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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) to weigh before you sign up with anyone.

Last reviewed: · Reviewed by the TheSavvyAmericans editorial team

Important: Debt settlement companies typically tell you to stop paying your creditors and instead deposit money into an account they control, which can wreck your credit, lead to lawsuits, and leave you owing more if settlements fail. Legitimate companies cannot legally collect fees before settling a debt. Be extremely cautious, read every contract, and consider a nonprofit credit counselor (NFCC.org) first.

Key takeaways

  • 1This is an unordered listing, not a ranking or endorsement. Debt relief is high-risk, and the right move depends on your specific situation.
  • 2Most companies below offer debt settlement, which asks creditors to accept less than you owe. It can seriously damage your credit and does not guarantee results.
  • 3Nonprofit credit counseling and a debt management plan (DMP) are usually lower-risk and worth exploring before paid settlement.
  • 4Forgiven debt can be treated as taxable income, and during many settlement programs you stop paying creditors, which triggers late fees, interest and collection activity.
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.

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

These are debt relief providers Americans commonly encounter, 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. Confirm current fees and terms on each provider’s official site, and read the "safer alternatives" section first.

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
Nonprofit credit counseling and DMPs

Money Management International

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.

Pros

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

Official site opens in a new tab

A large debt settlement provider

National Debt Relief

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.

Pros

  • Free consultation
  • No fee until a debt is settled
  • 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
Visit National Debt Relief

Official site opens in a new tab

A high-volume settlement provider

Freedom Debt Relief

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.

Pros

  • Free evaluation
  • Progress-tracking dashboard
  • 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
Visit Freedom Debt Relief

Official site opens in a new tab

Settlement with a guided intake

Accredited Debt Relief

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.

Pros

  • Free consultation and options review
  • Fees charged only on settled debts
  • 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
Visit Accredited Debt Relief

Official site opens in a new tab

Settlement with a loan option

Americor

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.

Pros

  • Free consultation
  • App to track your program
  • 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
Visit Americor

Official site opens in a new tab

A long-running settlement firm

New Era Debt Solutions

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.

Pros

  • Long operating history
  • Personalized case management
  • 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
Visit New Era

Official site opens in a new tab

Settlement for larger balances

Pacific Debt Relief

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.

Pros

  • Free consultation
  • Experience with larger balances
  • 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
Visit Pacific Debt Relief

Official site opens in a new tab

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.

Try these lower-risk options first

Before enrolling in any paid debt settlement program, work through the lower-risk options. Several cost little or nothing and do far less damage to your credit.

  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: Because of these risks, treat debt settlement as closer to a last resort than a first step, and get every promise in writing.

Frequently asked questions

Is debt relief the same as debt consolidation?
No. Debt consolidation is ordinary borrowing at a lower rate that you repay in full, and it can 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. Most programs have you stop paying creditors, which leads to missed-payment marks, and settled accounts are reported as settled for less than the full balance. The damage can take years to recover from, which is why lower-risk alternatives are worth trying first.
Do I have to pay taxes on forgiven debt?
Often, yes. 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, such as insolvency, so consult 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 professional plan.

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