The best debt relief companies of June 2026

U.S. household debt hit a record $18.8 trillion in 2025, according to the New York Fed, fueld by increases in mortgage, credit card and auto loan balances. Credit card debt alone reached a record $1.28 trillion.

If you're struggling with unsecured debt, a debt relief company may be able to get you back on track. Also known as debt settlement companies, they negotiate with your creditors to lower your balances.

If it works, you could see as much as half of your debt forgiven.

You could pay as much as 25% of your enrolled debt for their service, though, and your credit score is likely to take a nosedive. For consumers trapped in a mounting debt cycle, though, it may be worth it.

CNBC Select has chosen the best debt relief companies for affordability, availability, customer service and other categories. To find out more about how we made our selections, read our methodology.

See if debt relief is right for you

Who's this for? Freedom Debt Relief has customer service agents available to clients seven days a week. It has also earned an A+ from the Better Business Bureau and more than three-quarters of its reviews on Trustpilot are five-star.

Standout benefits: If the settlement amount is more than the balance you had when you enrolled, Freedom Debt Relief will refund your fees.

Who's this for? In addition to debt settlement, Accredited Debt Relief provides free educational resources on money management to help you avoid debt trouble again in the future.

Standout benefits: Accredited has a high 4.89 out of 5 stars with the Better Business Bureau, based on an average of over 2,200 customer reviews.

Who's this for? Americor guarantees you won't pay any fees unless it lowers your total enrolled debt. Since your creditors may refuse to negotiate, that's a big plus.

Standout benefits: Americor charges clients between 14% and 29% of their enrolled debt, which is lower than several competitors on this list.

Who's this for? National Debt Relief works with clients who have as little as $7,500 in unsecured debt, which is less than many other debt settlement companies.

Standout benefits: National Debt Relief operates in every state except Oregon, Vermont and West Virginia.

Who's this for? New Era Debt Solutions' fees average 14% to 23% of your total enrolled debts, which is the lowest range among the companies we reviewed.

Standout benefits: New Era also offers its services in Spanish, making it more accessible.

Who's this for? Pacific Debt Relief is one of the oldest companies on our list, having settled more than $500 million in client debt since its founding in 2002. It's also one of the most widely accessible, operating in every U.S. state except Oregon.

Standout benefits: PDF earned an A+ from the Better Business Bureau, with customer reviews averaging 4.93 out of 5 stars. Clients can earn $200 for every friend they refer.

Who's this for? CuraDebt is one of the few debt settlement companies that works with the IRS and state revenue offices to establish payment plans and mitigate penalties. It also provides audit representation.

Standout benefits: CuraDebt guarantees it will match or beat the fee of any debt settlement company with a comparable Better Business Bureau rating.

Who's this for? CreditAssociates claims it can resolve your balance in as little as 12 to 48 months, faster than many competitors.

Standout benefits: CreditAssociates offers debt relief services in all states except Colorado, Connecticut, Minnesota, Maryland, Vermont and Wyoming.

InCharge Debt Solutions: This nonprofit has a minimum debt requirement of $1,000, far below what most competitors require. But InCharge Debt Solutions works exclusively with credit card debt

J.G. Wentworth: Known for its structured settlements, J.G. Wentworth also offers debt relief services. We considered it but Its fee structure is not publicly available

United Settlement: Founded in 2016, United Settlement offers debt settlement services, credit counseling and debt consolidation loans. However, it doesn't publicly disclose its fee structure or debt minimum.

Debt relief (or debt settlement) is the process of negotiating with your creditors to have some or all of your balance forgiven. If you have a large unsecured debt — like personal loans, credit card bills, private student loans or medical bills — a debt relief company can approach your creditors on your behalf.

Debt settlement firms usually ask clients to stop making regular payments and instead deposit the money into an escrow account. Once you've saved up enough, the company will contact creditors to negotiate.

If an agreement is reached, funds from the account are used to pay the new total. You'll have to pay a fee to the settlement company, usually a percentage of your total debt, and may be charged banking fees and other fees.

There is no guarantee a debt settlement company will be successful. And halting payments can further damage your credit score, add interest and fees and result in collections calls and even legal action.

Debt settlement companies typically charge clients between 15% and 25% of their enrolled debt, though the specific percentage is largely determined by how much you owe and state regulations.

There are also often charges associated with the escrow account: Setup fees can range from $8 to $10, with an additional monthly account fee of $10.

Each provider operates differently, so be sure to inquire about any fees before enrolling.

Because users stop making payments to their creditors, a debt relief program can seriously damage your credit score.

Those missed payments are reported to the credit bureaus and can cause your score to drop by up to 100 points.

Once a debt is settled, it appears on your credit report as "settled for less than the full amount" for up to seven years. That signals to lenders that you represent a high risk.

How debt relief appears on your credit report depends on the type you pursue.

If you go through a debt management plan, your accounts may be noted as enrolled in a plan but no derogatory mark is added.

