Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Personal Finance Debt Relief The Best Debt Relief Companies and How They Work [2025 Edition] Updated Jun 30, 2025 13-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Timothy Moore, CFEI® Written by Timothy Moore, CFEI® Expertise: Bank accounts, credit cards, taxes, insurance, personal loans Timothy Moore is a Certified Financial Education Instructor (CFEI®) specializing in bank accounts, student loans, taxes, and insurance. His passion is helping readers navigate life on a tight budget. Learn more about Timothy Moore, CFEI® Reviewed by Erin Kinkade, CFP® Reviewed by Erin Kinkade, CFP® Expertise: Insurance planning, education planning, retirement planning, investment planning, military benefits, behavioral finance Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families. Learn more about Erin Kinkade, CFP® Facing mountains of debt can be paralyzing; for some, it may feel impossible to ever escape the feeling of dread when it’s time to make monthly debt payments. But you don’t have to let your debt define your life. If you’re struggling with massive debt from credit cards, personal loans, student loans, back taxes, or medical bills, you have options. You can get a debt consolidation loan, try a debt payoff strategy like the debt avalanche or debt snowball, or file bankruptcy. You may also be able to get debt relief by negotiating your debt with multiple creditors, especially with the help of debt settlement companies. Below, we’ll review the best debt relief companies to help you get on better financial footing. Best Overall 4.9 Learn More Possible Savings Up to 50% Min. Balance $10K Settlement Fee 15% – 25% 4.9 Learn More Best for Transparency 4.6 Learn More Possible Savings Up to 50% Min. Balance $7.5K Settlement Fee 15% – 25% 4.6 Learn More Best for Customer Experience 4.4 Learn More Possible Savings Up to 50% Min. Balance $10K Settlement Fee 25% 4.4 Learn More Table of Contents The 3 highest-rated debt relief companies National Debt Relief Freedom Debt Relief Accredited Debt Relief Other debt relief companies What types of debt can these debt relief companies help with? Medical debt relief Merchant cash advance (MCA) debt relief Credit card debt relief Personal loan debt relief Private student loan debt relief Divorce debt relief Unemployment debt relief FAQ What do debt relief companies do? Can debt relief companies help with tax debt? How do debt relief companies make money? Are debt relief companies legit? Do debt relief companies hurt your credit? How much do debt relief companies charge? How do debt relief companies work with the IRS? What are MCA debt relief companies, and how do they help? What are the worst debt relief companies in the USA? The 3 highest-rated debt relief companies Debt relief companies follow set industry standards. Programs last two to four years, during which clients stop paying creditors, causing credit scores to drop. Clients make monthly deposits into an FDIC-insured escrow account used to fund settlements. The company negotiates lower payoff amounts and charges a 15% to 25% fee only after a settlement is reached. Reputable firms follow FTC rules and belong to groups like the AFCC or IAPDA. We analyzed several well-known debt relief companies nationwide to find the absolute best settlement options available. We prioritized companies with fair pricing (no upfront fees), transparent practices, and solid reviews on sites like Trustpilot and Better Business Bureau. The companies below represent the best of the best. They have a proven track record of negotiating payments and helping people reduce their overall debt burden. They offer clear pricing, customer satisfaction guarantees, and expert advice—even if that advice means they steer you away from debt settlement toward another option from which they won’t profit. Best overall: National Debt Relief Best for transparency: Freedom Debt Relief Best for customer experience: Accredited Debt Relief National Debt Relief Best Overall 4.9 /5 Learn More What is National Debt Relief? National Debt Relief is the best debt relief company in the United States, based on our thorough analysis of multiple debt settlement companies. The best feature of National Debt Relief is its satisfaction guarantee. You won’t pay a cent on a fee associated with a specific debt until you have approved the settlement for that debt and made your first payment toward it. If you don’t like the settlement the company gets you, you don’t have to accept. National Debt Relief offers more than just debt settlement. The company can also set you up with experts in its network for services such as debt consolidation loans, credit counseling, bankruptcy, and more. The company currently has an A+ rating with the Better Business Bureau. Min. required debt$10,000Settlement fee15% – 25% of total debt enrolled in the programMembership fees$9 one-time setup fee, $9.85 monthly membership feeHow much can you save?Up to 50% of debt before debt relief fees and 30% of debt after fees Where is National Debt Relief available? Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Virginia Washington Wyoming Freedom Debt Relief Best for Transparency 4.6 /5 Learn More What is Freedom Debt Relief? We selected Freedom Debt Relief as the best debt relief company for transparency, due to the Freedom Debt Relief Promise, which ensures any potential customer gets a true opportunity to learn about all their options for tackling debt, even if that means they choose a path the company doesn’t offer. Freedom Debt Relief will also develop a personalized plan for each potential customer. Like National Debt Relief, Freedom Debt Relief only charges fees for successfully negotiated debts. A hallmark of the company is its lower minimum debt requirement ($7,500), which makes it easier for people with lower but still unmanageable debts to get help. Min. required debt$7,500Settlement fee15% – 25% of total debt enrolled in the programMembership fees$9.95 one-time setup fee, $9.95 monthly membership feeHow much can you save?Up to 50%, minus fees; if your total debt settlement cost is higher than the original debt when you entered the program, refunds the difference Where is Freedom Debt Relief available? Alaska Arizona Arkansas California Colorado Delaware Florida Hawaii Idaho Indiana Iowa Kentucky Louisiana Maryland Massachusetts Michigan Minnesota Missouri Montana Nebraska Nevada New Mexico New York North Carolina Ohio Oklahoma Pennsylvania South Dakota Tennessee Texas Utah Virginia Accredited Debt Relief Best for Customer Experience 4.4 /5 Learn More What is Accredited Debt Relief? Accredited Debt Relief is the best debt settlement company for customer experience. The company has an A+ rating with the Better Business Bureau and a 4.9 out of 5-star rating on Trustpilot, based on nearly 7,500 reviews at press time. Accredited Debt Relief also notably does not charge monthly membership fees. Like other debt settlement companies we rated, it will assemble a personalized plan for your needs, with a focus on lowering monthly payments (by up to 40%) and paying off debt within 24 to 48 months. Min. required debt$10,000Settlement feeTypically 25% of total debt enrolled in the programMembership feesNoneHow much can you save?Reduce monthly payments by up to 40% Where is Accredited Debt Relief available? Alabama Alaska Arizona Arkansas California Colorado Florida Idaho Indiana Kentucky Louisiana Maryland Massachusetts Michigan Mississippi Missouri Montana Nebraska Nevada New Mexico New York North Carolina Oklahoma Pennsylvania South Dakota Tennessee Texas Utah Virginia Washington, DC Wisconsin Note: Debt consolidation programs through Accredited Debt Relief may vary by state. Other debt relief companies Check out our reviews of other debt relief companies to see how they compare to National Debt Relief, Freedom Debt Relief, and Accredited Debt Relief: Americor CuraDebt DebtBusters JG Wentworth New Era Debt Solutions Pacific Debt Relief What types of debt can these debt relief companies help with? Our analysis found National Debt Relief, Freedom Debt Relief, and Accredited Debt Relief to be the best debt relief companies. Below, we’ve listed specific types of debt and the company we think is best to help you settle it. None of these companies offer help with federal student loans. Medical debt relief Winner: National Debt Relief Medical bills are one of the leading causes of debt in the U.S. National Debt Relief works with hospitals and collection agencies to negotiate lower balances or structured settlements, helping clients avoid bankruptcy and reduce stress from overwhelming medical expenses. Merchant cash advance (MCA) debt relief Winner: Freedom Debt Relief Merchant cash advance debt can cripple small businesses. Freedom Debt Relief offers personalized help negotiating MCA debt, particularly if it’s personally guaranteed. While not all debt relief companies specialize in business debt, Freedom evaluates MCA cases individually to help business owners stay afloat. Credit card debt relief Winner: National Debt Relief Credit card debt is the most common reason people seek debt settlement help. National Debt Relief has a strong track record of negotiating credit card balances down by as much as 50% before fees, making it the best choice for overwhelmed cardholders. Personal loan debt relief Winner: Accredited Debt Relief Personal loan balances can snowball, especially when combined with credit cards. Accredited Debt Relief helps reduce these balances and offers a highly rated customer experience throughout the process, making it our top pick for personal loan debt settlement. Private student loan debt relief Winner: National Debt Relief Although federal student loans don’t qualify, National Debt Relief may be able to help with private student loan balances, especially those in default. The company evaluates eligibility on a case-by-case basis and helps reduce or restructure debt from private lenders. Divorce debt relief Winner: National Debt Relief Divorce often leaves individuals managing debt from legal fees, joint accounts, or lifestyle shifts. National Debt Relief helps individuals resolve debt left over from divorce through custom settlement plans and creditor negotiations. Unemployment debt relief Winner: Freedom Debt Relief Job loss can trigger fast debt accumulation. Freedom Debt Relief offers flexible plans for those whose income has dropped, helping them stabilize finances through manageable payments and eventual settlements on credit cards, personal loans, and more. Remember: The amount of personal debt forgiven through debt relief will be considered taxable income in the year it is forgiven. I typically recommend working with a debt relief company if you are facing bankruptcy and have no other options. After we discuss the pros and cons of choosing debt relief, I refer my clients to a debt counselor so they can make the best decision. Erin Kinkade, CFP® Erin Kinkade , CFP®, ChFC® Is Debt Relief a Good Idea? Here’s When It Makes Sense FAQ What do debt relief companies do? Debt relief companies work with creditors and debt collectors on your behalf to renegotiate or settle your debt. These companies, also called debt settlement companies, cannot guarantee success, but they have a thorough understanding of how to navigate the complexities of debt negotiations with creditors, thus improving your chances. Keep in mind, debt settlement companies charge expensive fees for their services. There are several other risks as well, including a negative impact on your credit score and potential lawsuits from debt collectors. If you want to learn more about whether debt relief is a good option for you, consider our guide here. Can debt relief companies help with tax debt? Most debt relief companies do not handle tax debt. If you owe the IRS, you’ll need a specialized tax