American Debt Relief Review – End Your Struggle Over Debt
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Fast Facts
Service:
Debt Settlement
Documentation:
Proof of financial hardship
Tenure:
24 to 36 months
Cost:
Flat performance based fee
Ideal for:
Unsecured debts
Availability:
In 31 states and Washington, D.C.
Did you know that the average American has over $101,915 in debt? According to the Federal Reserve Bank of New York’s Center for Microeconomic Data, the total U.S. consumer debt reached $17.69 trillion in 2024. That’s a pretty scary number. What’s worse? Mortgage debt is at an all-time high reaching a whopping total of $12.44 trillion as of March 2024.
If you’re in debt, you may feel like you’re digging a hole with no end. The good news is that there are solutions that can help you get out of debt and get your finances back on track. One solution is debt settlement.
Read on to learn more about American Debt Relief to see if debt settlement is a good option for you.
Jump To
What is American Debt Relief?
American Debt Relief is a debt settlement company designed to help people become debt-free through debt settlement. Debt settlement is a negotiation between a debtor and a creditor in which the creditor agrees to pay off or settle one’s debt for less.
Relieve $25k+ in Credit Card Debt or Personal Loan Debt With TurboDebt
- Relieve $25k+ in credit card debt or personal loan debt with this special relief program.
- TurboDebt has a Trustpilot rating of 5/5 based on 1288 reviews
- Subject to qualification and approval. $1,500 monthly income required.
- Apply in 5 minutes. If you qualify, chat online with a friendly online debt representative.
How does American Debt Relief work?
According to the American Debt Relief website, its Financial Freedom Plan can help anyone in credit card debt become debt-free in 24 to 36 months. To do this, the company asks its customers to make monthly deposits into a savings account. This money is then used to negotiate settlements with their creditors.
As debtors save, American Debt Relief monitors their progress and works with each creditor to settle. According to the website, creditors may be willing to get serious about a settlement for several months. Once a settlement is reached, however, the debtor must pay the new, lower amount.
To see if you’re a good candidate for American Debt Relief’s debt settlement program, visit the American Debt Relief website and click “Free Debt Assessment.”
Once clicked, a new screen will appear. Here, a simple form asks for your first and last name, email address, phone number, state, and credit card debt amount.
Complete the form and click “Get My Assessment.” Once the form is filled out, you must wait for one of American Debt Relief’s Debt Resolution Specialists to contact you for your free, personalized assessment.
You can also call the company using this toll-free phone number: 1-800-752-3612.
How much does American Debt Relief cost?
American Debt Relief does not charge any upfront fees. According to the FAQ section of its website, the company charges a flat performance-based fee each time a settlement is reached. This fee is not disclosed on the website.
That said, late fees and interest on your accounts will accumulate until a settlement is made.
Relieve $25k+ in Credit Card Debt or Personal Loan Debt With TurboDebt
- Relieve $25k+ in credit card debt or personal loan debt with this special relief program.
- TurboDebt has a Trustpilot rating of 5/5 based on 1288 reviews
- Subject to qualification and approval. $1,500 monthly income required.
- Apply in 5 minutes. If you qualify, chat online with a friendly online debt representative.
American Debt Relief features
Free consultation
American Debt Relief offers free consultations. This way, you’ll have the chance to decide whether or not debt settlement is the best option for you and your budget.
Client dashboard
The company website says clients can access their information through the Client Dashboard. The Client Dashboard lets you maintain the accounts you’d like to settle, monitor your deposit activity, review settlement offers and upload important documents.
No upfront fees
American Debt Relief doesn’t charge any upfront fees. You’ll only be charged if a settlement is made and approved.
Who is American Debt Relief best for?
People with unsecured debt
American Debt Relief is designed to help people struggling to pay off unsecured debt. Unsecured debt includes credit card debt, medical bills, and personal loans.
Who shouldn’t use American Debt Relief?
People struggling to pay off secured debt
American Debt Relief is not a solution for paying off secured debt. Secured debt includes mortgages, auto loans, and home equity loans. Suppose you’re facing financial hardship and cannot repay your mortgage or auto loan. In that case, you may consider looking into a debt consolidation or credit counseling program instead.
Pros and cons
Pros
- Client dashboard. American Debt Relief gives its customers full visibility via its Client Dashboard. Here, you can review settlement offers, upload important documents, and track your debt settlement progress in real-time.
- Types of debt. American Debt Relief can help you settle any type of unsecured debt, including credit card debt, medical bills, and personal loans.
- Outstanding customer service. According to Trustpilot, American Debt Relief has more than 5,531 customer reviews, most of which praise American Debt Relief for its customer service.
- Reputation. Some debt relief companies are illegitimate and shady. As a result, the Federal Trade Commission (FTC) warns consumers to do their research to avoid potential scams. Fortunately, American Debt Relief is certified by the International Association of Professional Debt Arbitrators (IAPDA) and accredited by the American Fair Credit Council (AFCC). That said, American Debt Relief is not accredited by the Better Business Bureau (BBB).
Cons
- Limited service areas. American Debt Relief is available in 31 states and Washington, D.C.
- Undisclosed fee. While enrollment in America Debt Relief’s debt relief program is free, the company charges a performance-based fee per settlement. This fee is not disclosed on the website.
American Debt Relief vs. competitors
Debt Relief Company | Requirements | Fees |
American Debt Relief | Proof of financial hardship | Undisclosed performance-based fee |
National Debt Relief | Minimum debt of $10,000 | Performance-based fee of 15–25% of your enrolled debt |
Accredited Debt Relief | Minimum debt of $10,000 | Performance-based fee of 15–25% of your enrolled debt |
National Debt Relief
National Debt Relief is a BBB-accredited business that requires new customers to have a minimum of $10,000 in unsecured debt. National Debt Relief charges a performance-based fee of 15–25% of your enrolled debt, depending on your state.
Accredited Debt Relief
Accredited Debt Relief is a BBB-accredited business. The company has more than 6,756 reviews on Trustpilot and boasts a rating of 4.9 stars. Although Accredited Debt Relief does require new customers to have a minimum of $10,000 in unsecured debt, the company offers free consultations and doesn’t charge any upfront fees.
Relieve $25k+ in Credit Card Debt or Personal Loan Debt With TurboDebt
- Relieve $25k+ in credit card debt or personal loan debt with this special relief program.
- TurboDebt has a Trustpilot rating of 5/5 based on 1288 reviews
- Subject to qualification and approval. $1,500 monthly income required.
- Apply in 5 minutes. If you qualify, chat online with a friendly online debt representative.
FAQs
Is debt management the same as debt settlement?
Debt management programs are typically offered through non-profit organizations. These programs give you the tools and counseling you need to help you manage and pay off your debt. Debt settlement companies are for-profit companies that negotiate with your creditors to reduce your payoff amount.
Does debt settlement lower your credit score?
Yes, participating in a debt settlement program could negatively impact your credit score. According to Experian, settled accounts remain on your credit report for seven years.
Does higher debt lead to higher interest rates?
The longer interest sits on a balance, the more you’ll pay in the long run. This is why many finance gurus advise consumers to pay off their debt using the avalanche method — aka getting rid of their high-interest debt first.
The bottom line
If you’re experiencing financial hardship due to unsecured debt and are struggling to stick to a repayment plan, debt settlement may be a viable option. That said, debt settlement is usually considered an option of last resort. Be sure to weigh the pros and cons before deciding whether debt settlement is right for you and your financial situation.
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