Best Debt Management Companies of 2024

Debt management companies help consumers create a structured plan for paying off debt. You might be considering this option if you'd like to streamline your monthly debt payments and save money on interest. We’re comparing the best debt management companies to help you choose the right one.

Debt management companies aren't all alike. Here is a comparison of eight top companies based on services, fees, and overall reputation.

The debt management companies listed here rate the best overall for their service area, types of services offered, and fees. Here's a closer look at how they compare and why they made the cut.

Our recommendations

Freedom Debt Relief

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Freedom Debt Relief

Fees

15% to 25% of enrolled debt

BBB Rating

A+

# of available states

32

Why we like it:

Freedom Debt Relief is designed to help you reduce what you owe, lower monthly payments, and pay off debts faster. You can talk to a certified debt consultant to estimate how much you can save by enrolling. The program fees, which range from 15% to 25% of enrolled debt, are typical of what you'll pay with other top debt management companies.

Freedom Debt Relief offers debt resolution services in 32 states and has resolved over $18 billion in debt since 2002. The company has an “excellent” Trustpilot rating and an A+ rating with the Better Business Bureau (BBB).

Highlights:

• Reduce what you owe.
• Free initial consultation with a debt expert.
• Over one million clients enrolled.

Pros & cons:

Pros:

• Custom account dashboard to track your progress
• Industry-recognized debt relief company

Cons:

• Not all debts are eligible
• Not available in every state

Accredited Debt Relief

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Accredited Debt Relief

Fees

1% to 6% origination fees for consolidation; 15% to 25% of enrolled debt for resolution

BBB Rating

A+

# of available states

30

Why we like it:

Accredited Debt Relief helps with a wide range of debt types and offers both debt consolidation and resolution services. It has an “excellent” Trustpilot rating, where its reviews are rated five out of five stars 91% of the time, and an A+ BBB rating. In its 13 years of existence it has paid off more than $1 billion in debt for more than 500,000 clients.

Accredited Debt Relief has helped more than 300,000 clients manage their debt across 30 states and the District of Columbia. Services include debt consolidation, which can streamline your monthly payments and possibly lower your interest rate, and debt resolution. Accepted debts include credit cards, store cards, personal loans, and medical debt.

Highlights:

• Consolidate or resolve debt.
• Become debt-free in 24 to 48 months.
• At least $1 billion in client debt has been paid off.

Pros & cons:

Pros:

• Pay off debt in two to four years
• Lower monthly payments

Cons:

• Origination fees apply to consolidation loans
• Debt minimum of $10,000

Simple Debt Solutions

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Simple Debt Solutions

Fees

Fees vary by loan

BBB Rating

A+

# of available states

36

Why we like it:

Consolidating debt into a personal loan can make monthly payments easier to manage. Simple Debt Solutions is designed to help you find the best loan option based on your financial situation and needs. Lenders are fully vetted, and you can get multiple quotes without affecting your credit score, allowing you to easily compare terms and rates.

Simple Debt Solutions connects borrowers looking for debt consolidation loans with lenders. You can get a free quote and won't pay any fees to Simple Debt Solutions, though lenders may charge fees. Loan matching services are offered in 36 states and the District of Columbia, and the company is highly rated with both Trustpilot and the BBB.

Highlights:

• Large geographic footprint.
• Free rate quotes.
• No fees.

Pros & cons:

Pros:

• You can get a quote without affecting your credit scores
• No fees are paid to Simple Debt Solutions

Cons:

• Not everyone will qualify
• Lenders may charge loan fees

TurboDebt

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TurboDebt

Fees

25% of enrolled debt

BBB Rating

A+ (not accredited by BBB)

# of available states

47

Why we like it:

While some debt management companies require you to have $10,000 or more in debt, TurboDebt accepts clients with smaller balances. It has the most extensive service area of the companies we are profiling, which could make it easier to find the help you need. The fees you'll pay are typical of other debt management companies.

TurboDebt offers credit counseling, debt consolidation, and debt resolution services for people who owe money on credit cards, loans, and medical debt. Services are available nationwide(excluding Oregon, Vermont, and West Virginia). Initial consultations are free, and the overall goal is to help you become debt-free in 24 to 48 months.

Highlights:

• Multiple debt relief options.
• Available in 47 states and the District of Columbia.
• More than 500,000 customers served.

Pros & cons:

Pros:

• Get help with multiple types of debt
• 24/7 support

Cons:

• Not accredited by the BBB
• Some debts are ineligible

JG Wentworth Best Debt Management Companies

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JG Wentworth Best Debt Management Companies

Fees

18% to 25% of enrolled debt

BBB Rating

A+

# of available states

30

Why we like it:

Debt relief from JG Wentworth could erase what you owe in less time than other companies while carving out substantial savings. The typical customer enrolls with an average of six debts and saves 43% before program fees. The fee, 25% of the debt enrolled, is on par with what other debt management companies charge.

