The Best Debt Relief Companies and How They Work [2025 Edition]

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 for 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.

The 3 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 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

Freedom Debt Relief

Accredited 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 credit card debt relief companies and the best student loan debt relief companies—for private loans. None of these companies offer help with federal student loans.

Beyond student loan debt and credit card debt, debt relief companies such as these typically help with debt related to:

• Divorce
• Unemployment
• Medical
• Business
• Personal loans

Because these options don’t help with the IRS, you’ll want to reference our roundup of the best tax debt relief companies if you’re drowning in tax debt.

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

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.

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.

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®

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.

Recap of the best debt relief companies

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