We are not a government agency and may be paid by companies displayed. How it works?
Finance
Debt Management
Best Rated Debt Help Companies
After a 29-Brand Review, Here are the Top 3 Debt Settlement Companies
Start Now
Best Overall
Low fees
Small debts
United Debt Settlement
National Debt Relief
Freedom Debt Relief
★ 3.6 (115)
★ 4.9 (56,907)
★ 4.4 (33.515)
Overview
Update Feb 18,2025 |
Company Profiles
Buyers Guide
Reviews
Fact-Checked
By : James Cartwright +1 more
Our top 4 picks for debt settlement companies
1. Our #1 Pick for overall choice: National Debt Relief
2. Top Low-Cost Option: Freedom Debt Relief
3. Ideal for Under $10K in Debt: United Debt Settlement
4. Best for Customer Care: Accredited Debt Relief
Company
Customer rating
★
4.9 ★★★★★
56,847 reviews
4.4 ★★★★★
33,525 reviews
★
3.7 ★★★★★
115 reviews
★
4.9 ★★★★★
2,728 reviews
Our pick for
Debt minimum
Best overall
$7,500
25% of debt
Low fees
$7,500
25% of debt
Small debts
$5,000
25% of debt
Customer service
$10,000
25% of debt
Can’t decide? We’ve got you.
2024 Buyers Choice Award Winner
National Debt Relief
4.9 ★★★★★
★
56,907 reviews
Minium debt
Maximum cost
$7,500
25% of debt
Time to settle
Year founded
12 to 48 months
2009
Get Started
Why we picked it
Maximum fee
Pros and cons
Typical fees
What to consider
What reviewers like
Award winner
2024 Buyers Choice Award Winner
Freedom Debt Relief
4.4 ★★★★★
33,554 reviews
Minium debt
Maximum cost
$7,500
25% of debt
Time to settle
Year founded
24 to 48 months
2002
Get Started
Why we picked it
Pros and cons
Typical fees
What to consider
What reviewers like
Award winner
Our pick for smaller debt amounts
United Debt Settlement
3.6 ★★★★★
★
115 reviews
Minium debt
Maximum cost
$5,000
25% of debt
Time to settle
Year founded
24 to 48 months
2016
Why we picked it
Pros and cons
Typical fees
What to consider
What reviewers like
2024 Buyers Choice Award Winner
Accredited Debt Relief
4.9 ★★★★★
★
2,744 reviews
Minium debt
Maximum cost
$10,000
25% of debt
Time to settle
Year founded
24 to 48 months
2011
Why we picked it
Pros and cons
Typical fees
What to consider
What reviewers like
Award winner
Debt Settlement: What to Know Before You Sign
Not sure where to begin? Our easy-to-follow guides walk you through everything you
need to know about debt relief—no jargon, no pressure. Just real answers.
Debt Settlement Buyer's Guide
Behind on payments or getting collection calls? Debt settlement might help—but only if you
understand the trade-offs. We’ve gathered real lessons from people who’ve gone through it
so you can avoid common pitfalls before choosing a company.
KEY INSIGHTS
Debt settlement reduces what you owe, so you repay less than the full amount.
Jump to insights
Most programs charge a 15%–25% fee based on your enrolled debt.
Jump to insights
There are risks—explore credit counseling or consolidation first.
Jump to insights
What is debt settlement?
Debt settlement is when a creditor agrees to accept less than the full amount owed from a
debtor, often as a lump-sum payment or a short-term payment plan.
It’s generally for unsecured debt like credit cards, personal loans, or medical bills— not for
secured debts like car loans or mortgages.
Most settlements are completed in 24–48 months.
You’ll typically make monthly deposits into a dedicated account. Once there’s enough
saved, the settlement company negotiates with creditors to pay off each debt.
How debt settlement works
You can settle debt yourself or hire a company to negotiate for you. In either case, the idea
is to offer a partial payment in exchange for forgiveness of the remaining balance.
Many companies advise you to stop paying your creditors to prompt a negotiation. This can
hurt your credit in the short term, and creditors aren’t obligated to accept a settlement offer.
Creditors may accept a reduced amount—but it’s not guaranteed.
Some companies prioritize settling smaller debts first. Be sure to ask how your accounts
will be prioritized so you don’t rack up avoidable interest elsewhere.
» RELATED: Debt snowball vs. debt avalanche
How much does debt settlement cost?
Expect to pay 15% to 25% of the enrolled debt. You may also face penalties and late fees
from creditors during the negotiation period—especially if you’ve paused payments.
