Debt relief firms assist persons in financial distress in reaching agreements with creditors that are less than the full amount owed on their debts. Credit counseling and debt management plans are the best options for people who wish to pay off all of their debts while also protecting their credit. Transparent pricing, excellent customer service, and free financial education are all features of the top debt relief firms. They're also accredited by key professional associations, which can help ensure that the company and its debt counselors are familiar with the debt relief industry's laws and regulations.
The Top 7 Debt Relief Firms
- Overall, Freedom Debt Relief comes out on top.
- New Era Debt Solutions came in second place for best overall.
- National Debt Relief is the best for open qualifications.
- CuraDebt is the best option for IRS debt and back taxes.
- Accredited Debt Relief is the most effective way to get out of debt quickly.
- Century Support Services is the best option for credit card debt.
- GreenPath is the best option for credit counseling.
Freedom Debt Relief
Why Did We Pick It?
Freedom Debt Relief stands out from the competition due to its transparent pricing, credit counseling referrals, daily customer service availability, Spanish language resources, and financial education tools.Pros & Cons
Pros
- Referrals to credit counseling are frequently made available.
- Support and resources in Spanish
- Customer service is offered on a daily basis.
Cons
- There is no live chat available.
- A debt of $7,500 is required as a minimum.
- The Consumer Financial Protection Bureau has filed a lawsuit.
Overview
Freedom Debt Relief, founded in 2002, has been approved by the American Fair Credit Council (AFCC), one of the most well-professional organizations serving the debt relief industry. Although it concentrates on debt settlement, it has a wealth of free financial education tools and resources for Spanish speakers on its website. Freedom Debt Relief can negotiate settlements on a variety of unsecured personal and business debt, including credit cards, medical bills, and even private student loans, in addition to having transparent pricing (typical expenses range from 15% to 25% of the total enrolled debt). To be eligible, you should have a minimum of $7,500 in unsecured loans. Before joining Freedom Debt Relief, you'll receive a free debt consultation, as with all debt relief companies. During the company's usual business hours, consultations are accessible on a daily basis. Before registering potential clients, Freedom Debt Relief also provides connections to nonprofit credit counselors, which sets it apart from the competition. This is beneficial since debt settlements should only be attempted after exhausting all other options. The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Freedom Debt Relief for problems with its debt relief product and services. Freedom Debt Relief agreed to pay $20 million in compensation and $5 million in fines and penalties.New Era Debt Solutions
Why Did We Pick It?
New Era Debt Solutions not only charges rates that are slightly lower than industry standards, but it also provides more consumer options than many of its rivals, such as online chat, after-hours appointments, free interactive instructional materials and tools, and Spanish-language services.Advantages and disadvantages
Pros
- Services and resources in Spanish
- Online chat in real time
- After-hours consultations
Cons
- The bare minimum of debt is not mentioned.
- On weekends, there is also no customer service accessible.
- Legal action has recently been taken.
Overview
In 1999, New Era Debt Solutions was established. The company may charge significantly lower costs than the average industry, provide live chat customer service, has a large library of financial tools and services, and even supports Spanish speakers. Individuals who are facing financial difficulties such as divorce or job loss may be able to get help repaying unsecured consumer debts such as credit cards or personal loans. At the same time, New Era does not specify if it has any minimal debt requirements. A debt expert will give you a free debt consultation before you join to go over your alternatives. Every day except Sunday, appointments are available, and you can request an after-hours appointment if necessary. A legal case brought by the state of Oregon against the New Era for its business activities in the state is noteworthy. According to New Era's website, the team no longer conducts business in Oregon, and a large portion of the $50,000 fine would be waived if the company follows the cease and desist order within the next three years.National Debt Relief
Why Did We Pick It?
National Debt Relief is much more forthcoming than its competitors about the kinds of debts that qualify for its services and the requirements for eligibility.Advantages and disadvantages
Pros
- Pricing that is transparent and adheres to industry norms
- A detailed list of debts that are qualified
- Finance knowledge and tools are available for free.
Cons
- On Sundays, debt consultations are not offered.
- You must be in the midst of a financial meltdown.
- Back taxes are not supported.
Overview
National Debt Relief was established in 2009 and is AFCC and IAPDA approved. Because of the clarity of its qualifications, it stands apart from the competition. The website of National Debt Relief has a full list of the debts it can and cannot negotiate and the requirements for eligibility (financial hardship, such as a recent divorce, is required). Like other debt settlement firms, National Debt Relief focuses on unsecured consumer and commercial debts. However, you might be able to seek aid with atypical debts like veterinarian bills and timeshares. Secured loans (like mortgages), litigation, and taxes are among the debts it can't operate with, but these are standard exceptions. According to industry standards, you should anticipate paying fees ranging from 15% to 25% of the total enrolled debt. Before joining, you'll meet with a debt expert to examine your finances and relief possibilities. Consultations are free and take place over the phone during the company's normal business hours every day of the week except Sunday.CuraDebt
Why Did We Pick It?
CuraDebt is a debt settlement company that helps clients with IRS debt and back taxes, two sorts of debt that other debt relief organizations won't deal with.Advantages and disadvantages
Pros
- Back taxes and IRS debt are eligible.
- A $5,000 minimum debt requirement is a low threshold.
- An online ticket can be used to obtain assistance.
Cons
- The usual fee range isn't published.
- Sunday consultations are not available.
- There are few financial education resources available on the internet.
Overview
CuraDebt was established in 2000 and has received accreditation from the AFCC and the IAPDA. CuraDebt can negotiate agreements on IRS debt and unpaid taxes, unlike most debt relief companies. CuraDebt's normal price range isn't disclosed. However, you may anticipate paying 20% of total enrolled debt on average. This is in the midst of the 15% to 25% pricing range. Before registering with CuraDebt, you'll receive a free debt consultation, like with all debt settlement companies. This appointment is offered every day of the week except Sunday, and if you live in Miami or Hollywood, Florida, you can also have an in-person consultation. If you require assistance outside of CuraDebt's regular business hours, you can file an online ticket and wait for a response when the customer care team returns (the response time is not specified). The company's usual business hours are Monday through Friday from 9 a.m. to 8 p.m. ET and Saturdays from 10 a.m. to 3 p.m. ET. CuraDebt's website has a few financial education resources, which is a disadvantage.Accredited Debt Relief
Why Did We Pick It?
Accredited Debt Relief can not only help you negotiate unsecured debt settlements, but It can also help to get out of debt in as little as 12 months, over a year, quicker than the competition.Advantages and disadvantages
Pros
- The program can be completed in as little as 12 months.
- Guaranteed money-back
- Customer service is available via phone 24 hours a day, seven days a week.
Cons
- $10,000 in debt may be required.
- Often, financial hardship is required.
- There is no live chat available.
Overview
The AFCC and the IADPA have both accredited Accredited Debt Relief, which was created in 2011. Although it has one of the highest minimum debt requirements of the organisations we looked at (clients must have at least $10,000 in unsecured loans and be in financial distress), its program is also one of the fastest. Accredited Debt Relief's program can be completed in as little as 12 months, depending on your situation (for example, if you have lots of income to go toward paying down your debt and your creditors swiftly agree to settle). In addition, you'll be charged a fee ranging from 15% to 25% of the entire enrolled debt. To get started with Accredited Debt Reduction, a debt advisor will conduct a free financial assessment and assist you in developing a debt relief strategy. A phone consultation is available any day of the week, including Sunday. It's worth noting that live chat isn't available.Century Support Services
Why Did We Pick It?
Century Support Services is a wonderful alternative for people who have credit card debt because it specializes in it. It also has a live chat, which is a feature that isn't always available.Advantages and disadvantages
Pros
- There is a live chat option accessible.
- Online educational resources and tools are available for free.
- On its website, there are FAQ lists.
Cons
- The fee disclosure process isn't completely transparent.
- On weekends, there is also no customer service accessible.
Overview
Century Support Services was established in 2003 and are AFCC and IAPDA recognized. Credit card debt is a specialty of Century Support Services. This could be beneficial for folks who need to pay down huge credit card amounts. Although Century Support Services' pricing isn't as transparent as some of its competitors, you can anticipate paying interest rates ranging from 18% to 25% of the total enrolled debt. According to the company's disclaimer, clients who complete the company's program typically pay 50% of the sum enrolled in the program before fees and 68% to 75 percent after fees. As a result, fees are estimated to account for 18% to 25% of overall enrollment debt. Before joining Century Support Services' program, you will receive a free consultation with a debt specialist who will examine your circumstances and assist you in developing a strategy. You will not be able to have a debt consultation on weekends, though. On the other hand, Century Support Services offers live chat, which you can reach via the website. When agents are available for live chat, the company does not publish this information.GreenPath
Why Did We Pick It?
GreenPath is a nonprofit debt reduction organization with honest pricing and a wealth of educational tools on its website. According to where you reside, you may also be able to visit with a counselor in person.Advantages and disadvantages
Pros
- Debt management strategies that are either free or low-cost
- In some states, in-person lessons are provided.
- Financial education resources abound.
Cons
- On Sunday, support will be unavailable.
- Monthly fees and setup costs may be necessary.
Overview
The National Foundation for Credit Counseling (NFCC), a professional body servicing the credit counseling business, has accredited GreenPath, a nonprofit company formed in 1961. GreenPath, unlike the other organizations on our list, offers credit counseling and debt management solutions to its customers. These debt relief choices are less detrimental to your credit than debt consolidation because you'll repay whatever you owe at a possibly reduced interest rate. GreenPath Debt Management programs feature a low setup fee of $0 to $50 and a monthly payment of $0 to $75, based on your local laws. Credit counseling is always offered at no cost. On the website, there is also a big collection of free instructional resources. In addition, services are available in Spanish. GreenPath offers in-person therapy in 21 states, and support is available in every state. Credit counseling is available during normal office hours or by appointment at a convenient time for you. Your credit counselor will thoroughly examine your credit position and collaborate with you to create a personalized debt relief strategy. Although the session is expected to last an hour, it may take longer or shorter based on the complexity of your circumstance. The Final Word Despite the fact that all of the debt relief firms on our list are excellent, Freedom Debt Relief stands out as the finest debt relief company overall. Freedom Debt Relief not only has transparent pricing, but it also has excellent customer service resources, such as 24/7 customer care and Spanish resources. In addition, rather than signing up for debt settlement services, Freedom Debt Relief frequently recommends prospective customers to nonprofit credit counselors. Because debt settlement can hurt your credit and should only be used as a last resort, this is a healthy habit to develop.How to Choose the Most Effective Debt Relief Program
Debt Relief for Corporations
People who need help with unsecured debt can choose from four different debt relief options. Credit counseling: A professional credit counselor will examine your finances, assist you in developing a debt-resolution strategy, and give you financial education (e.g., budgeting). DMPs (debt management plans): Credit counselors establish payment schedules with your creditors that may result in lower interest rates. Until your debt problems are handled, you'll make a single payment to the credit counseling firm. Multiple debts can be consolidated into a single loan with debt consolidation loans. This is useful if you wish to refinance loans with higher interest rates or make a single payment rather than multiple monthly payments. Debt settlement: The supplier negotiates settlements with your creditors for a lower amount than you owe. This is risky since there is no assurance that your creditors will agree to a settlement, and it could damage your credit.How to Pick a Debt Relief Firm
In exchange for a fee, debt relief organizations assist customers in dealing with their outstanding obligations by negotiating or consolidating sums, working out payment arrangements, or even assisting them in filing for bankruptcy. When people can't pay their bills, credit cards, or other debts on time, they receive calls or warnings from debt collectors, and they don't know how to manage the matter on their own, they turn to debt relief companies. Before signing up with a debt relief organization, it's critical to understand the prices, services you'll receive, credit impact, and any potential tax ramifications. The following are some of the things to think about: Costs: Credit and debt counseling are always free because debt relief companies are prohibited from charging advance costs. Debt management plans can cost anything from $0 to $50 to enroll in and $0 to $75 each month, depending on where you live. Fees typically vary from 15% to 25% of the total enrolled debt for debt settlement plans. Credit counselors may assist you in creating a financial plan and may enroll you in a debt management program in which you will return all of your debts at a lower rate. Debt settlement firms will attempt to negotiate settlements that are less than what you owe. Credit impact: If you maintain everything current, credit counseling has the least influence on your credit. Debt settlement's purpose is to pay less than you owe, which means your credit may be wrecked. Thus it must only be used as a last choice. Tax implications: If you choose a debt settlement plan, you may owe taxes on any forgiven debt. Keep this in mind, and take advice from an accountant if necessary to avoid unpleasant surprises during tax season.Begin the debt-relief procedure
It is a good idea to have someone assess your finances and help you establish a strategy before enrolling. Because the service is provided for free, a nonprofit credit counseling agency is a wonderful place to start. Debt settlement firms will also offer free consultations. However, they may not be as comprehensive as those offered by a nonprofit credit counselor. Pay no upfront fees (this is against the law) and make sure all fees are disclosed. It's crucial to remember that debt relief plans can take a very long time to complete. Furthermore, if your supplier has reached an agreement with you and you've begun making payments, you'll be responsible for the fees even if you leave. Before enrolling in a debt management plan or a debt settlement, make sure you're ready and able to see it through to completion.Debt Settlement vs. Debt Relief
It's critical to recognize the distinction between debt relief and debt settlement. Simply put, debt settlement is a sort of debt relief that can assist you in settling unsecured debt concerns (e.g., credit cards, medical bills, personal loans). Credit counseling, debt management plans, and debt consolidation loans are all prevalent forms of debt relief. The purpose of debt settlement is to reach agreements with your creditors for less than you owe, which could harm your credit and result in taxes on the forgiven debt. You'll repay all you owe with the other sorts of debt relief, but you might get a lower interest rate. Other options, such as debt consolidation, will have a less negative influence on your score and should be investigated before turning to debt settlement.Should I Hire a Debt Consolidation Company?
Debt settlement should only be explored after you've exhausted all other options for debt relief. Working with a nonprofit credit counseling firm, for example, can offer you a counselor who can analyze your budget and assist you in developing debt reduction methods such as a debt management plan or a debt consolidation loan. Keep in mind that any forgiven debt may be subject to taxation in addition to the effect on your credit score. The type of relief determines the cost of debt relief and the service provider you select. If you opt for debt settlement, you'll usually be charged a percentage of the total amount of debt that the service resolves. Avoid paying a debt settlement company fee before your debts are settled. Make sure that the company you hire reveals its fees up front.Is Debt Relief Effective?
You can employ a range of debt alleviation solutions that are proven to work. Doing it yourself by careful budgeting and negotiating plans with creditors, working with a nonprofit credit counsellor, obtaining a debt consolidation loan, using a debt management program, working with a debt settlement firm, and even filing for bankruptcy are all systematic ways. Some of these tactics, such as debt settlement and bankruptcy, might have serious financial ramifications, so you should carefully consider your options before enrolling in a debt relief program.How Can You Stay Away From Debt Relief Scams?
Whether you're in need of debt relief, it's vital to be on the lookout for scammers. One of the most important things to check for is if a debt relief organization requires you to pay a high upfront cost to settle your debt. It's against the law for debt relief organizations selling services over the phone to charge you a debt settlement fee upfront, so this is a significant red flag. Here are some more potential red flags: You're presented with a "guarantee" that your creditor will forgive your debts. The company refuses to give you written information about its costs or services, and what you're told sounds too good to be true. When you do your research (e.g., see what your state's attorney general or consumer protection agency has to say about the provider, look up the company's statistics with the Better Business Bureau), you'll discover a long history of problems or complaints. It is recommended that you stop communicating with your creditors.How We Selected the Best Debt Relief Firms
For this analysis, we looked at over two dozen debt relief companies. The top companies on our list are AFCC and IAPDA or NFCC-accredited, have transparent pricing and credentials, and offer free financial education tools. Furthermore, they are well-established companies with a strong track record of success.