credit card debt settlement companies reviews of best

Working with the best debt settlement companies can provide relief if you are having trouble making ends meet and are falling behind on your debt payments. Numerous debt settlement companies are available to help you get your finances back on track, regardless of whether you have credit card debt, medical bills, IRS debt, or other unsecured debts. In this article, we explained what a debt settlement is, we also added a list of the best credit card debt settlement companies. Some reviews of the debt settlement companies are also added to the article to help you choose the right debt settlement companies to work with.

Enjoy the ride!

What Is Debt Settlement?

Debt settlement companies urge their customers to deposit a certain sum of money into a special savings account each month as part of a procedure known as debt settlement. The money in this account is being set aside for future debt repayment. Debt settlement companies will negotiate with your creditors on your behalf, usually providing a reduction in the total amount owed. It is recommended that you put off bill payments and instead put the money directly into a savings account during this period.

Although it could be tempting to settle your debts for less than you owe, the Federal Trade Commission (FTC) warns consumers about the potential downsides of doing so. The major one occurs after you stop paying your bills while they negotiate with your creditors, which could have a negative impact on your credit score. There is no assurance that your debt settlement company will be effective because creditors are not obligated to settle your debts for less than what you owe.

What Does a Debt Settlement Company Do?

Customers can settle their debts with debt settlement companies for a lower amount than they are owed by working with them. Customers who are unable to find a way out of their debt on their own are the primary target audience for these businesses.

While there are many trustworthy debt settlement companies out there, it’s vital to remember that the debt relief sector is also full of scammers. For this reason, the Federal Trade Commission (FTC) advises customers to exercise caution when selecting a business partner. You should also avoid cooperating with debt settlement companies that charge fees upfront before settling your obligations or that claim to have access to a new government program that will ease your financial burdens.

Best Debt Settlement Companies

If you’re having trouble keeping up with your debt payments, you may want to consider debt consolidation or working with debt settlement companies to reduce your interest rates and monthly payments. Debt settlement companies assist customers in paying off debt by negotiating reduced sums, as opposed to debt consolidation companies which combine various debts into one loan (preferably with a lower interest rate). Clients put payments on hold and start putting money away in an emergency fund or savings account while they negotiate with their creditors. The money from that account is used to pay off the debt after creditors and the company has come to an agreement.

There is no certainty with debt settlement, and there are potential downsides such as a drop in credit score, higher out-of-pocket costs, your share of any taxes due on settled debts, and the possibility of legal action. Debt settlement may still be the best option for certain people.

The following are credit card debt settlement companies:

#1. National Debt Relief

National Debt Relief has been helping people get out of debt for over 13 years, and they have helped hundreds of thousands of people in the process. Over 400,000 people have been assisted by National Debt Relief in achieving debt freedom since it began offering debt settlement services in 2009. National Debt Relief has an A+ rating with the BBB and is a verified member of the American Fair Credit Council, making it one of the most trustworthy debt settlement companies in the country.

Credit cards, personal loans, credit lines, and medical bills are just some of the unsecured debts that National Debt Relief can help with. They know how to negotiate a debt settlement with all the main banks and credit card companies. If you have debt from collections, repossessions, a business, or even some college loans, National Debt Relief may be able to help. To get started with National Debt Relief, fill out their online form for a free consultation. They have debt specialists on staff who can hear out your predicament and then lay out your options for dealing with debt. A debt relief plan will be tailor-made to your financial situation and needs.

Your unsecured debts will be resolved by National Debt Relief at no cost to you until you approve the debt settlement agreement. There are no up-front costs, no penalties for leaving, and no commitment required, making this the most flexible debt relief option available. The average client pays a cost of 15-25% of the total debt enrolled once the debt settlement process is complete.

#2. Accredited Debt Relief

Another business in San Diego that offers debt management plans without upfront costs is Accredited Debt Relief. Consultations are free, and customers are informed that it may take two to four years for debts to be settled in full. Debt reduction is a major selling point for Accredited Debt Relief, which boasts a team of expert negotiators. You can get out of debt in as short as 12 months with the aid of Accredited Debt Relief, which can cut the total amount you owe by as much as half, combine all of your payments into one manageable installment, and more.

