While prices have declined at points over the last year, inflation ticked up unexpectedly in Julyand then again in August, when it increased by an annual rate of 3.7%. And, core inflation, which does not include volatile food and energy costs, also increased by 4.7% compared to last year. And now, after two years of persistent inflation, many households are turning to credit cards to help cover their living costs. The total U.S. credit card debt is now over $1 trillion, with average interest rates over 22%, and rates on new cards hovering near 25%.
If you’re struggling with overwhelming, high-interest credit card debt or other types of debt,debt relief is one option for those who are struggling to manage their debt. Debt relief companies offer a range of services to help you better manage your debt, including negotiating with creditors to reduce the amount of your debt.
But before you reach out to any debt relief companies for assistance, it’s important to do your homework. The best debt relief companies are reputable and have positive reviews for their services. To help you get started, here are our picks for top debt relief companies based on different categories to fit your needs. Start by exploring your debt relief options here now.
Best debt relief companies 2023
Here are some of the best debt relief companies broken down into four categories.
Best overall: Accredited Debt Relief
Accredited Debt Relief is our pick for the best overall debt relief company for its stellar reputation and ratings, experience and its focus on providing personalized options for its clients. The company, founded in 2011, has enrolled over 300,000 clients and resolved over $2 billion in debt. It has an outstanding 4.9 rating with Trustpilot and an A+ grade with the Better Business Bureau (BBB).
Working with Accredited Debt Relief starts with a free phone or online consultation. A representative will work with you to determine the best option to address your unique financial situation. The firm provides multiple debt relief programs to tackle your unsecured credit card debt, typically lowering or eliminating it in 12 to 48 months—12 months quicker than many of its competitors.
The standard fee for Accredited Debt relief ranges from 15% to 25% of the debt you enroll in the service, but you’re not charged until your debts are reduced.
Best for small debts: Freedom Debt Relief
Freedom Debt Relief is our selection for the best debt relief service for those with debts under $10,000. The firm has resolved over $15 billion in debt for over 850,000 clients over the last 20 years and has an A+ BBB rating and a 4.46-star customer feedback score.
Freedom Debt Relief aims to help with unsecured debts like credit cards, personal loans and medical bills. The company negotiates with your creditors to reduce the amount you owe and help you get out of debt. According to the firm, clients with at least $7,500 in debt resolve it within two to five years. Freedom Debt Relief charges 15% to 25% of the enrolled debt with no upfront fees, and you won’t pay anything until you’ve agreed to a settlement.
Best for large debts: National Debt Relief
If you’re buried under significant debt, National Debt Relief is a reputable debt relief company that can help you find financial relief. Since 2009, they’ve helped over 600,000 clients get out of debt for debt amounts of up to $100,000 and more. They earned an impressive 4.7-star Trustpilot rating and an A+ with the BBB.
National Debt Relief offers different plans tailored to your situation and the firm claims you can regain your financial footing within 24 to 48 months. The company specializes in helping clients with high-interest debt reduce their balances by negotiating with their creditors. The fee for their services is 15% to 25% of enrolled debt and comes with a money-back guarantee.
Best for credit card debt: Accredited Debt Relief
Accredited Debt Relief, our top pick overall, also earns our recommendation as the best choice for cutting or zeroing out credit card debt. The company offers several solutions to tackle unsecured credit card debt, which can be completed in as few as 12 months.
Accredited Debt Relief can negotiate for a lower credit card balance and reduced fees, so you can pay off your debt for less than you owe. But if you’re not keen on lowering your debt through debt settlement, the company can help you consolidate your credit card debt if your total credit card debt exceeds $10,000. Accredited Debt Relief offers a free online or phone consultation where a debt specialist can help you create a personalized plan to cut down your debt.
Alternative options for debt relief
While debt relief companies can help you settle your debt for less than you owe and give your finances some breathing room, they’re not your only choice. Here are some alternative options to help manage your debt.
Apply for a 0% balance transfer Card.With good credit, you may qualify to transfer your existing balances to a new card with an interest-free period of up to 21 months, which may give you enough time to put a significant dent in your debt.Take out a debt consolidation loan.This type of personal loan can combine up to $100,000 in high-interest credit card debt into one loan, ideally with a lower interest rate.Tap into home equity. If you own a home with equity, home equity loans and HELOCs offer you access to cash to pay off debt—or use it for any other purpose—by using the equity in your home as collateral.Consider credit counseling. An accredited, non-profit credit counselor can help you create a budget, manage debts and possibly lower your interest rates with a structured payment plan. When looking for a qualified counselor, consider those associated with the National Foundation for Credit Counseling (NFCC) or the Financial Consulting Association of America (FCAA).
The bottom line
Do your due diligence before working with any financial company, including debt relief firms. The Consumer Financial Protection Bureau (CFPB) suggests reaching out to your state attorney’s office and local consumer protection agency to check for complaints against any company you’re considering. If a debt relief company has a good record and you feel comfortable working with them, they may help you overcome your financial challenges, negotiate for lower debt balances and relieve your debt burden. Get started here now.