6 Best Debt Relief Companies of 2021



Company Minimum debt average collection period Fees Types of debt relief
Public Debt Relief

Best overall
USD 7,500 24-48 months 18-25% of attracted debt four
Accredited Debt Relief

Best for Debt Settlement
USD 10,000 12-48 months Differ one
DMB Financial

Best for High Interest Credit Card Debt
No minimum 36-48 months Differ Several custom programs
Debt solutions for a new era

Best for customer satisfaction
No minimum 28 months Differ one

Best for Tax Debt Relief
USD 5,000 Varies Differ five
Debt Relief Freedom

Best Interactive Program
Varies Varies 15-25% of attracted debt one

Frequently asked Questions

What does a debt relief company do?

Debt relief companies are non-profit organizations that help consumers pay off their debts for less than they owe. These companies provide their services to clients who are so overburdened with debt that they cannot find a solution on their own.

While there are many reputable debt relief companies out there, it is important to note that the debt relief industry is rife with fraud. The Federal Trade Commission (FTC) believes that for this reason it is prudent to treat the companies you do business with. You should also avoid working with debt relief companies that are trying to charge before you pay off your debts, or with companies touting a new government program that might help.

What is debt repayment?

In general, debt relief companies look to debt settlement as the best debt relief option. When paying off debt, these companies ask their clients to set aside a certain amount of money monthly in a special savings account. The purpose of this account is to accumulate an amount of money that can be used to pay off debts later.

Debt relief companies then negotiate with creditors on your behalf, which usually involves offering less of your debt to pay off your balance. At the end of the debt settlement program, clients should be free of debt and able to move on.

While paying less than the amount you owe may seem ideal, the Federal Trade Commission (FTC) notes that debt settlement comes with certain risks. For example, debt relief companies will ask you to stop paying bills while they work to pay off your debts, which can have serious consequences for your credit rating. Also keep in mind that lenders are not required to pay less than yours, so there is no guarantee that your debt relief company will be successful.

What is Debt Consolidation?

If you are interested difference between debt repayment and debt consolidationHere are some details to keep in mind. If debt settlement involves working with a debt relief company to pay off your debts for less than your debt, debt consolidation requires you to purchase a new financial product (usually personal loan or credit card with balance transfer) to consolidate all your existing debts.

With debt consolidation, you will move all your old debts into a new loan with a lower annual interest rate or better terms. While the goal of debt consolidation is to save money, debt consolidation can also help you go from paying multiple debt payments every month to one.

What are lenders doing during COVID-19 to help debtors?

Since March 2020, leading banks and lenders have deployed emergency assistance to customers who are having trouble paying bills due to the impact of COVID-19. Several lenders, including Chase, Capital One, Citi, and Discover, have expanded deferral programs for their loans and credit cards, which may allow you to skip monthly payments for a limited period of time, according to the National Fund for Credit Counseling (NFCC).

If you are delaying paying your credit card bills or other loan payments, it is wise to check with your lender’s website to see what programs may be available to you. While loan deferral programs will not get you out of debt, they can buy you time to get your finances back on track, helping to avoid late fees and damage to your credit rating.

Are Debt Relief Companies Harmful to Your Credit History?

One of the main disadvantages of debt settlement programs is the fact that your credit rating can go down as soon as you stop making payments. This makes sense since your payment history is the most important factor in determining your FICO credit rating.

That being said, the FTC notes that damaging your credit rating isn’t all you need to worry about. Stopping payments while you are saving money to pay off debt can also lead to fines and late payment penalties, which can further increase your balance. You may also receive calls from creditors or debt collectors during your program and may even be sued.

How Much Does Debt Relief Cost?

Debt relief companies usually offer free advice to get you started. From there, they charge a performance fee, which is usually a percentage of the amount of debt you have registered.

According to the companies we have provided, total debt relief fees range from 15% to 25% of the total debt covered by the program. This means that if you sign up for a $ 10,000 credit card debt settlement program, you can pay between $ 1,500 and $ 2,500 to fix the problem. And remember, this is on top of the amount you pay your creditors to pay off your debts.


We started the process by creating debt write-off methodology and then looked for debt relief companies that have been in business for over five years. Based on this, we gave preference to firms that offer free consultations with a debt advisor without any obligations. While debt relief companies do not advertise or charge flat fees that you can incur in advance, we have also given extra points to companies that advertise a range of potential fees on their websites. Finally, we compared companies based on their proven success in helping clients pay off debt for less than they owe.


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