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Drowning in debt? You may qualify to settle for less.

Free guides and expert guidance for Americans with $10,000+ in credit card, medical, or personal loan debt. Understand your options before you make any decisions.

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(646) 970-0895
Elijah Strawn · Financial Consultant · Mon–Fri 9am–7pm
Free Guides

Learn before you decide

Honest, plain-English guides on everything debt settlement — written to help you understand your options, not sell you anything.

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How It Works 8 min read
The Complete Guide to Debt Settlement in 2026
Everything you need to know about how debt settlement works — the process, the timeline, the real costs, and who it's actually right for. No fluff.
Read the guide →
⚖️
Debt Settlement vs. Bankruptcy 6 min read
Debt Settlement vs. Bankruptcy: Which Is Right for You?
Two very different paths out of debt. We break down the real pros, cons, and long-term consequences of each so you can make an informed choice.
Read the guide →
📊
Credit Score 5 min read
Does Debt Settlement Hurt Your Credit? The Honest Answer.
Yes — but the full story is more nuanced than most sites tell you. Here's exactly what happens to your credit score, and how long recovery takes.
Read the guide →
🏛️
State Guides 4 min read
Debt Settlement Laws by State: What You Need to Know
Debt settlement rules, statute of limitations, and creditor rights vary by state. Find your state's specific rules and how they affect your options.
Read the guide →
🚩
Avoid Scams 7 min read
5 Red Flags That a Debt Settlement Company Is a Scam
Not every company in this space is trustworthy. Here are the exact warning signs to watch for — and the questions to ask before you sign anything.
Read the guide →
🌱
Life After Debt 6 min read
How to Rebuild Your Credit After Debt Settlement
Settlement is the beginning, not the end. A step-by-step guide to rebuilding your credit score, reestablishing trust with lenders, and staying debt-free.
Read the guide →
The Process

How debt settlement works

Most companies make this sound complicated. It's not. Here's the honest, plain-English version.

1

Enroll your debt

You stop making minimum payments to creditors and instead deposit money into a dedicated savings account that you control. A negotiator is assigned to your case.

2

Build your fund

Over 24–48 months, your account grows. Meanwhile, your negotiator contacts creditors and negotiates lump-sum settlements — typically 40–60 cents on the dollar.

3

Settle & move on

Once a settlement is agreed, you pay the reduced amount from your savings account. That debt is resolved. You rebuild from a foundation of freedom — not debt.

Eligibility

Do you qualify?

Not everyone is a good candidate — and I'd rather tell you that upfront. Run through this checklist to see if debt settlement makes sense for your situation.

  • You have $10,000 or more in unsecured debt (credit cards, medical bills, personal loans)
  • You're experiencing a financial hardship — job loss, medical event, reduced income, divorce
  • You're struggling to make minimum payments or already behind
  • You have a steady enough income to set aside a monthly savings amount
  • You are not currently in bankruptcy proceedings

Check 4 or 5? You likely qualify.

A free 10-minute consultation will confirm your eligibility and show you exactly how much you could save. No commitment required.

📞 Call (646) 970-0895
— or —
40–60%
Typical debt reduction
2–4 yrs
Avg. program length
Real Results

What clients have experienced

"
$18,400saved

I had $34,000 in credit cards across 6 accounts and was working two jobs just to make minimums. After 38 months in the program, I settled everything for just over $15,000. I only wish I'd called sooner.

Maria T.
New York, NY · Enrolled via Freedom Debt Relief
"
$12,600saved

Lost my job during COVID and the medical bills piled up fast. I had $28,000 in debt and no way out. The program settled it all for under $15,000. My credit is rebuilding and I finally sleep at night.

James R.
Texas · Enrolled via ClearOne Advantage
"
$9,200saved

I was skeptical and honestly thought it was a scam. Elijah walked me through everything without pressure. Two years later my $22,000 balance settled for $12,800. Couldn't recommend it more.

Sandra M.
Florida · Enrolled via Freedom Debt Relief

*Results are illustrative composite examples. Individual results vary based on debt amount, creditor policies, and program completion. Not a guarantee of outcome.

Vetted Partners

Companies I personally recommend

I only refer clients to companies I've personally worked with and verified. All three are A+ BBB rated with tens of thousands of real client reviews.

Top Pick
Freedom Debt Relief
★★★★★4.6 · 47,000+ reviews

The largest debt settlement company in the US. Known for strong negotiation results, a dedicated app, and excellent client support. My most-referred partner.

  • A+ BBB Accredited
  • Minimum debt: $7,500
  • Operates in 40+ states
  • Free consultation
Get a Free Quote →
Highly Rated
ClearOne Advantage
★★★★★4.8 · 10,000+ reviews

Known for exceptional customer service and personalized attention. ClearOne is a great fit for clients who want frequent communication and a hands-on approach throughout the process.

