Accredited Debt Relief, DebtBlue, Freedom Debt Relief and National Debt Relief ranked highest among debt relief companies evaluated by Money Magazine.
Debt relief companies negotiate with creditors to settle debts for less than owed. The Association for Consumer Debt Relief reports that the average client saved about $1,440 per account, roughly 32% of the balance owed at enrollment, after fees. Program length typically runs 24 to 48 months, with settlement fees ranging from 15% to 25%.
Accredited Debt Relief has a 4.88 BBB rating, 4.8 Trustpilot stars and 4.8 Google stars. The company charges 15% to 25% in settlement fees depending on state and debt specifics.
DebtBlue stands out for transparency on costs. It discloses third-party account fees (roughly $10 to open, then $10 monthly) and explains the debt relief process in plain language. DebtBlue has a 4.74 BBB rating, 4.8 Trustpilot stars and 4.8 Google stars. Settlement fees run 20% to 25% depending on state. The company also charges $39.95 monthly for add-on legal services.
Freedom Debt Relief offers legal assistance to all customers at no additional charge, helping with creditor calls and legal action. It requires only $7,500 in unsecured debt to enroll, lower than some competitors. The company has an A+ BBB rating with 4.33 customer review stars, 4.6 Trustpilot stars based on nearly 52,000 reviews and 4.6 Google stars.
Debt relief carries risks. Creditors typically recommend clients stop paying creditors to increase negotiating leverage, which damages credit scores. Clients may face legal action including paycheck garnishment. Not all debts qualify for relief.