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Five settlement companies compared on fees of about 14% to 29% of enrolled debt, program length and licensing, set against the credit damage and the free counseling to try first.
By BestGuide Editorial Team, Editorial Team. See their work.Published October 30, 2025Updated October 28, 2026This page was compiled from primary sources: company disclosures and terms, the BBB and regulators. Our ratings method is described on the methodology page.
Americor, Cambridge, Debt Relief Advocates, Freedom Debt Relief and National Debt Relief are five debt settlement companies worth comparing if you have $10,000 or more in unsecured debt you cannot repay in a few years. Compare the fee (most charge about 14% to 29% of enrolled debt, and only after a settlement), program length (usually 24 to 48 months), state licensing and regulatory history. Before you sign, call a nonprofit credit counselor: counseling is free or low cost and does not damage your credit the way settlement does.
Our top picks
Our top picks are verified BestGuide partners, scored on our partner verification program. Every other company we reviewed is listed below under Others we considered, scored from public records only. How we rate
Best for a published fee range and clear withdrawal termsAmericorThis company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints.BestGuide Score: 4.7 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner.Fee14% to 29%Program length24 to 48 months
Best for a direct settlement provider you can compare against larger firms (confirm details on a call)Debt Relief AdvocatesThis company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints.BestGuide Score: 4.4 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner.
Best for size and a written fee refund policyFreedom Debt ReliefThis company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints.BestGuide Score: 4.4 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner.Fee15% to 25%Program length24 to 48 months
Best for licensing you can verify with regulatorsNational Debt ReliefThis company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints.BestGuide Score: 4.3 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner.FeeUp to 25%Program length24 to 48 months
Structured nonprofit repaymentCambridge Credit CounselingThis company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints.BestGuide Score: 4.2 out of 5. Set by our editorial team from published factors such as cost, credentials, reputation, customer experience, services and guarantees. Verified partners are scored on our partner verification program and can be listed first; they are always labeled BestGuide Partner.
This guide is for you if credit card balances and other unsecured debt have outgrown your budget and you are weighing a settlement company against other ways out. Settlement can cut what you owe, but it usually brings missed payments, a lower credit score, possible lawsuits and a tax bill on forgiven debt.
What separates one company from another is the fee and what it is charged on, whether the company is licensed in your state, its enforcement record, and what you actually save after fees if you finish. Few companies publish all of this, so we flag every gap.
Below you will find each company's fees, program length, minimums and credentials, a worked cost example, a comparison with credit counseling, consolidation and bankruptcy, the FTC and CFPB warning signs, and free options to try first.
Typical fee
About 14% to 29% of enrolled debt, charged only after each debt is settled (as listed October 2026)5
Best for a published fee range and clear withdrawal terms: AmericorThis company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints.
4.7/5
Fee
14% to 29%
Program length
24 to 48 months
Minimum debt
More than $7,500 in unsecured debt
Why we picked it. Americor posts its fee range on its program page, which many settlement companies do not, and puts its exit terms in writing: you can withdraw at any time and get back the money in your dedicated account, minus fees already earned. It says it has served over 200,000 people since 2009.
More details, pros and cons
Licensing
California DFPI licenses listed on site
In business since
2009
Pros
Fee range posted publicly (14% to 29%)
Written right to leave at any time and recover funds not yet earned as fees
Long track record, in business since 2009
Also offers other debt products, so a rep can compare options with you
Cons
Its 29% top fee is above the 25% maximums Freedom Debt Relief and National Debt Relief list
Settled with the Colorado Attorney General in December 2022: $200,000 in refunds to 262 Colorado customers over cross-lending by sister company Credit9 and unsigned agreements, plus a two-year ban on new Colorado enrollments
Excluded states are not published
Settlement + Consolidation Hybrid
Skip it if: You want the lowest fee ceiling or a company with no state enforcement history.
More about Americor
A hybrid debt relief provider offering both settlement programs and consolidation loans. Clients can choose the solution that best fits their financial situation, with a simple application and dedicated support. Best for: Borrowers looking for flexibility between settlement and loan repayment.
Best for a direct settlement provider you can compare against larger firms (confirm details on a call): Debt Relief AdvocatesThis company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints.
4.4/5
Minimum debt
Generally $10,000 or more in unsecured debt
Why we picked it. According to its FAQ, Debt Relief Advocates is a direct settlement provider rather than a lead marketer, and it publishes the standard risk disclosures. It discloses the least of the five, so treat it as a quote to compare, not a default choice.
More details, pros and cons
Location
Irvine, California
Pros
Negotiates settlements in house, according to the company
Standard risk disclosures on credit and eligible debts
Clear general minimum of $10,000
Cons
No fee percentage, program length range, accreditations or founding year published
Fees vary by state and service is not available in every state, but no list of excluded states is posted
No founding year published, so its track record is hard to judge
No Upfront Fees
Skip it if: You want a company that publishes fees and credentials before you share your contact details.
