Best Debt Settlement and Debt Management Companies: A Comprehensive Guide (2024)

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To evaluate debt settlement and debt management services, there are several essential factors to consider.

First, FTC regulations prohibit debt relief companies from collecting fees from a client until they have settled, reduced, or altered the terms of at least one of that client's debts. Companies that charge an up-front fee should be disregarded.

Think about the amount of debt you are carrying and the best way to eliminate it. Compare the benefits and features of the programs you are considering and factor in your personal financial goals. Do you want to get rid of the debt sooner rather than later or do you have time and money to spread the payments out?

Read on to learn more about the best debt settlement and debt management services.

Best Debt Settlement and Debt Management Services 2024

• National Debt Relief: Most types of debts settled
• CreditAssociates: Money-back guarantee
• Accredited Debt Relief: Best reviewed
• ACCC: Best credit counseling
• Americor Debt Relief: Best for smaller debts

Compare the top debt settlement and debt management services programs

The best debt settlement and debt management services offer free consultations, financial literacy resources, and very low fees to receive help.

Here are the best debt settlement and debt management services as picked by Business Insider editors in 2024.

National Debt Relief

Cost: 15-25% of total enrolled debt

Operating since 2009, National Debt Relief claims to have helped more than 400,000 people get out of debt. National works with most kinds of unsecured debt, including credit cards, medical bills, personal loans, and private student loan debt. There is no advertised minimum debt required to apply for National's debt relief programs, though most clients have debt in excess of $10,000.

National offers free consultation with no upfront fees, as no payment is collected until you approve a settlement and make at least one payment on a debt. There's also no fee for backing out so long as you do so before your debt is settled. Once National negotiates a settlement, the fee averages 15-25% of the total enrolled debt (not the settled amount). Completing the settlement program takes 24-48 months on average.

National Debt Relief is accredited by the American Fair Credit Council (AFCC) and has an A+ rating from the Better Business Bureau. National also has a Trustpilot rating of 4.7 stars out of five, with 95% of over 38,000 reviewers giving the company four or five stars. Common complaints among negative reviews include a lengthy settlement process, unexpectedly high fees, and a lack of clarity about the legal and tax implications of debt settlement.

One apparent negative of National Debt Relief is that customer support is only available by phone, with no email or chat option. While business hours for new customers include weekends and extend to midnight on weekdays, support for current clients is only available Monday to Friday from 10 a.m. to 8 p.m. EST.

You can find our National Debt Relief review here.

CreditAssociates Debt Relief

Cost: Estimated 25% of debt (fees not publicly available)

CreditAssociates has been in operation since 2015. The company helps clients settle a variety of unsecured debts, but emphasizes solutions for those dealing with credit card debt, medical bills, and business debt. There is no advertised minimum debt required to enroll in CreditAssociates' debt relief programs.

CreditAssociates offers a free consultation with its team of debt settlement experts, and charges a fee only when the company is involved in a settlement. CreditAssociates also markets a "money-back guarantee," but does not offer further details about that guarantee prior to enrollment. The company cites an average timeline of 36 months to complete a debt settlement program.

CreditAssociates has accreditation from both the AFCC and the International Association of Professional Debt Arbitrators (IAPDA). The company also has an A+ rating from the Better Business Bureau, though it has a high incidence of complaints relative to the number of reviews. Trustpilot reflects a more positive view of CreditAssociates, with a rating of 4.9 stars out of five and 98% of over 14,000 reviewers giving the company four or five stars. Common complaints among negative reviews include poor communication and the use of high-pressure sales tactics.

One standout feature of the CreditAssociates website is its debt relief blog, which offers a treasure trove of articles on topics like credit, bankruptcy, budgeting, and more. These articles are available whether or not you enlist their services.

On the downside, while anecdotal evidence places the cost of using CreditAssociates in line with other debt settlement services, the company's website conspicuously fails to disclose the range of potential fees. It's website mentions that the average customer saves 55% on their debt without fees and 30% with its fees included. CreditAssociates is not available in Colorado, Connecticut, Minnesota, Maryland, Vermont, and Wyoming.

Read our CreditAssociates review here.

Accredited Debt Relief

Cost: 15-25% of total enrolled debt

Accredited Debt Relief is a DBA of debt consolidator Beyond Finance. The company has been in operation since 2011, claiming to have served more than 200,000 clients and paid off more than $1 billion of client debt. Accredited Debt Relief works exclusively with unsecured debt such as credit cards, medical bills, and payday loans, offering both debt settlement services and debt consolidation through its affiliates. There is no published minimum debt required to enroll, but client reviews indicate the company only handles debts totaling over $10,000.

Accredited Debt Relief offers free consultations and savings estimates with no upfront fees and no obligation to enroll. The company boasts that clients who make all monthly deposits reduce their enrolled debt by approximately 45%, with fees averaging 15-25% of the total amount. Some clients are able to pay off debts in as little as 12 months, but the typical timeline ranges up to 48 months.

Accredited Debt Relief is accredited by both the AFCC and the Consumer Debt Relief Initiative (CDRI). The company has an A+ rating from the Better Business Bureau with a very low incidence of complaints relative to the number of reviews. Trustpilot rates Accredited Debt Relief at 4.9 stars out of five, with 98% of over 5,600 reviewers giving the company four or five stars. Common complaints among negative reviews include dissatisfaction with the enrollment process and misrepresentation of how fees are assessed.

Accredited Debt Relief has an online knowledge hub with extensive information about topics related to debt, as well as a blog that covers personal finance more broadly. Customer service offers is accessible by phone for no less than 14 hours daily, seven days a week, as well as by email. One negative about Accredited Debt Relief is that it only operates in 30 states plus Washington, D.C. Clients outside of the covered states are ineligible to enroll.

You can find our full Accredited Debt Relief review here.

American Consumer Credit Counseling

Cost: $39 one-time fee and $7 monthly maintenance fee per account

American Consumer Credit Counseling is a non-profit agency offering debt relief, credit counseling, and financial education services. Operating since 1991, the agency specializes in debt management programs to help clients with unsecured debts such as credit cards and store cards, medical bills, signature loans, and collection accounts. There is no published minimum debt required to enroll.

American Consumer Credit Counseling provides a preliminary counseling session at no charge, during which a professional certified counselor helps review your finances, discuss options for debt relief and develop a budget and action plan. Those who enroll in a debt management program pay a one-time fee of $39 and monthly maintenance fee of $7 per account, which is capped at $70. Both enrollment and maintenance fees may be waived based on state regulations or for those in financial hardship.

The agency's debt management program works with creditors to lower interest rates, eliminate late and over-limit fees, and re-age delinquent accounts to make them current. The program is designed to take approximately four to five years to complete, but the timeline depends on the amount of debt, the creditors, and the client's ability to pay.

American Consumer Credit Counseling is a member of the National Foundation for Credit Counseling, and is accredited by the Council on Accreditation. The agency has an A+ rating from the Better Business Bureau with a nearly negligible incidence of complaints relative to the number of reviews. There are no reviews on Trustpilot, but its brick and mortar locations have over 10,000 combined Google reviews, of which only 37 gave less than four stars.

Unlike the debt settlement programs listed above, American Consumer Credit Counseling offers services in all 50 states. The agency also has 21 offices in 13 states and Washington, D.C. In addition to providing a toll-free number and general email address, the agency's contact page commendably lists phone extensions, email addresses, and hours of operation for each of its departments.

You can find our American Consumer Credit Counseling review here.

Americor Debt Relief

Cost: 14% - 29% of enrolled debt

Americor helps consumers with negotiating large unsecured debt settlements. This means the company can help you with your credit card bills or personal loans but doesn't work with an auto loan or mortgage. You need to have at least $7,500 in unsecured debt to work with Americor's debt relief, which is the same, if not lower, than many of its competitors.

Americor clients must save 25% of the debt owed in an escrow account before the company will start negotiating with their creditors.

Once a settlement is successfully negotiated, the funds you've saved in the escrow account will be used to pay off your creditors. With this company, the fee is not typically collected until after a settlement has been reached and you've approved the settlement terms. Under Americor's terms and conditions, the client won't pay a fee unless the company has managed to lower the client's total enrolled debt, which means that you do not pay a fee if they cannot settle your debts.

Americor's fees range from 14% to 29% of the total debt enrolled in its debt settlement program. For example, if your enrolled debt is $15,000, that would mean your fees could range from $2,100 to $4,350. These fees are added to the amount saved in the escrow account while Americor negotiates your debts.

One standout feature is that Americor also offers the option of a debt consolidation loan, which is separate from its debt settlement program. Loan terms are available for up to 60 months, with APRs ranging from 5.99% to 29.99% and a loan origination fee of 6.99%.

Americor has an A+ rating with the Better Business Bureau and Trustpilot gives Americor 4.8 stars out of 5. Ninety percent of the over 15,000 Trustpilot reviews give the company 5 stars.

Americor is not available in Colorado.

Introduction to Debt Management

The importance of managing debt effectively

Properly managing debt can help you build wealth and reach your financial goals, such as buying a home or obtaining a business loan to launch a new business venture.

However, too much debt or "bad debt" can put your credit score in harm's way, hampering your ability to borrow in the future.

Digging yourself out of excessive or delinquent debt is challenging, but if you're struggling to pay what you owe, external help is available.

Debt management programs

With a debt management program, a credit counselor negotiates with your creditors for you to create new payment plans.

Your creditors may waive fees and lower the interest rate on your accounts if you agree to repay the debt through a debt management program.

FAQs

How Do Debt Management and Settlement Services Work?

Debt management and debt settlement services have similar aims, but distinct approaches to achieving them. Debt management services negotiate with creditors to reduce monthly payments by waiving fees, lowering interest rates, and extending repayment periods. These measures do not reduce the amount of your debt, but make it easier to pay down. Debt management services tend to be inexpensive or free, and impact your credit minimally so long as you make payments according to plan.

Debt settlement services also seek to reduce monthly payments, but they do so by negotiating with creditors to reduce the amount owed rather than alter the terms of repayment. Debt settlement services generally charge a percentage of the total debt, and because debt settlement requires you to stop making payments during negotiation, the process damages your credit significantly. As a result, debt settlement is a better fit for those under severe financial duress who are seeking an alternative to bankruptcy. Note that debt forgiven in a settlement may be considered taxable income unless you get an exemption for economic hardship.

Some companies offer both debt settlement and management, but both services differ from debt consolidation, which simplifies repayment and by combining multiple debts into one at a lower interest rate.

Should You Pay for Assistance With Debt Settlement and Management?

Debt settlement and management services can help those struggling with debt, but they aren't the only options. Before enrolling in one of these services, there are several alternatives to consider.

First, check your area for credit counseling agencies or other non-profit resources that offer debt consultations with no fee. They can advise you about debt relief solutions and help you figure out which ones best suit your needs. Talking with them first won't take any other options off the table.

Second, you may be able to negotiate a debt settlement with your creditors directly to reduce or otherwise change the terms of your debt. Cutting out the middle man can save whatever fees you would have paid, but without the expertise of a settlement or management service to guide you, the responsibility will be on your shoulders. That decision may be worthwhile, but it shouldn't be made lightly.

Finally, debt consolidation may be preferable to debt settlement or management depending on the nature and amount of what you owe. If you're still current on your debts and able to continue making payments, consolidating loans can help you simplify payments and lower interest rates without adding fees.

Methodology: How We Chose the Best Debt Settlement and Management Services

The debt relief industry has several trade associations and organizations that offer accreditation for debt and credit-related services. Examples include the American Fair Credit Council, the International Association of Professional Debt Arbitrators, the Consumer Debt Relief Initiative, and the National Foundation for Credit Counseling. Reputable debt relief and debt management services don't need accreditation from all of these groups, but should be accredited by at least one. Services that did not meet that requirement were left out of this analysis.

With those two parameters established, we rated services according to their fee structures (including the range of potential fees and how clearly they are disclosed in advance), the number of years in operation, money-back guarantees in cancellation policies, and customer satisfaction based on personal reviews.