You can contact Accredited Debt Relief by phone or online to request a free, no-obligation consultation. Also, you will collaborate with one of their debt reduction specialists to develop a customized debt relief program depending on your objectives, level of debt, and financial constraints. If the debt settlement expert thinks you’re a good candidate, you’ll set up a separate savings account at a bank that’s covered by the FDIC. This is the account where you will deposit money each month to be applied to the principal balance of your debt, and it is also known as an “escrow” or “settlement” account.

After that, Accredited Debt Relief will negotiate with your creditors to settle for a much lower amount. However, if you aren’t happy with the results, you can always cancel the service and receive your money back. There are no initial costs involved.

#3. Freedom Debt Relief

Freedom Debt Relief has helped over 650,000 people resolve $10 billion in debt since 2002. The truth is that many customers only pay half or less of their total debt. It is one of the largest debt settlement companies in the United States, with over 2,000 highly trained employees. Freedom Debt Relief has an A+ rating from the BBB and approval from the American Fair Credit Council and the International Association of Professional Debt Arbitrators.

Freedom Debt Relief is skilled in resolving unsecured debts such as those accrued from credit cards, medical bills, and even some student loans. An accredited debt settlement consultant will review your financial position at no cost to you when you sign up with Freedom Debt Relief. The counselor will next create a unique strategy for debt settlement and have you set aside funds for the purpose.

Freedom Debt Relief is among the top debt settlement companies because of its user-friendly layout. After depositing, a client dashboard will track your financial achievement. You’ll be able to see not only how much of a dent you’ve made in your debt, but also how far along the company is in negotiating with your creditors.

#4. Community Tax

Community Tax is an excellent choice if you are looking for help with tax debt. This company provides comprehensive tax services, including acting as your representative in talks with the Internal Revenue Service. Community Tax has been offering tax relief options to clients since 2010 and has paid off over $800 million in tax debt. You may be eligible for an offer-in-compromise (OIC) if you are experiencing financial hardship. If you have tax debt and want to settle it for less than what you owe, you may be able to do so through an Offer in Compromise (OIC), as stated by the Internal Revenue Service. However, taxpayers who attempt to negotiate OICs on their own typically fail to do so.

To improve your chances of being granted an OIC, Community Tax can assist you in completing and submitting your application in a thorough and accurate manner on the first try. Community Tax also offers a tax assurance program and helps clients negotiate payroll taxes and penalty abatements with the IRS. Community Tax will help you declare financial hardship to the IRS and get your tax payment forgiven if you qualify. To find out if you are eligible for an offer-in-compromise or “currently not collectible” status and enroll in the firm’s tax debt reduction programs, you call the company.

#5. Citizens Debt Relief 

Citizens Debt Relief was established in 2017 by a group of New York City-based debt experts who saw a need in the market for individualized debt settlement assistance for people who had fallen behind on their credit card payments. The business has received an A rating from the Better Business Bureau during that brief period, as well as accreditation from the American Fair Credit Council. The Citizens Solution is the name of the five-step program that Citizens Debt Relief offers. Call the number provided or submit an online form to set up a free appointment with a dedicated debt consultant and begin the enrollment process.

The Citizens Solution does not set a minimum debt requirement but rather leaves that decision up to your consultant. If you decide to go through with one of Citizens Debt Relief’s debt relief solutions, you’ll open a personal trust account with Reliant Account Management, an FDIC-insured savings account provider who will function as a liaison between you, Citizens Debt Relief, and your creditors. Citizens Debt Relief will notify creditors and arrange a debt reduction plan on your behalf.

Citizens Debt Relief will freeze your credit cards during this time so you can’t rack up any more debt. However, the business suggests saving one card with a substantial balance for unexpected expenses. You will complete the Citizens Solution program and receive your diploma within 24 to 48 months after you have transferred the monies from your trust account to your creditors and paid off all of your debt.

