  • You won’t be able to repay your debt in less than five years.
  • Your only other option is bankruptcy.

How will debt relief be applied to my loans?


Nationally recognized student financial aid expert

There are several types of debt relief. Some involve a temporary or permanent reduction in the interest rate or monthly loan payments. These include deferments and forbearances. Some base the loan payment on a percentage of your income or discretionary income, such as income-driven repayment plans. Some involve loan consolidation or refinance, where multiple loans are combined into a single loan with a lower interest rate and lower payment. Some involve loan forgiveness or loan discharge, where the remaining debt is canceled. Some require you to make a lump sum payment in exchange for settling the debt for less than what you owe. Note that some forms of debt relief where all or part of the debt is canceled may be treated as taxable income to you on IRS Form 1099-C (i.e., as though someone provided you with the money to pay off the debt).

Senior Loans Writer

If you’re working with a debt settlement or management company, they should provide written details about how your debt is handled. With a debt settlement company, you may need to move funds into an account specifically for making plan payments. You can track the payments through the account. Debt settlement agencies tend to focus on your small accounts since they’re easier to negotiate. Debt management is different. You agree to make payments over a longer time, at a lower rate or a combination of the two. Again, the key is to get everything in writing so you can track how the debts are being paid. Contact a non-profit credit counselor if you think you’re working with a shady company. And never, ever pay any company a single cent upfront for debt relief.

How to apply for debt relief

Understanding the application steps can help improve your odds of getting the type of relief you need.

  1. Determine which debts to include: You don’t have to add all of your credit accounts to a debt relief plan. Remember that you won’t be able to use accounts that become part of a debt settlement or management plan. Keeping some credit cards available for emergencies may be wise.
  2. Get payoff estimates from each creditor: Although debt relief companies generally negotiate credit balances in debt relief programs, you should know what you owe. The most accurate balances should be reflected on your monthly statement. 
  3. Decide which type of debt relief is best for you: Select the realistic option for your income and budget. Debt settlement is typically best if you’re behind on payments and can’t bring them current. Debt management plans may give you more affordable payment options if you've managed to make your payments on time.
  4. Learn the eligibility requirements for each program: Many debt relief companies require you to have at least $7,500 of unsecured debt to qualify. Others may require proof that you’re behind on payments before considering you for relief. 
  5. Know what documents you’ll need: You should have copies of current statements for all debts you plan to pay off. You may also need proof of income, such as pay stubs or W-2s. 
  6. Fill out an application: Applying for debt relief may be a more involved process than getting a loan. The debt relief company may need you to help get contact information for each creditor or provide updated pay stubs and personal documents as needed. 
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Where can I get debt relief help?

To choose the right debt relief plan, you’ll need to assess your credit accounts, in addition to your financial situation and credit score.

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How to compare debt settlement companies 

Before choosing a debt relief company, you should ask five questions to ensure you’re dealing with a legitimate company that can help you achieve your desired results.

How can you tell if a debt relief company is legitimate?

Research and learn about debt relief programs before you select one. As you review debt relief options, you should consider:

  • Bold claims: According to the Federal Trade Commission (FTC), if a company promises to resolve your debts without evaluating your case, that's an instant red flag. Companies cannot know whether your creditors will work with them until they’ve contacted them.
  • Upfront fees: The FTC also warns consumers to look out for companies that charge illegal upfront fees for their services. If a company wants money before taking on your case, the company isn’t legitimate.
  • Official reputation within the space: Contact your state attorney general and a local consumer protection agency before selecting a company. The FTC also has a comprehensive list of companies and people banned from the debt relief business.

Alternatives to debt relief

Consider the following alternatives to debt relief if working with a company isn't the best option for your finances. 

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The author’s expert insight: Should I work with a debt relief company to help me qualify for a mortgage?

"The answer is almost always no, unless you don’t plan to apply for a mortgage until you’ve completed your debt plan. Often debt included in a debt relief plan is flagged with a 'settle for less than balance' message on your credit report. A mortgage lender may deny your application if you don’t have a lot of other strengths like a low debt ratio or a big down payment. 

"In the mortgage world, a 'settled for less than balance' is similar to a short sale, when you sell a home that's worth less than you owe. Because mortgage loan amounts are typically much higher than other debts, a lender may not be willing to lend you money to buy a home if you could not pay smaller debts as agreed." 

- Denny Ceizyk, Bankrate Senior Loans Writer

Frequently asked questions

How we choose our best debt relief companies

Bankrate's trusted debt relief industry expertise

48

years in business

12

companies reviewed

15

features weighed

180

data points collected

To rate debt relief services, Bankrate considers 15 factors. These factors include minimum debt allowed, what fees are charged, whether there are unresolved complaints and if the company is accredited. Categories that the services are rated on include: