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Best debt relief companies of April 2025

Written by
Michelle Clardie
Edited by
Aylea Wilkins
Reviewed by
Thomas Brock, CFA, CPA
Edited by
Aylea Wilkins
Reviewed by
Thomas Brock, CFA, CPA
Updated Apr 15, 2025

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
Bankrate Review
  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
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On partner site

Debt Relief

Accredited Debt Relief: Best for CUSTOMER SATISFACTION

Accredited Debt Relief
Rating: 4.8 stars out of 5
4.8
Bankrate Review
  1. Checkmark Icon Over $2 billion in debt paid off
  2. Checkmark Icon Over 700,000 clients enrolled
  3. Checkmark Icon Minimum debt: $10,000
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On partner site

Debt Relief

Freedom Debt Relief: BEST FOR PROGRAM COST GUARANTEE

Freedom Debt Relief
Rating: 4.1 stars out of 5
4.1
Bankrate Review
  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
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On partner site

Debt Relief

Pacific Debt: BEST FOR EDUCATIONAL RESOURCES

Pacific Debt
Rating: 4.1 stars out of 5
4.1
Bankrate Review
  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
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On partner site

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
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On This Page

A closer look at our top debt relief companies 

If you're struggling to manage overwhelming debt, seeking help from a debt relief company can be a crucial first step toward regaining control of your finances. The best debt relief companies can help negotiate settlements on your behalf and offer various tools such as credit counseling, debt consolidation and management plans. These services aim to help you avoid bankruptcy, get on top of your debt and rebuild your financial health.

Our team of experts has evaluated the top debt relief companies for 2025 based on factors such as fees, minimum debt requirements, customer support and overall reputation. Below, you'll find detailed information on each company's standout features and how they can help you manage your financial situation.

Rating: 4.4 stars out of 5
4.4
Bankrate review
See personalized rates

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. 

Read Bankrate's Expert National Debt Relief Review
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.
Pros
  • No fees until debt is resolved.
  • Free savings estimate.
  • Affordable plans.
Cons
  • Initial damage to credit score.
  • No guarantee that all debts will be resolved.
  • Closing fee of up to 25%.
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an National Debt Relief loan. National Debt Relief is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.8 stars out of 5
4.8
Bankrate review
See personalized rates

Accredited Debt Relief matches customers with debt consolidation loans to simplify their repayment processes. The company scored the highest percentage of five-star Trustpilot ratings among Bankrate-reviewed debt relief companies. It offers customers many resources, including a knowledge hub and an educational blog. The company also offers personalized plans and access to a certified debt specialist — perks not offered by every relief company on the market. 

Read Bankrate's Expert Accredited Debt Relief Review
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.
Pros
  • Several relief options.
  • Free consultation.
  • Money back guarantee.
Cons
  • Unsecured debts only.
  • High minimum debt amount.
  • Fees of up to 25% of your enrolled balance.
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Accredited Debt Relief loan. Accredited Debt Relief is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.1 stars out of 5
4.1
Bankrate review
See personalized rates

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.

Read Bankrate's Expert Freedom Debt Relief Review
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.
Pros
  • Low minimum amount.
  • Free evaluation.
  • Low monthly deposit.
Cons
  • No resolution guarantee.
  • Only available in select states.
  • Closing fee of up to 25%.
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Freedom Debt Relief loan. Freedom Debt Relief is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.1 stars out of 5
4.1
Bankrate review
See personalized rates

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.

Read Bankrate's Expert Pacific Debt Relief Review
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
Pros
  • Monthly payment based on your budget.
  • Dedicated account manager.
  • Free orientation.
Cons
  • Not available in all states.
  • Must have over $10,000 in debt.
  • No guarantee that all debts can be resolved.
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an Pacific Debt loan. Pacific Debt is also a good match for people who prefer access to customer service seven days a week.
Rating: 4.3 stars out of 5
4.3
See personalized rates

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.