Settle $20,000 for $10,000? You’ll likely owe $3,000–$5,000 in fees.
How to choose a debt settlement company
Look for companies with clear pricing and no fees until a settlement is reached. Avoid
those asking for large upfront payments. Here’s what else to consider:
Check credentials: Are they accredited by groups like the AADR or IAPDA? Are they
licensed in your state?
Read reviews: Use platforms like SimplyDebtSmart and the CFPB complaint database to
look for red flags.
Watch for false promises: No company can guarantee debt elimination or protection from
lawsuits.
Debt settlement pros and cons
While debt settlement can reduce your overall balance, it also has real downsides—
especially to your credit.
Forgiven debt is usually reported as a charge-off and can be taxed. Always get your
settlement in writing, and understand what you’re agreeing to.
Pros
Cons
May reduce total debt owed
Credit score will drop
Can help avoid bankruptcy
Takes 2–4 years to complete
No need to deal directly with creditors
Not guaranteed to work
One monthly payment
Fees can be high
Alternatives to debt settlement
The National Foundation for Credit Counseling suggests several options that may be better
suited for your situation:
Negotiate yourself: Reach out to creditors to request a hardship plan or reduced payoff.
Hire a lawyer: A debt attorney can negotiate settlements and shield you from direct contact
with lenders.
Bankruptcy: A last resort that wipes out many debts—but damages your credit for years.
Debt consolidation: A personal loan or balance transfer card may offer a lower interest
rate to manage existing debts.
» MORE: Debt consolidation vs. settlement
Debt settlement FAQ
What types of debt can be settled?
How much does it cost?
What percentage should I offer to settle?
How we picked our top choices
The SimplyDebtSmart research team ranked providers using a custom scoring system
based on customer reviews and company offerings. We analyzed thousands of reviews
from Dec 2021 to Nov 2024.
Customer service quality
Process transparency
Staff professionalism
We also reviewed the most important service factors: minimum debt amounts, average
settlement time, and availability across states.
Companies with the highest scores received a “Best for” or “Our Pick” label based on
category strength.
Trying to make the right choice?
Debt settlement guidance, delivered when you need it.
By entering your email, you’re signing up to receive consumer tips, updates, and offers from SimplyDebtSmart.
You can unsubscribe anytime.
Read debt settlement company reviews
Company
Customer rating
4.9 ★★★★★
★
56,847 reviews
4.4 ★★★★★
33,525 reviews
3.7 ★★★★★
★
115 reviews
4.9 ★★★★★
★
2,728 reviews
Debt is often reduced by as much as 50%, with most cases se
vary between 15-25% of enrolled debt. No upfront fees. $7,500
Offers debt settlement services, not a loan provider.Read More
Specializes in unsecured debt settlement services. Debt could
to 48 months, and fees range from 15% to 25%. $7,500 minim
progress 24/7 via online dashboard.Read More
Provides debt consolidation, debt settlement and credit counse
certified staff. Fees are based on percentage of how much com
available in all states. Doesn’t work with all kinds of debt.Read
Best for clients with $10,000 or more in unsecured debt. Says
by up to 40%. Over $3 billion in client debt paid off. Your quote
affect your credit score.Read More
Load 10 more companies
Showing 10 of 34
Guide Sources
Want your company to be on this guide?
Yes, continue
About
Privacy Policy
Careers
CA Privacy Notice
Term of Use
Simply Debt Smart is a private company, not affiliated with any government agency. We may receive compensation from
some partners when you engage with our site—such as clicking a link, calling a number, or submitting a form. All content
is for general information only. Please consult with qualified financial, legal, or tax professionals before taking action.
NOTICE TO VERMONT CONSUMERS:
This website is a loan solicitation service, not a lender. Simply Debt Smart will share your information with one or more
third-party lenders as part of your loan inquiry. Please note that the lender you are connected with may not be subject to
all Vermont lending laws, but may be governed by applicable federal regulations.
Home Warranty disclosure for New Jersey Residents: The product being offered is a service contract. It is
separate and distinct from any warranty that may be provided by a home builder or product manufacturer.
Simply Debt Smart does not accept loan or mortgage applications, nor does it make credit decisions. Instead, we
present rates from lenders that are licensed or otherwise authorized to operate in Vermont. If you choose to be
connected, we forward your information to the selected lender so they can contact you directly.
Copyright © 2025 All rights reserved. Simply Debt Smart.