Best Debt Relief Companies of 2026 and How They Operate

If you’re dealing with overwhelming debt from credit cards, personal loans, medical bills, or even back taxes, you’re not alone. And more importantly, you’re not out of options.

Debt relief companies help people negotiate unsecured debts when monthly payments are no longer manageable. For the right person, they can significantly reduce what you owe. For others, safer alternatives like nonprofit credit counseling may make more sense.

We reviewed the best debt relief companies of 2026 based on transparency, pricing, customer experience, and real-world outcomes, so you can decide what actually fits your situation, not just what sounds good on paper.

Table of Contents

1. How debt settlement works (and what to expect)
2. LendEDU’s highest-rated debt relief companies
3. Honorable mentions: Other debt relief companies worth considering
4. Nonprofit credit counseling vs. debt relief companies
5. Are debt relief companies legit or a scam?
6. Best company by type of debt
   1. Medical
   2. MCA (merchant cash advance)
   3. Credit card
   4. Personal loan
   5. Student loans
   6. Divorce
   7. Unemployment
7. FAQ
   1. Can debt relief companies help with tax debt?
   2. Do debt relief companies hurt your credit?
   3. How much do debt relief companies charge?
   4. How do debt relief companies work with the IRS?
   5. What are MCA debt relief companies?

How debt settlement works (and what to expect)

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.

What 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.

Debt settlement companies charge fees for their services. Other risks to be aware of include a negative impact on your credit score, potential lawsuits from debt collectors, and the possibility that you’ll owe taxes on settled debt.

Jump to the best debt relief companies.

How debt settlement works step by step

Debt settlement isn’t a quick fix, but understanding the process upfront helps you decide whether it’s worth the trade-offs. Here’s what typically happens when you enroll in a debt relief program:

1. You stop paying unsecured creditors

After enrolling, you stop making payments on eligible debts, such as credit cards or personal loans. This is necessary to create leverage for negotiations, but it usually causes your credit score to drop and may lead to collection calls or late fees in the short term.

2. You make monthly deposits into a dedicated account

Instead of paying creditors directly, you deposit money into an FDIC-insured escrow account in your name. These funds are later used to pay negotiated settlements.

3. The company negotiates with your creditors

Once enough funds accumulate, the debt relief company contacts creditors to negotiate lump-sum settlements for less than the full balance. Not every creditor agrees, and results vary by debt type and timing.

4. You approve each settlement

Reputable debt relief companies require your approval before finalizing any settlement. You can reject an offer if it doesn’t make financial sense for you.

5. Fees are charged only after a settlement

By law, debt settlement companies can’t charge fees upfront. They typically collect 15% to 25% of the enrolled debt only after a settlement is reached and you’ve made your first payment toward it.

6. Your program ends once debts are settled

Most programs last two to four years. As accounts are settled, collection activity usually slows, and you can begin rebuilding your credit once the program is complete.

How 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 setup fees and monthly membership fees, which can vary.

LendEDU’s highest-rated debt relief companies

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 they won’t profit from.

Best debt relief companies by debt type

If you already know what kind of debt you’re struggling with, this jump list can help you find the most relevant option faster:

• Medical debt: National Debt Relief
• Merchant cash advance (MCA) debt: Freedom Debt Relief
• Credit card debt: National Debt Relief
• Personal loan debt: Accredited Debt Relief
• Private student loan debt: National Debt Relief (case by case; federal loans excluded)
• Divorce-related debt: National Debt Relief
• Unemployment-related debt: Freedom Debt Relief

Honorable mentions: Other debt relief companies worth considering

These companies didn’t earn our top recommendations, but they may still be worth considering depending on your location, debt type, or preference for a specific provider. Availability, pricing, and outcomes vary by state, so always confirm details before enrolling.

JG Wentworth

30-Year Track Record

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What to know

JG Wentworth is a long-established financial services company that also offers debt relief programs for unsecured debt.

