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President-elect Donald Trump said Thursday that Congress should get rid of the debt ceiling, a day after speaking out against a deal reached by congressional lawmakers to fund the government before a default occurs. closure

In a phone interview with NBC News, Trump said getting rid of the debt ceiling entirely would be “the smartest thing [Congress] could do I would fully support it.”

“Democrats have said they want to get rid of it. If they want to get rid of it, I would lead the charge,” Trump added.

Trump suggested that the debt ceiling is a meaningless concept — and that no one knows for sure what would happen if it were ever breached — “catastrophic or meaningless” — and no one should want to find out.

“It doesn’t mean anything, except psychologically,” he said.

The debt ceiling is the limit set by lawmakers that determines how much the federal government can borrow to pay its bills. It does not authorize any new expenditure.

On the possibility of a shutdown, which would occur at 12:01 a.m. Saturday if a funding deal is not reached, he said: “If there is going to be a shutdown, we will start it with a Democratic president.” suggesting that the fight now underway in Congress is needed to clear the decks before his administration begins in January.

Asked if he still had confidence in House Speaker Mike Johnson, R-La., Trump said: “We’ll see. [The funding deal] that they had yesterday was unacceptable”, referring to the continuing resolution of the speaker. “In many ways, it was unacceptable. It’s a Democrat trap.”

Trump said he had discussed his views on the short-term financing deal with Elon Musk before Owner X’s posts on Wednesday.

“I told him if he agreed with me, he could make a statement,” Trump said. “He’s looking at things from a cost perspective.” He described his views as online and “very on track.”

In his call on Wednesday for Republicans to abandon the negotiated bipartisan short-term spending bill, Trump also demanded that lawmakers raise the debt ceiling, something that had not been on the table at all.

Congress last raised the debt ceiling in June 2023, suspending it until January 1, 2025. Normally, the Treasury Department can extend the deadline through so-called emergency measures to buy more time for the legislators to address it.

Before lawmakers approved the latest increase, the White House released a statement warning of the consequences of not lifting it and defaulting on the nation’s debt, saying a default would “likely cause serious damage to the American economy “. The statement said analyzes by the Council of Economic Advisers and outside researchers showed that if the government defaulted on its obligations, “the economy would rapidly reverse course, with the depth of the losses depending on how long it lasted the breach”.

During Trump’s first term, he signed legislation to raise the ceilings three times. He had also floated the idea of ​​eliminating the debt ceiling when he was in the White House.

Some Democrats have expressed support for getting rid of it in recent years.

Rep. Brendan Boyle, D-Pa., the ranking member of the Budget Committee, has led the charge with legislation called the Debt Ceiling Reform Act that would diminish Congress’ ability to use the threat of default as a tactic in legislative negotiations. He introduced it in 2023 with Sen. Dick Durbin, D-Ill., who introduced a companion bill in the Senate.

The House bill has 55 co-sponsors, all Democrats, including former House Speaker Nancy Pelosi.

Boyle told NBC News that “the only way” House Democrats should “vote to raise the debt ceiling under Trump is if we have a permanent write-off” or reform to repeal it wholesale measure, like his bill, which would give the president. the power to raise the debt ceiling unless Congress overrides it.

He kept the door open to considering it as part of a government funding bill. “In terms of including this in the CR, I would have to consider all the other issues involved,” Boyle said.

Sen. Elizabeth Warren, D-Massachusetts, also posted on social media Thursday morning that she agreed with Trump’s call to abolish the debt ceiling.

“I agree with President-elect Trump that Congress should end the debt limit and never again govern by taking hostages,” he wrote.

The president-elect appears to acknowledge the legislative gridlock that awaits him in the first year of his second term: another round of government funding, a debt limit hike and plans to advance major party bills on immigration and taxes, in addition to confirming its administration staff through the Senate.

COLUMBUS, Ohio (WCMH) – As the holiday season winds down, chances are your wallet or bank account will feel the impact.

