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Best Debt Settlement Companies

We compared 36 brands and chose the top debt relief companies

  • Best overall
    Freedom Debt Relief
    4.5(34,547)
  • Lower debt amounts
    National Debt Relief
    4.9(58,775)
  • Low fees
    DebtBlue
    4.7(415)
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By: Ashley Eneriz
+2 more
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Edited by: Morgan Cutolo
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Fact-checked by: Jon Bortin

Best Debt Settlement Companies

Debt settlement companies all make similar promises — reduce what you owe, negotiate with creditors, maybe even help you avoid bankruptcy — but not every company delivers.

Hundreds of reviews on ConsumerAffairs show that experiences vary widely. Some say the process was easy to understand and helped them make real progress. Others describe poor communication, unclear fees and timelines that didn’t match expectations.

Based on our analysis of recent customer satisfaction ratings, program policies and other factors, Freedom Debt Relief is the top debt settlement company for 2026. National Debt Relief is our pick for smaller debt amounts, and DebtBlue has relatively low fees. Accredited Debt Relief stands out for high customer satisfaction ratings on the overall process.

Why trust ConsumerAffairs?
  • Our recommendations are based on what reviewers say.
  • 4,895,222 reviews on ConsumerAffairs are verified.
  • We require contact information to ensure our reviewers are real.
  • We use intelligent software that helps us maintain the integrity of reviews.
  • Our moderators read all reviews to verify quality and helpfulness.

Our top 4 picks for debt settlement companies

  1. Best overall: Freedom Debt Relief
  2. Best for lower debt amount: National Debt Relief
  3. Best for low fees: DebtBlue
  4. Best customer service: Accredited Debt Relief

The ConsumerAffairs Research Team used a data-driven, systematic approach, considering factors such as minimum debt requirements, estimated completion timelines and the level of customer support provided throughout the program. See our full methodology below for more details.

Compare the best debt settlement companies

This guide breaks down the best debt settlement companies so you can compare your options with confidence.

Best overall

Freedom Debt Relief

Freedom Debt Relief
4.5
34,547 reviews
Maximum debt fee
25% of debt
Minimum amount of debt
$7,500
Settlement timeline
24 to 48 months
Year founded
2002
Get Started Read Reviews

Freedom Debt Relief scored highly across customer satisfaction, transparency and program flexibility. It also stood out for strong recent review activity and company responsiveness.

FDR has been in the debt settlement industry for decades, and it has an impressive number of experts: over 550 certified debt consultants and over 200 debt negotiators.

Who it’s best for: Consumers looking for a well-rounded debt settlement company with strong customer feedback.

Pros
  • No upfront fees until a settlement is reached
  • Lots of experience
  • Works with high debt amounts
  • Long-term credit recovery
Cons
  • Some communication issues
  • Short-term impact on credit

Overall, there is a sense of relief and peace of mind for those who have seen progress in reducing their debt through the program. Some complaints relate to communication issues.

As with any debt settlement program, you expect your credit score to take a temporary hit. “The way it was described I expected just a few points, but mine and my wife's credit scores have dropped almost 200 points,” Brian in Arkansas told us.

I had my very first debt settlement on a credit card debt done by Freedom Debt Relief. They cut the total credit card debt down drastically and I am very happy with the results. I am grateful for their service. I would recommend them to work with your creditors and to have your total debts lowered and paid off.”
John CA
When I contacted FDR, I was skeptical about the process but Haven walk me through the entire process, I was confident and excited. The process was simple and clear. The communication and customer service was satisfactory.”
Christian Clovis, CA
They are doing excellent work with my creditors! I really appreciate all the work they are doing to get my payments paid! I am looking forward to getting all the creditors settled in the near future!”
Billi Ville Platte, LA
The fees range from 15% to 25% of your enrolled debt, and your specific fee percentage is determined by the state you live in. On the low end, if you come to the company with a $20,000 debt, expect to pay as little as $3,000 for debt settlement services. With FDR, fees are due after you’ve authorized a settlement and have made your first payment as part of that settlement.
Best for lower debt amounts

National Debt Relief

National Debt Relief
4.9
58,775 reviews
Maximum debt fee
25% of debt
Minimum amount of debt
$7,500
Settlement timeline
12 to 48 months
Year founded
2009
Get Started Read Reviews

National Debt Relief offers one of the lower minimum debt requirements among evaluated companies, making it more accessible for some consumers. It also scored highly for process satisfaction and transparency.

