Best Debt Settlement and Debt Relief Programs of 2022

What Are My Options?

If you are tired of constant calls from collection agencies and multiple lines of credit accruing hundreds of dollars in interest monthly but don’t know where to start, then debt settlement may be the way to go. Debt settlement companies generally negotiate with your creditors to pay off your debt for less than what you owe, making large balances shrink or disappear completely!

Debt settlement is a different beast than debt management or debt consolidation, all three of which fall under the larger umbrella of debt relief. With both debt consolidation and debt management, you repay the full principal owed. This is NOT the case with debt settlement. Only in debt settlement, which may also be referred to as debt forgiveness, are you paying back less than the principal amount owed.

Not all debt settlement companies are created equal, which is why we vetted the top 10 companies of 2022 based on very specific criteria.

  • Fees. By law, debt settlement companies are not permitted to charge fees up front for their services. There should be no up-front cost to you.
  • Time in business. Experience is important, and the longer a company has been in business the longer they have had experience with dealing with companies to resolve debt fast.
  • Customer satisfaction and experience. Reviews are available and typically very candid. By reading about customer’s experiences you’ll get an idea of the type of customer service you can expect to receive. Ratings from the Better Business Bureau and Trustpilot are also available. 
  • Digital experience. Is it easy to contact the company, access an online user portal, or track your progress via a user dashboard? These factors all come in handy when you are working to eliminate debt fast.
  • Accreditation. Look for the company to be a member of the American Fair Credit Council, which supports, enforces and advocates for consumer rights for Americans with financial hardship and debt burdens. The council holds companies to high standards and promotes best practices. Also look for accreditation from the Better Business Bureau.


How Does It Work?

Debt settlement programs generally negotiate with your creditors on your behalf with the goal of convincing creditors to forgive a significant amount of the debt all together. By working with a debt relief company you are guaranteed to pay off your debt at a lower amount that the initial principal owed.  As part of the process, the debt settlement company generally asks that you stop paying your creditors so that they can more easily negotiate.

The debt settlement company usually requires you to put aside a specific amount of money each month for a particular amount of time—often 24 months or more—into a specific savings account. This money is used to pay the settled amounts.

There Is Hope

In conclusion, most Americans are facing crippling debt during these tough economic times. Debt settlement can help by significantly reducing your monthly payments and simplifying your monthly budget.  After eliminating debt, most people reported a reduced sense of stress and overall better well-being. It is also important to understand that this is not a magic eraser, and it is critical that you do not take on more debt while working to resolve the debt you currently have.

Here are the top two debt consolidation companies of 2022: