The term debt relief covers several strategies for reducing and managing burdensome debt. The debt relief companies we evaluated offered services including debt settlement, debt consolidation loans and debt consultation.
To objectively decide which companies performed the best, we reviewed 16 of the most prominent debt relief companies using over 30 factors across six comprehensive categories. We conducted independent research to assign a composite score to each company according to the following breakdown.
Weighted scoring summary for debt relief companies
Affordability (25%)
We assessed affordability based on published rates, fees and other costs. We evaluated companies based on the affordability of the services they offered. For example, fees charged
on debt settlements on interest rates charged on loans. We also assigned points to companies for pricing transparency. Subcategories included:
- Settlement fees and loan APRs, as applicable
- Account or administrative fees
- Loan origination fees
- Advance fees
- Public fee and rate disclosure
Eligibility and accessibility (20%)
Companies that offered access in the most locations and to the most customers typically earned the most points in this category. Considerations included:
- Minimum debt or loan amount to qualify
- State availability
- Eligible debt types
- Credit and income requirements
- Access to consultation services
- Access to loans with co-borrowers, as applicable
Debt resolution capabilities (15%)
Providers earned points for each debt relief service they offered, earning full credit if they provided a product directly, and partial credit if they provided a product through an affiliate or partner company. We considered the following services:
- Debt settlement
- Debt consolidation loans
- Direct payment to creditors
- Access or referral to credit counseling or debt management plans
- Financial hardship or other alternative programs
Customer experience and reputation (15%)
We evaluated a company’s industry reputation and years in the business, looking at customer ratings and complaints, as well as credentials and customer support. Scoring categories included:
- Customer ratings and reviews on BBB and Trustpilot
- Complaint history
- Accreditation and industry credentials with the Association of Consumer Debt Relief and/or International Association of Professional Debt Arbitrators
- Customer support
- Years in business
Transparency (15%)
We evaluated a company’s transparency of risks, eligibility and all-in costs for its services. As relevant, we looked if a company published the following information publicly:
- Pricing
- Eligibility
- Expected timeline/term
- Risks
- Company versus partner-provided services
- Typical consumer outcomes
- State restrictions
- Cancellation
- Alternatives to the advertised product
Product fit and consumer choice (10%)
This category evaluated if a company helped consumers identify the appropriate solution for their specific needs, rather than funneling everyone toward its most prominent or profitable product. Companies earned a score between one and five based on the following criteria:
Methodology note
Debt relief companies cannot guarantee that creditors will settle debt or that consumers will qualify for a particular program. Our rankings evaluate company transparency, services, affordability and customer experience, not whether a consumer will reduce or eliminate their debt.
We review information from company websites, consumer review sites and other publicly available sources for this methodology. We periodically review and update our scoring to maintain accuracy.
This article originally appeared on USA TODAY: How USA TODAY evaluates debt relief companies
Our editors independently choose our recommendations. Some content is produced with paid support from a third party, however our editorial decisions remain independent. If you buy through our links, the USA TODAY Network may earn a commission. Prices and availability may change.
