Best Debt Relief Companies for Bad Credit

Missing one debt payment can severely affect your credit score. In this guide, find out the best debt relief companies with no credit requirements.

Debts can severely impact your life. What if you can't afford to pay off your debts anymore?

You end up with missed payments, late payments, or collections in your credit reports. Worse, your credit score tanks while you get more negative items on your credit reports.

Don't worry, there's a solution. Here are the best debt relief companies that can relieve you from debts, especially when your credit needs it most.

7 Best Debt Relief Companies for Bad Credit

These debt relief options don't require a specific credit score to sign up. Just note the types of debts accepted and the minimum debt requirement to apply.

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Accredited Debt Relief: Best Overall

• Minimum debt to apply: $10,000

• Fees: Usually 25% of total enrolled debts^[1]

Accredited Debt Relief is a Beyond Finance, LLC company. It has been in the industry since 2011. And it has helped over 300,000 clients settle more than $1 billion worth of unsecured debts.

Accredited Debt Relief can negotiate with creditors to lower your debts up to 55% of the original amount (not including fees). Plus, you can settle your debts in as fast as 24 months.^[2]

Qualified debts:

• Credit cards
  
• Unsecured personal loans
  
• Department store credit debts
  
• Medical debts

Why we like it:
Apart from debt settlement, you can also qualify for debt consolidation loans from Accredited Debt Relief's affiliates. You may be eligible for loans up to $100,000 with lower interest and settle multiple debts at once.^[3]

On top of that, Accredited Debt Relief is accredited by the Better Business Bureau (BBB) and the International Association of Professional Debt Arbitrators (IAPDA). It is also a member of the American Association for Debt Resolution (AADR).

Downsides:
The minimum debt requirement is higher than most debt relief companies. Other debt relief companies only require $7,500 of unsecured debts.

Do you have varying debt types not supported by Accredited Debt Relief? This next company may be the right fit.

National Debt Relief: Most Number of Qualified Debts

• Minimum debt to apply: $7,500^[4]

• Fees: 15–25% of total enrolled debts^[5]

National Debt Relief is one of the largest debt relief companies in the business since 2009. It has helped 550,000 clients settle unsecured debts by negotiating with creditors.

On average, clients who stayed and graduated in their program saved 46% from their original debts (not including fees). You can settle your debts within 24–48 months.^[6]

Qualified debts:

• Major credit cards
  
• Retail cards
  
• Gas cards
  
• Bank loans from prior banks
  
• Installment loans
  
• Finance companies
  
• Unsecured personal loans
  
• Repossessions
  
• Selected business debts
  
• Bank, overdraft, and associated fees
  
• Cellphone bills (not current)
  
• Credit unions (members are not federal or military employees)
  
• Veterinarian bills over $500
  
• Judgments past 6 months (requires documentation)
  
• Back rent (not current resident)

Why we like it:
National Debt Relief specifies and qualifies more unsecured debts than other companies. If you owe debts not on the list, you can inquire about them during your initial consultation.

Like Accredited Debt Relief, National Debt Relief is accredited by the BBB, IAPDA, and the AADR. It's a reputable company that has been around for 15 years. And it has built a lot of relationships with major creditors in the United States.

Downsides:
Since fees are percentage-based, National Debt Relief's services can be costly. Best to be prepared. The more unsecured debts you enroll, the higher the fees may be.

Imagine Living Life Without Debt

Click Here to Apply for Debt Relief

• Get a free savings estimate today
• See how quickly you can be debt free
• No upfront fees and no obligation

You may be worried about creditors coming after you when missing your debt payments. This next company has got your back.

Freedom Debt Relief: Legal Services

• Minimum debt to apply: $7,500^[7]

• Fees: 15–25% of total enrolled debts^[8]

Freedom Debt Relief has helped over 1 million clients resolve over $18 billion debts since 2002. You can rely on a team of experienced professionals composed of 500+ certified debt consultants and 200+ debt negotiators to help you become debt-free.

