The 7 best debt relief companies to help you pay off debt in 2024

If you're struggling to pay off debt, you can lower your monthly payments through either debt consolidation or by enlisting the help of a debt relief or debt settlement company.

Unlike debt consolidation, which merges multiple balances into one loan (ideally with a lower interest rate), debt relief companies, sometimes referred to as debt settlement companies, help clients pay off their debt by negotiating a reduced balance. During the negotiation, clients stop making payments and save for debt payoff in a savings account. When an agreement with creditors has been reached, the debt is settled with the funds from that account.

Debt settlement isn't guaranteed and comes with risks, including a lower credit score, extra fees, additional taxes and even lawsuits.

Below, CNBC Select picks the top debt relief and settlement companies based on fees, customer satisfaction ratings, company history and availability. (Read more about our methodology below.)

Who's this for? Accredited Debt Relief is a good choice for those who need additional support with their debt — the company includes financial therapy services for those who enroll in the program.

Standout benefits: Accredited has an A+ rating from the BBB, and has worked with over 300,000 clients.

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Who's this for? Americor is a strong option for those looking for a company with a good record of customer satisfaction since the company has over 1,400 customer reviews averaging 4.66 stars on BBB's website.

Standout benefits: Americor has lower fees than some of the competition, charging between 14% and 25% of enrolled debt.

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Who's this for? New Era Debt Solutions has a strong track record, with high rankings for customer satisfaction. The service also has an A+ rating from the Better Business Bureau.

Standout benefits: It offers some of the lowest fees of the debt settlement companies we considered, averaging 14% to 23% of your total enrolled debts.

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Who's this for? National Debt Relief works with customers with $10,000 or more in unsecured debt, making it a good choice for people with large debts.

Standout benefits: This company charges a fairly typical fee for its debt settlement services among the companies we compared. Clients can easily track their progress through a dashboard on the company's website.

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Who's this for? Freedom Debt Relief can help clients get out of credit card debt, though it also deals with other types of unsecured debt like medical bills.

Standout benefits: Freedom Debt Relief's program guarantee will refund fees if your settlement is greater than the amount originally owed when you enrolled in the program.

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Who's this for? Pacific Debt Relief has one of the highest customer satisfaction ratings through the BBB among the companies we considered, scoring 4.93 out of 5. However, it generally requires $10,000 or more in unsecured debt to qualify for its debt settlement programs.

Standout benefits: Pacific Debt Relief is BBB accredited.

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Who's this for? CuraDebt is one of the few debt settlement options that deal with IRS debt and back taxes, making it a top choice for those in this situation.

Standout benefits: It offers services for state and federal tax debts and has CPAs and tax attorneys at hand to assist customers.

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Accredited Debt Relief works with clients in 38 states, and has been in business for 13 years.

Minimum amount of debt required to enroll

$10,000

Fees for services (percentage of enrolled, unsecured debts) 

Average of 25% of enrolled debt

BBB rating

A+

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With 15 years of debt relief experience, Americor has built a good track record for customer service and resolving debt.

Minimum amount of debt required to enroll

$7,500

Fees for services (percentage of enrolled, unsecured debts) 

14% to 25% 

BBB rating

A+

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New Era Debt Solutions has a long history since the company has been in the debt relief space for more than 20 years. It also has strong reviews from the BBB and is accredited.

Minimum amount of debt required to enroll

Not disclosed 

Fees for services (percentage of enrolled, unsecured debts) 

14% to 23% 

BBB rating

A+

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National Debt Relief has been working in the debt relief business since 2009 and has a large number of positive reviews with the BBB.

Minimum amount of debt required to enroll

$10,000

Fees for services (percentage of enrolled, unsecured debts) 

15% to 25% 

BBB rating

A+

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Freedom Debt Relief has been in business for more than 20 years. The company has worked with over one million customers and resolved $18 billion in unsecured debt since 2002.

Minimum amount of debt required to enroll

Not disclosed 

Fees for services (percentage of enrolled, unsecured debts) 

15% to 25% 

BBB rating

A+

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Pacific Debt Relief has been helping people negotiate their debt since 2002 and has been accredited by the BBB.

Minimum amount of debt required to enroll

$10,000

Fees for services (percentage of enrolled, unsecured debts) 

15% to 25%

BBB rating

A+

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CuraDebt has been serving customers who need help with tax debts for over 21 years and is available in 47 U.S. states.

Minimum amount of debt required to enroll

Not disclosed 

Fees for services (percentage of enrolled, unsecured debts) 

14% to 23% 

BBB rating

A+

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Before choosing a debt relief or settlement company, make sure that you've tried all other options. You might want to consider a non-profit credit counseling service as an alternative, which can help you make a debt management plan.

