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Climbing out of debt can feel like a nearly-impossible task with all the late fees and interest rates. The best debt relief programs can lighten your load.
Our in-depth research led us to the top six debt relief programs to help you get out of debt.
We factored in topics like financial guarantee, transparency and track record to determine the best companies for this list.
Top 6 Credit Relief Services
First look:
- Best debt relief program overall – National Debt Relief
- Best debt relief program for tax debt – CuraDebt
- Best choice for credit card debt relief – DMB Financial
- Best program for customer satisfaction – New Era Debt Solutions
- Best program for debt settlement – Accredited Debt Relief
- Best interactive debt relief program – Freedom Debt Relief
1. National Debt Relief – Best Debt Relief Program Overall
National Debt Relief is the best debt relief program overall due to its long track record of proven results. In business for over a decade, they do much more than help lower your interest rate.Â
This program allows you to settle your debts for less than you owe. They offer a money-back guarantee and never charge any upfront fees, either.
They’re fully transparent in who they are and what they do. Founded in 2009, the company helps consumers erase their debts through a proven debt settlement program. On the firm’s site, you’ll find letters from actual program users who were able to settle thousands of dollars of debt for pennies on the dollar.
The process begins with a free consultation with one of the company’s credit counseling experts. He or she will listen to your situation and discuss which debt relief option is best for you. You won’t have to negotiate with the bank again, as this program does so on your behalf.
Similar to other programs, National Debt Relief asks you to deposit money into a separate account every month for a specified time. This money is then used to settle your debts at a fraction of their balances, saving you more money than the best debt consolidation loan.
Do note that you can expect to pay 15 to 25 percent of the total debt settled throughout the program, which somewhat cuts into the savings.
What We Like
- Proven track record of success.
- Zero upfront fees.
- A+ Better Business Bureau rating
- Money-back guarantee.
What We Don’t Like
- Not suitable for certain debt types, like back taxes or mortgage loans.
- Must be quite behind on payments, with a minimum of $7,500 in balances to qualify.
2. CuraDebt – Best Debt Relief Program for Tax Debt
CuraDebt is one of the few debt relief companies to offer a program designed to help consumers tackle their tax debts. The company has 20 years of experience behind them.
This program also offers your conventional debt settlement programs. On the CuraDebt website, you’ll find various debt settlement letters, several of which show clients only paying only 20 percent of what they owe.
Pricing for CuraDebt’s tax relief program is transparent. For a flat fee, its staff of in-house tax experts will negotiate and settle your state and federal tax debts.
The process begins with a free consultation. Unlike other debt settlement companies, CuraDebt will work with you to develop a plan that resolves your tax issues and manages your other debts as well. CuraDebt is available for clients in every state.
What We Like
- One of the few debt settlement companies offering tax debt relief.
- Upfront flat-fee pricing and no monthly payments.
- Offers traditional debt settlement assistance.
What We Don’t Like
- No mobile app or client dashboard.
- Lacks accreditation with the Better Business Bureau.
3. DMB Financial – Best Choice for Credit Card Debt Relief
DMB Financial helps consumers consolidate their credit card debt into a single, lower monthly payment. Founded in 2003, the firm has a long track record of assisting clients to get out from underneath their growing, high-interest credit card debt.
They post real-time results on the DMB Financial website, some of which reveal clients are settling their debts for just 30 percent of what they owe. The company also claims it’s possible to become 100 percent debt-free in as little as 36 months.
DMB Financial is also a debt relief company you can trust. As an American Fair Credit Council member, it’s a fully accountable credit counseling organization and acts according to the highest standards.
As is the case with other debt relief companies, you begin with a free consultation to discuss your situation and goals with a debt relief specialist. Then, unlike debt consolidation loans, they create a program for you to deposit money into a separate savings account. DMB Financial negotiates with your creditors to reduce your owed balances.
DMB Financial is a viable option for student loans, personal loans and all unsecured debts, but it’s ideal for consumers with costly credit card debt on their credit report. The simple monthly-payment process makes getting rid of overwhelming debt both easy and effective.Â
What We Like
- Simple and hassle-free.
- Zero-cost consultation.
- Low monthly payment for credit card debt consolidation.
- Settle debts for less than what you owe.
What We Don’t Like
- The eligibility requirements and pricing system are vague.
- Mainly focused on solving credit card debt only.
4. New Era Debt Solutions – Best Program for Customer Satisfaction
New Era has been in business for over 20 years and they’ve helped settle millions of dollars of debt. There’s an impressive team of attorneys and debt settlement specialists on-site to make it happen. Consumers can have confidence that the company will get the job done quickly, with maximum savings and minimal impact on their credit score.
New Era Debt Solutions offers zero upfront costs for services, no monthly administration costs or other fees, which can quickly add up.
Like other debt settlement companies, New Era’s clients put money into a separate account while they negotiate with the creditors. According to New Era, the average client becomes debt-free in under 28 months and settles their debt for around 40 percent of what they owe.
Unlike a credit counselor or other run-of-the-mill debt relief companies, New Era Debt Solutions handles everything in-house, from start to finish.
What We Like
- 20+ years in the business.
- No hidden costs or monthly fees.
- Everything is handled in-house.
- Thousands of success stories.
- High rate of customer service.
What We Don’t Like
- Not available in all states and cities.