On average, Freedom Debt Relief resolves around 45,000 accounts every month. And you can settle your unsecured debts and accounts within 24–48 months.^[9]

Qualified debts:

• Credit card debt
  
• Medical debt
  
• Personal loan debt
  
• Private student loan debt
  
• Department store credit card
  
• Collections
  
• Repossessions
  
• Lines of credit
  
• Payday loans

Why we like it:
Freedom Debt Relief partners with the Legal Partner Network, a network of attorneys specializing in debt negotiations. You can get help from partner lawyers when creditors sue you for unpaid debts.

Freedom Debt Relief also features a program guarantee. Once you graduate from your program, you can get a refund if your settlement fees are greater than your total enrolled debts.

Downsides:
You need to pay a $9.95 fee to set up your escrow account for the monthly payments of your personalized program. What's more, you need to pay an extra $9.95/month to maintain this account.^[10]

If you're on a tight budget and are worried about fees, New Era Debt Solutions may be the better option.

New Era Debt Solutions: Lowest Fees

• Minimum debt to apply: $10,000

• Fees: 14–23% of total enrolled debts^[11]

New Era Debt Solutions has helped its clients settle around $275 million worth of debts since 1999. It has been in the industry longer than most companies.

On average, New Era Debt Solutions clients settled their enrolled debts within 28 months, saving around 43% of the original amount (not including fees). You can get your first settlement offer within 6 months of program enrollment.^[12]

Qualified debts:

• Credit cards
  
• Department store cards
  
• Signature loans
  
• Personal lines of credit
  
• Old repossessions
  
• Other unsecured debts
  
• Old judgments
  
• Private student loans in default

Why we like it:
New Era Debt Solutions charges the lowest fees. The difference in percentage may seem small, but if your total enrolled debts are high, that difference can give you significant savings.

Like most legitimate debt relief companies on the list, New Era Debt Solutions is accredited by the BBB, IAPDA, and the AADR.

Downsides:
Though they charge the smallest fees, New Era Debt Solutions has a high minimum debt requirement. Savings from fees may be negligible if you have less debt to enroll.

If you want the most savings you can get, check out Pacific Debt Relief instead.

Pacific Debt Relief: Highest Potential Savings

• Minimum debt to apply: $10,000^[13]

• Fees: 15–25% of total enrolled debts^[13]

Pacific Debt Relief has been in the industry since 2002. It has resolved over $500 million in unsecured debts for its clients.

On average, clients save up to 50% of their original debt (not including fees). Each client is enrolled in a personalized program lasting 24–48 months.^[14]

Qualified debts:

• Credit cards
  
• Personal loans
  
• Lines of credit
  
• Medical bills
  
• Store cards
  
• Collections
  
• Repossessions
  
• Business debts

Why we like it:
Pacific Debt Relief can give you the most significant reductions on your original debts. You may save half of your total debts enrolled, having the most savings from what you owe.

Pacific Debt Relief is accredited by the Consumer Debt Relief Initiative, BBB, and IAPDA.

Downsides:
Like Accredited Debt Relief and New Era Debt Solutions, Pacific Debt Relief requires a higher minimum debt for you to qualify for their program.

Can you avoid the minimum debt requirements altogether? You can with Money Management International.

Money Management International: For Debt Management

• Minimum debt to apply: None

• Fees: average of $33 for setup fee ($75 max); average of $25/month ($59 max)^[15]

Money Management International is a non-profit agency offering debt management plans (DMP). Certified counselors create and enroll qualified debts into a repayment plan you can afford.

Counselors create a DMP that fits your monthly budget and negotiate with your creditors to:

• Enroll your debts into a DMP
  
• Reduce or remove high interest
  
• Adjust repayment terms
  
• Waive other fees that can increase the debt

Qualified debts:
You can discuss all debts you want to enroll in a DMP. But your plan depends on whether or not your creditor or lender agrees.

Why we like it:
You can settle debts within 3–5 years with a lower monthly payment. Also, unlike debt settlement companies, debt management plans don't have minimum debt requirements.

Enrolling in a DMP has less impact than a debt settlement program. Your credit score will dip slightly at the beginning when you enroll your debts and creditors close your accounts.