According to WalletHub, the average credit card debt for a US household is $10,870. But when it comes to cleaning up your finances, there are several things you can do. Financial planner Matthew Kirby suggests getting organized financially first. He recommends creating a spreadsheet of all your existing debts. The next step is to create a budget.

“There are certain things in a budget that you have to pay for, whether it’s your rent or whether it’s daycare or food or gas,” Kirby said. “These are the things that are not optional.” According to Kirby, tackling the highest interest debt first is key. “A lot of times it’s usually credit cards, personal loans, all of those tend to be higher than the more traditional types of debt, which would be a mortgage, car payments,” Kirby said.

In addition to seeking expert advice, using web-based budgeting tools is a good place to start. “If you go to your bank’s website and you can go back a year, a lot of times they’ll give you a breakdown of where your expenses are and sort them out for you,” Kirby said.

Do you have New Year’s resolutions? Here are some tips to help them stick

Kirby said taking a look at your finances from the previous year is important to setting yourself up for a better financial future. “If there are things that you struggled with or things that were out of your control or things that maybe you didn’t make the best financial decision, at least there’s an awareness because if you’re faced with that same decision in 2025, then you can adjust- you accordingly,” said Kirby.

Kirby said sometimes another source of income might be needed to pay off debts. “We’re seeing a lot of people have side jobs, whether it’s driving for rideshare or other types of income streams to try to overcome some of the inflationary issues that we’re seeing, primarily with housing, energy and ‘food. prices,” said Kirby.

Getting out of debt and managing your daily cash flow is critical. Once you get to a place where you feel comfortable with your spending, encourage people to make saving a priority. “You need to be able to build a savings account or an emergency fund that will help you stay out of debt,” Kirby said. “So instead of having $1,000 on a credit card for new tires on the car, have a savings account, you don’t have to do it with a credit card, but you can pay cash for it.”

The story continues

If you have credit card debt, you’re not alone: ​​Americans owe a record $1.08 trillion on their cards, according to credit reporting agency Experian, with the average balance exceeding $6,300.

Carrying a large balance increases your debt load, hurts your credit score, and negates any benefits you get from your card’s rewards plan. And with credit card interest rates at record highs, it may be harder than ever to get out from under them.

Below, CNBC Select reviews the best ways to eliminate your credit card bills, whether you have one card or a full wallet.

Are you struggling to pay off debt? Consider enlisting the help of a debt relief company

The offers in this section come from affiliate partners and are selected based on a combination of engagement, product relevance, compensation and ongoing availability.

Freedom Debt Relief has resolved over $19 billion in outstanding debt since 2002. Offers free credit card debt relief consultations.

Using a balance transfer credit card

You can avoid crushing interest rates by transferring high-interest card debt to a balance transfer credit card that has no interest for up to two years.

Protagonism

Get 0% introductory APR for 21 months on balance transfers and 12 months on purchases.

Good to excellent 670–850

The Citi Simplicity® Card may not earn rewards, but it can still save you money thanks to its amazing introductory APR offers.

One of the longest APR introductory offers for balance transfers No annual fee No rewards No welcome bonus

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The highlights shown here are provided by the broadcaster and have not been reviewed by CNBC Select editorial staff.

No late fees, no penalty fee and no annual fee… Ever0% intro APR for 21 months on balance transfers from the date of the first transfer and 0% intro APR for 12 months on purchases from the account opening date. After that, the variable APR will be 18.49% to 29.24%, depending on your creditworthiness. Balance transfers must be completed within 4 months of account opening. There is an introductory balance transfer fee of 3% of each transfer (minimum $5) made within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5). Stay protected with Citi® Quick Lock

Balance transfer fee

There is an introductory balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).

