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

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By

Angelica Leicht

Senior Editor, Managing Your Money

Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.

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Updated on: October 27, 2026 / 9:14 AM EDT / CBS News

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If you find yourself struggling with growing credit card debt, you're not alone. Credit card balances jumped by $21 billion in the second quarter of 2026 and the recent interest rate environment has made carrying that debt more costly. An interest rate hike from the Federal Reserve on September 16, the first one since 2023, hasn't helped either. And it may not even be the only rate hike issued this year. At a current range between 3.75% to 4.00%, the bank's benchmark rate could soon tick up again. If it's raised soon, borrowing costs will become more expensive than they already are, leaving millions looking towards their debt relief options.

Borrowers who are carrying high-rate credit card debt have felt these economic concerns 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. This is when debt relief could be worth investigating. These programs are not without trade-offs, however — like credit score damage and tax implications — but for borrowers facing truly unmanageable debt loads, they can offer a meaningful solution.

The catch is that the debt relief industry isn't uniform. Some companies operate with genuine transparency and provide real support throughout the process while others come with hidden fees or practices that raise red flags and cause more issues than they resolve. That makes due diligence essential. Before committing to a servicer, it's worth understanding which companies have earned a reputation for doing it right. Below, we'll outline five specific ones to consider now, based on category.

Start tackling your expensive debt problems here.

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:

• Best for customer satisfaction: Accredited Debt Relief
• Best for legal assistance: Freedom Debt Relief
• Best for pricing transparency: DebtBlue
• Best for quick debt resolution: New Era Debt Solutions
• Best for overall value: Pacific Debt Relief

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 a 4.88 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. It also 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 now.

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 an easy-to-understand manner. 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.

Best for overall value: Pacific Debt Relief

What sets Pacific Debt Relief apart from the other companies on our list is its unique fee structure. Unlike other competitors, 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 and it will become even harder to deal with if rates rise later in 2026 or in 2027. If you're falling behind, it makes sense to pursue debt relief quickly, before compounding interest makes it harder to deal with.
• 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, make efforts 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 damage 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 for the years in which the debt was settled.
• 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, especially in today's economy, 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 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. 

Freedom Debt Relief (FDR) enrolls only unsecured debts, such as unsecured loans and credit cards. Any claims including "debt-free" statements are only referring to enrolled debt. FDR is not a loan and does not provide relief for federally backed student loans or secured debt, such as auto loans or mortgages. All estimates for FDR's services are based on prior results, which will vary depending on your specific enrolled creditors and your individual program terms, including your ability to maintain your program deposits. FDR's services are estimated to resolve your debt faster and for a lower amount than your current monthly minimum payments. Not all FDR clients are able to complete their program for various reasons, including their ability to save sufficient funds. FDR does not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. FDR is not a lender, creditor, or debt collector and is not a credit repair organization and does not provide or offer services or advice to repair, modify, or improve your credit. FDR does not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice. FDR's services are not available in all states and some programs may be offered through a law firm for legal services. FDR's fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. The use of FDR services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements FDR obtains on your behalf resolve the entire account, including all accrued fees and interest. It is expected that you read and understand all program materials prior to enrollment. C.P.D. Reg. No. T.S.12-03825.

Edited by Matt Richardson