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  2. Finance
  3. Debt Management

Best Debt Settlement Companies

Our pick for the top debt settlement company is Freedom Debt Relief

  • Best overall
    Freedom Debt Relief
    4.5(34,734)
  • Lower debt amounts
    National Debt Relief
    4.8(59,191)
  • Low fees
    DebtBlue
    4.7(428)
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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 representatives typically promise to reduce what you owe, negotiate with creditors and help you avoid bankruptcy, but not every company delivers on these promises. Reviews on our site show that experiences can vary widely. Some have reported that the process was easy to understand and that it helped them make real progress. Others have described poor communication, unclear fees and timelines that didn't match expectations.

Our top pick for the best debt settlement company is Freedom Debt Relief for its transparent process, experienced negotiators and high customer satisfaction ratings. Our other top picks include National Debt Relief for its smaller debt amounts, DebtBlue for its low fees and Accredited Debt Relief for its customer service.

Why trust ConsumerAffairs?
  • Our recommendations are based on what reviewers say.
  • 4,952,979 reviews on ConsumerAffairs are verified.
  • We require contact information to ensure our reviewers are real.
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  • 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 amounts: 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

Compare our picks for the best debt settlement companies based on their fees, settlement timelines, minimum debt requirements and accreditation.

Learn More About Debt Settlement
Best overall
Freedom Debt Relief logo

Freedom Debt Relief

4.5
34,734 reviews
Freedom Debt Relief logo
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
Why we picked Freedom Debt Relief

We picked Freedom Debt Relief (FDR) for its customer satisfaction, transparency and program flexibility. It also stood out for strong recent review activity and company responsiveness.

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

Who it’s best for: Freedom Debt Relief is best for consumers looking for a well-rounded debt settlement company with strong customer feedback.

Pros
  • No upfront fees until a settlement is reached
  • Works with high debt amounts
  • Long-term credit recovery
Cons
  • Some reports of communication issues
  • Fees required
What reviewers say

Many Freedom Debt Relief customers have reported that they were able to make progress in reducing their debt through the program, which provided a sense of relief and peace of mind. However, some reviews complained about communication issues.

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
Typical fees

Freedom Debt Relief’s fees typically range from 15% to 25% of your enrolled debt, and your specific fee percentage is determined by the state you live in. So, if you have $20,000 in debt, expect to pay at least $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 logo

National Debt Relief

4.8
59,191 reviews
National Debt Relief logo
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
Disclosures
Why we picked National Debt Relief

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: National Debt Relief is best for consumers with smaller debt balances who still want professional debt help.

Pros
  • Free consultations
  • Easy to enroll
  • Transparent terms
  • Free money management tools
Cons
  • Fees required
  • Some reports of communication issues
4x Award Winner
National Debt Relief won four 2026 Buyer's Choice Awards from ConsumerAffairs for Best Customer Service, Best Overall Process, Best Experience with Staff, and Best Value for Price.
What reviewers say

Many National Debt Relief customers were happy with their experience, with some expressing relief and gratitude for the assistance provided. However, some customers reported that they didn’t save much with the settlement process and that the fees were high.

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
Typical fees

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 representatives, clients who get all of their debt settled through the program save approximately 50% before fees, which works out to a savings of about 30% after applying fees.

Best for low fees
DebtBlue logo

DebtBlue

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

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

Who it’s best for: DebtBlue is 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
  • Fees required
What reviewers say

Many DebtBlue customers have reported helpful customer service representatives, 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
Typical fees

DebtBlue’s fee is usually about 25% of the debt you enroll in the program. There are no upfront fees since the company only charges a fee 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 logo

Accredited Debt Relief

4.9
3,649 reviews
Accredited Debt Relief logo
Maximum debt fee
25% of debt
Minimum amount of debt
$5,000
Settlement timeline
24 to 48 months
Year founded
2011
Get Started Read Reviews
Why we picked Accredited Debt Relief

Accredited Debt Relief is best for its customer service, staff satisfaction and transparency. It consistently performed well across the overall customer experience.

Who it’s best for: Accredited Debt Relief is best for consumers who want more support and communication throughout the process.

Pros
  • Transparent terms
  • ACDR and IAPDA accredited
  • Nationwide availability
  • Free consultations
Cons
  • No 24/7 customer service
  • Fees required
4x Award Winner
Accredited Debt Relief won four 2026 Buyer's Choice Awards from ConsumerAffairs for Best Customer Service, Best Overall Process, Best Experience with Staff, and Best Value for Price.
What reviewers say

Many Accredited Debt Relief customers have reported knowledgeable, patient and understanding representatives. Still, some customers were dissatisfied with how long it would take them to settle debts.

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
Typical fees

Accredited Debt Relief’s fees usually range from 15% to 25% of the enrolled debt, though fees depend on the success of settlement. Clients typically repay about 55% of their enrolled debt before fees.

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 if you feel overwhelmed by creditors or debt collections. But debt settlement doesn’t work for everyone. Learn more about how the process works and what to know before hiring a debt settlement company.

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% that’s equal to the enrolled debt amount.

Jump to insight

Debt settlement should only be considered if options like credit counseling or debt consolidation won’t work.

Jump to insight

What is debt settlement?

Debt settlement is a type of debt relief program that involves negotiating a reduced payoff amount with creditors. With debt settlement, a creditor will agree to settle a debtor's balance for less than the full amount owed. The debtor will make a lump-sum payment (or several payments) amounting to a portion of their debt owed, and the creditor will agree to forgive the remainder of their debt.

“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,” said Jay Zigmont, a certified financial planner and founder of Childfree Wealth.

Debt relief can include credit counseling, debt consolidation and bankruptcy.

Debt settlement is typically used by individuals facing financial hardship who are struggling to meet their debt obligations. It typically applies to unsecured debts, such as credit card debt, medical bills or personal loans. Secured debts, such as mortgages, student loans or auto loans, can’t be settled.

Timeline

Most debt settlement programs last between two to four years. Smaller debts may be settled sooner once enough funds accumulate, while larger balances typically take longer to resolve.

Risks

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 can’t guarantee protection from lawsuits.

Also, depending on the impact, it could take years to qualify for a good auto loan or mortgage after debt settlement.

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.

1. Get a free consultation

You’ll start the process by meeting with a debt settlement company for a free consultation and financial review.

2. Enroll in program

If you decide to go with the company, you’ll enroll in its debt relief program. Once you enroll, payments to creditors will stop.

3. Make monthly deposits

During this time, you’ll typically make one monthly payment to a savings account that’s 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.

4. Negotiate debts

Your debt settlement company will then negotiate with creditors to reduce your debts. 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.

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.

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,” Jay Zigmont said.

5. Accept a settlement offer

If your debt settlement company is able to successfully negotiate an offer, you’ll accept the offer. Your debt will then be discharged, and your credit report should be updated to reflect the discharged debt.

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

“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,” Zigmont said.

» RELATED: Debt snowball vs. debt avalanche

How much does debt settlement cost?

How much debt settlement costs depends on the company you choose and how much debt you have to settle, though debt settlement companies usually charge a fee equal to 15% to 25% of the enrolled debt amount.

For example, if you enroll $20,000 in a debt settlement program and settle for $10,000, expect to pay $3,000 to $5,000 in debt settlement fees.

Also, note that you'll likely incur additional fees and penalty interest rates from your creditors if you stop paying them during the negotiation process.

Debt settlement pros and cons

While debt settlement programs have many benefits, it’s also important to understand their drawbacks.

Pros

  • Experts will negotiate on your behalf
  • Can significantly reduce debt owed
  • Might help you get out of debt faster
  • Can help you avoid bankruptcy

Cons

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

What is the success rate of debt settlement?

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.

Debt relief companies successfully settle about 55% of all accounts.

According to studies commissioned by the American Association for Debt Resolution (AADR), which merged in 2025 with the Consumer Debt Relief Initiative (CDRI) to become the Association for Consumer Debt Relief (ACDR), debt relief companies successfully settle about 55% of all accounts, and the average settlement amount is equal to roughly 50.7% of the enrolled debt amount.

Certain factors may improve the likelihood of successful settlements, such as 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.