Foreign transaction fee

Wells Fargo Reflect® Card

In Wells Fargo’s secure site

rewards

Welcome bonus

Annual fee

Introduction APR

0% introductory APR for 21 months from account opening on eligible purchases and balance transfers.

regular APR

17.24%, 23.74% or 28.99% variable APR

Balance transfer fee

Foreign transaction fee

Credit required

Pros

Best-in-class introductory APR on qualifying purchases and balance transfers No annual fee Mobile phone insurance

Cons

No Rewards No Welcome Bonus High Balance Transfer Fee

There are some limitations to this strategy: balance transfer cards usually have limits on the amount you can transfer, and you can’t transfer a balance between cards issued by the same bank. Also, you’ll need a FICO credit score of at least 670, which is considered good or excellent.

Be sure to read the fine print before requesting a transfer.

Debt consolidation with a personal loan

If you don’t want to add another credit card, a personal loan provides you with cash for a set period and usually at a fixed interest rate lower than a credit card’s APR.

Depending on your credit score, you may qualify for a loan that covers all of your credit card debt. And if your debt is spread across several cards, consolidating it into a personal loan will be easier to manage.

CNBC Select ranked Happy Money as one of the best choices for a personal loan. If you don’t have a great credit history, applicants only need a fair credit score (580 or higher) to qualify for a loan.

happy money

Annual Percentage Rate (APR)

Purpose of the loan

Debt consolidation/refinancing

Loan amounts

terms

Credit required

Quota of origin

1.5% to 5.5% (depending on credit score and application)

Early payment penalty

Late fee

Pros

Peer-to-peer lending platform makes it easy to check multiple offers Loan approval includes Happy Money membership and customer support.

Cons

Higher loan minimums ($5,000) Soft inquiry required for origination fees and other details

How Payoff is designed to help you stay motivated:

It offers borrowers a dedicated “Science of Empowerment” team available to answer questions and offer encouragement. Free personality tests, stress assessments and cash flow trackers to help borrowers understand their money management style and get into better habits. Free FICO Tools help members track their progress*

* According to a study of Happy Money members between February 2020 and August 2020, members who use a Happy Money loan to eliminate at least $5,000 in credit card balances see an average FICO score increase of 40 points. (Results may vary and are not guaranteed.)

LightStream is another attractive option if you’re trying to pay off high-interest credit cards thanks to its low APRs. You’ll need a FICO credit score of at least 670, but LightStream doesn’t charge late or origination fees.

LightStream personal loans

Annual Percentage Rate (APR)

6.94% – 25.29%* APR with AutoPay

Purpose of the loan

Debt consolidation, home improvements, auto financing, medical expenses and more

Loan amounts

terms

From 24 to 240 months* depending on the purpose of the loan

Credit required

Quota of origin

Early payment penalty

Late fee

Conditions apply. *The AutoPay discount is only available before the loan is funded. Rates without AutoPay are 0.50% higher. Excellent credit is required for the lowest rate. Rates vary according to the purpose of the loan.

Pros

Same day funding available via ACH or wire transfer (terms apply) Loan amounts up to $100,000 No origination fees, no prepayment fees, no late fees LightStream plants a tree for every loan

Cons

Requires several years of credit history No option to pay your creditors directly Not available for student loans or business loans No option for website pre-approval (but pre-qualification is available on some third-party lending platforms)

Borrow money from family or friends

If your credit score is below 580, you may have a hard time qualifying for a balance transfer card or personal loan.

If you’re thinking of borrowing from a family member or friend, make sure you set up a repayment plan before you borrow money. And follow it like you would a bank loan so you don’t risk damaging your relationship.

Pay off high interest debt first

If you have debt from multiple cards, it’s a good idea to use the avalanche method: pay off the balance on the card with the highest interest rate first, then work your way through the remainder with the highest APR lower

You can also combine techniques by opening a balance transfer card with a 0% introductory APR. First, clear any lingering balances on your high-interest cards and pay the minimum on your balance transfer card.

Once the high interest card is paid off, approach your balance transfer card more aggressively.

Likewise, if you’ve consolidated debt with a personal loan or a loan from family or friends, prioritize paying off high-interest balances first.

Pay the smallest balance first

Then there’s the snowball repayment method, which involves paying off the card with the smallest balance first and building up as you go.

