Turbo Takeaways
- Top debt settlement companies include TurboDebt, National Debt Relief, Accredited Debt Relief, New Era Debt Solutions, and Freedom Debt Relief.
- Debt settlement companies help consumers negotiate with creditors to lower their overall debt balance in favor of a lump-sum payment.
- Debt settlement can save you money on debt. However, it will lower your credit score while on the program.
Are Debt Settlement Companies the Right Choice?
A debt settlement company may be able to help you become debt-free faster and save a considerable amount of money. However, it may not be the right option for everyone.
Debt settlement may be right for you if:
- You’ve maxed out your credit cards.
- You’re dealing with debt collections.
- You’re struggling to make minimum payments each month.
- You have several missed payments and late fees.
- You have bad credit.
- You can’t afford to pay off your debts in full.
The best settlement companies have transparent pricing, a good track record of helping customers, and experience negotiating fair settlements. We’ve listed the top debt settlement companies that meet these criteria. Read on to learn more.
5 Best Debt Settlement Companies
We analyzed 15 highly-rated debt settlement companies in the U.S. to pick our top five recommendations. We ranked these companies based on the following criteria: Free consultations, customer reviews, geographic availability, digital experience, fees, and minimum debt requirements.
1. TurboDebt
- Minimum Debt: $10,000
- Fees: 15% to 25%
- Free Consultation: Yes
TurboDebt is a top-rated debt settlement company offering strategic planning, consulting, and advising services to help you find the right debt relief program for your financial situation.
TurboDebt experts negotiate with your lenders and help you secure settlements for many types of unsecured debts, including personal loans, credit card debt, business debt, and medical bills. Staying with the program typically saves you a considerable amount of money from your original balance.
TurboDebt ratings include 5/5 stars on Trustpilot, based on over 14,000 reviews. and a 4.9 rating on Google.
If you’re struggling to keep up with debt payments, TurboDebt is one of the highest-rated companies for debt settlement in the U.S.
Pros
- Free consultation
- Save as much as 50% of your debt before fees
- Pay off debt in 24 to 48 months
- Easy and convenient signup process
Cons
- Doesn’t offer programs to help with tax debt or secured debt
- Debt settlement may lower your credit score
2. National Debt Relief
- Minimum Debt: $7,500
- Fees: 15% to 25%
- Free Consultation: Yes
National Debt Relief is based in New York City and has been serving clients since 2009. While the company only offers debt settlement, it also refers consumers to partners for other services like debt consolidation and credit counseling.
National Debt Relief can help you settle most types of unsecured debts, as well as some student loans.
Pros
- May help settle some types of student loans
- Offers referrals for other debt-relief options
- Offers free consultations
Cons
- Doesn’t offer services in all states
- No live chat option
3. Accredited Debt Relief
- Minimum Debt: $10,000
- Fees: 25% of settled debt
- Free Consultation: Yes
Accredited Debt Relief ranks high for customer service. Customers can get in touch with the company through fax, mail, email, phone, and live chat. The company has also accumulated good reviews on Trustpilot.
However, Accredited Debt Relief currently only offers services in 30 states and the District of Columbia, so it's not as widely available as some of the other options on our list.
Pros
- Wide choice of customer support options
- Good customer reviews
Cons
- Not available in all states
- Not all debts are eligible for settlement
4. New Era Debt Solutions
- Minimum Debt: $10,000
- Fees: 15% to 23%
- Free Consultation: Yes
New Era Debt Solutions is a California-based debt settlement company founded in 1999. While you’ll need to have at least $10,000 in eligible unsecured debt to enroll in its program, the company does have high customer ratings.
New Era claims to help customers save 57% of their debts on average. However, services are not available in all states.
Pros
- Claims to help reduce debts by 57%
- High customer ratings
- Has a track record of helping clients since 1999
Cons
- Not available in all states
- Fees are charged based on enrolled debt, not settled debt
5. Freedom Debt Relief
- Minimum Debt: $7,500
- Fees: 15% to 25%
- Free Consultation: Yes
Freedom Debt Relief helps people with a wide range of unsecured debts, including private student loans and payday loans. The company also offers a program guarantee through which it may potentially limit its fees in some cases.
With over 20 years of experience, Freedom Debt Relief claims to have helped borrowers save $18 billion in debt over the years. It also has mostly positive reviews on Trustpilot.
