Skip to main content
TheSavvyAmericans

Loans & DebtComparison

Debt relief options: 7 companies to know

What debt settlement really involves, the risks it carries, and the lower-cost alternatives (like nonprofit credit counseling) worth weighing before you sign up with anyone.

Last reviewed: · Reviewed by the TheSavvyAmericans editorial team

7 debt relief companies and options, listed (not ranked)

These are debt relief providers Americans commonly run into, listed without scores or rankings, because the safest choice depends entirely on your finances and we do not endorse paid debt settlement over lower-risk alternatives. Most below are debt settlement companies; we also include a nonprofit credit counseling option so the contrast is visible. Confirm current fees and terms on each provider's official site, and please read the "safer alternatives" section first.

Money Management International

Fees: Low monthly plan fee

Nonprofit credit counseling and DMPs

  • Nonprofit with free initial counseling
  • DMPs can lower interest without settling

Not scored

Visit MMI

Official site · opens in a new tab

Show more

Money Management International is a large nonprofit credit counseling agency (an NFCC member) that offers free budget counseling and debt management plans (DMPs), which consolidate payments and may reduce interest through creditor agreements rather than settling for less than you owe. This is generally the lowest-risk option on the list.

Also worth knowing

  • Does not tell you to stop paying creditors
  • NFCC member agency

Cons

  • A DMP still requires repaying what you owe in full
  • Modest monthly plan fee may apply
  • You may need to close enrolled credit cards
Type
Nonprofit counseling / DMP
Typical minimum
None
Fees
Low monthly plan fee
Credit impact
Lower risk

National Debt Relief

Fees: % of enrolled debt

A large debt settlement provider

  • Free consultation
  • No fee until a debt is settled

Not scored

Visit National Debt Relief

Official site · opens in a new tab

Show more

National Debt Relief is one of the larger debt settlement companies, negotiating with creditors to reduce unsecured balances over a program that usually runs two to four years. Like all settlement, it can significantly hurt your credit and charges a fee based on the enrolled debt.

Also worth knowing

  • Established, well-known provider

Cons

  • Debt settlement can seriously damage credit
  • Fees are a percentage of enrolled debt
  • No guarantee creditors will agree
Type
Debt settlement
Typical minimum
Often $7,500+
Fees
% of enrolled debt
Credit impact
High risk

Every company listed here: independently researched · listed in no particular order · verify current terms before you sign

Freedom Debt Relief

Fees: % of enrolled debt

A high-volume settlement provider

  • Free evaluation
  • Progress-tracking dashboard

Not scored

Visit Freedom Debt Relief

Official site · opens in a new tab

Show more

Freedom Debt Relief is another large settlement company that negotiates unsecured debts on your behalf. It offers a member dashboard to track progress, but the same settlement risks apply: credit damage, fees and no guaranteed outcome.

Also worth knowing

  • Only charges fees on settled debts

Cons

  • Settlement can badly hurt your credit
  • Percentage-of-debt fees
  • Creditors are not required to settle
Type
Debt settlement
Typical minimum
Often $7,500+
Fees
% of enrolled debt
Credit impact
High risk

Accredited Debt Relief

Fees: % of enrolled debt

Settlement with a guided intake

  • Free consultation and options review
  • Fees charged only on settled debts

Not scored

Visit Accredited Debt Relief

Official site · opens in a new tab

Show more

Accredited Debt Relief connects borrowers with debt settlement programs and offers a guided consultation to review options. As with any settlement, expect credit damage and percentage-based fees, and confirm exactly who services your program.

Also worth knowing

  • Guided intake process

Cons

  • Settlement damages credit
  • Percentage-of-debt fees
  • Program is often serviced by a partner
Type
Debt settlement
Typical minimum
Often $10,000+
Fees
% of enrolled debt
Credit impact
High risk

Americor

Fees: % of enrolled debt

Settlement with a loan option

  • Free consultation
  • App to track your program

Not scored

Visit Americor

Official site · opens in a new tab

Show more

Americor offers debt settlement and, for some borrowers, a consolidation loan option through an affiliate. Review which product you are actually being offered, since a settlement program and a loan carry very different risks and credit effects.

Also worth knowing

  • Loan option for some borrowers

Cons

  • Settlement damages credit
  • Fees based on enrolled debt
  • Loan option depends on eligibility
Type
Debt settlement
Typical minimum
Often $7,000+
Fees
% of enrolled debt
Credit impact
High risk

New Era Debt Solutions

Fees: % of enrolled debt

A long-running settlement firm

  • Long operating history
  • Personalized case management

Not scored

Visit New Era

Official site · opens in a new tab

Show more

New Era Debt Solutions is a long-established debt settlement company that emphasizes personal case handling. It carries the standard settlement risks, so weigh it against nonprofit counseling and confirm all fees in writing.

Also worth knowing

  • Free consultation

Cons

  • Settlement damages credit
  • Percentage-based fees
  • No guaranteed results
Type
Debt settlement
Typical minimum
Varies
Fees
% of enrolled debt
Credit impact
High risk

Pacific Debt Relief

Fees: % of enrolled debt

Settlement for larger balances

  • Free consultation
  • Experience with larger balances

Not scored

Visit Pacific Debt Relief

Official site · opens in a new tab

Show more

Pacific Debt Relief focuses on debt settlement and often works with borrowers who have larger balances. The same cautions apply: settlement can hurt your credit, fees are a percentage of the debt, and results are not guaranteed.