The theory is that reducing a card balance to zero provides a sense of accomplishment and encourages continued debt management. Financial advisors typically don’t recommend the snowball method because it can lead to more interest charges compared to paying off high-interest cards first.

At the end of the day, the most important thing is to create a debt repayment plan that you can stick to. If paying off a card with a lower balance will keep you on track, it may be the right choice for you.

If you decide to use the snowball method, you should still make the minimum payments on your other cards.

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Money is important, so make the most of it. Get expert advice, strategies, news and everything you need to maximize your money straight to your inbox. Register here.

bottom line

Credit cards are a necessity in today’s world, and they can be an asset if you budget well and pay off the balance each month. However, if you find yourself buried under credit card debt, there are options that give you more time to pay it off with less interest.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality journalistic service and comprehensive consumer advice so they can make informed decisions with their money. Each review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. Although CNBC Select earns a commission from affiliate partners on many offers and links, we create all of our content without input from our commercial team or outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up with CNBC Select’s in-depth coverage credit cards, banking i moneyand follow us TikTok, Facebook, Instagram i Twitter to keep up to date

Editorial note: The opinions, analyses, reviews or recommendations expressed in this article are those of Select only and have not been reviewed, approved or endorsed by any third party.

Introduction to Debt Management

The Importance of Managing Debt Effectively

Debt management is a way to get your debt under control through financial planning and budgeting. The goal of a debt management plan is to lower your current debt and move toward eliminating it.

Effective debt management can prevent late fees, high interest costs, and damage to your credit score. If you are having trouble doing it yourself, you may want to enlist the help of a debt management or settlement company. 

Overview of Debt Management Programs

There are several essential factors to consider when evaluating debt settlement and debt management services.

First, FTC regulations prohibit debt relief companies from collecting fees from a client until they have settled, reduced, or altered the terms of at least one of that client’s debts. Companies that charge an up-front fee should be disregarded.

Think about the amount of debt you are carrying and the best way to eliminate it. Compare the benefits and features of the programs you are considering and factor in your personal financial goals. Do you want to get rid of the debt sooner rather than later or do you have time and money to spread the payments out? 

Read on to learn more about the best debt settlement and debt management services.

Best Debt Settlement and Debt Management Services 2025

Debt Settlement and Debt Management Service Reviews

The best debt settlement and debt management services offer free consultations, financial literacy resources, and very low fees to receive help. 

Here are the best debt settlement and debt management services as picked by Business Insider editors in 2025. 

Most Types of Debts Settled: National Debt Relief

Most types of debt settled

National Debt Relief

Fees

Cost: 15-25% of total enrolled debt

Pros

Check mark icon
A check mark. It indicates a confirmation of your intended interaction.

Includes private student loans

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Accredited with the AFCC

Check mark icon
A check mark. It indicates a confirmation of your intended interaction.

Fee transparency

Check mark icon
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$7,500 minimum debt requirement

Cons

con icon
Two crossed lines that form an ‘X’.

Customer service conducted exclusively over the phone

con icon
Two crossed lines that form an ‘X’.

Lack of legal or tax guidance

Cost: 15-25% of total enrolled debt

Operating since 2009, National Debt Relief claims to have helped more than 400,000 people get out of debt. National works with most kinds of unsecured debt, including credit cards, medical bills, personal loans, and private student loan debt. There is no advertised minimum debt required to apply for National’s debt relief programs, though most clients have debt in excess of $10,000.

National offers free consultation with no upfront fees, as no payment is collected until you approve a settlement and make at least one payment on a debt. There’s also no fee for backing out so long as you do so before your debt is settled. Once National negotiates a settlement, the fee averages 15-25% of the total enrolled debt (not the settled amount). Completing the settlement program takes 24-48 months on average.

National Debt Relief is accredited by the American Fair Credit Council (AFCC) and has an A+ rating from the Better Business Bureau. National also has a Trustpilot rating of 4.7 stars out of five, with 95% of over 41,000 reviewers giving the company four or five stars. Common complaints among negative reviews include a lengthy settlement process, unexpectedly high fees, and a lack of clarity about the legal and tax implications of debt settlement.

