One of the top debt-settlement companies in the U.S., Accredited Debt Relief claims it can cut clients' payments by up to 45% and get them debt-free in as little as two years. It's helped more than 300,000 clients resolve over $3 billion in debt, but there is a fee, on average, of 25% of your total debt.
In addition, signing up for debt settlement can have a major impact on your credit and comes with other risks. Find out how ADR works, how much it costs, how it stacks up to competitors and what you should know before enrolling.
Accredited Debt Relief
Cost
25% of enrolled debt
Highlights
Accredited Debt Relief has been in the business since 2011 and offers debt relief options to those with at least $10,000 of debt, including credit card debt, personal loan debt, and medical debt.
App available
Yes
Pros
- Free consultation
- Monthly payments reduced by as much as 45%
- A+ rating from the Better Business Bureau
Cons
- Need at least $10,000 in unsecured debt to enroll
- Fee can average 25% of your enrolled debt
- Not available in every state
Accredited Debt Relief
- Accredited Debt Relief pros and cons
- How does Accredited Debt Relief work?
- How much does Accredited Debt Relief cost?
- How does Accredited Debt Relief compare?
- Is Accredited Debt Relief legit?
- Does using Accredited Debt Relief hurt your credit?
- How to sign up with Accredited Debt Relief
- FAQs
Accredited Debt Relief pros and cons
Pros
- Free consultation
- You don't pay if there is no settlement offer
- Monthly payments reduced by as much as 45%
Cons
- Must have at least $10,000 in unsecured debt to qualify
- Fee is 25% of enrolled debt, not negotiated amount
- Not available in every state
How does Accredited Debt Relief work?
Accredited Debt Relief (ADR) is available in 37 states and Washington, D.C. To enroll, you must have at least $10,000 of unsecured debts, like credit cards, personal loans, medical bills or private student loans. Similar to most debt settlement companies, ADR doesn't work with secured debt, such as mortgages or car loans.
After choosing which accounts to enroll in, you're instructed to stop paying those creditors and begin making deposits in an FDIC-backed savings account while Accredited Debt Relief negotiates to lower your balances.
ADR is only paid after a settlement is negotiated and you've made at least one payment but the fee is a percentage of the original debt, not the settled amount. According to the company, you can lower your monthly payments by as much as 45% before the fee is taken, and those who complete a settlement program can clear their debt in 24 to 48 months.
While it's not a lender, Accredited Debt Relief refers clients to Beyond Finance, which provides debt consolidation loans of up to $100,000.
Working with any debt settlement company comes with risks: You'll be asked to stop paying your creditors, which could add penalties and interest and further hurt your credit score. It may also open you up to lawsuits. In addition, any forgiven debt will be subject to income tax.
How much does Accredited Debt Relief cost?
Accredited Debt Relief offers a free consultation and, even after you enroll, it doesn't charge any upfront fees. Instead, it takes a fee each time a settlement is reached. According to the company, the fee is typically 25% of the original debt.
Someone coming to Accredited Debt Relief with $20,000 in credit card bills, for example, would pay about $5,000 to ADR when the debt is settled. Some competitors have a broader fee range and you may be charged less.
Find a debt settlement solution that works for you
How Accredited Debt Relief compares
Here's how ADR stacks up against two major debt relief companies.
| Accredited Debt Relief | National Debt Relief | Americor | |
| Availability | 37 states | 47 states | 49 states |
| Minimum debt | $10,000 | $7,500 | $7,500 |
| Fee | 25% | between 15% and 25%. | 25% |
| Lower monthly payments | Up to 45% | Up to 50% | 40% or more |
| Time to complete program | 24 to 48 months | 24 to 60 months | 24 to 48 months |
Accredited Debt Relief vs National Debt Relief
National Debt Relief
Cost
15% to 25% of enrolled debt
Highlights
National Debt Relief has been in business since 2009, and has helped hundreds of thousands of people get out of debt. While National Debt Relief won't be a fit for people who owe less than $10,000, it can be a good option for those with large debts.
App available
No
Accredited Debt Relief and National Debt Relief both negotiate with creditors to lower unsecured debts. ADR's fees average 25% of the enrolled debt, though, while National Debt Relief cites a broader range of between 15% and 25%.
While Accredited Debt Relief only operates in 37 states, National Debt Relief is available everywhere but Oregon, Vermont and West Virginia.
Both companies work with lending partners that offer debt consolidation loans of up to $100,000. Neither has a ceiling on the amount of debt they'll work with, but Accredited Debt Relief's minimum is $10,000, compared to $7,500 for National Debt Relief.
If you're carrying a smaller burden, National Debt Relief might be the option for you. But if you have at least $10,000 in unsecured debt and live in a state where Accredited Debt Relief operates, a free consultation may be worthwhile.
Accredited Debt Relief vs Americor
Americor Debt Relief
Cost
14% to 25% of enrolled debt
Highlights
Americor offers debt relief options for those with more than $7,500 of unsecured debt. It's been in business for over 15 years and also offers debt consolidation options. It's been accredited by the American Association for Debt Resolution and the BBB.
App available
No
Another leader in the debt settlement space, Americor works with clients carrying as little as $7,500 in unsecured debt. Americor is also available in more states (everywhere except Colorado) and its fee range is considerably broader, averaging between 14% and 29% of the enrolled balance.Both Americor and Accredited Debt Relief work with partners that offer debt consolidation loans. Americor's partner, Credit9, has a $40,000 loan cap, which is less than half the $100,000 Beyond Finance makes available.
Is Accredited Debt Relief legit?
Accredited Debt Relief is a legitimate business with an A+ rating from the Better Business Bureau. It claims to have helped over 300,000 clients repay more than $1 billion since its founding in 2011.
Accredited Debt Relief is also a member of the American Association for Debt Resolution, the International Association of Professional Debt Arbitrators and the Consumer Debt Relief Initiative.
Does using Accredited Debt Relief hurt your credit?
Working with any debt settlement company can adversely affect your credit, since you'll be stopping payment to your creditors. Paymenthistory accounts for 35% of your credit score, the largest slice.
You may also be saddled with additional fees or subject to collections or lawsuits by creditors.
If you are significantly behind, it might not make a big difference to you. And if Accredited Debt Relief can successfully lower the amount you owe, your score should go back up as you make payments.
If you're only a payment or two late, however, you may want to consider other options, like a debt consolidation loan or a debt management plan, which can make less of an impact on your credit and cost a lot less. (Plans average $30 to $50 a month). TheNational Federation for Credit Counseling lists reputable agencies that offer debt management solutions.
How to sign up with Accredited Debt Relief
To work with Accredited Debt Relief, you'll need to have at least $10,000 in unsecured debt and live in a state the company operates in.
On the Accredited Debt Relief website, you'll be asked to input the amount of debt you owe, as well as your name, phone number, email address and state of residency. You'll get an online quote with your new estimated monthly payment, how much you'll save and how long it will take to finish the program. A consolidation specialist will then reach out to discuss options.
You can also reach the company by emailingcustomerservice@acrelief.com or calling 888-710-1253, weekdays from 8 a.m. to 11 p.m. and weekends from 8 a.m. to 10 p.m.
Is Accredited Debt Relief right for me?
Accredited Debt Relief is a leading debt settlement company with broad availability and a strong record of customer satisfaction. Its fee is higher than some competitors, however, and you have to have at least $10,000 in unsecured debt to apply.
Before using a debt settlement service, you should understand the financial and legal risks and consider alternatives like a debt consolidation loan or a debt management plan.
FAQs
Is Accredited Debt Relief legitimate?
Accredited Debt Relief is a member of the American Association for Debt Resolution and the Consumer Debt Relief Initiative. It's also received thousands of positive reviews on Trustpilot and the Better Business Bureau website.
How much does Accredited Debt Relief cost?
Accredited Debt Relief typically charges a fee of 25%, though the exact amount can vary.
Does Accredited Debt Relief work with tax debt?
Accredited Debt Relief does not negotiate tax debts or secured debts like mortgages and car payments.
What's the difference between debt settlement and debt consolidation?
Debt settlement involves negotiating with creditors to lower the amount you owe. Debt consolidation typically means taking out a lower-interest personal loan to pay off high-interest balances.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