More about Debt Relief Advocates
Debt Relief Advocates specializes in negotiating reductions on unsecured debts, including credit cards, medical bills, and personal loans, with a performance-based model that charges fees only after successful settlements. Best for: Consumers seeking personalized debt resolution strategies with transparent, results-driven pricing and no upfront costs.
Best for size and a written fee refund policy: Freedom Debt ReliefThis company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints.
4.4/5
Fee
15% to 25%
Program length
24 to 48 months
Why we picked it. Freedom Debt Relief says it has settled more than $20 billion in debt for over 1 million clients since 2002. It publishes its fee range and promises in writing to refund fees if the program costs more than the debt you enrolled.
More details, pros and cons
In business since
2002
Refund policy: Refunds the difference, up to 100% of collected fees, if total settlement cost exceeds total enrolled debt
Pros
Publishes its fee range (15% to 25%)
Refund policy caps your total cost at the debt you enrolled
Operating since 2002, one of the longest histories of the five
No signup fees; settlement fees charged only after you approve a settlement
Cons
Settled a CFPB lawsuit in July 2019: $20 million in restitution and a $5 million civil penalty over allegations it charged fees without settling debts as promised and misled consumers about fees
Minimum debt and excluded states are not published
The refund policy caps cost, not the credit damage or lawsuits that can happen during the program
Nationwide Reach
Skip it if: Any past federal enforcement action rules a company out for you.
More about Freedom Debt Relief
One of the largest national settlement companies, Freedom Debt Relief stands out for its transparent process and broad service availability. Clients receive clear timelines, consistent updates, and dedicated account support.
Best for licensing you can verify with regulators: National Debt ReliefThis company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints.
4.3/5
Fee
Up to 25%
Program length
24 to 48 months
Why we picked it. National Debt Relief lists its NMLS number and state licenses on its site, so you can check it with regulators before you enroll. It also discloses that clients who finish save about 45% before fees, or about 20% including its fees, a realistic net figure to plan around.
More details, pros and cons
In business since
2009
Licensing: NMLS ID 1250950; California DFPI and Virginia licenses listed
Pros
NMLS ID and state licenses easy to look up
Net savings disclosed after fees, not only before
Fee cap published (up to 25%)
Large client base (company says 1.5 million enrolled since 2009)
Cons
Its own disclosure shows net savings of only about 20% for clients who finish, once fees are included
Minimum debt and excluded states are not published
Mortgages, car loans and other secured debts are not eligible
Proven Settlement Results
Skip it if: Most of your debt is secured loans or federal student loans, which settlement programs do not cover.
More about National Debt Relief
A top-rated company with a long history of successful debt settlement programs and an A+ BBB rating. Known for clear communication and a structured enrollment process, it's one of the most recognized providers in the U.S.
Structured nonprofit repayment: Cambridge Credit CounselingThis company pays BestGuide when you connect with it through our site. Verified partners are scored on our partner verification program and can be listed first. Payment never changes what we report about fees, terms or complaints.
4.2/5
BBB Rating
A+
Service Range
Counseling
Minimum Debt Requirement
N/A
Why we picked it. A nonprofit credit counseling agency offering debt management plans, housing counseling, and bankruptcy education. It focuses on predictable repayment structures with strong third-party trust ratings from BBB and Charity Navigator.
Pros and cons
Pros
Nonprofit founded in 1996, BBB accredited since 1998 with an A+ rating
Free counseling with no obligation to enroll
Reports large average rate cuts, from 28.99% to 7%
Very few complaints: 2 at the BBB and 3 at the CFPB
Also offers HUD housing counseling and $50 bankruptcy courses with fee waivers
Cons
Plan fees are not published; you learn them in the counseling session
Enrolled credit card accounts are closed
You repay the full balance; it does not reduce what you owe
Creditor concessions vary, and some accounts may not qualify
Few recent Trustpilot reviews, only 5 in the past year
Credit Associates provides debt settlement programs with no upfront fees and a client-controlled account structure, focusing on transparent negotiation and predictable timelines.
Best for: Consumers with significant unsecured debt who want clear terms and flexible monthly payments.
SteadyWise: SteadyWise’s website now forwards to a domain-for-sale page and the business appears to have stopped operating. By August 2025 it described itself as a referral service, not a debt relief company.
Elevate1 Financial: California business records list Elevate 1 Financial, LLC as terminated and its website domains have lapsed, so it appears to have closed.