One apparent negative of National Debt Relief is that customer support is only available by phone, with no email or chat option. While business hours for new customers include weekends and extend to midnight on weekdays, support for current clients is only available Monday to Friday from 10 a.m. to 8 p.m. EST.

Read our National Debt Relief review.

Best Money-Back Guarantee: CreditAssociates Debt Relief

CreditAssociates Debt Relief

Fees

Cost: Estimated 25% of debt (fees not publicly available)

Pros

Check mark icon
A check mark. It indicates a confirmation of your intended interaction.

Charged for the amount settled rather than amount enrolled

Check mark icon
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Debt relief blog

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Money-back guarantee advertised

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AFCC and IAPDA accredited

Cons

con icon
Two crossed lines that form an ‘X’.

Fees not publicly available

Cost: Estimated 25% of debt (fees not publicly available)

CreditAssociates has been in operation since 2015. The company helps clients settle a variety of unsecured debts, but emphasizes solutions for those dealing with credit card debt, medical bills, and business debt. There is no advertised minimum debt required to enroll in CreditAssociates’ debt relief programs.

CreditAssociates offers a free consultation with its team of debt settlement experts, and charges a fee only when the company is involved in a settlement. CreditAssociates also markets a “money-back guarantee,” but does not offer further details about that guarantee prior to enrollment. The company cites an average timeline of 36 months to complete a debt settlement program. 

CreditAssociates has accreditation from both the AFCC and the International Association of Professional Debt Arbitrators (IAPDA). The company also has an A+ rating from the Better Business Bureau, though it has a high incidence of complaints relative to the number of reviews. Trustpilot reflects a more positive view of CreditAssociates, with a rating of 4.9 stars out of five and 98% of over 18,000 reviewers giving the company four or five stars. Common complaints among negative reviews include poor communication and the use of high-pressure sales tactics.

One standout feature of the CreditAssociates website is its debt relief blog, which offers a treasure trove of articles on topics like credit, bankruptcy, budgeting, and more. These articles are available whether or not you enlist their services.

On the downside, while anecdotal evidence places the cost of using CreditAssociates in line with other debt settlement services, the company’s website conspicuously fails to disclose the range of potential fees. It’s website mentions that the average customer saves 55% on their debt without fees and 30% with its fees included. CreditAssociates is not available in Colorado, Connecticut, Minnesota, Maryland, Vermont, and Wyoming.

Read our CreditAssociates review.

Best Reviewed: Accredited Debt Relief

Best reviewed by customers

Accredited Debt Relief

Fees

Cost: 15-25% of total enrolled debt

Pros

Check mark icon
A check mark. It indicates a confirmation of your intended interaction.

Online knowledge hub and blog

Check mark icon
A check mark. It indicates a confirmation of your intended interaction.

Accredited with AFCC and CDRI

Cons

con icon
Two crossed lines that form an ‘X’.

Only available in 30 states

Cost: 15-25% of total enrolled debt

Accredited Debt Relief is a DBA of debt consolidator Beyond Finance. The company has been in operation since 2011, claiming to have served more than 200,000 clients and paid off more than $1 billion of client debt. Accredited Debt Relief works exclusively with unsecured debt such as credit cards, medical bills, and payday loans, offering both debt settlement services and debt consolidation through its affiliates. There is no published minimum debt required to enroll, but client reviews indicate the company only handles debts totaling over $10,000.

Accredited Debt Relief offers free consultations and savings estimates with no upfront fees and no obligation to enroll. The company boasts that clients who make all monthly deposits reduce their enrolled debt by approximately 45%, with fees averaging 15-25% of the total amount. Some clients are able to pay off debts in as little as 12 months, but the typical timeline ranges up to 48 months.