Whether you're a good candidate for debt settlement depends on the kind of debt you have, your payment history, income stream and financial goals. If you have credit card bills or other unsecured debts over $10,000 and have been unable to keep up with payments, it might be a good option, especially if you've already tried a debt consolidation loan or credit counseling.

Your credit score will take a hit, although that could be a moot point if you're already drowning in debt.

In addition, a debt relief company may not settle all your debts and the service can be costly: A 25% fee on $20,000 worth of enrolled debt means you'll be paying $5,000 on top of whatever balance is agreed on.

Before enrolling, compare the fees to the amount you owe and make sure it's a cost-effective strategy.

Make sure the company works with the type of debt you have, especially if it's student loans or a tax bill. To vet a debt settlement company, review customer satisfaction ratings and its Better Business Bureau score. You may want to contact a consumer protection agency or your state's Attorney General's office to ensure it doesn't have outstanding complaints or lawsuits.

You can also check whether, like all the companies on this list, the agency is accredited by the Association for Consumer Debt Relief.

Beware of companies that guarantee success, charge upfront fees before settling debt or tell you to stop communicating with your creditors.

To apply for a debt relief or debt settlement plan, follow these steps:

Look at the kind of debt you have: Debt relief companies only work with unsecured debts like credit cards or medical bills, not auto loans or mortgages. If you owe the IRS, you'll need a tax relief company.

Add up how much you owe: Many companies require clients to have at least $10,000 in unsecured debt, though there are some with limits as low as $7,500.

Compare companies: Carefully review their fee structures and settlement plans. Read all the fine print and check with your state's attorney general's office to see if any complaints have been filed. Many companies offer a free consultation, where you can ask questions.

Apply for debt relief: Make sure you have the information on the accounts you want to include, including outstanding balances and payment records. They will confirm whether you're a good fit for enrollment

Start making deposits: You'll typically stop paying your creditors and start making payments into a dedicated savings account based on the schedule you arranged with the settlement company.

Review settlement offers: Once you have enough in the account, your debt relief company will work with your creditors, using the money you've saved as a settlement offer.

Debt settlement is expensive and can damage your credit. So, before choosing a debt settlement company, consider other options.

Negotiate with your creditors directly

Credit card companies and other creditors may be willing to work with you directly. You can ask to have fees temporarily waived, your interest rate lowered or your minimum monthly payments delayed. If you reach out to a creditor, ask about available forbearance or hardship programs.

Debt consolidation loan

Debt relief is an umbrella term that encompasses various options, including debt settlement and debt consolidation

If you're juggling multiple large debts, a debt consolidation loan combines them into one payment, usually with a much lower interest rate than an outstanding credit card bill. Not only will it save you money and streamline your accounts, but it could also improve your credit score by lowering your credit utilization ratio.

Our top picks for debt consolidation loans include Upgrade, which approves debt consolidation loans for borrowers with a FICO score as low as 580, and Achieve. known for its quick approval and funding.

Credit counseling agencies

Another alternative to debt settlement is working with a credit counseling service to develop a debt management plan that helps you work with your creditors to adjust fees and interest rates. You'll make payments to the agency, which will distribute them to your creditors.

The fee is much lower than the cost of debt settlement, but you'll still be paying your full balance rather than negotiating it down. Check with the Financial Counseling Association of America or the National Foundation for Credit Counseling for options. 

At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. 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 independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.

To find the best debt relief companies, CNBC Select analyzed more than a dozen companies that offer debt settlement plans. When narrowing down our list, we focused on the following features:

Fees: Fees for debt relief companies can range from 14% to 25%, although the exact figure varies by location, type of debt and other factors. We identified providers with the lowest fees and considered whether a company was transparent about its pricing and charged fees only after work was completed.

History and reputation: We considered the number of years a debt relief company has been in operation and whether it has been the subject of legal action by the Consumer Financial Protection Bureau or other federal, state or local government agencies. All the companies on this list are accredited by the Association for Consumer Debt Relief.

Third-party ratings: We considered third-party reviews to determine customer satisfaction, including TrustPilot scores and Better Business Bureau ratings and reviews. We also considered the number of unresolved complaints against a company.

Availability: We considered the number of states where companies did business, prioritizing those with a more widespread presence. We also prioritized companies that offered evening and weekend customer service hours.

Services: We prioritized companies that offer a variety of services, including credit monitoring and financial coaching.

We also considered CNBC Select audience data, when available, including general demographics and engagement with our content and tools.

Based on these criteria, our picks for the best debt relief companies are:

• Best for customer service: Freedom Debt Relief
• Best for debt resources: Accredited Debt Relief
• Best guarantee: Americor Debt Relief
• Best for smaller debts: National Debt Relief
• Best for affordability: New Era Debt Solutions
• Best reputation: Pacific Debt Relief
• Best for tax debt: CuraDebt
• Best for quick debt resolution: CreditAssociates

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