How we chose
We compared each company on its published fee, program length, minimum debt, state availability, licensing, industry accreditations and refund or withdrawal terms, using each company's official website as listed October 2026. We then checked federal and state enforcement history (CFPB, Colorado Attorney General) and built the consumer-protection guidance from FTC, CFPB and IRS pages. We did not enroll in any program, and we did not rank by settlement success rates because none of these companies publishes audited results. Where a fact was not on the company's site, we wrote "Not published." Read our full methodology.
How much debt relief costs
Debt settlement companies charge a fee based on the debt you enroll, usually about 14% to 29% depending on the company and your state (as listed October 2026). Under FTC rules, a company cannot collect that fee before it settles your debt.
Worked example
Say you enroll $20,000 in credit card debt with a company charging 20%. Your total fee would be about $4,000, collected in pieces as each account settles. If creditors settle for 50% of the balance, you pay $10,000 to creditors plus $4,000 in fees, for $14,000 total, before any interest and late fees that pile up while you save, and before taxes on the forgiven amount.
National Debt Relief’s own disclosure shows how fees change the math: clients who finish its program save about 45% before fees, or about 20% including fees.
Other costs to plan for
Dedicated account fees: a third-party provider holds your savings, and its fees are separate from the settlement company’s fee (Americor, for example, says these third-party fees are not returned if you withdraw).
Taxes: forgiven debt is generally taxable income unless you were insolvent (IRS Publication 4681, Form 982).
Interest and late fees: balances usually grow while you stop paying creditors.
How to choose a debt relief company
Check the fee in writing. Get the percentage and whether it applies to enrolled debt or to the amount saved.
Confirm no upfront fees. Any request for payment before a debt is settled is a red flag under FTC rules.
Verify licensing. Look the company up with your state attorney general or financial regulator. Some, like National Debt Relief, publish an NMLS ID you can search.
Search enforcement history. Check the CFPB enforcement page, your state attorney general and BBB complaints. Two of our picks have past actions, which we list in their cons.
Find out who runs your program. Some brands enroll you with another company that manages the program and charges the fee. PDS Debt, for example, lists several service providers on its sign-up form; our PDS Debt review shows what to ask before you sign.
Ask about your state. Fees, minimums and availability vary by state, and some states restrict debt settlement.
Ask about lawsuits. Find out what the company does if a creditor sues you during the program, and whether attorney help is included.
Talk to a nonprofit counselor first. A free session with an NFCC member agency gives you a baseline to compare against.
Debt settlement vs. credit counseling vs. consolidation
Option
How it works
Credit impact
Typical cost
Debt settlement
You stop paying creditors, save in an account, and a company negotiates lump-sum payoffs for less than you owe
Usually severe: missed payments and charged-off accounts
About 14% to 29% of enrolled debt, plus taxes on forgiven debt
Court process that can discharge or restructure debt
Severe and long-lasting
Attorney and court fees; many attorneys offer free consultations
Settlement makes the most sense when you are already behind, cannot afford a debt management plan payment, and want to avoid bankruptcy. If you can keep paying in full at a lower rate, a debt management plan usually costs less and does less damage.
Risks and warning signs from the FTC and CFPB
The CFPB warns that debt settlement can leave you deeper in debt than when you started, because late fees and penalty interest keep growing on accounts that have not settled. The FTC notes that many people drop out before all their debts are settled. No company can promise a result, and the ones we compared all say so in their disclosures.
Avoid any company that
Charges fees before it settles a debt
Guarantees to make your debt go away or promises a set percentage reduction
Claims to use a secret or new government program (debt settlement is not a government program, and none of these companies is affiliated with the government)
Promises to stop collection calls or lawsuits
Tells you to stop talking to creditors without explaining the consequences
Enrolls you without reviewing your full finances
What can happen during a program
Your credit scores will likely drop as accounts go delinquent.
Creditors can sue you and, with a judgment, garnish wages or place liens.
Some creditors refuse to negotiate with settlement companies.
Forgiven debt may be taxable income.
Servicemembers may have extra protections under the Servicemembers Civil Relief Act, according to the CFPB.
Free and low-cost alternatives
Nonprofit credit counseling: NFCC member agencies offer free or low-cost counseling and debt management plans. Call 877-360-6322 or use the agency locator on nfcc.org. Reputable counselors review your full finances and give fee quotes in writing before you enroll.
Call your creditors yourself: Many card issuers have hardship programs that lower rates or pause payments. You can also negotiate a settlement directly without paying a company’s fee.
Bankruptcy consultation: The CFPB notes that many bankruptcy attorneys offer free initial consultations, which can help you compare outcomes.
Legal aid: If you are being sued over a debt, a local legal aid office may help at no cost.