Accredited Debt Relief is accredited by both the AFCC and the Consumer Debt Relief Initiative (CDRI). The company has an A+ rating from the Better Business Bureau with a very low incidence of complaints relative to the number of reviews. Trustpilot rates Accredited Debt Relief at 4.8 stars out of five, with 97% of over 7,400 reviewers giving the company four or five stars. Common complaints among negative reviews include dissatisfaction with the enrollment process and misrepresentation of how fees are assessed.

Accredited Debt Relief has an online knowledge hub with extensive information about topics related to debt, as well as a blog that covers personal finance more broadly. Customer service offers is accessible by phone for no less than 14 hours daily, seven days a week, as well as by email. One negative about Accredited Debt Relief is that it only operates in 30 states plus Washington, D.C. Clients outside of the covered states are ineligible to enroll.

Read our Accredited Debt Relief review. 

Best Credit Counseling: American Consumer Credit Counseling

Best for credit counseling

American Consumer Credit Counseling

Icon of check mark inside a promo stamp
It indicates a confirmed selection.

Perks

A debt management plan (DMP) is a type of repayment plan that’s set up and managed by a non-profit credit counseling agency like ACCC. As part of ACCC’s DMP, creditors may waive late and overlimit fees, lower interest rates, reduce monthly payments and bring passed due accounts current (also known as re-aging).

Fees

Cost: $39 one-time fee and $7 monthly maintenance fee per account

Pros

Check mark icon
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Available in all 50 states

Check mark icon
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Free preliminary counseling session

Check mark icon
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Monthly fee capped at $70

Cons

con icon
Two crossed lines that form an ‘X’.

Takes four to five years to complete

Insider’s Take

American Consumer Credit Counseling is a non-profit credit counseling agency that offers advice on various financial topics such as budgeting, student loans, and bankruptcy. The main service it offers is a debt management plan, usually over three to five years, that costs a $39 setup fee and a $7 monthly fee per account, capped at $70. With an affordable fee structure and positive reviews, ACCC is one of the best credit counseling services.

ACCC
review
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An arrow icon, indicating this redirects the user.”

Product Details

ACCC can offer you Debt Management Counseling to help you:
Reduce your interest rates and monthly payments by 30-50%
Consolidate credit card bills into one simple monthly payment
Bring an end to harassing calls from debt collectors
100% free consultation with a certified debt specialist
Become Debt-Free (3 – 5 years in most cases)

Cost: $39 one-time fee and $7 monthly maintenance fee per account

American Consumer Credit Counseling is a non-profit agency offering debt relief, credit counseling, and financial education services. Operating since 1991, the agency specializes in debt management programs to help clients with unsecured debts such as credit cards and store cards, medical bills, signature loans, and collection accounts. There is no published minimum debt required to enroll.

American Consumer Credit Counseling provides a preliminary counseling session at no charge, during which a professional certified counselor helps review your finances, discuss options for debt relief and develop a budget and action plan. Those who enroll in a debt management program pay a one-time fee of $39 and monthly maintenance fee of $7 per account, which is capped at $70. Both enrollment and maintenance fees may be waived based on state regulations or for those in financial hardship.

The agency’s debt management program works with creditors to lower interest rates, eliminate late and over-limit fees, and re-age delinquent accounts to make them current. The program is designed to take approximately four to five years to complete, but the timeline depends on the amount of debt, the creditors, and the client’s ability to pay.

American Consumer Credit Counseling is a member of the National Foundation for Credit Counseling, and is accredited by the Council on Accreditation. The agency has an A+ rating from the Better Business Bureau with a nearly negligible incidence of complaints relative to the number of reviews. There are no reviews on Trustpilot, but its brick and mortar locations have over 10,000 combined Google reviews, of which only 37 gave less than four stars.

Unlike the debt settlement programs listed above, American Consumer Credit Counseling offers services in all 50 states. The agency also has 21 offices in 13 states and Washington, D.C. In addition to providing a toll-free number and general email address, the agency’s contact page commendably lists phone extensions, email addresses, and hours of operation for each of its departments.

