Debt settlement offers a way to eliminate your debt by paying a fraction of what you owe. While it’s not an ideal solution, consumers who have exhausted all other alternatives may consider debt relief programs.
Working with debt settlement companies carries significant risks and drawbacks. You should choose this option only after you’ve thoroughly researched the settlement process and understand whether the benefits outweigh the risks for you.
- How does debt settlement work?
- How much do debt settlement companies charge?
- How does debt settlement affect your credit score?
- What are the best debt settlement companies?
- What are the alternatives to debt settlement?
The Best Debt Settlement Companies of 2020
U.S. News researched the leading debt relief companies accredited by the International Association of Professional Debt Arbitrators or the American Fair Credit Council. Top debt settlement companies were evaluated based on key factors, including settlement program time frame, types of debt settled, minimum debt requirements, fees and customer satisfaction.
- Types of debt settled: credit cards, medical bills, unsecured debt
- Fee: 15% to 25% of settled amount
- Accreditations: AFCC and IAPDA Platinum
- BBB rating: B-