Who it’s best for: Consumers with smaller debt balances who still want professional debt help.

Pros
  • Free consultations
  • Easy to enroll
  • Transparent terms
  • Helpful staff
  • Free money management tools
Cons
  • Fees required
  • Some communication issues
  • May negatively impact credit score

Many customers expressed relief and gratitude for the assistance provided, but it doesn’t end up being worth it for everyone. “I was presented with a settlement for my Discover card debt of $13,375,” Angelo in New York told us. “The settlement amount, including fees, came to $12,650.84 — a minimal savings at best.”

Very transparent, clear and thorough. Full of optimism. The gentleman walked me through the program’s process. He also explained patiently my options and answered all my questions. Also confirmed with supervisor that we’re all on the same page and legally all the Ts were crossed and Is dotted.”
Melissa Houston, TX
I had a really great experience with NDR. Things went very smoothly. I never had any issues. I had one call where we got everything together. And then it was just an automatic payment that came out of my account every month. It was great. I loved it. I finished the program last month. It was a quick process. And I enjoyed the steps. I would definitely recommend them.”
Renata Gaithersburg, MD
This process has been seamless thus far. NDR is consistent in their communication with you to let you know next steps and what to expect. When a settlement has been reached, is the greatest feeling as you’re closer to becoming debt free! They arm you with every possible resource as well for maintaining good credit/finance habits.”
Natasha Stroudsburg, PA

Like our other top picks, National Debt Relief charges up to 25% of the enrolled amount. For example, if you settle a $20,000 debt, expect to pay up to $5,000 for services. Fees are only charged after your debt is settled.

According to company reps, clients who get all their debt settled through the program save approximately 50% before fees, which works out to about 30% after considering the fees.

4x Award Winner
Selected for having one of the highest satisfaction rates for Best Overall Process, Best Experience with Staff, Best Value for Price and Best Customer Service
Best for low fees

DebtBlue

DebtBlue
4.7
415 reviews
Maximum debt fee
25% of debt
Minimum amount of debt
$7,500
Settlement timeline
32 to 48 months
Year founded
2002
Read Reviews

DebtBlue stands out for affordability, transparency and strong process satisfaction scores. It also performed well for responsiveness and overall customer experience.

Who it’s best for: Consumers focused on keeping debt settlement costs as low as possible.

Pros
  • Free consultation
  • Performance guarantee
  • Legal support add-ons available
Cons
  • Secured debts ineligible
  • Not available in all states
Many DebtBlue customers report helpful customer service, easy enrollment and clear communication throughout the debt settlement process.
... They explained to me how it would work over time. I got a detailed sheet about how long I'm gonna have to pay for it. I like that every time I'm about to get an offer from one of the creditors, they have made a settlement, I get a text to confirm whether I want to proceed or not before they do it. And that's been consistent. Every time they reach a settlement with one of my creditors, I get a text for letting me know. The program was great because it’s alleviated a lot of stress.”
Enjoli Decatur, GA
The staff at DebtBlue have been very helpful. The first week after my 1st payment in the program we already accepted to 50% settlements that were split between 3 and 6 monthly payments. Carmen G and Andreas doing a great job communicating with me this first week.”
Jim Western Springs, IL
... They kept me informed, sending notifications when any actions or documents needed my attention. As soon as they got a settlement, they let me know right away. They send me texts and I sign. I would certainly recommend DebtBlue to friends and family, as their program has greatly impacted my life by getting my finances and credit score back on track.”
Joseph Elbum, IL

DebtBlue’s fee is usually about 25% of the debt you enroll in the program. There are no upfront fees (the company only charges after it successfully settles an account and a payment is made to the creditor). Fees are charged only for debts that are resolved.