Also worth knowing

  • Fees only on settled debts

Cons

  • Settlement damages credit
  • Percentage-of-debt fees
  • Better suited to bigger balances
Type
Debt settlement
Typical minimum
Often $10,000+
Fees
% of enrolled debt
Credit impact
High risk

Side by side

Debt relief options at a glance (unordered)
CompanyBest forTypeTypical minimumFees
Money Management InternationalNonprofit credit counseling and DMPsNonprofit counseling / DMPNoneLow monthly plan fee
National Debt ReliefA large debt settlement providerDebt settlementOften $7,500+% of enrolled debt
Freedom Debt ReliefA high-volume settlement providerDebt settlementOften $7,500+% of enrolled debt
Accredited Debt ReliefSettlement with a guided intakeDebt settlementOften $10,000+% of enrolled debt
AmericorSettlement with a loan optionDebt settlementOften $7,000+% of enrolled debt
New Era Debt SolutionsA long-running settlement firmDebt settlementVaries% of enrolled debt
Pacific Debt ReliefSettlement for larger balancesDebt settlementOften $10,000+% of enrolled debt

This is an unordered listing, not a ranking or endorsement. We do not score these providers. Do your own due diligence, read every contract, and confirm current terms and fees on each company’s official site before signing up.

Important: Debt settlement companies typically tell you to stop paying your creditors and instead funnel money into an account they control. That can wreck your credit, invite lawsuits, and leave you owing more if the settlements fall through. One protection worth knowing: legitimate companies cannot legally collect fees before a debt is actually settled. Be extremely cautious, read every line of the contract, and talk to a nonprofit credit counselor (NFCC.org) first.

Advertising disclosure: TheSavvyAmericans may receive compensation when you apply for or open a product through links on this page. This does not influence our editorial evaluations. Products are reviewed using a documented methodology. Learn how we make money.

Key takeaways

  • 1This is an unordered listing, not a ranking or an endorsement. Debt relief is genuinely high-risk, and the right move depends entirely on your specific situation.
  • 2Most of the companies below offer debt settlement, which asks creditors to accept less than you owe. Be clear-eyed about it: it can seriously damage your credit and it guarantees nothing.
  • 3Before you reach for paid settlement, look hard at nonprofit credit counseling and a debt management plan (DMP). They are usually lower-risk, and honestly they are where most people should start.
  • 4Two things settlement companies tend to gloss over: forgiven debt can be treated as taxable income, and during many programs you stop paying creditors, which sets off late fees, interest and collection activity while you wait.

Try these lower-risk options first

Before you enroll in any paid debt settlement program, it is worth genuinely working through the lower-risk options. Several cost little or nothing and do far less damage to your credit, which is not a small difference.

  1. 1Nonprofit credit counseling: a certified counselor (find one via NFCC.org) reviews your budget for free and can set up a debt management plan that may lower your interest without settling for less than you owe.
  2. 2Negotiate directly: you can call creditors yourself to ask for hardship programs, lower rates or a payment plan, at no cost.
  3. 3Consolidation loan or balance transfer: if you still qualify, moving high-interest debt to a lower rate lets you repay in full without the credit damage of settlement.
  4. 4Budget and payoff strategy: the avalanche (highest rate first) or snowball (smallest balance first) method can clear moderate debt without any program.
  5. 5Bankruptcy counseling: for overwhelming debt, a one-time consultation with a bankruptcy attorney clarifies whether that offers a cleaner legal path.

How debt settlement really works

  • You typically stop paying creditors and instead deposit money into a dedicated account, so balances, late fees and interest keep growing at first.
  • The company negotiates to settle each debt for less than the full balance, which can take two to four years.
  • Fees are usually a percentage of the enrolled debt and are only charged after a debt is settled (charging before is illegal).
  • Settled or forgiven debt of $600 or more may be reported as taxable income to the IRS.
  • Creditors are not required to negotiate and can sue you while you wait, so the outcome is never guaranteed.

Good to know: Put all of that together and the takeaway is hard to miss: treat debt settlement as closer to a last resort than a first step, and get every promise in writing before you commit to anything.

Frequently asked questions

Is debt relief the same as debt consolidation?
No, and confusing the two can be an expensive mistake. Debt consolidation is ordinary borrowing at a lower rate that you repay in full, and it can actually help your credit. Debt relief usually means debt settlement, where a company negotiates to pay creditors less than you owe. Settlement can seriously damage your credit and is far riskier.
Will debt settlement hurt my credit?
Yes, usually a lot, and it is worth being blunt about that. Most programs have you stop paying creditors, which stacks up missed-payment marks, and settled accounts get reported as settled for less than the full balance. The damage can take years to recover from, which is exactly why the lower-risk alternatives are worth trying first.
Do I have to pay taxes on forgiven debt?
Often, yes, and it catches people off guard. The IRS generally treats forgiven or canceled debt of $600 or more as taxable income, and you may receive a 1099-C. There are exceptions, like insolvency, so talk to a tax professional about your specific situation before assuming the forgiven amount is tax-free.
What is the safest first step if I am overwhelmed by debt?
Start with a nonprofit credit counseling agency (find one through NFCC.org). The initial counseling is free, they will not tell you to stop paying your creditors, and a debt management plan can lower your interest while you repay what you owe. It is the lowest-risk way to get a real professional plan in front of you.

Keep reading

Explore more in Loans & Debt

Head back to the hub to see every guide and comparison we are building in this category, plus the decisions each one helps you make.

Visit the Loans & Debt hubHow we make money
Advertising disclosure: TheSavvyAmericans may receive compensation when you apply for or open a product through links on this page. This does not influence our editorial evaluations. Products are reviewed using a documented methodology. Learn how we make money.
Smarter money choices for everyday Americans.