The Consumer Financial Protection Bureau (CFPB) also recommends contacting your state Attorney General or any local consumer protection agencies to ensure there aren't any consumer complaints on file about the company. The office can also tell you whether the company you're considering is licensed in your state if required.

You'll want to beware of companies that:

• Charge upfront fees before settling debt
• Makes guarantees on debt settlement
• Tells you to stop communicating with creditors

To find a good debt settlement company, you'll want to consider the fees involved and make sure that they cover the type of debt you're working with. Then, consider reviews and current customer satisfaction.

Debt settlement is a process of negotiating debts to lower the amount you owe. Once an agreement has been reached, the debt settlement company will pay the amount in a lump sum from the cash you've saved.

While it may sound appealing to pay a smaller amount than you owe, you'll want to consider the potential damage to your credit score — missing monthly payments while saving for a settlement instead and paying less than you owe can both negatively affect your credit score. You'll also need to pay taxes on the amount forgiven as income, and if you use a company, pay a hefty fee typically between 15% and 25% of your enrolled debt.

Debt settlement helps those with large amounts of unsecured debts — like personal loans, credit card debt, and private student loans — lower what they owe.

When you work with a debt settlement company, you'll typically put aside money in a specific savings or escrow account. Once you save up enough money, the company will begin calling your creditors and negotiating on your debts to lower what you owe.

Once an agreement has been reached, the company will use the funds from your savings or escrow account to pay off the agreed amount and settle your debt. You'll then pay a fee to the company you hired.

Debt settlement can be a way to get out of debt. But you'll want to consider several pros and cons before starting a service.

Pros of debt settlement

• You can reduce your debt. Negotiations can lead to different types of resolution, but you'll generally end up paying less than what you owe.
• You'll have a timeline for repayment. You'll typically be enrolled in a program between 24 and 48 months.
• Many companies offer free consultations. You'll be able to see if it is a fit for you without a financial commitment upfront.

Cons of debt settlement

• Results aren't guaranteed. Not even the most reputable debt settlement company can guarantee successful resolution.
• Your credit score could decrease. The estimated credit score decrease after debt settlement is around 100 points, according to the National Foundation for Credit Counselling.
• It can be expensive. Many companies we considered charge fees between 15% and 25% of the unsecured debt enrolled in the program.
• It could raise your tax bill. Debt settlement works by getting creditors to take less than what you owe on your debts. The amount forgiven generally becomes taxable income you're responsible for paying taxes on.

Debt settlement relies on negotiating down the amount of debt you owe and is generally done by companies that charge a fee for their services. Debt relief companies generally encourage clients to stop paying bills on their debts that are enrolled in the program and instead save for settlements in a savings account.

Debt consolidation, however, is generally done on your own. This process relies on a personal loan to pay off debt, then leaves the personal loan as your main debt to pay down. It can help you keep track of your debts better by rolling them into one debt, and in some cases, it can lower the interest rate you'll pay for some high-interest debts.

Here are CNBC Select's top debt consolidation loans to consider:

• Best for student loan consolidation: SoFi
• Best for fair/average credit: Upstart
• Best for consolidating debt while improving financial literacy: Upgrade
• Best for staying motivated: Happy Money
• Best for good to excellent credit: LightStream
• Best for joint applicants: Prosper

Debt settlement should likely be a last resort since it can be risky. There's a chance that a company won't be able to solve all of your debts, according to the CFPB, and that your overall debt will increase instead of decrease when you stop making payments. And, if you're on a tight budget, it could be costly — if you're charged a 25% fee and enroll $20,000 worth of debt, for example, you'll pay a fee of $5,000 if that debt is settled.

Before you try debt settlement, you might want to try alternatives like debt consolidation, or credit counseling through a non-profit.

Debt settlement is one option to help pay off your debt, but it could mean sacrificing your credit score, paying additional fees and owing more in taxes. If you've exhausted all other options and are still struggling, a debt relief company could reduce the amount you owe and help you pay off your debt.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every debt relief review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of debt relief products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best debt relief companies.

To find the best debt relief companies, CNBC Select analyzed more than a dozen U.S. debt relief companies.

When narrowing down and ranking the best debt relief companies, we focused on the following features:

• Fees. Most debt relief companies charge fees for their services. We focused on those with the lowest fees. Additionally, we focused on those who are transparent about those costs and display them on their websites.
• Better Business Bureau accreditation. To be BBB accredited, companies must meet standards for transparency, honest advertising, trustworthiness, responsiveness and privacy, among other things.
• Customer satisfaction ratings. The BBB measures customer satisfaction through ratings left on its website. We considered both the rating and the number of reviews received.
• History. We considered the number of years a debt relief company has been operating.
• States where service is available. We considered the number of states where the service is available, prioritizing those that were more widely available.

All of the companies on this list are accredited by the American Fair Credit Council (AFCC).

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