Its biggest strength is its longevity and name recognition, though pricing details aren’t always easy to find upfront, and customer experiences can vary. It may appeal to borrowers who value working with a well-known brand, but it doesn’t stand out as strongly as top-rated specialists like National Debt Relief.

Min. required debt	$7,500
Standout feature	30-year track record
Settlement fee	18% – 25% of enrolled debt
Membership fees	None
How much can you save?	Reduce monthly payments up to 43%

Pacific Debt Relief

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What to know

Pacific Debt Relief focuses on personalized, one-on-one support, pairing clients with certified debt specialists who review budgets and negotiate settlements.

The company earns praise for customer experience, but it’s less transparent about costs and lacks standout features compared to industry leaders. It’s a reasonable option if hands-on guidance is the most important factor, although fees tend to be higher.

Min. required debt	$10,000
Standout feature	Personalized one-on-one support
Membership fees	None
How much can you save?	Reduce monthly payments up to 50%

Americor Debt Relief

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What to know

Americor is a legitimate, accredited debt relief company that combines debt settlement with optional debt consolidation loans. It doesn’t charge upfront fees and only collects payment after you approve a settlement, which aligns with FTC rules.

However, fees can run higher than average, and the company isn’t available in every state, making it better as a secondary option rather than a first choice.

Min. debt required	$7,500
Settlement fee	14% – 29%
Potential savings	Up to 50% of enrolled debt (minus fees)
Timeline	24 – 48 months (average 35 months)

New Era Debt Solutions

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What to know

New Era Debt Solutions is a smaller, long-running debt settlement firm known for charging no upfront fees and offering free debt analyses.

While customer reviews are generally positive, the company is less transparent about minimum debt requirements and fee structure. It can work as a backup option if you prefer a smaller provider, but it lacks the scale and disclosures of top competitors.

Min. debt required	Not disclosed
Fees	None upfront, 15% – 25% after settlement
Timeline	3 years or less

CuraDebt

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What to know

CuraDebt offers debt relief services with a low-price guarantee and works with several types of unsecured debt.

While it has many positive reviews, its limited state availability, outdated website, and lack of clear pricing make it harder to recommend confidently. For most borrowers, more transparent companies like National Debt Relief offer a smoother experience.

Min. required debt	$10,000
Fees	Not disclosed
How much can you save?	40% – 60%

DebtBusters

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What to know

DebtBusters provides debt settlement and related financial services with no upfront or monthly fees, charging only after a settlement is reached.

While that structure is appealing, the company doesn’t differentiate itself meaningfully from competitors and lacks accreditation from major industry organizations. It may help borrowers who need negotiation support, but stronger alternatives are available.

Solutions offered	Debt relief, debt settlement, debt consolidation, student loan forgiveness, credit card debt forgiveness, credit repair services, debt management, tax debt relief, and bankruptcy services
Counseling consultation fee	$0
Enrollment fee	$0
Maintenance fee	$0
Timeline	24 – 48 months

Nonprofit credit counseling vs. debt relief companies: What’s the difference?

Debt relief companies and nonprofit credit counseling agencies solve different problems, and choosing the wrong one can cost you time, money, and credit score damage.

• For-profit debt relief companies (like National Debt Relief, Freedom Debt Relief, and the others listed above) negotiate debts down after you stop paying creditors. This can reduce balances significantly, but it usually hurts your credit and comes with settlement fees.
• Nonprofit credit counseling agencies, on the other hand, focus on structured repayment. They work with creditors to lower interest rates and fees while you continue paying your debts in full, often with far less impact on your credit.

These are great nonprofit credit counseling agencies our team identified.

American Consumer Credit Counseling

Best overall nonprofit option

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Why we like it

American Consumer Credit Counseling (ACCC) is a strong nonprofit option if you’re looking for structured repayment without damaging your credit. Its low fees, A+ BBB rating, and no minimum debt requirement make it a safer alternative to for-profit debt settlement, especially if you can afford a steady monthly payment over four to five years.