Downsides:
Savings can be minimal since counselors are not negotiating to lower your principal debt. They only work with your creditors to reduce other fees and waive charges, not the original debt.

If your debts are tax debts, however, check out CuraDebt instead.

Curadebt: For Tax Debt Relief

• Minimum debt to apply: $5,000 for tax debts; $7,500 for other types of unsecured debt

• Fees: average of 20% or less than the total enrolled debt^[16]

CuraDebt is one of the most experienced debt relief companies in the industry. On top of unsecured debts, CuraDebt offers debt relief and solutions for tax debt.

CuraDebt has been around since 2000. It has helped over 300,000 clients negotiate and settle debts. On average, you can save anywhere from 40–60% of your enrolled debt.^[17]

Qualified debts:

• Tax debts
  
• Credit cards
  
• Medical debt
  
• Department store cards
  
• Signature loans
  
• Unsecured lines of credit
  
• Payday loans
  
• Personal loans
  
• Revolving charge accounts
  
• Collections debt
  
• Repossessions
  
• Certain business debts

Why we like it:
CuraDebt is the only company on the list that includes tax debt relief for IRS and state tax debts. If you are an individual or a small business owner with tax issues, CuraDebt is your best option.

Say you've failed to file tax returns, or there are mistakes with tax preparation. CuraDebt has a team of experienced professionals with over 20 years of experience in relieving tax debts.

Downsides:
CuraDebt's fee structure lacks transparency. You'll need to sign up for a "free savings estimate" first to calculate the potential fees of your program.

Considering all of these debt relief companies, here's a little background on the services they offer.

How To Get Out Of Debt With Bad Credit And No Money?

If you have a lot of debt, there are several types of debt relief options you can consider, even if your credit is poor:

• Debt settlement
  Debt settlement refers to negotiating with creditors to reduce your original debt, waive fees, or extend repayment terms.

  Companies like Accredited Debt Relief and National Debt Relief offer debt settlement.

• Debt consolidation
  Debt consolidation means combining multiple debts. You can find debt consolidation loans with smaller interest.

  It can simplify your payments by letting you focus on one payment monthly.

  Can you get debt consolidation with bad credit?
  Yes, you can qualify for debt consolidation with bad credit. However, stricter terms and higher interest rates may apply if you apply for a large debt consolidation loan.

• Debt management plan (DMP)
  DMPs refer to repayment plans that last 3–5 years. Credit counselors create a DMP you can afford.

  They also negotiate with creditors to enroll debts in the DMP, waive fees, reduce interest, or adjust repayment terms.

• Credit counseling
  Credit counseling agencies offer services beyond debt, including budgeting, credit, bankruptcy, etc.

  Certified counselors give you advice and options on what to do with your finances.

• Bankruptcy
  Bankruptcy is a legal process that dissolves your debts or rearranges your current payments.

  A Chapter 7 bankruptcy liquidates eligible assets as payment to your creditors. A Chapter 13 bankruptcy restructures your debts into a repayment plan you propose to the court.

Given these services, here's how we chose the best debt relief companies for people with poor credit.

Methodology

We weighed in several factors. First, we chose debt relief companies with more than 10 years of experience.

Even better, they've helped hundreds of thousands of clients reduce their debts. These companies have resolved millions of debts by negotiating with creditors.

We also chose options with accreditations and memberships from the most prominent associations in the debt relief industry.

This includes the American Association for Debt Resolution (AADR) and the International Association of Professional Debt Arbitrators (IAPDA).

This means companies on this list are vetted and regularly audited against the highest industry standards and ethical practices. You are consulting with professionals who are trained, assessed, and certified in the best debt negotiation and resolution practices.

Bottom Line

Having debt is not the end of the world. By choosing the best debt relief option, you can settle your debts one by one.

First, look at debt relief companies and nonprofit credit counseling agencies that can help you become debt-free. Then, make sure not to miss your monthly payments and prepare for any fees.

This will help you achieve your goal, which is to complete your program/plan, settle debts, and improve your credit over time.

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