Read our American Consumer Credit Counseling review. 

Best for Smaller Debts: Americor Debt Relief

Americor Debt Relief

Icon of check mark inside a promo stamp
It indicates a confirmed selection.

Perks

Fast debt relief in 5 simple steps. Eligibility starts for those with $7,500 in unsecured debt, one of the lowest entry points in the industry.

Fees

14% – 29% of enrolled debt

Pros

Check mark icon
A check mark. It indicates a confirmation of your intended interaction.

Accepts debts starting at $7,500

Check mark icon
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Pay only if Americor is able to settle your debts

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Withdraw from the program anytime without penalty

Check mark icon
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Americor uses a soft credit inquiry to find offers

Cons

con icon
Two crossed lines that form an ‘X’.

Not available in Colorado

con icon
Two crossed lines that form an ‘X’.

Fees are based on enrolled amount, not negotiated amount

Insider’s Take

Americor is a debt relief company that specializes in negotiating settlements for large amounts of unsecured debt, like credit card bills and personal loans. To qualify, you need at least $7,500 in debt, and you’ll need to save 25% of that amount before negotiations begin. It also offers debt consolidation loans as a separate service. Americor’s fees range from 14% to 29% of the enrolled debt and are only charged if they successfully reduce your total debt. It’s rated highly by both the BBB and Trustpilot, with 90% of reviews on the latter giving them 5 stars.

Product Details

America’s leading provider for debt relief solutions
Be debt-free in 24 to 48 months
Get a lower monthly payment
Checking rates won’t impact credit score
No upfront fees and no obligation

Cost: 14% – 29% of enrolled debt

Americor helps consumers with negotiating large unsecured debt settlements. This means the company can help you with your credit card bills or personal loans but doesn’t work with an auto loan or mortgage. You need to have at least $7,500 in unsecured debt to work with Americor’s debt relief, which is the same, if not lower, than many of its competitors.

Americor clients must save 25% of the debt owed in an escrow account before the company will start negotiating with their creditors.

Once a settlement is successfully negotiated, the funds you’ve saved in the escrow account will be used to pay off your creditors. With this company, the fee is not typically collected until after a settlement has been reached and you’ve approved the settlement terms. Under Americor’s terms and conditions, the client won’t pay a fee unless the company has managed to lower the client’s total enrolled debt, which means that you do not pay a fee if they cannot settle your debts. 

Americor’s fees range from 14% to 29% of the total debt enrolled in its debt settlement program. For example, if your enrolled debt is $15,000, that would mean your fees could range from $2,100 to $4,350. These fees are added to the amount saved in the escrow account while Americor negotiates your debts.

One standout feature is that Americor also offers the option of a debt consolidation loan, which is separate from its debt settlement program. Loan terms are available for up to 60 months, with APRs ranging from 5.99% to 29.99% and a loan origination fee of 6.99%.

Americor has an A rating with the Better Business Bureau and Trustpilot gives Americor 4.8 stars out of 5. Ninety percent of the over 15,000 Trustpilot reviews give the company 5 stars. 

Americor is not available in Colorado. 

Frequently Asked Questions About Debt Management

Debt management programs are organizations that help individuals consolidate their debt, lower interest rates, and pay off debt over a predetermined time period. These programs work by negotiating with creditors on behalf of the participant to establish manageable payment plans and debt resolutions.

Yes, there are fees associated with debt management programs. Most debt management programs charge a monthly fee for managing your debt plan and handling the payments. However, it’s illegal for a debt settlement company to charge up-front fees.  

Debt management programs differ from debt settlement in that they focus on paying off the full amount of debt over time with reduced interest rates and waived fees. In contrast, debt settlement programs negotiate with creditors to settle debt for less than the original owed amount, which can negatively impact credit scores.

How Do Debt Management and Settlement Services Work?

