Best credit card debt forgiveness providers, plus expert advice on getting your debt forgiven

These top debt relief companies could help alleviate the headache caused by high-interest credit card debt

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While inflation has been slowing down recently, years of rising costs and high interest rates have weighed on many Americans. So, if you’re now struggling to pay off high-interest credit card debt, know that you’re not alone. Credit card delinquencies have been increasing nationwide, the total amount of credit card debt is growing nationwide and the average cardholder now owes nearly $8,000 on their credit cards.

If you aren’t capable of paying off your credit debt, there are ways to potentially have your debt reduced or forgiven by the credit card company. One option is to work with a debt relief service on credit card debt forgiveness, which typically involves setting aside money in a savings account and when enough has been saved up, offering a lump-sum settlement to creditors. Doing so can result in paying significantly less than you currently owe, with an average reduction of between 30% and 50% of the balance.

Before you take this route, though, it’s important to choose a solid debt relief company to work with. Here are some of the top options to consider — along with expert advice on how you can have your debt forgiven.

Find out more about the top debt relief options available to you here.

With that in mind, consider the following five best credit card debt forgiveness companies, listed in alphabetical order.

Accredited Debt Relief: Best for debt consolidation

Although debt consolidation isn’t exactly credit card forgiveness in terms of reducing the balance owed, a debt consolidation loan can still help save you money by lowering your interest rate and monthly payments. One of the best options for this approach is Accredited Debt Relief, which matches clients to debt consolidation loans to help them become debt-free in 24-48 months.

Learn more about the options available to you from Accredited Debt Relief.

American Debt Relief: Best for quick results

American Debt Relief stands out as one of the best credit card debt forgiveness companies in terms of speed. You can expect to save approximately 30% after accounting for fees over 24 to 48 months, though many can become debt-free within 24-36 months. Note, however, that reviews are mixed, as the company scores well on Trustpilot but poorly on the BBB’s site.

Freedom Debt Relief: Best for a free consultation

Freedom Debt Relief is one of the most popular and also one of the best debt relief companies. The company claims it has helped over 1 million people since 2002 with its debt settlement program that helps you negotiate savings with creditors. While many reputable debt relief companies offer free consultations, Freedom Debt Relief is one of the best choices. They can walk you through your debt management options, including alternatives like credit counseling or debt consolidation.

Get more information about the debt relief options available through Freedom Debt Relief.

National Debt Relief: Best for customer satisfaction

While some companies might have slightly higher ratings on various reviews sites, National Debt Relief stands out for having very strong reviews over a very large sample size. For example, on Trustpilot, National Debt Relief has a 4.7 out of 5 rating, out of over 40,000 reviews.

Learn more about the top debt relief options from National Debt Relief here.

New Era Debt Solutions: Best for experience

New Era Debt Solutions is a long-heralded debt relief company that has been in business since 1999. The company has helped settle over $275 million in debt over the years and has strong reviews, such as being BBB accredited since 2001 and having a 4.93 out of 5 rating.

What is credit card debt forgiveness?

Credit card debt forgiveness, which is also known as debt settlement, is a strategy where you negotiate with creditors to pay less than the full amount owed on your credit card debt. Through this process, a portion of your debt may be “forgiven” or eliminated, allowing you to resolve your financial obligations for less than the original balance.

Unlike other types of debt relief, debt forgiveness aims to reduce the principal balance itself, and it represents a middle ground between continuing to struggle with minimum payments and declaring bankruptcy. Many consumers turn to debt settlement when their accounts have become delinquent or are approaching charge-off status, as creditors may be more willing to accept a partial payment rather than risk receiving nothing through bankruptcy. “Debt forgiveness is a viable option for people who are drowning in debt and have nowhere else to turn short of bankruptcy,” Tyler Gray, CFP and managing director at SageOak Financial, says.

How does credit card debt forgiveness work?

If you work with a debt relief company, the credit card debt forgiveness process typically begins with an assessment of your financial situation to determine if the approach is appropriate for your circumstances. “Prepare to meet high eligibility requirements. Be ready to prove you are struggling financially and prepare to fill out numerous forms and applications,” Eric Elkins, CEO at Double E Financial, says.

The debt relief company will analyze your debts, income and assets to create a customized plan. It will also help you open a dedicated savings account where you’ll make regular deposits instead of paying your creditors directly. This fund accumulates until there’s enough money to make reasonable settlement offers.

While you’re saving, the debt relief company negotiates with your creditors on your behalf, leveraging their expertise and relationships to secure the best possible terms. These negotiations often succeed because creditors recognize that receiving a partial payment is preferable to getting nothing if you were to file bankruptcy. “…In situations where the debtor demonstrates significant financial hardship and the likelihood of full repayment is low, creditors might consider forgiveness as a viable option,” Howard Dvorkin, chairman of Debt.com, says.

Once an agreement is reached, you authorize the payment from your settlement fund, and the creditor records the debt as settled. This process is repeated with each of your creditors until all included debts are resolved.

While this approach can provide substantial relief for overwhelming debt, it does come with significant consequences including damage to your credit score, potential tax implications and no guarantee that your creditors will agree to settlements. Despite these drawbacks, those drowning in high-rate credit card debt with no feasible repayment path may find that debt forgiveness provides a structured way to become debt-free without filing for bankruptcy.

What to consider when choosing a credit card debt forgiveness provider

When selecting a debt forgiveness company, accreditation and reputation should be your primary considerations. Look for accredited providers that require members to adhere to industry best practices and ethical standards. And, be sure to research the company’s track record through the Better Business Bureau, Consumer Financial Protection Bureau complaints database and independent review sites to ensure they have a history of successful settlements and satisfied clients.

Fee structure transparency is also crucial, as reputable debt companies charge performance-based fees only after successfully settling your debt. “Reputable debt-solving companies will always give you a free, in-depth debt analysis,” Dvorkin says. So, be wary of upfront fees, which are illegal for debt relief companies to charge before providing services. The fee should be based on a percentage of the debt enrolled or the amount saved through settlements.

It’s also important to evaluate the company’s approach to customer education and support. Quality providers offer comprehensive financial education, regular progress updates and responsive customer service throughout the multi-year process. They should clearly explain potential consequences and provide personalized advice on rebuilding your finances after the debt forgiveness process is complete.