Customers may also pay:

  • $39.95 per month for optional legal plans (CLG Plus, Veritas or Fortress)
  • Less than $10 per month for the required deposit account
  • Small banking fees for certain payment methods, like check-by-phone payments
Best for customer service

Accredited Debt Relief

Accredited Debt Relief
4.9
3,529 reviews
Maximum debt fee
25% of debt
Minimum amount of debt
$10,000
Settlement timeline
24 to 48 months
Year founded
2011
Get Started Read Reviews

“Good customer service” is not a common phrase in the debt settlement industry. But Accredited Debt Relief earned top marks for customer service, staff satisfaction and transparency. It consistently performed well across the overall customer experience.

Who it’s best for: Consumers who want more support and communication throughout the process.

Pros
  • Transparent terms
  • Accredited with BBB, AFCC, IAPDA
  • Various debt consolidation options
  • Free consultation
  • Experienced consolidation specialists
Cons
  • No 24/7 customer service
  • Must have debts of $10,000+
  • Somewhat limited availability

Accredited Debt Relief representatives are often described as knowledgeable, patient and understanding, taking the time to explain the process and answer all their clients’ questions. Still, some clients have expressed dissatisfaction with the program.

For instance, Pete in California felt misled by the company's marketing tactics, and Joyce in Virginia was disappointed by how long it would take to settle her debts. We suggest you read the fine print carefully.

I like the way the Accredited Debt Relief reps introduced themselves. They did it simply and just gave the offers. Other companies were like forcing it on me. The rep I dealt with explained everything to me, walked me through and made everything simple. They explained the payment plan to me first and told me how much I'd be paying and how long I will be paying will depend on how much they settled for and how much I was paying on each one…”
Michael Denver, CO
I just signed up with Accredited, but so far, I'm very pleased with this company. James was very courteous, professional and I have access to see my account at any time. They already have a goal set for my first settlement!”
Kimberly Other
I looked into Accredited on a whim, and cut to 48 hours later I am pleased with their assistance and expertise w taking care of my debt settlement. My rep., Mr. Calel, deserves a raise for his professionalism and very comforting “bedside” manner. Knowledgeable and friendly, he made sure I was understanding of the process each step of the way. I can breathe much easier knowing I am paying away this debt, plus saving money at the same time- Also must thank Victoria at Accredited for getting this all together for me!”
Br Kearny, NJ

The fees are success-based, usually set at 25% of the enrolled debt. Clients typically repay about 55% of their enrolled debt before fees.

Accredited Debt Relief says the program can be canceled at any time without penalty and has a money-back guarantee. However, the company’s website is not transparent about how to cancel and if there are any exclusions to these guarantees.

4x Award Winner
Selected for having one of the highest satisfaction rates for Best Overall Process, Best Experience with Staff, Best Value for Price and Best Customer Service

Debt Settlement Buyers Guide

Jump into our guides and start learning

In this guide

Top Picks

See who reviewers like

Freedom Debt Relief logo
National Debt Relief logo
DebtBlue logo
See our top picks

Could your debt be reduced or forgiven? Take our financial relief quiz.

You may want to consider debt settlement if you’ve fallen behind on your required debt payments or feel overwhelmed by creditors or debt collections. But it doesn’t work for everyone. Based on feedback from thousands who have already gone through the debt settlement process, here’s what to know before hiring a firm.

Key insights

Debt settlement aims to reduce the amount of debt you have so that you ultimately have less to repay.

Jump to insight

Companies usually charge a fee of 15% to 25% of the amount of debt enrolled in their programs.

