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Simply Debt Smart

Behind on payments or getting collection calls? Debt settlement might helpu2014but only if you understand the trade-offs. Weu2019ve gathered real lessons from people whou2019ve gone through it so you can avoid common pitfalls before choosing a company.

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Simply Debt Smart

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  1. We are not a government agency and may be paid by companies displayed. How it works? Finance Debt Management Best Rated Debt Help Companies After a 29-Brand Review, Here are the Top 3 Debt Settlement Companies Start Now Best Overall Low fees Small debts National Debt Relief ★ Freedom Debt Relief ★ United Debt Settlement ★ 3.6 (115) 4.4 (33.515) 4.9 (56,907) Overview Company Profiles Buyers Guide Reviews Update Feb 18,2025 | Fact-Checked By : James Cartwright +1 more Our top 4 picks for debt settlement companies 1. Our #1 Pick for overall choice: National Debt Relief 2. Top Low-Cost Option: Freedom Debt Relief 3. Ideal for Under $10K in Debt: United Debt Settlement 4. Best for Customer Care: Accredited Debt Relief

  2. Company Customer rating Our pick for Debt minimum Maximum fee ★★★★★ ★ 4.9 Best overall $7,500 25% of debt 56,847 reviews ★★★★★ 4.4 Low fees $7,500 25% of debt 33,525 reviews ★★★★★ ★ 3.7 Small debts $5,000 25% of debt 115 reviews ★★★★★ ★ 4.9 Customer service $10,000 25% of debt 2,728 reviews Can’t decide? We’ve got you. 2024 Buyers Choice Award Winner National Debt Relief ★★★★★ ★ 4.9 56,907 reviews Minium debt $7,500 Maximum cost 25% of debt Time to settle 12 to 48 months Year founded 2009 Get Started Why we picked it

  3. Pros and cons Typical fees What to consider What reviewers like Award winner 2024 Buyers Choice Award Winner Freedom Debt Relief ★★★★★ 4.4 33,554 reviews Minium debt $7,500 Maximum cost 25% of debt Time to settle 24 to 48 months Year founded 2002 Get Started Why we picked it Pros and cons Typical fees What to consider What reviewers like Award winner

  4. Our pick for smaller debt amounts United Debt Settlement ★★★★★ ★ 3.6 115 reviews Minium debt $5,000 Maximum cost 25% of debt Time to settle 24 to 48 months Year founded 2016 Why we picked it Pros and cons Typical fees What to consider What reviewers like 2024 Buyers Choice Award Winner Accredited Debt Relief ★★★★★ ★ 4.9 2,744 reviews Minium debt $10,000 Maximum cost 25% of debt Time to settle 24 to 48 months Year founded 2011

  5. Why we picked it Pros and cons Typical fees What to consider What reviewers like Award winner Debt Settlement: What to Know Before You Sign Not sure where to begin? Our easy-to-follow guides walk you through everything you need to know about debt relief—no jargon, no pressure. Just real answers. Debt Settlement Buyer's Guide Behind on payments or getting collection calls? Debt settlement might help—but only if you understand the trade-offs. We’ve gathered real lessons from people who’ve gone through it so you can avoid common pitfalls before choosing a company. KEY I N SIG H TS

  6. Debt settlement reduces what you owe, so you repay less than the full amount. Jump to insights Most programs charge a 15%–25% fee based on your enrolled debt. Jump to insights There are risks—explore credit counseling or consolidation first. Jump to insights What is debt settlement? Debt settlement is when a creditor agrees to accept less than the full amount owed from a debtor, often as a lump-sum payment or a short-term payment plan. It’s generally for unsecured debt like credit cards, personal loans, or medical bills— not for secured debts like car loans or mortgages. Most settlements are completed in 24–48 months. You’ll typically make monthly deposits into a dedicated account. Once there’s enough saved, the settlement company negotiates with creditors to pay off each debt. How debt settlement works You can settle debt yourself or hire a company to negotiate for you. In either case, the idea is to offer a partial payment in exchange for forgiveness of the remaining balance. Many companies advise you to stop paying your creditors to prompt a negotiation. This can hurt your credit in the short term, and creditors aren’t obligated to accept a settlement offer.

