Is American Debt Relief legit?
Yes. American Debt Relief is a legitimate debt settlement company that has resolved more than $1 billion in debt since its inception in 2012. It’s a member of the American Association for Debt Resolution (AADR) — formerly known as the American Fair Credit Council (AFCC) — as well as the International Association of Professional Debt Arbitrators (IAPDA). The company holds an A+ rating with the Better Business Bureau (BBB), though it isn’t BBB-accredited.
What makes American Debt Relief shine?
American Debt Relief stands out for the size of the reductions it can negotiate. Customers who finish the program report average savings of around 30% after fees, which is competitive with other large debt settlement companies.
Another advantage is its longevity and scale. Founded in 2012, the company has resolved more than $1 billion in unsecured debt, giving it established relationships with creditors that may help negotiations run more smoothly. It also has a solid reputation, customers typically give high marks on Trustpilot and the company has an A+ rating from the BBB.
Where American Debt Relief falls short
American Debt Relief’s biggest drawback is its high cost. At 22% to 25% of enrolled debt, its fee is on the upper end of what debt settlement companies charge. Some competitors, such as Freedom Debt Relief, advertise slightly lower fees that start around 15%.
The company is also not accredited by the Better Business Bureau (BBB), which may be a concern if you’re looking for extra assurance of accountability. In addition, American Debt Relief isn’t available in every state, limiting access for some customers. If it isn’t available in your state, you may consider other top debt relief options or debt consolidation instead.
How much can I save?
Typically, people who complete the program within 24 to 48 months usually save about 30% of the enrolled debt after fees. But it depends on factors like the type of debt you have, how much you owe, interest rates and fees and American Debt Relief’s relationship with your lender.
How much does it cost?
American Debt Relief charges a fee of 22% to 25% of the debt you enroll, according to the fine print on its website. It deducts the fee from your savings account once it settles your debt. Keep in mind that your debt continues to accrue interest and late fees while you’re enrolled in the program, especially if you stop making repayments. Your debt’s overall cost could end up being higher than expected.
Will American Debt Relief hurt my credit?
Yes, it very likely will. Enrolling in a debt settlement program typically hurts your credit score, especially in the first few years. Because you stop paying creditors directly, accounts can become delinquent, go to collections or even trigger legal action — all of which show up as negative marks.
When a settlement is reached, the account is usually reported as “paid for less than owed.” That note can stay on your credit report for up to seven years, even after you’ve completed the program. Many people do see gradual improvement once debts are resolved, but you should expect your score to drop while you’re enrolled in the program.
American Debt Relief details
| Free quote or consultation | Yes |
| Services | Debt settlement, debt negotiation |
| Minimum debt | Not disclosed |
| Average turnaround | 24 to 48 months |
| Fees | 22% to 25% of enrolled debt |
| Types of debt | Unsecured debt, excluding tax debt and student loans |
| Accreditations | IAPDA, ACDR |
| Direct or third-party negotiations | Direct |
| State availability | Not available in all states, including New Jersey |
Before you sign up with a debt relief company
Debt relief companies typically charge a percentage of a customer’s debt or a monthly program fee for their services. And not all companies are transparent about these costs or drawbacks that can negatively affect your credit score. Depending on the company you work with, you might pay other fees for third-party settlement services or setting up new accounts, which can leave you in a worse situation than when you signed up.
Consider alternatives before signing up with a debt relief company:
- Payment extensions. Companies you owe may be willing to extend your payment due date or put you on a longer payment plan if you ask.
- Nonprofit credit counseling. Look for free debt-management help from nonprofit organizations like the National Foundation for Credit Counseling.
- Debt settlement. If you can manage to pay a portion of the bill, offer the collection agency a one-time payment as a settlement. Collection agencies are often willing to accept a lower payment on your debt to close the account.
American Debt Relief contact info
| Phone number | 800-752-3612 |
| Customer service hours | Weekdays: 8 a.m. to 8 p.m. CT Saturday: 9 a.m. to 3:30 p.m. CT |
| clientservice@americandebtrelief.com | |
| Address | 6860 North Dallas Parkway, Suite 200, Office 262 Plano TX 75024 |
How to qualify for American Debt Relief
American Debt Relief shares only a few basic requirements for joining its debt settlement program:
- Have unsecured debt, such as credit cards, medical bills or personal loans
- Show a financial hardship that makes it difficult to keep up with payments
- Commit to making regular deposits into a dedicated savings account
- Live in a state where American Debt Relief is authorized to offer services
How the debt settlement process works
American Debt Relief follows a structured process designed to negotiate lower balances with your creditors:
- Get your free consultation. Start by requesting a debt assessment online or by phone to see if you qualify.
- Set up a savings account. Instead of paying your creditors directly, you deposit a set monthly amount into a dedicated account that you control.
- Wait for negotiations. Once your account builds enough funds, American Debt Relief negotiates directly with creditors to settle your debts for less than what you owe.
- Receive your settlement and make payments. If a creditor accepts the offer, funds from your savings account are used to pay the settlement. The company deducts its fee from this account only after your debt is resolved.
Most people who complete the program do so within 24 to 48 months, though your timeline depends on how much debt you enroll and how quickly you can build savings.
How American Debt Relief compares to other lenders
What is the Finder Score?
The Finder Score crunches 6+ types of personal loans across 50+ lenders. It takes into account the product’s interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate – this gives you a simple score out of 10.
Read the full Finder Score breakdown
American Debt Relief reviews and complaints
| BBB accredited |
No |
|---|---|
| BBB rating |
A+ |
| BBB customer reviews |
3.1 out of 5 stars, based on 29 customer reviews |
| Trustpilot Score |
4.9 out of 5 stars, based on 7,216 customer reviews. |
| Customer reviews verified as of |
09 September 2025 |
American Debt Relief gets overwhelmingly positive customer reviews, especially on Trustpilot. Reviewers are mostly pleased with the quality of customer service they received, and many even mention the people they worked with by name. Those who give the company low marks typically complain about high fees, poor customer service and how long it takes to complete the process.
What do people on Reddit say?
People on Reddit report mixed experiences with American Debt Relief. Some say it helped reduce what they owed, while others caution against it because of high fees and credit damage. They recommend nonprofit counseling or direct negotiation instead.
Risks to debt settlement
Debt settlement can lower what you owe, but it comes with significant trade-offs to weigh first:
- Interest and late fees may continue to add up while negotiations are underway.
- Your credit score can drop when you stop making regular payments.
- Creditors aren’t required to settle, so success isn’t guaranteed.
- You could face collection calls or even lawsuits from unpaid creditors.
- Settled debts may be reported as “paid for less than owed,” which can stay on your credit report for years.
- You might owe taxes on the forgiven debt.
