The best debt relief companies of February 2025

If you’re struggling to pay your bills, you might be able to lower your payments by working with a debt relief company specializing in debt settlement.

Unlike debt consolidation, which merges multiple balances into one loan with a lower interest rate, debt settlement involves third parties negotiating with your creditors to lower your balance and get you out of the red faster.

Debt relief isn’t guaranteed — and it comes with high fees, a hit to your credit score and the risk of legal action by your creditors.

CNBC Select has chosen the top debt relief companies in a variety of categories. (Read more about our methodology below.)

Who’s this for? New Era Debt Solutions‘ fees average 14% to 23% of your total enrolled debts, the lowest of the companies we reviewed.

Standout benefits: New Era also offers its services in Spanish, making it more accessible.

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Who’s this for? In addition to debt settlement, Accredited Debt Relief provides free educational resources on money management to help you avoid debt trouble again in the future.

Standout benefits: Accredited has a high 4.89 out of 5 stars with the Better Business Bureau, based on an average of over 2,200 customer reviews.

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Who’s this for? Americor guarantees you won’t pay any fees unless it lowers your total enrolled debt. Since your creditors may refuse to negotiate, that’s a big plus.

Standout benefits: Americor charges clients between 14% and 29% of their enrolled debt, less than several competitors on this list.

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Who’s this for? National Debt Relief works with clients with as little as $7,500 in unsecured debt, less than many other debt settlement companies.

Standout benefits: National Debt Relief operates in every state except Oregon, Vermont, and West Virginia

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Who’s this for? Founded in 2002, Pacific Debt Relief is one of the oldest companies on our list, having settled more than $500 million in client debt.

Standout benefits:  Fees are charged based on a percentage of settled debt, not the full amount you came to the program with.

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Who’s this for? CuraDebt is one of the only debt settlement companies that works with the IRS and state revenue offices to set up payment plans and reduce penalties. It also provides audit representation.

Standout benefits: CuraDebt guarantees it will match or beat the fee of any debt settlement company with a comparable Better Business Bureau rating.

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Established in 2009, National Debt Relief is a member of the American Association for Debt Resolution and the International Association of Professional Debt Arbitrators.

Availability: National Debt Relief is available nationwide except in Oregon, Vermont and West Virginia

Minimum debt requirement: $7,500

Fees: 15% to 25% of enrolled debt

Better Business Bureau rating: A+

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Freedom Debt Relief has worked with over a million clients since its founding in 2002 and resolved over $18 billion in unsecured debt.

Availability: Freedom Debt Relief is not available in Colorado, North Dakota, Oregon, Rhode Island, Vermont, West Virginia, Wisconsin, Wyoming or Washington, D.C.

Minimum debt requirement: $7,500

Fees: 15% to 25% of enrolled debt on average

Better Business Bureau rating: A+

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A division of Beyond Finance, Accredited Debt Relief has been in business since 2011 and claims it can help clients reduce their monthly payments by 40% or more.

Availability: Accredited Debt Relief is available in 37 U.S. states and Washington, D.C.

Minimum debt requirement: $10,000

Fees: 25% of enrolled debt on average

Better Business Bureau rating: A+

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Founded in 2008, Americor claims it has helped more than 400,000 clients resolve over $3 billion in debt. It is a member of the American Association for Debt Resolution and the American Fair Credit Council.

Availability: Americor is available in every state except for Colorado

Minimum debt requirement: $7,500

Fees: 14% to 29% of enrolled debt

Better Business Bureau rating: A+

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Founded in 1999, Camarillo, California-based New Era Debt Solutions has settled more than $275 million in debt for its clients. It is accredited by the International Association of Professional Debt Arbitrators.

Availability: New Era Debt is available in all states except Iowa, Maine and Oregon

Minimum debt requirement: $10,000

Fees: 14% to 23% of enrolled debt on average

Better Business Bureau rating: A+

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Since its founding in 2002, Pacific Debt Relief has settled over $500 million in unsecured debts. It is a member of the International Association of Professional Debt Arbitrators and has been recognized by the Consumer Debt Relief Initiative.

Availability: Pacific Dept Relief is available nationwide except in Oregon

Minimum debt requirement: $10,000

Fees: 15% to 25% of enrolled debt

Better Business Bureau rating: A+

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CuraDebt has been helping clients with unsecured debt and tax obligations since 2000. Its reviews with the Better Business Bureau average 4.7 out of 5 stars.

Availability: Curadebt is available in 26 U.S. states and Washington, D.C.

Minimum debt requirement: $10,000

Fees: 15% to 25% of enrolled debt

Better Business Bureau rating: A

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Debt settlement is the process of negotiating with creditors to lower your balance. If you have a large unsecured debt — like a personal loan, credit card bills, private student loans or medical bills — a debt settlement company can negotiate with your creditor to lower your balance on your behalf.

Typically, debt settlement firms ask you to stop paying your creditors and put money into a specific savings or escrow account. Once you’ve saved up enough, the company will begin contacting creditors to negotiate.

If an agreement is reached, the funds from the account will be used to pay off the agreed amount. You will also pay a fee to the settlement company and may be charged banking fees to maintain the savings account.

There is no guarantee a debt settlement company will successfully negotiate with a creditor and halting payments can lead to further damage to your credit score, an increased balance from interest and fees, calls from collections agencies and even legal action.

Debt settlement companies typically charge clients between 15% and 25% of their enrolled debt, although some base the percentage on the settled amount, which can be significantly less.

There are also often fees associated with opening and maintaining a savings account. Setup fees can be in the range of $8 to $10, with an additional $9 or $10 in monthly account fees.

Each provider operates differently, so inquire about any fees before enrolling.

