Accredited Debt Relief Review: Best Customer Experience for Managing High Debt

If you owe $10,000 or more due to credit cards, medical debt, personal loans, or private student loans, Accredited Debt Relief offers a program that it claims can help you pay off high amounts of debt in 24 to 48 months with biweekly or monthly payments that fit your budget. Once you enroll, the company’s debt consolidation specialists negotiate with your creditors to lower the amounts you owe.

Accredited Debt Relief stands out for its exceptional customer experience, with thousands of excellent reviews on Trustpilot and the Better Business Bureau (BBB)—plus an A+ BBB rating. While the program offers a streamlined way to manage debt and reduce what you owe, it’s important to weigh the potential drawbacks of debt relief programs before enrolling.

How does Accredited Debt Relief work? 

Accredited Debt Relief, based in San Diego, California, claims to have helped customers pay off $2 billion in debt over the past 12 years. It offers two primary options: debt relief programs and debt consolidation loans through its partners. 

Here’s how its debt relief program works:

1. Free consultation and application

• Fast process: Apply online or schedule a free consultation in minutes.
• Information needed: During the consultation, a debt specialist gathers details about your Social Security number, income, employment, and monthly expenses.
• Soft credit pull: The company performs a soft credit inquiry to assess your eligibility without affecting your credit score.

2. Program enrollment

• If eligible, you’ll enroll in the debt relief program, which typically charges a settlement fee of 25% of your total enrolled debt.
• A payment amount is determined, and an FDIC-insured escrow account is set up for your deposits.

3. Stop creditor payments

Accredited Debt Relief will instruct you to pause payments to creditors listed in the program while funds in the escrow account accumulate. This buildup gives leverage to the debt specialist negotiating on your behalf.

4. Negotiation process

Once sufficient funds accumulate, the specialist negotiates with creditors to reduce your balances.

Example

• Enrolled debt: $20,000
• Negotiated debt: $12,000
• Settlement fee (25%): $5,000
• Total paid: $17,000 (savings: $3,000)

5. Final payment

After negotiations, payments are made to creditors from your escrow account.

Consider these points when determining whether Accredited Debt Relief is right for you:

1. Accruing interest: While you wait for funds to build up, interest on your debts continues to accrue, which could add hundreds or thousands of dollars to your balances.
2. Settlement fee: At 25% for the typical settlement, the fee is substantial and may offset some savings.

Accredited Debt Relief’s program could help you pay off debt for less than the total amount owed, but the benefits depend on your specific financial situation and the time you need to settle debts.

Pros and cons of Accredited Debt Relief

The company’s debt relief program is designed to help you pay off enrolled debt, ideally at lower amounts, within 24 to 48 months. However, the program has important drawbacks to consider before enrolling.

Is Accredited Debt Relief legit or a scam?

Accredited Debt Relief is a legitimate debt relief company. It is BBB-accredited and has a BBB rating of A+. The company is also a member of the American Association for Debt Resolution. As you can see below, it earns thousands of high ratings, along with Trustpilot and Google. 

However, when we read through the first 30 five-star customer reviews on Trustpilot, Google, and the Better Business Bureau, none reported settling or paying off any debts. Most had recently enrolled and were looking forward to what they hoped might be good results. One-star reviewers on all three review platforms reported getting constant phone calls from the company after they decided not to enroll. Many reviewers reported being sued by their creditors.

The company’s marketing practices have also been questioned. In 2022, the BBB’s National Advertising Division (NAD) recommended that Accredited Debt Relief and its parent company, Beyond Finance, stop making unqualified statements about their debt relief program. 

The company claims in question: The debt relief program could cut customers’ debt by up to 50%, reduce monthly payments by half, and eliminate debt in as little as 12 months. The NAD found the claims weren’t typical of the customer experience.

In 2020, the Office of the Consumer Credit Commissioner ordered Accredited Debt Relief to file timely and accurate annual reports after the company failed to file its 2019 annual report.

Is Accredited Debt Relief worth it? 

If you have a high amount of debt from credit cards, medical bills, private student loans, or personal loans, the Accredited Debt Relief program can sound appealing. Making only one or two payments a month instead of keeping track of several every month might sound less stressful, especially if you’re only making minimum payments on your cards.

However, Accredited Debt Relief does not guarantee that the company can negotiate your debt to a lower amount. The settlement fees may outweigh any savings, especially if the settlement amounts only shave a few thousand dollars off your enrolled debt. Your credit score will also fall and may not recover for seven years.

Debt relief programs should be a last resort for getting to a zero balance. Before enrolling, calculate how much you’d pay in credit card interest versus fees you’d pay using the Accredited Debt Relief debt relief program. Before you enroll, explore options with personal finance companies that may offer better solutions for paying off debt.

Another option may be to consolidate debt with a personal loan or transferring balances to a 0% introductory rate card for up to 21 months while you pay down the balance.

Alternatives to Accredited Debt Relief

Our team has rated several debt relief providers. We think two excellent alternatives to consider are:

• National Debt Relief has far more reach than Accredited. It’s available in 48 states.
• Freedom Debt Relief requires just $7,500 in debt, compared to Accredited’s $10,000 minimum.

FAQ 

Will working with Accredited Debt Relief hurt my credit?

Yes, working with any debt relief company can damage your credit. Because debt settlement programs typically involve ceasing payments to creditors while negotiating, this may lead to late payment marks. However, many clients find that over time, resolving their debt can lead to improved financial health and, eventually, a better credit score.

Do I need a minimum credit score to work with Accredited Debt Relief?

No, Accredited Debt Relief does not require a minimum credit score to enroll. Its focus is on helping individuals manage unsecured debt, regardless of credit score, but it will assess your financial situation to determine the program’s suitability.

How long does it take for Accredited Debt Relief to settle my debt?

The time frame varies depending on your debt amount and ability to make consistent program payments, but most clients can expect a typical program to last between 24 to 48 months.

Is there a minimum amount of debt I need to work with Accredited Debt Relief?

Yes; Accredited Debt Relief requires a minimum of $10,000 in unsecured debt to enroll in its debt relief program. This amount aligns with its structure to reduce client balances through settlement.

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