Steven Alphonse

Best Debt Relief Companies in 2022

Are you struggling to pay your bills?

Debt is difficult to overcome, especially when you don’t know what to do. You want to make your payments, but you may not be able to bring yourself out of debt.

You need the help of a debt relief company to get the ball moving. A debt relief agency can figure out what you owe, locate your creditors, and negotiate for lower payments.

Picking the best agency in the area can be tricky. You may have no experience with debt relief agencies, so you have no idea who to hire. You need to know where to go for help.

This is why we created this list of the best debt relief companies in 2022. We know how challenging debt can be. We have the resources to take you from where you are to where you want to be financially.

What Is a Debt Relief Company?

debt relief company works with your creditors on your behalf. They negotiate to refinance, eradicate, or settle your outstanding debt. They help you find manageable alternatives to paying off your debts. 

Debt help businesses operate on a for-profit model with the goal of helping you consolidate, cancel, or pay off your debts. They do this via debt counselors, debt consolidation services, or debt management training. 

A debt relief company will help you reduce your overall debt obligations to creditors.

What Are the Benefits of a Debt Relief Company?

Debt consolidation can help you live comfortably and breathe easily. Debt obligations can cause financial stress, physical stress, and put a dent in your quality of life. 

Hiring a debt relief company can help you reverse some of the damage caused by credit cards, student loans, mortgages, or other outstanding debts. These debts can be upwards of $100,000 for some people, consuming every dollar. 

A debt relief company can help you achieve a sustainable payment plan and sometimes even eliminate your debts. Their goal is to make your payments realistic given your current financial situation. This is done by lowering your interest rate or monthly principal payment. 

Debt Settlement vs. Debt Consolidation

A debt relief company can specialize in both, but it is still important to understand the difference as the impact on your credit score varies. Debt settlement should be a last resort. You should not consider debt settlement as a “discount” on your debt as it marks your debts as “not paid in full.” 

This ends up worsening your credit score. In the end, your debts will settle for less than you owe, but not without consequences.

Debt consolidation combines your existing debts into one. Your overall payment owed is lowered by reducing the interest rate of your outstanding debt. This in turn will also reduce your monthly payment.

Debt consolidation will not worsen your credit score your debt is still considered “paid in full” and then owned as a new financial package.

How Much Does It Cost to Work With a Debt Relief Company?

It may seem counterintuitive if you’re struggling to pay off your debt that you would pay someone to help you do so. That’s because all debt relief companies charge a small sum for their negotiation services. 

The fee you are charged will depend upon two things:

  1. Your total outstanding debt
  2. The creditor and debt relief company’s negotiations

The industry average is 15 to 25 percent of your debt. This would mean if you owed $20,000 in debt, you would owe the debt relief company $3,000 to $5,000.

This is a high price to pay to have your debt settled. The way to know if it is worth it is if your fees and new debt amount are less than your old outstanding debt. 

Some companies charge you based on the amount of money they’ve removed from your debt. Being charged on these savings often results in lower fees. 

There are sometimes also fees for holding your debt settlement in a savings account. 

Our Picks for the Best Debt Relief Companies in 2022

There are so many debt relief companies out there offering services to help you pay off your debts. We researched hundreds of companies to bring you the best debt relief companies of 2022. We studied reviews and offerings of the different companies out there.

You can contact us to learn more about our vetting process. Below are the five best debt relief companies of 2022.

1. Freedom Debt Relief

Freedom debt relief has resolved over $10 billion in debt for over 650,000 clients. They have been a leader in debt relief since 2002. Some clients end up paying 50% or less of the amounts they owe to creditors. 

They are a trustworthy business. They received a B rating from the Better Business Bureau and are accredited by the International Association of Professional Debt Arbitrators and the American Fair Credit Council. 

Their focus is on settling unsecured debts from credit cards and medical bills, however, they also settle certain student loans. 

You can schedule a free consultation with Freedom Debt Relief. They have no upfront fees and you pay 15% to 25% of the settled debt.

2. Accredited Debt Relief

Accredited debt relief offers a no-obligation-free consultation. Clients have been able to reduce their debt up to 50% with Accredited. Some are even debt free in 12 months. 

They have over 140,000 clients and reduced over three and a half billion in debt. Of all the businesses listed here, they have the highest grade by the Better Business Bureau, an A+. 

After your free online consultation, a debt regulator will determine your fit for the program. If selected, you’ll open a savings account with the Federal Deposit Insurance Corporation. This is referred to as an escrow. 

Once you open your account Accredited will negotiate your debt with creditors for something less than what you currently owe. You will be charged fees based on your settlement but are not obligated to stay if you are dissatisfied with the new balance.

Their minimum debt requirement is $10,000.

3. Beyond Finance

Beyond finance helps debtees reduce outstanding debt by 40% to 50%. They can help people consolidate their debt into one easy to make payment

They do have a lower rating than Accredited and Freedom debt relief but still prove well with an average 3.89 rating on the Better Business Bureau

You can live a life beyond debt by starting with their free online assessment. From there a staff member will analyze your debt and work on your behalf to consolidate and save you money. 

Their goal is to give you the freedom to invest in things that matter like a home, dedication, or health, and live a life free of anxiety.

4. Consolidated Credit

Consolidated Credit takes action that speaks to its name. IT helps civilians find debt relief by consolidating credit card debt. 

Their website has an easy-to-use estimate tool where you enter your debt amount and payment status in exchange for a free quote.  

They have over 28 years of experience and have assisted over 10.2 million people to find financial stability. Consolidated Credit has an average ranking of 4.9 stars out of 108 ratings on the Consumer Affairs website. 

5. Citizens Debt Relief

Citizens Debt Relief specializes in debt counseling and resolution. They are a much newer company, founded in 2017. 

Despite this, they have established themselves as industry leaders. The New York-based company has an A rating on the better business bureau and is accredited by the American Fair Credit Council.

Their focus is on credit card debt.

They offer a free consultation and everyone must enroll in their “Citizens Solution” before being screened for qualification. You’ll answer some simple questions about your debt. 

If they agree to take you on as a client the next steps will be to cease your debt-loaded credit cards and open an account with Reliant Account Management. From there, they negotiate your debts which could take 90 to 180 days. 

They say that most graduate from the Citizens Solution program within 24 to 48 months. 

Get Out Of Debt and Achieve Financial Stability Today

After much research of customer reviews, business reputation, and service offerings, we found the five companies above to be the best debt relief companies of 2022. 

Keep in mind the following factors when choosing which company best suits your needs: 

  • Your current outstanding debt
  • The type of debt you owe (i.e. student loans, credit cards, etc.)
  • The monthly payment you can fulfill
  • Your repayment goals
  • Your financial goals

All of these factors will influence your decision on which of the five debt relief companies aligns best with your needs and goals. Remember that some of these companies have minimum debt entry requirements

They also have varying service fees. Do your research and discover the best company for your needs with a free quote today!