#6. CuraDebt

CuraDebt has been assisting clients with their debts, including tax debt, since 2000, and has helped thousands of clients save as much as 30% on their debt payments.  It is unique among debt relief providers since it specializes in tax debt, a field that few others enter. The company can settle a wide variety of debts, including credit cards and personal loans.

With agents at CuraDebt boasting a combined total of more than 60 years of experience assisting in the resolution of customers’ liability with the Internal Revenue Service and state tax authorities, there is no question that the company is among the greatest tax relief organizations. Debt settlement with CuraDebt begins with a free consultation when you and an expert will discuss your financial situation and come up with a plan to repay your debts, such as an offer in a compromise agreement, an installment arrangement, or a bespoke solution.

A financial analysis will then be performed once one of CuraDebt’s tax specialists has filed a request for an immediate stay of enforcement with the relevant tax authorities. They will ensure that any necessary tax returns are filed or corrected. The expert will now put into action the plan you developed to fix your tax problem during the session.

It offers tax debt settlement services in all 50 jurisdictions, but its full suite of services, including debt settlement for various types of unsecured debt, is only available to people in 25 states.

Reviews of Debt Settlement Companies

The following are some reviews of debt settlement companies:

#1. National Debt Relief

National Debt Relief is a good option if you need help paying off debt and have at least $7,500 in unsecured debt. The company has everything necessary to assist you in repairing your financial situation.


  • Listed by numerous independent review sites as one of the top debt settlement companies.
  • Reduce the amount you owe by reaching a settlement.
  • Superb BBB Ranking
  • Credit cards, loans, and business debt are among the debt types that have been settled.
  • Certified debt resolution expert available for a free consultation
  • No hidden or up-front costs


  • A minimum of $10,000 in enrolled debt is required.
  • Refuses customers from 8 states

#2. Accredited Debt Relief

Accredited Debt Relief should be at the top of your list if you’re seeking an established debt settlement company with a stellar reputation, lightning-fast results, and a risk-free money-back guarantee.


  • 20+ years of expertise in the debt reduction sector
  • Perfect for credit card debt and other forms of unsecured debt
  • Makes a deal with your creditors to reduce the amount of money you owe them.
  • Quick and simple steps to debt settlement
  • Most effective debt settlement plans with terms of 12 to 48 months
  • Superb BBB Ranking
  • Free consultation with a debt reduction specialist


  • The bare minimum in debt is $10,000.
  • The website does not provide pricing information.

#3. Freedom Debt Relief

Freedom Debt Relief may be your only hope if you’re battling with crippling debt. As long as your total unsecured debt is at least $7,500, you will be able to participate in the program and start getting the help you need.


  • For more than $10 billion, creditors have been appeased since 2002.
  • Their debt relief method does not require any up-front costs.
  • Reduce your debt by negotiating a lower settlement.
  • Online tracking dashboard for continuous updates
  • Various debt management options are available.
  • Approved by the Fair Credit Council of the United States


Not approved by the Better Business Bureau

Eligibility requires a minimum of $7,500 in enrolled debt.

There is no real-time chat service for inquiries.

#4. Citizens Debt Relief

Citizens Debt Relief offers debt settlement services to people who have financial difficulties due to credit card debt. However, the organization may not offer its services in your area because it does not serve every single state.


  • There are a number of approaches to dealing with debt, such as credit counseling, debt consolidation, and debt resolution.
  • Reduce your financial obligations and finish paying your payments.
  • Free consultation with an expert on debt  settlement 
  • There are no costs incurred until the loan is reduced.


  • The webpage does not include any sort of pricing structure.
  • Not all states provide legal possibilities for getting out of debt.

#5. CuraDebt

It is the debt settlement business for you if you owe money on taxes. Since the company’s minimum debt is only $5,000, even if you only have a little amount of unsecured debt, you can still qualify for it.