Debt management and debt settlement services have similar aims, but distinct approaches to achieving them. Debt management services negotiate with creditors to reduce monthly payments by waiving fees, lowering interest rates, and extending repayment periods. These measures do not reduce the amount of your debt, but make it easier to pay down. Debt management services tend to be inexpensive or free, and impact your credit minimally so long as you make payments according to plan.

Debt settlement services also seek to reduce monthly payments, but they do so by negotiating with creditors to reduce the amount owed rather than alter the terms of repayment. Debt settlement services generally charge a percentage of the total debt, and because debt settlement requires you to stop making payments during negotiation, the process damages your credit significantly. As a result, debt settlement is a better fit for those under severe financial duress who are seeking an alternative to bankruptcy. Note that debt forgiven in a settlement may be considered taxable income unless you get an exemption for economic hardship.

Some companies offer both debt settlement and management, but both services differ from debt consolidation, which simplifies repayment and by combining multiple debts into one at a lower interest rate.

Should You Pay for Assistance With Debt Settlement and Management?

Debt settlement and management services can help those struggling with debt, but they aren’t the only options. Before enrolling in one of these services, there are several alternatives to consider.

First, check your area for credit counseling agencies or other non-profit resources that offer debt consultations with no fee. They can advise you about debt relief solutions and help you figure out which ones best suit your needs. Talking with them first won’t take any other options off the table.

Second, you may be able to negotiate a debt settlement with your creditors directly to reduce or otherwise change the terms of your debt. Cutting out the middle man can save whatever fees you would have paid, but without the expertise of a settlement or management service to guide you, the responsibility will be on your shoulders. That decision may be worthwhile, but it shouldn’t be made lightly.

Finally, debt consolidation may be preferable to debt settlement or management depending on the nature and amount of what you owe. If you’re still current on your debts and able to continue making payments, consolidating loans can help you simplify payments and lower interest rates without adding fees.

Methodology: How We Chose the Best Debt Settlement and Management Services

The debt relief industry has several trade associations and organizations that offer accreditation for debt and credit-related services. Examples include the American Fair Credit Council, the International Association of Professional Debt Arbitrators, the Consumer Debt Relief Initiative, and the National Foundation for Credit Counseling. Reputable debt relief and debt management services don’t need accreditation from all of these groups, but should be accredited by at least one. Services that did not meet that requirement were left out of this analysis.

With those two parameters established, we rated services according to their fee structures (including the range of potential fees and how clearly they are disclosed in advance), the number of years in operation, money-back guarantees in cancellation policies, and customer satisfaction based on personal reviews. 

Read the full breakdown of how we rate debt settlement companies.

Jennifer Streaks

Senior Personal Finance Reporter and Spokesperson

Jennifer Streaks is a Personal Finance Expert and Journalist who writes about credit and all things money for Business Insider. Committed to financial literacy and economic empowerment, she has covered financial topics for over a decade, writing about her own experiences and sharing her expertise to give consumers actionable financial advice.Along with exploring credit scores, credit reports, and how to build credit, Jennifer analyzes how current economic trends impact everyday people and offers her expert advice on budgeting, saving, and growing wealth in today’s economy. She regularly appears as an on-air financial commentator on programs like Good Morning America, Yahoo! Finance, CBS, and MSNBC.ExperienceBefore joining Business Insider, Jennifer was a financial contributor for CNBC and covered personal finance, entrepreneurship, tech, and the economy for Forbes. Her work has appeared in TheGrio, Black Enterprise, and USA Today. Jennifer is also the author of “Thrive! … Affordably: Your Month-to-Month Guide to Living Your Best Life Without Breaking the Bank.” The book offers advice, tips, and financial management lessons geared toward helping the reader highlight strengths, identify missteps, and take control of their finances.Jennifer’s most important financial advice to her friends is to always have an emergency fund.ExpertiseJennifer’s expertise includes:Credit scoresCredit historyCredit reportsBudgetingSaving Housing RetirementThe economyFinancial trendsEducationJennifer earned an MBA from The Johns Hopkins University Carey School of Business and completed the Wharton Seminar for Business Journalists.Jennifer is based in New York City.

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