JG Wentworth specializes in debt resolution to help clients pay off their debt in 24 to 48 months, on average, while reducing the total amount owed. The company operates in 30 states and the District of Columbia and is a well-known brand in the financial services space. Once you enroll, JG Wentworth negotiates debt on your behalf, so you don't have to haggle with creditors.

Highlights:

• Best price guarantee.
• Average savings of 43%.
• 24/7 support.

Pros & cons:

Pros:

• Resolve your debt with minimal hassle
• Excellent Trustpilot and BBB ratings

Cons:

• Limited debt solutions offered
• Not available in 20 states

New Era Debt Solutions

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New Era Debt Solutions

Fees

14% to 23% of enrolled debt

BBB Rating

A+

# of available states

47

Why we like it:

New Era Debt Solutions is an established company that's earned an outstanding reputation for helping its clients resolve their debts. The company offers a free debt analysis and is completely transparent about what it can and can't do for you and how much you might pay.

New Era Debt Solutions has been helping people resolve their debt since 1999, and it's a top-rated company for debt relief. You can get started with no up-front fees, and the fees you will pay are lower compared with other debt management companies. New Era Debt Solutions offers a free online debt calculator to help you estimate your savings.

Highlights:

• Lower fees.
• Available in 47 states and the District of Columbia.
• More than $275 million in debt settled for clients.

Pros & cons:

Pros:

• Lower fees than competitors
• Large geographic footprint

Cons:

• Only offers debt resolution
• Some debts ineligible

Pacific Debt Inc

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Pacific Debt Inc

Fees

15% to 25% of enrolled debt

BBB Rating

A+

# of available states

29

Why we like it:

Pacific Debt Inc. has an “excellent” Trustpilot rating and has earned rave reviews from its customers. In addition to helping people with a wide range of debt, it has top-rated customer service and a user-friendly website. The company pledges to prioritize people first, which is a plus if you're looking for compassionate help with debt problems.

With over 20 years in business, Pacific Debt Inc. helps people negotiate their debt down, sometimes cutting what they owe by half. You can get help with credit cards, personal loans and lines of credit, medical bills, store cards, collections, repossessions, and business debt. Plans are designed to fit your situation, needs, and budget, so you can get out of debt as quickly as possible.

Highlights:

• Available in 29 states and the District of Columbia.
• Reduce credit card debt by up to 50%.

Pros & cons:

Pros:

• Wide range of eligible debts
• Dedicated account manager

Cons:

• Customer service not available 24/7
• Not available in 21 states

National Debt Management

National Debt Management

Fees

Vary by state and solution

BBB Rating

A+

# of available states

N/A

Why we like it:

If you're unsure how to handle your debt, you might appreciate having multiple options from which to choose. While some of the best debt management companies focus exclusively on one type of relief, National Debt Management offers solutions designed to fit different situations. You can get a free initial consultation to discuss your options.

National Debt Management is a Michigan-based nonprofit offering debt relief services to consumers. Your options for help include credit counseling, debt management plans, or debt resolution. Debt resolution, also referred to as “debt settlement,” allows you to pay off debt for less than what's owed.

Highlights:

• Multiple debt management options.
• Nonprofit organization.
• More than one million debt accounts managed.

Pros & cons:

Pros:

• Accredited nonprofit credit counseling
• Tailored solutions to fit different situations

Cons:

• Not available in some states
• Fee information is not readily available online

Best debt Management companies compared

Methodology

To find the best debt management companies, we evaluated companies based on several factors, including the range of debt relief options offered, the fees required, state-by-state availability, and customer service, including customer reviews. The companies included here represent the best overall for the scope of services, the affordability of fees, transparency, geographic footprint, and customer experience.

How to choose a debt management company

Choosing a debt management company starts with understanding your situation and what you need help with. As you shop around, here are some of the most important things to consider.

Services

First, look at what the debt management company does. This could include:

• Offering free credit counseling services.
• Helping you get your budget on track.
• Enrolling you in a debt management plan.
• Applying to get you a debt consolidation loan.
• Negotiating with your creditors to resolve your debt.
• Providing bankruptcy advice and how to avoid it.

Some companies offer just one or two services, while others may have a broader range of options from which to choose.

Fees

Next, consider what a debt management company might charge you. It's not unusual to pay a fee that's equivalent to a percentage of the amount of debt you have. For example, you might pay 15% to 25% of your enrolled debt as a fee.

Keep in mind that loans may have separate fees. For example, you might pay an origination fee for a debt consolidation loan. This fee covers the cost of processing the loan and is paid to the lender directly from the loan proceeds.