Jump to insight

There are risks associated with debt settlement, and it should only be considered after investigating other solutions, including credit counseling and debt consolidation.

Jump to insight

What is debt settlement?

Debt settlement is when a creditor agrees to settle a debtor's balance for less than the full amount owed. The debtor makes a lump-sum payment (or several payments) amounting to a portion of their debt owed, and the creditor agrees to forgive the remainder of their debt.

Debt settlement is a type of debt relief program that involves negotiating a reduced payoff amount with creditors. Debt relief as a whole can include credit counseling, debt consolidation and bankruptcy.

Debt settlement typically takes 24 to 48 months.

Debt settlement is an option used by individuals facing financial hardship and struggling to meet their debt obligations. It typically applies to unsecured debts, such as credit card debt, medical bills or personal loans, rather than secured debts like mortgages, student loans or auto loans.

Instead of paying multiple creditors individually, you’ll make one monthly payment to a savings account set up by the debt settlement company. Your funds can grow in that account until you have a large enough sum to pay off your debts per the terms negotiated by the settlement company.

How to choose a debt settlement company

The best debt settlement companies are transparent about fees and pricing, accredited by industry groups and will not charge large upfront payments. Here’s what you should do before you hire a firm.

The Federal Trade Commission’s Telemarketing Sales Rule makes it illegal for debt settlement companies to request upfront payments.
  • Verify accreditation and certification: Check if the company is a member of trade organizations like the American Association for Debt Resolution (AADR) or the International Association of Professional Debt Arbitrators (IAPDA). Confirm that the company is licensed to operate in your state by checking the state attorney general's office or the NMLS Consumer Access database.
  • Read reviews: Look at ratings on platforms like ConsumerAffairs and check the Consumer Financial Protection Bureau (CFPB) complaint database for patterns of unresolved issues.
  • Avoid unrealistic promises: Be wary of companies that promise immediate debt relief, complete elimination of your debt and protection from lawsuits by creditors. Legitimate companies set realistic expectations.

Warning signs of a debt settlement scam

Here are some red flags to watch for to avoid a debt settlement scam:

  • Companies charging upfront fees before settling debt
  • Companies guaranteeing specific settlement amounts
  • Companies instructing you to stop communicating with creditors without an explanation
  • Companies not disclosing risks to your credit score
  • Companies not being licensed in your state

How debt settlement works

You can attempt to settle your debts independently, or you can hire a debt settlement company to negotiate with your creditors on your behalf. Creditors are more likely to settle accounts that are significantly past due, have been sold to a collection agency or where the consumer can demonstrate genuine financial hardship.

“Effectively, you are telling your credit card company (or other debt) that you will offer them cash now to forgive the rest of the debt,” Jay Zigmont, a certified financial planner and founder of Childfree Wealth, explained.

Creditors aren’t obligated to settle but may if it benefits them.

If you’re current on your bills, the debt settlement company might advise you to stop paying your creditors, which will theoretically motivate the creditors to settle the debts. “Creditors are not required to accept debt settlements but may if they think it is in their best interest,” said Zigmont.

Debt settlement companies sometimes start by negotiating your smallest debts first, leaving larger debts to accrue interest or late payment fees. So, make sure you work with your settlement company to prioritize debts strategically.

The debt settlement process, step-by-step

  1. Free consultation with a debt settlement company and financial review.
  2. Enrollment in a debt relief program. Payments to creditors stop.
  3. Start making monthly deposits into a dedicated savings account.
  4. Negotiate with creditors once sufficient funds are available.
  5. Accept a settlement offer.
  6. Debt is discharged after you make your payment.
  7. Credit report updated.

» RELATED: Debt snowball vs. debt avalanche

Debt settlement success

A successful debt settlement journey typically means resolving unsecured debts for less than the full balance owed while avoiding bankruptcy. Outcomes vary based on how delinquent the account is, the creditor’s policies and the debtor’s ability to fund settlements. According to American Association for Debt Resolution (AADR) industry data, debt relief companies successfully settle about 55% of accounts.