  • It is one of the most reliable tax debt settlement company
  • Various debt management options are available.
  • Excellent reviews from clients
  • More than 200,000 satisfied customers since the year 2000
  • Outstanding balances on credit cards, healthcare bills, loans, company debts, and tax arrears
  • Affordable prices


  • A mobile application is not yet accessible.
  • The availability of debt management strategies varies by state.
  • There is no real-time chat help for customers.

Things to Consider When Choosing the Best Debt Settlement Company

Here are a few things to check when choosing any of the debt settlement companies:

#1. Type of Debt

Some of the most reputable debt settlement companies focus only on credit card debt or medical costs, for example. You may have to do some extra digging to find one of the best debt settlement companies that are willing to negotiate your business debts or private college loans.

#2. Amount of Debt

The most effective debt settlement companies typically have a $10,000 minimum debt requirement. As a result, your ability to participate in a debt settlement program may be contingent on the total amount you owe.

#3. Better Business Bureau Rating

A debt settlement company’s Better Business Bureau rating can reveal a lot about it. Almost every business occasionally gets feedback from dissatisfied clients. You should still look elsewhere for a debt settlement company if they have received multiple complaints, especially if those complaints suggest a pattern.

#4. Upfront Fees

The Federal Trade Commission outlawed upfront payments for organizations doing business over the phone in 2010. This includes debt settlement companies. No legitimate debt settlement firm would ever ask for payment upfront since they know they can’t promise you’ll get any debt reduction.

#5. Transparency

Due to the prevalence of fraud in the debt settlement sector, it’s important to select a provider who is open and honest about all aspects of the debt settlement process. You should be aware of the costs involved, the length of time the program will last, and the potential consequences of failing to make payments to your creditors before signing up. To ensure that such information is available to the public, you should review the company’s website.

What Can Debt Relief Services Help With?

  • Credit Card Debt
  • Personal Loans
  • Medical Bills
  • Unsecured Debt

Do Debt Settlement Companies Hurt Your Credit?

The fact that if you stop making payments, your credit score may suffer is a significant drawback of debt settlement companies. This makes sense given that the main component utilized to calculate your FICO credit score is your payment history.

You should be concerned about more than just the damage to your credit score. If you stop making payments while you save up for debt settlement, you may also end up owing even more money because of late fines and penalties. During your program, it’s possible that you’ll receive calls from creditors or debt collectors, and you might even get sued.

How Much Does Debt Settlement Cost?

To begin the process, debt settlement companies frequently provide free consultations. Once you enlist, they will charge you a performance fee equal to a percentage of your total debt.

According to the debt settlement companies we researched, typical fees for debt relief range from 15% to 25% of the total debts in the program. If you enroll in a debt settlement program and have $10,000 in credit card debt, you may spend between $1,500 and $2,500 to get it settled. Remember that this sum is in addition to whatever you plan to pay off your creditors.

Who Should Use A Debt Settlement Company?

The top debt settlement companies typically aren’t aimed at people who pay their bills on time but would still like a reduction. Instead, you should weigh the benefits and drawbacks carefully before determining if a debt settlement program is best for you. Debt settlement should be your final alternative if you’ve lost your work or become unwell and are unable to make your monthly debt payments and don’t want to declare bankruptcy.

Can I Do Debt Settlement on My Own?

Offering a creditor a lump sum payment in exchange for the cancellation of some of your debt is an example of debt settlement. Debt settlement is something you may do on your own, or you can employ any of the debt settlement companies to help you.

How Can I Get Out of Debt Without Affecting My Credit?

  • Ask for Help from Family/Friends:
  • Taking a Personal Loan to Cover the Debt:
  • Take a Home Equity Loan.
  • Balance Transfer Credit Card.
  • Cash Out Auto Refinance.
  • Retirement Account Loans.
  • Using a Debt Management Plan with a Certified Credit Counseling Agency.

Final Thoughts

According to the law, you are not required to work with a debt settlement company. Instead, seek the services of a non-profit credit counseling agency. However, if you’re prepared to pay for assistance, you should be familiar with the debt settlement companies we’ve included on our list of the top debt settlement companies. 


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