Customer service

Good customer service can make a huge difference when managing debt. In an inevitably stressful situation, it helps to work with a company that's empathetic and caring.

Reading consumer reviews on the Trustpilot or BBB websites can give you an idea of what people like or dislike about a particular company. Also, consider when customer service is available. Having someone there to answer questions 24 hours a day, seven days a week can be reassuring.

How to apply for a debt management plan?

Applying for a debt management plan is as simple as choosing a debt management company and submitting an application online or over the phone. You'll need to provide some basic information about yourself and your debt, including:

• Your name.
• Date of birth.
• Social Security number.
• Address and phone number.
• Types of debt you want to enroll.
• Balances owed.
• Account numbers and creditor names.

You may need to have a minimum amount of debt to qualify. A debt management company may ask you whether you're still paying your debts or what your overall goal is regarding your debt. Scheduling a free initial consultation can help you decide whether to apply.

Alternatives to Debt Management

Debt management companies can help with debt in different ways. If you don't qualify for debt management or don't think it can help with your situation, you might consider these options instead.

Debt snowball or debt avalanche

The debt snowball method involves paying off your debts, starting with the lowest balance and then going in order to the highest. You pay as much as possible to the smallest debt each month while making minimum payments on everything else. Once you pay off the first debt, you prioritize the next debt on the list. You keep it up until all your debt is gone.

The debt avalanche is similar but with one difference. Instead of paying your debts in order of lowest to highest, you pay them from the debt with the highest interest rate going down to the lowest. This lets you pay off your most expensive debts first, saving you money.

Bankruptcy

Bankruptcy is often seen as a last-resort option for managing debt, but in some cases, it can be the best choice. Chapter 7 bankruptcy will eliminate unsecured debts. The trade-off is that you may need to turn over some of your assets to the bankruptcy court.

Chapter 13 bankruptcy allows you to pay off debts in a structured plan while halting legal actions, including collections or creditor lawsuits. You get to keep your assets in a Chapter 13 bankruptcy.

Talking to a bankruptcy attorney or nonprofit credit counselor can help you determine if and which type of bankruptcy is right for you.

More on debt management

Debt management can help you better handle what you owe, but you should understand the terms before enrolling. Here are a few additional things to keep in mind as you search for debt solutions.

Is debt management right for you?

Whether debt management is the best fit for your needs can depend on:

• The types of debt you have.
• Your amount owing.
• Your overall goal.

A standard debt management plan could be a great fit if you simply want to streamline your monthly payments and have a set end date for paying off debt. As with any debt solution, you must be committed to not taking on new debt.

Pros and cons

Debt management has advantages and disadvantages. The positives include:

• Reducing the number of payments you make monthly.
• Lowering your payments.
• Reducing interest rates and/or fees.
• Paying off less than what's owed.

The negatives could be:

• It can hurt your credit.
• It doesn’t address the root causes of your debt problems.

If you have to close credit accounts to enroll in a debt management plan or stop paying debts because you're trying to negotiate the balances, your credit could be damaged. And if you're not changing the financial habits that got you into debt, history could end up repeating itself.

How to qualify for a debt management plan

Qualification for a debt management plan typically depends on your debt type and how much you owe.

Debt management companies may have a minimum amount of debt they require before they agree to work with you, or they may only accept certain types of debt. Generally, you should qualify for a debt management plan if you:

• Owe unsecured debts, such as credit cards.
• Have $10,000 or more in debt.
• Have enough income to meet the required payments under the plan.

There usually isn't a minimum credit score to qualify, unless you're applying for a debt consolidation loan. Scheduling a free consultation with a debt management company should give you a better idea of whether you qualify.

TIME Stamp: Not all debt management companies are equal, but using one can be helpful

Debt management can be a useful tool to get you back on track financially if you've been struggling to pay off credit cards or other debts. However, it’s important to shop around. Researching different companies is essential to helping you find the best option for tackling your debt.

Frequently asked questions (FAQs)

Does debt management hurt your credit?

Debt management can hurt your credit if you must close credit card accounts or stop paying debts as a condition of enrollment. Some debt management plans may require you to close accounts to prevent you from charging new purchases, while debt resolution usually requires you to be behind on payments. Both of these scenarios can negatively affect your FICO scores.

Does debt consolidation hurt your credit?

Consolidating debt could ding your credit a little if you apply for a loan. A credit application often requires a hard inquiry on your credit report, which can trim points off your score. However, you can recover them by making on-time payments to your consolidation loan each month.

Is it good to use a debt relief company?

Whether it's a good idea to use a debt relief company depends on the help you need and the type and size of your debt. If you're overwhelmed by what you owe and aren't sure what to do, or if you're afraid bankruptcy might be your only option, a debt relief company can help you find solutions. The best debt relief companies prioritize helping their clients get out of debt and are fully transparent about the fees they charge.