If your credit card balances keep growing no matter how much you pay, you have probably searched for a way out. Accredited Debt Relief is one of the names that shows up again and again. But what is it really, is it legit, and is it actually worth it for your situation?
This guide breaks it all down in plain English. We will explain what the company does, how debt settlement works, what it costs, and the honest risks you need to weigh before signing up. We will also point you to lower-cost ways to tackle debt yourself.
What Is Accredited Debt Relief?
Accredited Debt Relief is a debt settlement company. It is not a lender and it does not issue credit cards. Instead, it negotiates with your creditors to try to settle your unsecured debts, such as credit cards, personal loans, and medical bills, for less than the full balance you owe.
The company has operated since around 2011 and says it has served more than a million clients. It works with a network of negotiators rather than acting as your direct creditor. If you want our deeper company breakdown, see our full Accredited Debt Relief review.
Debt settlement is different from a loan or credit counseling. You are not borrowing money to pay off your cards. You are trying to convince creditors to accept a reduced lump sum.
How Does Accredited Debt Relief Work?
The process typically follows a few steps. First, you get a free consultation where a representative reviews your debts and budget. If you enroll, you usually stop paying your creditors directly.
Instead, you make monthly deposits into a dedicated savings account that you control. As that account grows, the company negotiates with each creditor to accept a settlement. When a creditor agrees, money from your account pays the agreed amount.
This approach can take time, often two to four years, and results are never guaranteed. Creditors are not required to settle, and some may decline. If you would rather negotiate on your own, our guide on how to negotiate debt settlement walks through the script step by step.
If you are open to settling debts directly with creditors and skipping the middleman, SoloSettle is a do-it-yourself option worth knowing about. You only pay when you reach a deal, which can keep costs predictable. Learn more through SoloSettle. Terms and conditions apply.
SoloSettle
SoloSettle
Settle your debt directly with your collector. No phone calls and no middleman. SoloSettle's platform handles the negotiation and paperwork, and you only pay when you reach a deal.
Standout feature
Direct written negotiation with collectors, no phone calls
Fees
Up to 19% of face value, paid only on settlement
Pros
Negotiate directly with collectors in writing — no stressful phone calls
Cons
Fee of up to 19% of face value and settlement isn't guaranteed
Is Accredited Debt Relief Legit?
Yes, Accredited Debt Relief appears to be a legitimate, established company. It holds an A+ rating with the Better Business Bureau and has been BBB accredited for several years. It is also a member of industry groups such as the American Association for Debt Resolution, and its counselors carry recognized certifications.
Legit does not mean risk-free, though. Debt settlement is a regulated but high-stakes service. A company can be reputable while the strategy itself still hurts your credit. Always read the agreement closely and confirm current details on the official site before you enroll.
How Much Does It Cost?
Like most debt settlement companies, Accredited Debt Relief generally charges a performance-based fee. That fee is typically a percentage of the enrolled debt and is only collected after a settlement is reached. There are usually no large upfront charges, which is required under federal rules.
You may also pay small fees tied to the dedicated savings account that holds your monthly deposits. Fee percentages and account charges can change, so check Accredited Debt Relief's official site for current pricing before you commit. Terms and conditions apply.
The Real Risks of Debt Settlement
This is the part many ads skip. Debt settlement can lower what you owe, but it carries serious downsides you should understand first.
Your credit score can drop
Because you usually stop paying creditors during the program, your accounts may go delinquent and get reported as late or charged off. That can damage your credit for years. Our guide on what to expect for your credit score after debt settlement covers the timeline.
You could face a 1099-C tax bill
Forgiven debt over $600 is often treated as taxable income. You may receive a 1099-C form and owe taxes on the amount that was canceled.
Lawsuits can still happen
While you wait to settle, a creditor can sue you. If that happens, you need to respond fast. See how to answer a debt collection lawsuit so a missed deadline does not turn into a default judgment.
There is no guarantee
No company can promise a settlement. Creditors may refuse, and you could end up owing the full balance plus added interest and fees.
Who Might It Be Worth It For?
Debt settlement may make sense for a narrow group of people. It can help if you have a large amount of unsecured debt, you are already behind or close to it, and bankruptcy is something you want to avoid.
It is usually a poor fit if you are current on your bills and can realistically pay them off with a budget, a balance transfer, or a consolidation loan. In those cases, the credit damage and tax risk rarely make sense.
If you only have a few accounts, doing the work yourself can be cheaper. Some credit-building services even bundle negotiation help with tools to rebuild your score over time.
Kikoff is one example. Its Premium and Ultimate plans can include debt-negotiation help alongside products designed to help you rebuild credit as you recover. Explore the details through Kikoff. Terms and conditions apply.
Kikoff Credit Account
Kikoff Credit Account
Everything you need to build your credit, right in one app. Build credit, lower debt, and unlock progress with tools that actually work.
Loan Amount
$750-$3,500 depends on the plan
Term
12 months
APR
0%
Admin Fee
$0
Monthly Fee
$5/month for Basic plan, $20/mo for Premium plan $35/mo for Ultimate plan
Credit Check
No
Average Score Increase
An avg increase of +86 points within a year with on-time payments
Alternatives Worth Considering
Before you enroll in any settlement program, compare it against other paths. A debt consolidation loan can roll several balances into one payment, sometimes at a lower rate. Nonprofit credit counseling can set up a debt management plan without the credit hit of settlement.
You can also negotiate directly with creditors yourself, or use a do-it-yourself settlement tool. If a debt has already been sold to collectors, knowing what happens when a debt goes to collections helps you decide your next move. And it is worth comparing companies, such as in our National Debt Relief review, before you pick one.
Frequently Asked Questions
Is Accredited Debt Relief a loan?
No. It is a debt settlement service, not a lender. The company does not give you money to pay off your cards. It negotiates with your creditors to try to reduce the total you owe and then pays from a savings account you fund.
Will using Accredited Debt Relief hurt my credit?
It can. Because you typically stop paying creditors during the program, accounts may be reported late or charged off, which can lower your score for years. The damage may fade over time as you settle and rebuild, but you should expect a hit.
How long does the program take?
Most debt settlement programs run about two to four years, depending on how much you owe and how quickly your savings account grows. Settling faster usually means lower total cost, but timelines vary by case and are never guaranteed.
Do I have to pay taxes on settled debt?
Often, yes. The IRS may treat forgiven debt over $600 as taxable income, and you could receive a 1099-C form. Talk with a tax professional so you are not surprised by a bill at tax time.