Pros
- Transparent about fees
- Helps with private student loans
- Good customer satisfaction ratings
Cons
- Not available in all states
- Charges fees based on enrolled debt
| Company | Minimum Debt | Fees | Free Consultation |
|---|---|---|---|
| TurboDebt | $10,000 | 15%-25% | Yes |
| National Debt Relief | $10,000 | 15%-25% | Yes |
| Accredited Debt Relief | $10,000 | 25% | Yes |
| New Era Debt Solutions | $10,000 | 15%-23% | Yes |
| Freedom Debt Relief | $7,500 | 15%-25% | Yes |
How Do Top-Rated Debt Settlement Companies Work?
Here’s what you can expect when you work with a top-rated settlement company:
- Once you enroll in a debt settlement program, you’ll stop making debt payments and start putting aside money in a separate savings account.
- You’ll continue saving money until you’ve built up enough for a settlement. This may take 24 to 48 months.
- Your debt settlement company will negotiate with your lenders to reduce what you owe.
- After your lenders accept a settlement offer, you’ll make the lump sum payment to settle your account.
Pros and Cons of Debt Settlement Companies
Consider these debt settlement pros and cons to decide if it’s the right solution for you.
| Pros | Cons |
|---|---|
| You could save a considerable amount of money. | Not all lenders may be willing to accept settlement offers or negotiate with debt settlement companies. |
| Once you settle your debts, you’ll stop receiving calls from debt collectors. | You’ll see a reduction in your credit score once you stop making payments on your debts. |
| You'll often get out of debt faster compared to other options like debt consolidation or debt management plans. | Debt settlement will remain on our credit report for up to seven years. |
| You'll typically avoid bankruptcy. | You may have to pay taxes on the forgiven debt. |
How To Choose the Best Debt Settlement Company
There are several factors you should focus on to find the best debt settlement company:
- Determine Your Debt
Be sure that the company can settle your type of debt. Most companies will only be able to help with unsecured debts. - See If You Qualify
Check if you qualify for a program based on the amount of debt you have. Most debt settlement companies require a minimum debt threshold to enroll in their programs. - Analyze Prices
Compare the costs of different companies to find affordable fees. Some companies charge fees based on enrolled debt, rather than settled debt, which can mean higher prices. - Avoid Upfront Fees
Make sure the company doesn’t charge any upfront fees before the debt settlement process starts. Legitimate debt settlement companies don't charge customers until they complete negotiations with lenders. - Check Reviews
Look for reviews on Google, Trustpilot, and the Better Business Bureau (BBB) to see what actual clients say about their experiences. The BBB also rates businesses based on their practices and transparency. Avoid organizations with consistent complaints.
Who Qualifies for Debt Settlement?
While each company has slightly different eligibility criteria for debt settlement, you’ll usually be able to qualify if you meet these requirements:
- Meet the minimum debt threshold for the company’s settlement program
- Ability to put aside money each month to save for the settlement
- Willing to stop making payments, or have already missed several payments on your debts
- Desire to avoid bankruptcy
How To Apply for Debt Settlement
If you think debt settlement is the right option for you, follow these steps to apply for the program:
- Make a list of top-rated debt settlement companies that settle your type of debt.
- Make sure you meet the minimum debt criteria.
- Compare the settlement fees charged by different companies to find one that’s the most affordable.
- Contact the company for a free consultation to discuss your financial situation.
- Provide more details about your unsecured debts, lenders, interest rates, total balances, and additional information the company requires.
- Sign a debt settlement contract allowing the company to negotiate with lenders on your behalf.
Alternatives to Debt Settlement Companies
There are a number of other debt relief services available if debt settlement isn’t right for you. Consider these alternatives:
- Debt Management Plans: Nonprofit credit counseling agencies can enroll you in a debt management plan (DMP) to help you pay off your debts in three to five years. You’ll make a single payment each month to the agency, which will be distributed to your creditors.
- Debt Consolidation: You can use a debt consolidation loan or a balance transfer credit card to combine multiple debts. Ideally, the new loan will have a lower interest rate compared to what you’re currently paying.
- Direct Negotiation: Another option is to negotiate a settlement with your lenders directly. Your lender may agree to a new repayment plan or a settlement if you can demonstrate financial hardship.
- Bankruptcy: As a last resort, you may want to file for Chapter 7 or Chapter 13 bankruptcy. We recommend consulting with a bankruptcy lawyer to determine if this is the right option for you.
TurboDebt® Helps Consumers Pay Off Debt
If you're looking for a debt relief company to help you settle heavy loads of unsecured debts, TurboDebt® is here to help. With over 20,000 positive reviews across Trustpilot and Google, we've proven ourselves as a trusted source for settling debts.
We assist clients in paying off debts faster for less than their original balance, often as much as 50%. It only takes a few minutes to find out if you qualify for one of our customized debt relief plans.
Contact the experts at TurboDebt today to start your free consultation and begin your journey toward financial freedom!