In terms of time to resolution, most debt settlement programs last between 24 and 48 months. Smaller debts may be settled sooner once enough funds accumulate, while larger balances typically take longer to resolve.

Certain factors may improve the likelihood of successful settlements, including having access to a lump sum, enrolling accounts that are already seriously delinquent and working with creditors that have established relationships with the debt settlement company.

There are also risks during the settlement process. Accounts are commonly charged off, which can significantly lower credit scores, and some creditors may pursue legal action, especially for larger balances. Debt settlement companies can negotiate but cannot guarantee protection from lawsuits.

Not all consumers successfully complete debt settlement programs. Dropout rates can be significant because of financial strain, changing circumstances or difficulty maintaining monthly program deposits. If a consumer exits a program early, unresolved debts will still be owed, and interest, fees or collection activity may continue.

How much does debt settlement cost?

Expect to pay a fee of 15% to 25% of the amount of debt enrolled in their programs (i.e., the amount of debt they attempt to negotiate). It's also important to note that you'll likely incur additional fees and penalty interest rates from your creditors if you stop paying them during the negotiation process.

If you enroll $20,000 and settle for $10,000, expect to pay $3,000 to $5,000 in debt settlement fees.

Debt settlement pros and cons

While debt settlement programs have many benefits, it’s also important to understand their drawbacks. Debt settlement can negatively affect your credit score. Depending on the impact, it could take years to qualify for a good auto loan or mortgage after debt settlement.

Another downside is that debt settlements are reported as charge-offs on your credit report, and you’ll have to pay taxes on the amount forgiven, according to Zigmont. He advises: “If you do go down the debt settlement path, be sure to get everything in writing and send a check or money order for the settlement.”

Pros

  • No direct communication with credits
  • May significantly reduce debt owed
  • Might help you get out of debt faster
  • Can help you avoid bankruptcy

Cons

  • Takes a long time
  • Initial drop in credit score
  • Potentially high fees
  • No guarantees

Alternatives to debt settlement companies

The National Foundation for Credit Counseling (NFCC) explains several alternatives to hiring a debt settlement company. Some of the most common ways to resolve debt issues include the following:

  • Do it yourself: It is possible to negotiate your debts on your own by contacting your creditors directly. You will need a good explanation of why you can’t pay; if creditors believe you’re still financially capable of repaying your debts in full, they’re unlikely to be lenient with you. Some creditors offer hardship plans for people who are dealing with tough situations, like unemployment or a severe illness.
  • Hire a lawyer: A debt settlement lawyer can act as your personal debt settlement company, negotiating a settlement on your behalf, handling all the paperwork and fielding any phone calls from your lenders. Keep in mind that a debt settlement lawyer can bill by the hour, charge a percentage of your total eliminated debt or charge a flat fee per lender.
  • File for bankruptcy: While filing for bankruptcy might seem like the easiest way out of debt, it actually costs over $1,000 and should only be a last resort after considering options like debt consolidation or a debt settlement program. It can significantly damage your credit score and typically stays on your credit report for seven to 10 years. Bankruptcy cases are a matter of public record, so your current and future employers will be able to see if you filed for bankruptcy.
  • Get a debt consolidation loan: Multiple debts can be paid off with one credit product (that hopefully has a lower interest rate and better terms than your previous debts) through a debt consolidation personal loan.

» MORE: Debt consolidation vs. debt settlement

Debt settlement vs. debt management plans vs. credit counseling

Debt management plans and credit counseling are two alternative solutions to regain control of your finances. Here’s how they compare to debt settlement.