5. Accredited Debt Relief – Best Program for Debt Settlement
This runner-up debt relief program earned its title thanks to the proven results in negotiating and settling credit card debt for many consumers. These individuals had high-interest balances of $10,000 or more.
Launched in 2011, this nationally-recognized debt settlement company boasts plenty of other accolades on its website from former customers who were able to settle up to 70 percent of their debts owed.
Accredited Debt Relief isn’t a credit counseling agency focused on getting you lower interest rates or a debt consolidation loan. The agency is focused on debt settlement. Potential clients begin with a free consultation.
If debt settlement is the best option, Accredited Debt Relief will help them stop using their credit cards and put money aside in a separate account to settle their credit card balances eventually.
To do so, unlike credit counseling or debt consolidation loans, they negotiate with creditors on their clients’ behalf to settle their debts for considerably less than the full amount owed. They also offer a money-back guarantee and allow you to cancel without a penalty at any time.
What We Like
- Results-driven.
- Free consultation.
- Certified debt specialists.
- A+ Better Business Bureau rating.
What We Don’t Like
- Pricing is confusing and lacks transparency.
- Not ideal for consumers with less than $10,000 in high-interest debt.
6. Freedom Debt Relief – Best Interactive Debt Relief Program
Freedom Debt Relief was our choice for this category due to its interactive client dashboard that allows clients to keep track of their progress easily. Established in 2002, Freedom Debt Relief also employs a highly trained staff of over 2,000 professional debt experts.
Clients start with a free consultation to discuss their debts and financial goals. The staff then helps in creating a personalized debt management plan. This includes setting aside money in a separate savings account each month to help you settle your debts.
Freedom Debt Relief claims its clients end up paying 50 percent or less than they owed. That said, the company can’t guarantee the complete settlement of your debts or for how much.
What We Like
- Organized, interactive client dashboard.
- Free consultation.
- No hidden costs or upfront fees.
What We Don’t Like
- Advertised savings are less than other debt relief programs.
Debt Relief Program FAQs
Debt is overwhelming, but the debt relief process doesn’t have to be. Here are some of the most frequently asked questions about debt relief to help you settle yours.
What Exactly Is Debt Settlement?
With debt settlement, debt relief companies ask clients to deposit a specific amount of money each month into a separate savings account. This money goes towards settling the debts.
Unlike debt consolidation, the debt relief service negotiates with creditors to help settle their clients’ debts for a fraction of the original amount. Debt settlement programs typically last from 24 to 48 months, and at the end of the program, clients can be close to, if not completely, debt-free.
What Do Debt Relief Programs Do?
Debt relief programs serve an essential function in helping people consolidate debt, avoid bankruptcy, pay off credit cards, and save money at the same time. While debt management plans and relief programs are far from free, clients can settle their debts for considerably less than they owe.
Despite helping people restore their credit standing, these programs require you to stop making payments on credit cards, personal loans, medical bills, and other debts throughout the negotiation process. This can affect your credit report and hurt your credit score.
However, it’s only temporary and your credit score should receive a significant boost not long after the program ends and you eliminate most of your debt.
Do You Need Debt Relief?
It depends. For starters, credit counseling, debt management and debt consolidation can certainly help.
But debt relief is a more reasonable solution for anyone with little-to-no hope of paying off their credit cards and other unsecured debt within five years. It’s also an ideal option for anyone whose unpaid, unsecured debt is greater than their gross income.
If you fall into one or both of these categories, relieving your debts through debt consolidation and settlement may be an option worth considering.
Can Debt Relief Make Things Worse?
Yes, debt relief can make things worse. Unfortunately, the debt consolidation and relief sector are ripe with scammers looking to prey on unsuspecting consumers.
Some promise a lower interest rate and charge high fees while doing little to nothing to back their promises. Keep in mind, many who begin debt settlement programs also fail to finish them. If you become one of these poor individuals, you may end up with debts even greater and credit scores even lower than when you started.
Do Debt Relief Programs Impact Your Credit?
One of the downsides of debt settlement programs is the hit they put on your credit score when you’re no longer making payments.
Since payment history is one of the biggest factors affecting your FICO credit score, it’ll drop noticeably when the program begins. This results in higher interest rates.
Fortunately, this issue is only temporary and your credit score should begin shooting up when the program ends.
How Much Do Debt Settlement Programs Cost?
The best debt relief companies offer a free consultation. From there, the programs come up with your performance-based fees. Generally, these fees equal a percentage of the amount of debt enrolled in the program.
According to our research, most companies charge 15 to 25 percent in fees to each client. If you sign on with a debt settlement company and enroll in a debt relief program to settle $15,000 in unsecured debt, it may end up costing you $2,000-$3,000 to have it resolved. This cost is in addition to the debt repayment amount.
Which Debt Relief Program Is the Best?
It’s not easy to reach out for help, but it’s sometimes the only option for consumers overloaded with unsecured debt. Thousands of people seek debt relief every single year. It’s not something to be ashamed of, but you do want to spend time reviewing your options.
We created the best debt relief program list based on no-hassle consultations, pricing transparency, overall effectiveness and customer feedback on debt consolidation and settlement.
After crunching the numbers and going over the benefits of dozens of debt relief options, National Debt Relief stood out as the best debt relief program overall. This well-established firm checks the most boxes and is a solid option for anyone wanting to get out of debt once and for all.
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The reviews and statements published here are those of the sponsor and do not necessarily reflect the official policy, position or views of Observer.
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