Best debt relief companies of July 2025

A closer look at our top debt relief companies 

If you're struggling to manage overwhelming debt, seeking help from a debt relief company can be a crucial first step toward regaining control of your finances. The best debt relief companies can help negotiate settlements on your behalf and offer various tools such as credit counseling, debt consolidation and management plans. These services aim to help you avoid bankruptcy, get on top of your debt and rebuild your financial health.

Our team of experts has evaluated the top debt relief companies for 2025 based on factors such as fees, minimum debt requirements, customer support and overall reputation. Below, you'll find detailed information on each company's standout features and how they can help you manage your financial situation.

How do debt relief programs work?

Debt relief programs are designed to help individuals reduce or eliminate unmanageable debt through settlement, consolidation or management plans. 

Depending on the type of debt relief you choose, you may work with a debt relief company, credit counselor or attorney. Most debt relief companies charge fees, usually up to 25 percent of the total enrolled debt, only after a settlement is reached. You may also pay a one-time setup fee and a monthly maintenance fee for the managed account.

Pros and cons of debt relief 

Seeking debt relief through a third-party company can be a great option if you’re deep in debt. Weigh the pros and cons of debt relief before making a decision.

When is debt relief a good idea?

The decision to apply for debt relief has serious potential benefits and consequences, especially if you're seeking debt settlement. Knowing what to do before you apply and what to expect once you do can help you choose the right type of relief for your situation and avoid pitfalls along the way. 

Don’t apply until you’ve asked yourself whether it’s the best solution for your circumstances. In most cases, debt settlement only makes sense if:

• You’re already behind on payments or are struggling to pay each month.
• You have thousands of dollars in unsecured debt, such as credit cards, medical bills or personal loans.
• Your credit score is too low to qualify for a debt consolidation loan.
• Your debt payments eat away half or more of your monthly earnings.
• You won’t be able to repay your debt in less than five years.
• Your only other option is bankruptcy.

How to apply for debt relief

Understanding the application steps can help improve your odds of getting the type of relief you need.

1. Determine which debts to include: You don’t have to add all of your credit accounts to a debt relief plan. Remember that you won’t be able to use accounts that become part of a debt settlement or management plan. Keeping some credit cards available for emergencies may be wise.
2. Get payoff estimates from each creditor: Although debt relief companies generally negotiate credit balances in debt relief programs, you should know what you owe. The most accurate balances should be reflected on your monthly statement. 
3. Decide which type of debt relief is best for you: Select the realistic option for your income and budget. Debt settlement is typically best if you’re behind on payments and can’t bring them current. Debt management plans may give you more affordable payment options if you've managed to make your payments on time.
4. Learn the eligibility requirements for each program: Many debt relief companies require you to have at least $7,500 of unsecured debt to qualify. Others may require proof that you’re behind on payments before considering you for relief. 
5. Know what documents you’ll need: You should have copies of current statements for all debts you plan to pay off. You may also need proof of income, such as pay stubs or W-2s. 
6. Fill out an application: Applying for debt relief may be a more involved process than getting a loan. The debt relief company may need you to help get contact information for each creditor or provide updated pay stubs and personal documents as needed. 

Alternatives to debt relief

Consider the following alternatives to debt relief if working with a company isn't the best option for your finances. 

• Bad credit loan: You may not qualify for a loan with the best rates, but you may still be able to qualify for a bad credit loan to pay off high-interest credit cards or consolidate multiple accounts into one payment.
• Home equity loan: If you have good credit and enough equity in the home, you can borrow against your equity to consolidate your debts. A home equity loan may also come with a lower interest rate than you'd get on a credit card or personal loan, but you could lose your home if you default.
• HELOC: A home equity line of credit allows you to borrow from the equity in your home and receive the funds in a revolving line of credit that you can use to consolidate certain debts all at once or during specific times. you home is also used as collateral for this loan.
• Cash-out refinance: With a cash-out refinance, you borrow more than you currently owe on your mortgage, pay off the existing mortgage and pocket the difference. Instead of keeping the cash, you would use that money to consolidate your debt under the refinance.
• Budget revamp: Avoid more debt by adjusting your budget to make room for extra debt payments. See how you can add to your income and cut costs in various categories, putting the extra money toward your debt.

Frequently asked questions

How we choose our best debt relief companies