What it isCredit score impactTimelineBest for
Debt settlementNegotiating with creditors to pay less than the full amount owedOften severe negative impact24 to 48 monthsConsumers already behind on payments and facing serious financial hardship
Debt management planRepayment plan through a nonprofit credit counseling agency, often with reduced interest ratesGenerally less damaging than settlement and may improve over time36 to 60 monthsPeople with steady income who can repay debt with adjusted terms
Credit counselingFinancial guidance and budgeting help from a certified counselorLittle to no direct impactVaries depending on goals and debt levelConsumers seeking budgeting help, financial education or an early intervention option

FAQ

What type of debts can be settled?

Unsecured debts, like most credit card balances and medical bills, are the most common types of debt involved with settlement agreements. Other types of debt eligible for the debt settlement process include payday loans, private student loans and some business loans.

How much does debt settlement cost?

Debt settlement companies usually charge a fee of 15% to 25% of the amount of debt enrolled in their programs, i.e., the amount of debt they attempt to negotiate. It's also important to note that you'll likely incur additional fees and penalty interest rates from your creditors if you stop paying them during the negotiation process.

What percentage of my debt should I offer to settle?

Depending on how behind you are on payments and how much you owe, your creditor might be open to settling for as little as 40% of your original debt. Negotiate with your creditors to get the most substantial settlement you can, but remember, they’re not obligated to agree to any settlement offer.

Are debt settlement companies legit?

Some debt settlement companies are legitimate, but the industry also has bad actors. Reputable companies are transparent about fees, do not charge upfront and are accredited by recognized organizations. Consumers should research reviews, complaints and licensing before enrolling.

How much does debt settlement hurt your credit score?

The impact varies based on your credit profile, but recovery can take several years after settlements are completed. Debt settlement typically causes a significant drop in your credit score because accounts often become delinquent or charged off during the process.

Can I be sued while in a debt settlement program?
Yes. Creditors are not required to wait for a settlement and may file a lawsuit to collect the debt, especially for large balances. Debt settlement companies may help with negotiation strategies, but they cannot guarantee protection from legal action.
What happens if debt settlement fails?
If settlements cannot be reached, you remain responsible for the full balance plus any fees or interest that accrued. Consumers may need to explore other options, such as credit counseling, debt consolidation or bankruptcy.
Is debt settlement better than bankruptcy?
Debt settlement and bankruptcy serve different purposes. Debt settlement may allow you to avoid bankruptcy and reduce what you owe, but it still damages credit and offers no guarantees. Bankruptcy provides legal protection from creditors but has long-lasting credit and public record consequences. The better option depends on your financial situation.

Methodology: How we found the best debt relief companies

The ConsumerAffairs Research Team compared debt relief companies using a structured scoring system. We looked at three main areas: customer experience, affordability and flexibility, and company transparency.

1. Customer experience (based on verified reviews)

We analyzed verified reviews submitted to ConsumerAffairs from May 1, 2023, through April 30, 2026. We looked at recent review activity, how companies responded to customers and how satisfied reviewers were with:

  • Staff
  • Customer service
  • The debt relief process
  • Transparency and communication
2. Program affordability and flexibility

We compared program terms that can affect how accessible and manageable each debt relief program is, including:

  • The minimum debt required to enroll
  • The highest possible program fee, as a percentage of enrolled debt
  • The average time it takes to complete the program
3. Transparency and company responsiveness

We also considered how active and responsive each company was with customers. This included:

  • Review volume over the past six months
  • Response rate to recent reviews
  • Additional support tools or program features, when available

How scoring works

Each company received a score from zero to 10 for every metric. The top-performing company for each metric received a 10, and the others were scored in comparison.

This allowed us to compare customer feedback and program details using the same scale.

How winners were determined

All companies were evaluated using the same metrics. However, each award category weighted those metrics differently based on what the award is meant to highlight.

For example, “Best customer service” gave more weight to staff satisfaction, customer support and process satisfaction. “Best for low fees” gave more weight to program costs and overall affordability.

Not sure how to choose?

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