best debt settlement companies

Best Debt Settlement Companies of 2018

Debt continues to be the top cause of stress for Americans. According to the 2017 “Stress in America” report, the majority of Americans say that money (62%) and the economy (58%) are significant sources of stress (source). Stress certainly doesn’t help when it comes to making smart financial choices. It’s easy to get confused by all the debt relief options available.

Debt settlement companies can negotiate with creditors on your behalf and potentially cut your debt in half. That was the finding of a nine-year study into debt settlement programs commissioned by the American Fair Credit Council (AFCC). The study analyzed 1.9 million accounts and found that the average settlement of an account enrolled in a debt settlement program is 48% of the original balance (source). That’s less than half the initial debt.

Cutting your debt in half may sound like a no-brainer, but negotiating a debt settlement is a serious decision you should not take lightly. Finding the right company is crucial. This article will provide SuperMoney’s list of Best Debt Settlement Companies of 2018. It will also explain our methodology, so you can learn how to find reliable companies for yourself.

The CFPB’s advice on debt settlement companies

The Consumer Financial Protection Bureau provides valuable tips when choosing a debt settlement company. In a nutshell, the CFPB recommends you avoid companies that:

  • Charge fees before they settle an account.
  • Refer to a “new government program” that can bail you out of your credit card debt. Spoiler alert: there isn’t one.
  • Guarantee they can make your debt disappear.
  • Promise they can stop debt collecting actions.
  • Do not provide a clear price estimate for its services.

The CFPB’s tips are a good starting point, but there are more things to consider when choosing a debt settlement company.

SuperMoney’s methodology


Keep away from companies that say debt settlement won’t hurt your credit score. It will. The same applies to firms that claim they can keep debt collectors from calling you or lenders from suing you. They can’t.


Low cost is important, but so are flexible payment options. Shy away from firms that aren’t willing to provide a clear fee schedule.

Variety of debts

Some debt settlement companies will only deal with certain types of unsecured debt, such as credit card debt. Make sure your debt settlement firm deals with the type of debt you are concerned about.

Customer support

Look for companies with a clear and easy to understand website. Check user comments and customer reviews.


Check whether they are members of a major trade association, such as the American Fair Credit Council. Find out if all its debt specialists are certified by the International Association of Professional Debt Arbitrators (IAPDA).

Experience and resources

Avoid new companies. Stick with firms that have at least five years under their belt. Keep away from firms that don’t have a physical address. A post office box doesn’t count.

SuperMoney’s best debt settlement companies

Here is our list of best debt settlement companies for 2018. For more information on these and other debt settlement firms, click here.

Debtmerica Relief

Debtmerica ReliefDebtmerica Relief is based in Santa Ana, California. It has been in business since 2006 and helped more than 20,000 clients.

Most debt settlement firms are big on promises but short on details. We love Debtmerica’s transparency when explaining the pros and cons of debt settlement programs and other debt relief strategies. Its website does a particularly good job of setting realistic expectations for its debt settlement program.

Debtmerica customers typically obtain a 45% to 60% reduction of their enrolled debt. The average fee is 21% of the debt balance. It will consider customers with as little as $10,000 in debt.

Accreditation: Debtmerica is a member of the American Fair Credit Council (AFCC), and all its consultants are certified by the International Association of Professional Debt Arbitrators (IAPDA).

National Debt Relief

National Debt Relief is based in New York City. It was founded in 2008 and offers debt relief services in 41 states.

This company is all about no-pressure, satisfaction guaranteed customer service. If you’re not 100% satisfied with their services you can ask for a refund without paying penalties or fees. As with all debt relief companies, you will need to create a payment plan that deposits money in a dedicated savings account. However, National Dept Relief makes it easy for you to access that money in case of an emergency, which may help you be more aggressive about your savings plan.

National Debt Relief customers who stick with the program typically reduce their debt by 30% over 24 to 48 months, or 50% if you don’t take into account fees.

Accreditation: National Debt Relief is a member of the American Fair Credit Council (AFCC). It requires all its consultants to be certified by the International Association of Professional Debt Arbitrators (IAPDA).

Freedom Debt Relief

Freedom Debt Relief is the largest debt resolution company in the U.S. Based in San Mateo, California, Freedom Debt Relief helps debtors negotiate down debt and avoid bankruptcy. Customers commonly seek out these services when they can’t afford monthly payments and home refinancing or debt consolidation are not options.

In December of 2010, after just eight years in business, Freedom Debt Relief became the first debt resolution company in the country to resolve a total of $1 billion in consumer debt. Now, as of 2018,  it has resolved over $8 billion, and more than 500,000 clients are enrolled in its services. To enroll you only need $7,500 in debt, which is a step-up from the $10k minimum most debt resolution companies require.

Accreditation: Freedom Debt Relief is a founding member of the American Fair Credit Council (AFCC) and a platinum member of the International Association of Professional Debt Arbitrators. As the largest and one of the most veteran debt resolution companies in the business, it was involved in establishing the 2010 Federal Trade Commission rules that regulate the industry.

Accredited Debt Relief

accredited-debt-reliefAccredited Debt Relief is based in San Diego, California, and was founded in 2008.

Fees range between 18% and 25% of the total debt balance enrolled.

Accredited Debt Relief has a flexible monthly payments program and offers a wide selection of debt relief services, such as credit counseling, debt management, and debt consolidation.

Accreditation: Accredited Debt Relief is a member of the American Fair Credit Council (AFCC), and its debt specialists are certified by the International Association of Professional Debt Arbitrators (IAPDA).

Looking for more options? Would you like to read consumer reviews on debt settlement companies before you commit to a debt settlement program? Click here for consumer and expert reviews on dozens of debt settlement firms.

Not sure if debt settlement is right for you? Get a free initial consultation with a debt specialist who can help you understand your options.