Debt settlement is expensive and can damage your credit. So, before choosing a debt settlement company, try other options — including talking to your creditor directly, applying for a debt consolidation loan and working with a credit counseling service.

To vet a debt settlement company, contact a consumer protection agency or your state’s Attorney General to ensure it doesn’t have outstanding complaints or lawsuits and that it’s licensed in your state.

Make sure the company works on the type of debt you have, inquire about any fees and consider its reviews and customer satisfaction ratings.

Beware of companies that guarantee success, charge upfront fees before settling debt or tell you to stop communicating with your creditors.

Debt settlement isn’t a guaranteed path to financial freedom, so consider these other options.

Set up a budget

If you’re not too deep in debt, you may be able to make changes to your spending and get your debt under control. The 50/30/20 rule is a straightforward way to divvy up your paycheck:

• 50% toward necessities like rent and groceries
• 30% to discretionary spending on things like movies and travel
• 20% into debt payments and savings,

For more help, there are free and paid budgeting programs and even apps that find and cancel unused subscriptions.

Negotiate with creditors directly

Credit card companies and other creditors may be willing to temporarily waive fees, lower your interest rate or minimum monthly payments or even pause payments. Ask about available forbearance or hardship programs and who qualifies.

As long as you follow the agreement, it shouldn’t impact your credit score. But interest will still accumulate during the forbearance period, so you’ll need to have a plan for paying it off when it ends.

Credit counseling agencies

Another alternative to a for-profit debt settlement company is working with a non-profit credit counseling service. Several offer debt management plans, working with your creditors to adjust fees and interest and get out of the red. You’ll make payments to this agency, which will distribute them to your creditors.

You typically have to pay for the service, but these agencies are far more affordable than traditional debt settlement. You can check with the Financial Counseling Association of America or the National Foundation for Credit Counseling for options. 

Balance transfer credit card

You can get some breathing room from crushing interest rates by transferring your debt onto a balance transfer credit card, some of which have zero interest for up to two years.

The Citi Simplicity® Card offers a 0% intro APR for 21 months and a 3% intro fee when you transfer within the first four months of opening your account. After the introductory period, however, there’s a variable APR of between 18.24% – 28.99% variable APR on balance transfers and your fee will be 5% of each transfer (minimum $5). So be sure you have a plan for paying off the balance or you could be trading one high-interest debt for another.

Debt consolidation loans

If you’re juggling multiple large debts, a debt consolidation loan combines them into one payment, usually with a much lower interest rate than an outstanding credit card bill. Not only will it save you money and streamline your accounts, but lowering your credit utilization ratio could improve your credit score.

If your credit has already taken a hit, Achieve approves debt consolidation loans for borrowers with a FICO score as low as 620.

Debt relief is an umbrella term that encompasses various options, including debt settlement and debt consolidation.

Debt settlement involves negotiating the amount you owe and is typically done by third-party companies that charge a fee for their services. These providers generally encourage clients to stop paying bills on their debts and instead make deposits in a dedicated savings account.

Debt consolidation usually means paying off your debts with a personal loan, usually with a lower interest rate. Rolling your balances into one makes it easier to manage and can protect your credit score

Our top picks for debt consolidation loans include:

• Best for flexible repayment terms: Upgrade
• Best for joint applicants: Prosper
• Best for student loan debt: SoFi

Whether you’re a good candidate for debt settlement depends on the kind of debt you have, as well as your payment history, income stream and financial goals. If you have credit card bills or other unsecured debts over $10,000 and have been unable to keep up with payments, it might be a good option, especially if you’ve already tried a debt consolidation loan or credit counseling.

Keep in mind a debt relief company may not settle all your debts and its services can be costly: A 25% fee on $20,000 worth of enrolled debt, for example, means you’ll be paying $5,000 on top of whatever balance is agreed on.

Your credit score will also take a hit, but that may be a moot point if you’re already drowning in debt.

To apply for a debt relief or debt settlement plan, follow these steps:

Look at the kind of debt you have: Debt relief companies only work with unsecured debts like credit cards or medical bills, not auto loans or mortgages. If you owe the IRS, you’ll need a tax relief company.

Add up how much you owe: Many companies require clients to have at least $10,000 in unsecured debt, though there are some with limits as low as $7,500.

Compare companies: Look carefully at their fee structures and settlement plans. Read all the fine print and check with your state’s attorney general office to see if any complaints have been filed. Many companies offer a free consultation, where you can ask questions.

Apply for debt relief: Make sure to have information on the accounts you want to add, including outstanding balances and records of payments. They will confirm whether you’re a good fit for enrollment

Start making deposits: You’ll typically stop paying your creditors and start making payments into a dedicated savings account based on the schedule you arranged with the settlement company.

Review settlement offers: Once you have enough in the account, your debt relief company will work with your creditors, using the money you’ve saved as a settlement offer.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every debt relief review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of debt relief products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

To find the best debt relief companies, CNBC Select analyzed more than a dozen companies that offer debt settlement plans.

When narrowing down our list, we focused on the following features:

• Fees: Debt relief companies typically charge fees for their service. We noted providers with the lowest fees and considered whether a company was transparent about its costs.
• Customer satisfaction ratings: The Better Business Bureau measures customer satisfaction based on the number of complaints it receives and the customer reviews left on its website. We considered both ratings and reviews.
• History: We considered the number of years a debt relief company has been operating.
• Availability: We considered the number of states where the service is available, prioritizing those that were more widely available.

After reviewing these features, we sorted our recommendations by the best companies for a quick payoff, for guaranteed results, for availability, for customer service, for affordability, for larger debts, for tax debts and for non-profit debt relief.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

All the companies on this list are accredited by the American Fair Credit Council (AFCC).

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