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 to choose a debt settlement company

The best debt settlement companies are transparent about costs and accredited by industry groups, and they won’t charge large upfront payments. Here’s what you should do before you hire a firm:

1. Verify accreditation and certification

Check if the company is a member of trade organizations like the Association for Consumer Debt Relief or the International Association of Professional Debt Arbitrators (IAPDA).

You can also confirm that the company is licensed to operate in your state by checking your state attorney general's office or the Nationwide Multistate Licensing System’s (NMLS) Consumer Access database.

The Federal Trade Commission’s Telemarketing Sales Rule makes it illegal for debt settlement companies to request upfront payments.

2. Read reviews

Look at ratings on platforms like ConsumerAffairs and check the Consumer Financial Protection Bureau (CFPB) complaint database for patterns of unresolved issues.

3. Avoid unrealistic promises

Avoid companies that promise immediate debt relief, complete elimination of your debt and protection from lawsuits by creditors. Legitimate companies set realistic expectations and won’t promise any guarantees.

Warning signs of debt settlement scams

Avoid debt settlement scams by watching for companies that:

  • Charge upfront fees before settling debt
  • Guarantee specific settlement amounts
  • Instruct you to stop communicating with creditors without an explanation
  • Don’t disclose risks to your credit score
  • Aren’t licensed in your state

Alternatives to debt settlement companies

There are several alternatives to debt settlement companies, such as:

Getting a debt consolidation loan

Before pursuing debt settlement, it’s often a good idea to consider a debt consolidation loan. This is a type of personal loan that lets you combine multiple debts into one loan with one monthly payment. The goal is to get a lower interest rate and better terms than your previous debts.

Negotiating settlement by yourself

You can negotiate debts on your own by contacting your creditors directly. You will need to provide a good explanation for 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.

Hiring a lawyer

A debt settlement lawyer can negotiate a settlement on your behalf, handle all the paperwork and field 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.

Filing for bankruptcy

While filing for bankruptcy might seem like the easiest way out of debt, bankruptcy 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 it 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’ve filed for bankruptcy.

» MORE: Debt consolidation vs. debt settlement

Which is better? 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 isBest forCredit score impactTypical timeline
Debt settlementNegotiating to pay less than you owePeople behind on payments and facing hardshipOften severely negative2 to 4 years
Debt management planRepayment through a nonprofit agency, often at lower interestPeople with steady income who need lower payments or interestGenerally less damaging than settlement3 to 5 years
Credit counselingBudgeting and debt guidance from a certified counselorPeople seeking budgeting help or early guidanceTypically no direct impactVaries by goals and debt level

FAQ

What type of debts can be settled?

The types of debts that can be settled are unsecured debts, such as most credit card balances and medical bills. Other types of debt that’s eligible for the debt settlement process include payday loans, private student loans and some business loans.

What percentage of my debt should I offer to settle?

The percentage of debt that you should offer to settle depends 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 know they’re not obligated to agree to any settlement offer.

Are debt settlement companies legit?

Debt settlement companies are legit if they are transparent about fees, don’t charge upfront fees and are accredited by recognized organizations. However, consumers should research reviews, complaints and licensing before enrolling.

How much does debt settlement hurt your credit score?

How much debt settlement hurts your credit score depends on whether your accounts become delinquent or charged off during the process. Recovery can take several years after settlements are completed.

Can I be sued while in a debt settlement program?

Yes, you can be sued while in a debt settlement program. 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 debt settlement fails, 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?

Whether debt settlement is better than bankruptcy for you depends on your financial situation. 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.

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.

Guide sources

ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:

  1. Federal Trade Commission, “How to Get Out of Debt.” Accessed Aug. 19, 2026.
  2. National Foundation for Credit Counseling, “Debt Settlement.” Accessed Aug. 19, 2026.
  3. American Association for Debt Resolution, “2023 Economic Impact of the Debt Resolution Industry.” Accessed Aug. 19, 2026.
  4. American Fair Credit Council, “Financial Outcomes for Debt Settlement Programs: Estimates for 2011–2020.” Accessed Aug. 19, 2026.

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