How debt relief varies by state
Debt settlement is regulated state by state on top of federal rules. Fees, minimum debt and even whether a company can enroll you depend on where you live. Debt Relief Advocates says its fees vary by state, and Americor, National Debt Relief and Debt Relief Advocates all say their programs are not available in every state. Colorado barred Americor from enrolling new Colorado customers for two years after its 2022 settlement. Before you sign, ask the company for its license in your state and confirm it with your state attorney general or financial regulator.
Terms to know
Debt settlement
Negotiating with creditors to accept less than the full balance as payment in full.
Enrolled debt
The total balance of the accounts you put into a settlement program, which most companies use to calculate their fee.
Dedicated account
An account you own, held by a third party, where you save monthly deposits used to pay settlements and fees.
Debt management plan (DMP)
A repayment plan set up by a credit counseling agency that consolidates payments and often lowers interest, while you repay the full balance.
Advance fee ban
The FTC rule that bars debt settlement companies from charging fees before they settle a debt.
Form 1099-C
An IRS form creditors may send to report canceled debt, which is generally taxable income.
Insolvency exclusion
An IRS rule that lets you exclude canceled debt from income to the extent your debts exceeded your assets just before cancellation.
ACDR and IAPDA
Industry groups for debt relief companies (the Association for Consumer Debt Relief and the International Association of Professional Debt Arbitrators); membership is not a government license.
Frequently asked questions
What is the best debt relief company?
No single company is best for everyone. Compare Americor, Cambridge, Debt Relief Advocates, Freedom Debt Relief and National Debt Relief on fee, state availability, licensing and enforcement history. Talk to a nonprofit credit counselor first, since a debt management plan may cost less and hurt your credit less.
How much do debt relief companies charge?
Most charge about 14% to 29% of the debt you enroll, as listed October 2026. Freedom Debt Relief lists 15% to 25%, National Debt Relief up to 25%, and Americor 14% to 29%. Federal rules bar them from charging until they settle a debt.
Does debt relief hurt your credit?
Yes, debt settlement usually lowers your credit scores because programs ask you to stop paying creditors while you save. Late payments and charged-off accounts stay on your report. A nonprofit debt management plan generally has a milder impact.
Is debt relief worth it?
It can be if you are already behind, cannot afford a debt management plan, and want to avoid bankruptcy. National Debt Relief’s own disclosure says clients who finish save about 20% after fees. Compare that net figure, plus taxes and credit damage, against your other options.
How much debt do you need for debt relief?
Americor, Freedom Debt Relief and National Debt Relief do not publish a minimum on the pages we checked.
Is forgiven debt taxable?
Usually. The IRS generally treats canceled debt as income, and creditors may send Form 1099-C. If you were insolvent when the debt was canceled, you may be able to exclude some or all of it using Form 982. Ask a tax professional.
Can I be sued while in a debt relief program?
Yes. Creditors can still sue you while you save, and a judgment can lead to wage garnishment or liens. Ask any company what it does if you are sued before you enroll.
Is debt relief a government program?
No. Debt settlement companies are private businesses, and the CFPB warns against any company claiming to use a secret or new government program. None of the companies on this page is affiliated with the government.
What is the difference between debt relief and credit counseling?
Debt settlement tries to pay creditors less than you owe, for a fee, and usually damages your credit. Nonprofit credit counseling helps you budget and may set up a debt management plan to repay the full balance at lower interest, often for small monthly fees.
Can I settle debt on my own?
Yes. You can call creditors directly and ask for a hardship plan or a lump-sum settlement, which avoids the company’s fee. Get any settlement agreement in writing before you pay.
Sources (15)
Facts on this page come from company websites, government agencies and regulators, checked on the dates shown. Editorial standards
FTC: How To Get Out of Debt (accessed October 11, 2026)
CFPB: What are debt settlement/debt relief services and should I use them? (accessed October 11, 2026)
IRS: Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (accessed October 11, 2026)
NFCC: Nonprofit credit counseling (accessed October 11, 2026)
Americor: Debt relief program (accessed October 11, 2026)
Americor: Home page and licensing disclosures (accessed October 11, 2026)
Colorado Attorney General: $200,000 in refunds for Americor and Credit9 customers (Dec. 14, 2022) (accessed October 11, 2026)
Debt Relief Advocates: Home page and disclosures (accessed October 11, 2026)
Debt Relief Advocates: FAQ (accessed October 11, 2026)
Freedom Debt Relief: Home page (accessed October 11, 2026)
Freedom Debt Relief: FAQ (accessed October 11, 2026)
CFPB: CFPB v. Freedom Debt Relief, LLC (payments to harmed consumers) (accessed October 11, 2026)
National Debt Relief: Home page and disclosures (accessed October 11, 2026)
National Debt Relief: Debt consolidation loans (accessed October 11, 2026)
Americor: Frequently asked questions (accessed October 13, 2026)
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