relief company that can negotiate Offers in Compromise, installment plans, or hardship deferrals. Below are the companies we’ve selected as the best for tax debt relief. Find out more about all of them in our guide to tax relief providers. Company Designations Rating (0-5) 4.9 Visit Site Min. Tax Debt: $20K+ Best Initial Investigation(833) 270-3007 4.9 Visit Site Min. Tax Debt: $20K+ 4.8 Visit Site Min. Tax Debt: $10K+ Best Lowest-Price Guarantee(559) 398-0472 4.8 Visit Site Min. Tax Debt: $10K+ 4.6 Visit Site Min. Tax Debt: $10K+ Best Money-Back Guarantee(855) 936-0319 4.6 Visit Site Min. Tax Debt: $10K+ 4.6 Visit Site Min. Tax Debt: $20K+ Great for Transparent Expectations(720) 390-4615 4.6 Visit Site Min. Tax Debt: $20K+ 4.4 Visit Site Min. Tax Debt: $10K+ Best Customer Service 4.4 Visit Site Min. Tax Debt: $10K+ Show more How do debt relief companies make money? Debt relief companies charge fees for their services. This will vary by company and by debt, but expect to pay anywhere from 15% to 25% of the debt the company is negotiating on your behalf, if it’s successfully settled. Debt settlement companies also sometimes charge set-up fees and monthly membership fees, which can vary. Are debt relief companies legit? Debt relief companies are legit and can successfully reduce your overall debt. However, they’re not your only option. Alternatives include debt consolidation loans, negotiating your debt on your own, or even filing for bankruptcy. Also note that debt relief scams are rampant. A common sign of a debt relief scam is requiring payment upfront; you should only pay a debt relief company that has successfully negotiated the debt. Another common trademark of a debt relief scam is if the company reaches out to you first, unsolicited. This is a red flag; avoid working with any debt relief company employing this tactic. How to Choose Between Debt Relief vs. Debt Consolidation Do debt relief companies hurt your credit? Using a debt relief company to settle your debt does hurt your credit score. In fact, expect your credit score to drop between 100 and 125 points. Why such a big impact? Payment history makes up 35% of your credit score—more than a third of your overall score—and that’s where debt settlement is reflected on your report. How much do debt relief companies charge? Debt relief companies typically charge between 15% and 25% of the total debt being settled. They will charge this amount if they are successful at negotiating your debt, even if the success is minimal. For instance, if you owe $20,000 in credit card debt, the debt relief company might charge between $3,000 and $5,000 for their services, regardless of how much or how little they reduce your debt by. How do debt relief companies work with the IRS? The best IRS debt relief companies offer a number of options for settling your tax debt. They’ll work with the IRS on your behalf to lower your debt or set up a more manageable payment plan. Some of their tax debt forgiveness strategies include: Offers in Compromise IRS installment plans Innocent spouse relief Penalty abatement Currently not collectible status What are MCA debt relief companies, and how do they help? Merchant cash advance (MCA) debt relief companies help businesses negotiate debt from their merchant cash advance—something some companies take to help finance the start of their business (or keep their existing business afloat) in exchange for a percentage of their sales. Such debt can become difficult for companies to manage. MCA debt relief companies work to develop a realistic settlement with the lender that will keep your company from going out of business. What are the worst debt relief companies in the USA? The worst debt relief companies in the US are those that require upfront fees, initiate first contact, or make huge promises about how they can wipe out your debt almost entirely. These are generally signs of a scam, and you should avoid them at all costs. The Federal Trade Commission keeps a list of companies that are banned from providing debt relief. Review this list to ensure a company you’re considering is not on it. The important factors to consider when working with a debt relief company are making sure the company does its due diligence, compares and contrasts the pros and cons, and has the expertise to review and understand the terms on the documents. Erin Kinkade, CFP® Erin Kinkade , CFP®, ChFC® What Is Nonprofit Debt Consolidation, and How Does It Work? How we selected the best debt relief companies Since 2020, LendEDU has evaluated debt relief companies to help readers find the best debt relief services. Our latest analysis reviewed 115 data points from 5 companies, with 23 data points collected from each. This information is gathered from company websites, public disclosures, customer reviews, and direct communication with company representatives. These data points are organized into broader categories, which our editorial team weights and scores based on their relative importance to readers. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once. Higher star ratings are ultimately awarded to companies that create an excellent experience and have a track record of settling and consolidating debts for clients. This includes offering a free consultation, cost transparency, and employing a team of experienced debt settlement professionals with varying licenses and certifications. List of debt relief companies we evaluated Accredited Debt Relief American Debt Relief Atlas Debt Relief Freedom Debt Relief National Debt Relief Recap of the best debt relief companies Best Overall 4.9 Learn More Possible Savings Up to 50% Min. Balance $10K Settlement Fee 15% – 25% 4.9 Learn More Best for Transparency 4.6 Learn More Possible Savings Up to 50% Min. Balance $7.5K Settlement Fee 15% – 25% 4.6 Learn More Best for Customer Experience 4.4 Learn More Possible Savings Up to 50% Min. Balance $10K Settlement Fee 25% 4.4 Learn More