Solutions offered	Credit counseling, debt management plans, bankruptcy counseling, and housing services
Debt required	No minimum
Counseling consultation fee	Free
Enrollment fee	$39 (may be waived or reduced)
Maintenance fee	$7 per account per month; max $70 per month (may be waived or reduced)
Timeline	4 – 5 years

Money Management International

Best comprehensive counseling

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Why we like it

Money Management International focuses on debt management plans. It’s known for its great customer service, low fees, and accreditations. The company provides specialized counseling for bankruptcy, homebuying, disaster relief, and more.

Min. required debt	No minimum
Setup fee	$33 – $75
Monthly fee	$25 – $59
How much can you save?	Reduce interest rates by 20% or more

Cambridge Credit Counseling

Best for transparency

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Why we like it

Cambridge Credit Counseling is based in Agawam, Massachusetts, and has been around since 1996. It’s a nonprofit agency and a member of the reputable NFCC.

It offers a range of programs designed to help individuals with specific financial challenges, including credit counseling, student loan counseling, debt management plans, foreclosure prevention counseling, renter and homebuyer counseling, bankruptcy counseling and certification, and reverse mortgage counseling.

Debt management plan fees	Initial fee: Up to $75 ($40 on average) Monthly fee: Up to $50 ($30 on average)
Avg. monthly savings	$142
Avg. program length	3.5 years
Bankruptcy counseling fee	Pre-filing session: $25 Pre-discharge session: $25

Apprisen

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Why we like it

Apprisen has been negotiating debt with creditors on behalf of its clients for more than 70 years. The organization aims to enhance people’s financial well-being through financial education, coaching, community outreach, and counseling. You can request a personalized Debt Summary and receive it in as little as 24 hours.

Solutions offered	Debt management program, IRIS, education, financial coaching, Propel, and counseling
Counseling consultation fee	$0
Enrollment fee	$45
Maintenance fee	$45 per month
Timeline	3 – 5 years in most cases

Trinity Debt Management

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Why we like it

Trinity Debt Management offers a faith-based approach to credit counseling and debt management plans, but it’s more limited than other nonprofit agencies and has mixed customer reviews. It may work if you want a Christian-centered option, but many borrowers may find better support, transparency, and outcomes elsewhere.

Services offered	Credit counseling; Debt management plans for credit cards
Debt management plan fee	Initial fee: Not disclosed; Monthly fee: $8 – $50 ($34 avg.)
Average savings	$110/month
Average interest rate reduction	14%
Average program length	3 – 5 years

Debt relief vs. credit counseling: Which is right for you?

Debt relief companies might be best if you:

• Are facing bankruptcy
• Can’t afford minimum payments
• Have large amounts of unsecured debt
• Are willing to accept credit score damage

Nonprofit credit counseling is likely best if you:

• Can afford a reduced monthly payment
• Want to protect your credit score
• Prefer repayment over settlement
• Need education and budgeting support

Debt relief vs. nonprofit credit counseling vs. bankruptcy

Not all debt solutions solve the same problem. This quick comparison helps clarify when each option makes sense.

Quick takeaway:

• Debt relief reduces balances but hurts credit
• Credit counseling preserves credit but doesn’t reduce principal
• Bankruptcy offers legal protection but has lasting consequences

Are debt relief companies legit or a scam?

For-profit 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.

What are the worst debt relief companies in the USA?

The worst debt relief companies in the U.S. 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®

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.

Medical 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.

Best MCA debt relief companies (merchant cash advance)

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

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

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.

Student loan debt relief companies: What works and what doesn’t

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

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

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.

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®

FAQ

Can debt relief companies help with tax debt?

Most debt relief companies do not handle tax debt.

IRS and tax debt relief companies: What to know

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.

Do debt relief companies hurt your credit?

Using a debt relief company to settle your debt does hurt your credit score. 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.

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.