  7. Creditors may accept a reduced amount—but it’s not guaranteed. Some companies prioritize settling smaller debts first. Be sure to ask how your accounts will be prioritized so you don’t rack up avoidable interest elsewhere. » RELATED: Debt snowball vs. debt avalanche How much does debt settlement cost? Expect to pay 15% to 25% of the enrolled debt. You may also face penalties and late fees from creditors during the negotiation period—especially if you’ve paused payments. Settle $20,000 for $10,000? You’ll likely owe $3,000–$5,000 in fees. How to choose a debt settlement company Look for companies with clear pricing and no fees until a settlement is reached. Avoid those asking for large upfront payments. Here’s what else to consider: Check credentials: Are they accredited by groups like the AADR or IAPDA? Are they licensed in your state? Read reviews: Use platforms like SimplyDebtSmart and the CFPB complaint database to look for red flags. Watch for false promises: No company can guarantee debt elimination or protection from lawsuits. Debt settlement pros and cons While debt settlement can reduce your overall balance, it also has real downsides— especially to your credit.

  8. Forgiven debt is usually reported as a charge-off and can be taxed. Always get your settlement in writing, and understand what you’re agreeing to. Pros Cons May reduce total debt owed Credit score will drop Can help avoid bankruptcy Takes 2–4 years to complete No need to deal directly with creditors Not guaranteed to work One monthly payment Fees can be high Alternatives to debt settlement The National Foundation for Credit Counseling suggests several options that may be better suited for your situation: Negotiate yourself: Reach out to creditors to request a hardship plan or reduced payoff. Hire a lawyer: A debt attorney can negotiate settlements and shield you from direct contact with lenders. Bankruptcy: A last resort that wipes out many debts—but damages your credit for years. Debt consolidation: A personal loan or balance transfer card may offer a lower interest rate to manage existing debts. » MORE: Debt consolidation vs. settlement Debt settlement FAQ What types of debt can be settled? How much does it cost? What percentage should I offer to settle?

  9. How we picked our top choices The SimplyDebtSmart research team ranked providers using a custom scoring system based on customer reviews and company offerings. We analyzed thousands of reviews from Dec 2021 to Nov 2024. Customer service quality Process transparency Staff professionalism We also reviewed the most important service factors: minimum debt amounts, average settlement time, and availability across states. Companies with the highest scores received a “Best for” or “Our Pick” label based on category strength. Trying to make the right choice? Debt settlement guidance, delivered when you need it. By entering your email, you’re signing up to receive consumer tips, updates, and offers from SimplyDebtSmart. You can unsubscribe anytime. Read debt settlement company reviews

  10. Company Customer rating Debt is often reduced by as much as 50%, with most cases se vary between 15-25% of enrolled debt. No upfront fees. $7,500 Offers debt settlement services, not a loan provider.Read More ★★★★★ ★ 4.9 56,847 reviews Specializes in unsecured debt settlement services. Debt could to 48 months, and fees range from 15% to 25%. $7,500 minim progress 24/7 via online dashboard.Read More ★★★★★ 4.4 33,525 reviews Provides debt consolidation, debt settlement and credit counse certified staff. Fees are based on percentage of how much com available in all states. Doesn’t work with all kinds of debt.Read ★★★★★ ★ 3.7 115 reviews Best for clients with $10,000 or more in unsecured debt. Says by up to 40%. Over $3 billion in client debt paid off. Your quote affect your credit score.Read More ★★★★★ ★ 4.9 2,728 reviews Load 10 more companies Showing 10 of 34 Guide Sources Want your company to be on this guide? Yes, continue

  11. About Privacy Policy Careers CA Privacy Notice Term of Use Simply Debt Smart is a private company, not affiliated with any government agency. We may receive compensation from some partners when you engage with our site—such as clicking a link, calling a number, or submitting a form. All content is for general information only. Please consult with qualified financial, legal, or tax professionals before taking action. NOTICE TO VERMONT CONSUMERS: This website is a loan solicitation service, not a lender. Simply Debt Smart will share your information with one or more third-party lenders as part of your loan inquiry. Please note that the lender you are connected with may not be subject to all Vermont lending laws, but may be governed by applicable federal regulations. Home Warranty disclosure for New Jersey Residents: The product being offered is a service contract. It is separate and distinct from any warranty that may be provided by a home builder or product manufacturer. Simply Debt Smart does not accept loan or mortgage applications, nor does it make credit decisions. Instead, we present rates from lenders that are licensed or otherwise authorized to operate in Vermont. If you choose to be connected, we forward your information to the selected lender so they can contact you directly. Copyright © 2025 All rights reserved. Simply Debt Smart.

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