  • A+ BBB Accredited
  • Minimum debt: $10,000
  • Award-winning support team
  • No upfront fees
Get a Free Quote →
Fast Results
DMB Financial
★★★★☆4.4 · Verified reviews

Focused on faster settlement timelines and higher-balance clients. DMB is particularly strong for clients with $25,000+ in debt who want an aggressive negotiation approach.

  • A+ BBB Accredited
  • Minimum debt: $20,000
  • Faster settlement timelines
  • Performance-based fees
Get a Free Quote →

Debt Freedom Guides may receive compensation when you connect with companies listed on this site. This does not affect our editorial recommendations.

Free Tool

Estimate your savings

Enter your total debt below to see a rough estimate of what you could save through a settlement program.

Total unsecured debt ($)
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*Estimates only. Actual results vary. A free consultation gives you a precise picture.

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About Your Guide

Hi, I'm Elijah Strawn

I'm a Financial Consultant who has personally helped hundreds of Americans navigate the debt settlement process — without pressure, without confusion, and without hidden agendas.

I built Debt Freedom Guides because I kept seeing people make costly mistakes — either avoiding help out of fear, or enrolling with companies that weren't right for their situation. This site exists to change that.

I only work with partners I believe in: Freedom Debt Relief, ClearOne Advantage, and DMB Financial. If I don't think a program is right for you, I'll tell you that — and point you toward something that is.

🤝
Personally vetted partner relationships with Freedom, ClearOne & DMB
📋
Works directly with clients from first call through enrollment
🔒
TCPA compliant — your information is never sold to third parties
📞
Reach Elijah directly: (646) 970-0895
Talk to Elijah Directly →
🏆A+ BBB Accredited Partners
🔒TCPA Compliant & Secure
💬47,000+ Verified Client Reviews
No Upfront Fees — Ever
📞Free Consultation, Zero Pressure
Common Questions

Frequently asked questions

Straight answers to the questions most people are afraid to ask.

Will debt settlement destroy my credit score?
+
Yes — temporarily. When you stop making minimum payments to enter a program, your accounts become delinquent, which causes your score to drop. However, if you're already struggling to make payments, your credit is likely already being damaged. Most clients see meaningful score recovery within 2–3 years of completing a settlement program. Being debt-free gives you a real foundation to rebuild.
How much of my debt can actually be settled?
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Most clients who complete a settlement program see their enrolled debt reduced by 40–60% before fees. Results vary significantly based on your creditors, your debt amount, how long you've been delinquent, and the skill of the negotiator. A free consultation will give you a realistic picture based on your specific accounts — not a generic estimate.
How long does the debt settlement process take?
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Most programs run between 24 and 48 months depending on your total debt amount, the number of creditors, and how quickly your savings account grows. Some creditors will negotiate sooner than others. Your consultant will give you a projected timeline during your free consultation so you know exactly what to expect upfront.
What types of debt can be settled?
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Debt settlement works for unsecured debt — credit cards, medical bills, personal loans, and some private student loans. It does not apply to secured debts like mortgages or auto loans, or federal student loans. If you have a mix of debt types, a consultation will help you identify which debts qualify and which require a different strategy.
Are there tax consequences to settling debt?
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Potentially, yes. When a creditor forgives debt, they may issue a 1099-C form reporting the forgiven amount as taxable income. However, if you were insolvent at the time of settlement (meaning your debts exceeded your assets), you may qualify for an IRS insolvency exclusion. We recommend consulting a tax professional to understand your specific situation.
What's the difference between debt settlement and bankruptcy?
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Bankruptcy is a legal process — Chapter 7 can discharge most debts but stays on your credit report for 10 years and may require liquidating assets. Chapter 13 is a court-supervised repayment plan lasting 3–5 years. Debt settlement is a private negotiation — no court involved, typically faster, and stays on your report for 7 years. Neither is right for everyone; your situation determines the best path.
Can creditors sue me during the process?
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Yes — this is a real risk during debt settlement. When you stop paying, creditors can pursue collection actions including lawsuits. Reputable companies like Freedom Debt Relief and ClearOne Advantage actively monitor accounts and prioritize settling with creditors who show signs of escalating. This is one reason working with a vetted, experienced company matters significantly.
Is Debt Freedom Guides free to use?
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Yes — completely free. All guides, the debt calculator, and consultations with Elijah cost nothing. This site may receive compensation when you choose to connect with a partner company, but that never influences the information we provide or the companies we recommend. Our job is to give you honest information so you can make the best decision for your situation.

Ready to find out what you could save?

A free 10-minute call with Elijah is all it takes to know if debt settlement is right for you — and exactly how much you could reduce what you owe.

📞 Call (646) 970-0895
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