Read Bankrate's Expert JG Wentworth Review
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.
Pros
  • Wide range of relief amounts.
  • 24/7 customer support.
  • Request a quote online.
Cons
  • Not available in all states.
  • Higher-than-average closing fee.
  • No guarantee that all debts can be consolidated.
WHO'S IT FOR:
Borrowers with strong work histories and education but poor credit may benefit most from an JG Wentworth loan. JG Wentworth is also a good match for people who prefer access to customer service seven days a week.

What is debt relief?

Debt relief refers to strategies designed to help individuals reduce or eliminate unmanageable debt. This assistance can come in various forms, such as debt settlement, consolidation or management plans, and typically involves working with a debt relief company or nonprofit organization to negotiate better terms with creditors. 

The primary goal of debt relief is to make the repayment process more manageable, potentially lowering interest rates, reducing monthly payments or even settling for less than the amount owed. It is most commonly used by people with substantial unsecured debts — such as credit card balances or medical bills — who struggle to make consistent payments.

Debt relief provides a way to avoid bankruptcy, which can have severe long-term consequences on your credit report. However, it is important to note that seeking debt relief may also have short-term impacts on your credit score and financial stability, depending on the route you take. 

Understanding the different forms of debt relief and how they work is critical to deciding which approach best suits your financial situation.

How do debt relief programs work?

Debt relief companies act as intermediaries between you and your creditors. Their primary function is to negotiate with creditors on your behalf to reduce the total amount of debt or adjust the repayment terms to make payments more affordable.

When you sign up for a debt relief program, the company often requires you to stop making direct payments to creditors and instead make monthly deposits into a separate account. This account accumulates funds that will later be used to settle the debt. The goal is to leverage these savings to offer creditors a lump sum payment for a reduced balance. 

Most debt relief companies charge fees, usually between 15 and 25 percent of the total enrolled debt, only after a settlement is reached. You may also pay a one-time setup fee and a monthly maintenance fee for the managed account.

Here's a closer look at your different options with these services.

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Bankrate insight on bankruptcy

If debt relief doesn'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 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. However, some experts think debt settlement has even worse long-term consequences than bankruptcy does. 

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. In addition, many debt relief companies charge one-time and recurring setup and maintenance fees.
  • 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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Bankrate'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, especially if you're seeking debt settlement. Knowing what to do before you apply and what to expect once you do can help you choose the right type of 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 settlement only makes sense if:

  • You’re already behind on payments or are struggling to pay each month.
  • You have thousands of dollars in unsecured debt, such as credit cards, medical bills or personal loans.
  • Your credit score is too low 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.
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BANKRATE EXPERT FAQ

How will debt relief be applied to my loans?

Mark Kantrowitz

Bankrate Expert Contributor, Student Loans

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).

Denny Ceizyk

Senior writer, Loans

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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LEARN MORE ABOUT

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

Be wary of companies that make sweeping promises to resolve your debt without fully understanding your financial situation. According to the Federal Trade Commission (FTC), a legitimate debt relief company will evaluate your financial situation before making any claims about its ability to settle your debt. 

Promising results without considering whether creditors will agree to negotiate is a significant red flag. No company can guarantee specific outcomes, as creditors must first agree to the terms of any settlement or relief plan.

Upfront fees

The FTC explicitly warns against companies that charge upfront fees, because this is illegal under U.S. law. A legitimate debt relief company will not require any payment before it has successfully negotiated a settlement or relief plan with your creditors. If a company demands fees before starting work on your case — excluding setup fees — this is a strong indication that the company may not be reputable. 

Reputation and accreditation

Another key step in evaluating the legitimacy of a debt relief company is to check its reputation with consumer protection agencies. Contact your state’s attorney general office or your local consumer protection agency to see if there are any complaints against the company. The FTC also maintains a list of companies that have been banned from operating in the debt relief industry.

Additionally, reputable companies are usually accredited by organizations such as the American Fair Credit Council (AFCC) or the International Association of Professional Debt Arbitrators (IAPDA). Checking for these certifications can provide some assurance that the company adheres to industry standards and ethical practices.

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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Bankrate 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

Read our full methodology

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: