How it works?
Our top 3 picks for debt settlement companies
1. Our #1 Pick for overall choice: National Debt Relief
2. Strong Alternative: Freedom Debt Relief
3. Also Recommended: United Debt Settlement
| Company | Customer rating | Our pick for | Common Relief | Debt minimum | Settlement timeline | Year founded | |
|---|---|---|---|---|---|---|---|
 | 4.9 | Best overall | Up to 50% *From total debt, before fees | $10,000 | 12 to 48 months | 2009 | Get Started |
 | 4.4 | High Transparency | Up to 50% *From total debt, before fees | $10,000 | 24 to 48 months | 2002 | Get Started |
 | 4.2 | Most Supportive | Up to 50% *From total debt, before fees | $10,000 | 24 to 48 months | 2016 | Get Started |
National Debt Relief
National Debt Relief
4.9
Common Relief
Up to 50%
*From total debt,
before fees
Minimum debt
$10,000
Maximum cost
25% of debt
Time to settle
12 to 48 months
Year founded
2009
Freedom Debt Relief
Freedom Debt Relief
4.4
Common Relief
Up to 50%
*From total debt,
before fees
Minimum debt
$10,000
Maximum cost
25% of debt
Time to settle
24 to 48 months
Year founded
2002
United Debt Settlement
United Debt Settlement
4.2
Common Relief
Up to 50%
*From total debt,
before fees
Minimum debt
$10,000
Maximum cost
25% of debt
Time to settle
24 to 48 months
Year founded
2016
Debt Relief: What to Know Before You Sign
Not sure where to begin? Our easy-to-follow guides walk you through everything you need to know about debt relief—no jargon, no pressure. Just real answers.
Debt Settlement Buyer's Guide
Key insights
Debt settlement reduces what you owe, so you repay less than the full amount.
Jump to insightsMost programs charge a 15%–25% fee based on your enrolled debt.
Jump to insightsThere are risks—explore credit counseling or consolidation first.
Jump to insightsWhat is debt settlement?
Debt settlement is when a agrees to accept less than the full amount owed from a , often as a lump-sum payment or a short-term payment plan.
It's generally for unsecured debt like credit cards, personal loans, or medical bills— not for secured debts like car loans or mortgages.
Most settlements are completed in 24–48 months.
You'll typically make monthly deposits into a dedicated account. Once there's enough saved, the settlement company negotiates with creditors to pay off each debt.
How debt settlement works
You can settle debt yourself or hire a company to negotiate for you. In either case, the idea is to offer a partial payment in exchange for forgiveness of the remaining balance.
Many companies advise you to stop paying your creditors to prompt a negotiation. This can hurt your credit in the short term, and creditors aren't obligated to accept a settlement offer.
Creditors may accept a reduced amount—but it's not guaranteed.
Some companies prioritize settling smaller debts first. Be sure to ask how your accounts will be prioritized so you don't rack up avoidable interest elsewhere.
» RELATED:
How much does debt settlement cost?
There are no upfront costs to get started. Service fees typically range from 15% to 25% of your enrolled debt and are built into your low monthly payments—so you never pay out of pocket. You may also face penalties and late fees from creditors during the negotiation period—especially if you've paused payments.
Settle $20,000 for $10,000? Fees of $3,000–$5,000 are included in your affordable monthly payments.
How to choose a debt settlement company
Look for companies with clear pricing and no fees until a settlement is reached. Avoid those asking for large upfront payments. Here's what else to consider:
- Check credentials: Are they accredited by groups like the or ? Are they licensed in your state?
- Read reviews: Use platforms like SimplyDebtSmart and the SimplyDebtSmart complaint database to look for red flags.
- Watch for false promises: No company can guarantee debt elimination or protection from lawsuits.
Debt settlement pros and cons
While debt settlement can reduce your overall balance, it also has real downsides—especially to your credit.
Forgiven debt is usually reported as a charge-off and can be taxed. Always get your settlement in writing, and understand what you're agreeing to.
Pros
Cons
Alternatives to debt settlement
The suggests several options that may be better suited for your situation:
- Negotiate yourself: Reach out to creditors to request a hardship plan or reduced payoff.
- Hire a lawyer: A debt attorney can negotiate settlements and shield you from direct contact with lenders.
- Bankruptcy: A last resort that wipes out many debts—but damages your credit for years.
- Debt consolidation: A personal loan or balance transfer card may offer a lower interest rate to manage existing debts.
» MORE:
Debt settlement FAQ
How we picked our top choices
The SimplyDebtSmart research team ranked providers using a custom scoring system based on customer reviews and company offerings. We analyzed thousands of reviews from Dec 2021 to Nov 2024.
- Customer service quality
- Process transparency
- Staff professionalism
We also reviewed the most important service factors: minimum debt amounts, average settlement time, and availability across states.
Companies with the highest scores received a "Best for" or "Our Pick" label based on category strength.
Debt Relief Calculator
See how much you could save with debt settlement compared to traditional minimum payments
Enter Your Total Debt
Include credit cards, medical bills, and other unsecured debt
What you'll see in your personalized report:
Side-by-Side Comparison
Traditional payments vs. debt relief - see both scenarios clearly
Payment Breakdown
Understand where your money goes: interest vs. principal
Timeline to Freedom
Compare how long each path takes to become debt-free
Total Savings
Calculate your potential savings in dollars and percentage
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Read debt settlement company reviews
| Company | Customer rating | ||
|---|---|---|---|
| 4.9 | Debt is often reduced by as much as 50%, with most cases settled in 24-48 months. Fees vary between 15-25% of enrolled debt. No upfront fees. $7,500 minimum debt required. Offers debt settlement services, not a loan provider.Read More | Get Started |
| 4.4 | Specializes in unsecured debt settlement services. Debt could be settled in as little as 24 to 48 months, and fees range from 15% to 25%. $7,500 minimum debt required. Track progress 24/7 via online dashboard.Read More | Get Started |
| 4.2 | Provides debt consolidation, debt settlement and credit counseling services. IAPDA-certified staff. Fees are based on percentage of how much company saves you. Not available in all states. Doesn't work with all kinds of debt.Read More | Get Started |
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