Consumer debt has climbed to record levels across the country, and the interest rate environment has made carrying that debt significantly more painful. Borrowers who are carrying high-rate credit card debt have felt it most acutely, as rates have hovered near historic highs, and with interest compounding month after month, even keeping up with minimum payments has become a real struggle for many households.

That pressure has pushed more people to look seriously at debt relief, including debt forgiveness programs. When you enroll in a debt forgiveness program, a debt relief expert works on your behalf to negotiate with your creditors to try to reduce the total amount you owe, potentially allowing you to settle for considerably less than your original balance. It’s not without trade-offs — like credit score damage and tax implications — but for borrowers facing truly unmanageable debt loads, it can offer a meaningful way out.

The catch is that the debt relief industry isn’t uniform. Some companies operate with genuine transparency and provide real support throughout the process; others come with hidden fees or practices that raise red flags. That makes due diligence essential. Before committing to any service, it’s worth understanding how debt forgiveness actually works — and which companies have earned a reputation for doing it right.

Find out how to start tackling your expensive debt problems now.

Best debt relief companies, plus advice borrowers need to know now

Here’s a look at the top debt relief providers across several different categories to help you find one that aligns with your needs:

Best for customer satisfaction: Accredited Debt Relief

Accredited stands out for having the strongest customer satisfaction ratings among its peers. Their program includes account setup, budget review and personalized settlement negotiation, and the company boasts an A+ rating with the Better Business Bureau (BBB), as well as a low number of complaints. It also has a high rating on Trustpilot, indicating that customers are, in large part, highly satisfied with the help they’ve received from this company, and it has widespread availability as it operates in most states.

Learn more about Accredited Debt Relief here.

Best for legal assistance: Freedom Debt Relief

One of the biggest fears people have when entering into a debt settlement program is the prospect of being sued by their creditors. While many debt relief companies offer ancillary legal assistance to help customers deal with creditors, this protection and peace of mind generally comes at a cost on top of the other charges. Freedom Debt Relief is unique, though, in that it offers all customers legal assistance for no additional charge. The company also has a lower minimum threshold than some competitors, requiring only $7,500 of unsecured debt to enroll.

Learn more about Freedom Debt Relief here.

Best for pricing transparency: DebtBlue

The debt relief industry doesn’t exactly have a reputation for transparency, which can make it tough to navigate. However, DebtBlue is the exception to that rule, with an informative website that explains both the process and its costs in plain English. The company proactively discloses third-party account fees and provides detailed explanations of all costs involved. DebtBlue also maintains strong ratings on review sites and offers individualized responses to customer complaints. 

Best for quick debt resolution: New Era Debt Solutions

New Era Debt Solutions has a higher debt minimum than many other debt relief companies, but it also has decades of experience helping people settle their unsecured debts for less. The company requires a minimum of $10,000 in debt to enroll, but New Era clients take an average of just under 28 months to complete the debt settlement program, which is significantly faster than the average timeline with many of its competitors. And its fees are about as good as it gets, with a high end of 23%. The company also operates in nearly every state except for Iowa, Maine and Oregon.

Find out more about New Era Debt Solutions now.

Best for overall value: Pacific Debt Relief

Founded in 2002, Pacific Debt Relief is one of the oldest companies on our list, but what sets Pacific it apart is its unique fee structure. Unlike other companies, the fees with Pacific Debt Relief are performance-based and calculated on a percentage of settled debt rather than the original enrolled amount, potentially saving clients money. The company’s fees range between 15% to 25% and it requires a minimum of $10,000 in debt, though it may accept clients with as little as $7,500 in some circumstances.

Debt relief advice to know now

Before you make any decisions on how to deal with your debt, it may help to consider the following: 

• Today’s high rates mean you should act quickly. Carrying a credit card balance can quickly become costly at today’s rates. If you’re falling behind, it makes sense to pursue debt relief quickly, before compounding interest buries you deeper.
• It’s important to do your homework. Some debt relief companies put you at risk with their predatory practices, so you’ll need to vet your options carefully. During this process, be sure to confirm accreditation and read recent consumer reviews to make sure you’re working with a reputable provider. 
• Not all debts will qualify for debt relief. Debt relief programs only address unsecured debts like credit cards and personal loans. Auto loans, mortgages, student loans and tax debts may require specialized solutions or a bankruptcy route. 
• There could still be a credit impact. If you’re going to pursue debt relief, you should brace for a potential hit to your credit score — and that hit could be substantial depending on where you started.
• You could owe taxes on any settled debt. The IRS considers forgiven debt as taxable income, so if you have a portion of your debt forgiven during the settlement process, you’ll likely face a higher tax bill next year.
• It makes sense to consider the alternatives. You may have more options than you think for resolving your debt. For example, if your credit is intact, a debt consolidation loan or credit counseling program may make more sense. But if you’re behind and debt is piling up, pursuing debt relief may be the most viable option.

The bottom line

Debt relief can provide significant financial relief to borrowers who are overwhelmed by their unsecured debt, but it’s important to do your research and find the right companies to work with. The best debt relief companies offer transparent pricing, strong customer support and proven track records of successful negotiations. You should also consider the possible downsides of pursuing this type of relief. While it can provide significant savings, it won’t be the right move for everyone, so make sure you’re also weighing the less damaging alternatives, like debt consolidation or credit counseling, before committing to any solution. 

Edited by

Matt Richardson