# 5 Best Debt Relief Companies of June 2026
Money Magazine reviewed nearly 20 debt relief companies to identify top performers. The evaluation criteria centered on costs, transparency, range of services, customer support quality, and reputation.
Debt relief companies fall into three main categories. Debt consolidation firms combine multiple debts into a single loan with a lower interest rate. Debt settlement companies negotiate with creditors to reduce what you owe, typically charging 15-25% of the amount saved. Credit counseling agencies offer budgeting help and debt management plans without debt forgiveness.
The choice depends on your situation. Consolidation works best if you have decent credit and want predictable monthly payments. Settlement suits those with significant debt but damaged credit who can't qualify for a loan. Credit counseling helps people who need guidance but can manage payments.
Watch for red flags. Legitimate debt relief companies don't guarantee results or ask for upfront fees before delivering services. The Federal Trade Commission prohibits this practice. Avoid firms making unrealistic promises about erasing debt entirely.
Costs vary substantially. Consolidation through banks or credit unions typically charges origination fees of 1-8%. Debt settlement companies take fees only after negotiating reductions. Credit counseling from nonprofit agencies often costs $0-50 monthly.
Your credit takes a temporary hit with settlement but recovers faster than with bankruptcy. Consolidation may lower your credit score initially due to the new account and hard inquiry, but improves as you make on-time payments.
Before choosing a debt relief company, pull your credit report at AnnualCreditReport.com and understand what you owe. Calculate your debt-to-income ratio. Compare at least three firms and read customer reviews on independent sites, not just company websites.
The right debt relief strategy requires matching your specific financial circumstances to the right solution. Review Money