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Best Debt Management Companies of 2024
![Best Debt Management Companies](/personal-finance/static/79776f18b18551137fdf254ad7172ee6/8ae18/best-debt-management-companies.jpg)
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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. Weโre 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.
32
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 โexcellentโ Trustpilot rating and an A+ rating with the Better Business Bureau (BBB).
1% to 6% origination fees for consolidation; 15% to 25% of enrolled debt for resolution
30
Accredited Debt Relief helps with a wide range of debt types and offers both debt consolidation and resolution services. It has an โexcellentโ 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.
Fees vary by loan
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.
25% of enrolled debt
47
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.
18% to 25% of enrolled debt
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.
14% to 23% of enrolled debt
47
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.
15% to 25% of enrolled debt
29
Pacific Debt Inc. has an โexcellentโ 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.
Vary by state and solution
N/A
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 โdebt settlement,โ allows you to pay off debt for less than what's owed.
Company | Fees | # Available states |
---|---|---|
Freedom Debt Relief | 15% to 25% of enrolled debt | 32 |
Accredited Debt Relief | 1% to 6% origination fees for consolidation; 15% to 25% of enrolled debt for resolution | 30 |
Simple Debt Solutions | Fees vary by loan | 36 |
TurboDebt | 25% of enrolled debt | 47 |
JG Wentworth | 18% to 25% of enrolled debt | 30 |
New Era Debt Solutions | 14% to 23% of enrolled debt | 47 |
Pacific Debt Inc | 15% to 25% of enrolled debt | 29 |
National Debt Management | Vary by state and solution | N/A |
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.
First, look at what the debt management company does. This could include:
Some companies offer just one or two services, while others may have a broader range of options from which to choose.
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.
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.
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:
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.
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.
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 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.
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.
Whether debt management is the best fit for your needs can depend on:
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.
Debt management has advantages and disadvantages. The positives include:
The negatives could be:
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.
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:
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.
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, itโs important to shop around. Researching different companies is essential to helping you find the best option for tackling your debt.
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.
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.
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.
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