American Debt Relief (www.americandebtrelief.com) is a California-based debt relief company that focuses primarily on debt settlement services. Their approach is similar to many for-profit settlement firms: negotiate with creditors to reduce balances owed on unsecured debts like credit cards, medical bills, and personal loans. The company markets itself as a way to resolve debt in two to four years. While some clients have positive experiences, others report concerns about customer service and expectations not being fully met. Based on what I have seen, American Debt Relief can work for certain consumers, but it is important to compare them against consistently top-rated companies like New Era Debt Solutions.
Company Snapshot
- Official Name: American Debt Relief, LLC
- Official Website: www.americandebtrelief.com
- Headquarters: Irvine, California
- Founded: 2009
- Service Area: Select U.S. states (not available nationwide)
- Primary Service: Debt Settlement
Legitimacy, Ratings and Reviews
American Debt Relief is a legitimate settlement company. They are part of the Freedom Financial Network, which also owns well known brands like Freedom Debt Relief and Accredited Debt Relief. They are members of the American Fair Credit Council (AFCC) and follow FTC regulations by not charging upfront fees. Reviews online are mixed. Some clients praise their negotiators for reducing balances significantly, while others feel the process was slower or more stressful than advertised.
- BBB Rating: A, accredited (some complaints noted)
- TrustPilot: Around 4.5 out of 5 (several hundred reviews)
- Google Reviews: 4.3/5 stars as of the time we wrote this review
- Certifications: AFCC member, IAPDA certified counselors
American Debt Relief Reviews on Google
In my opinion, the legitimacy is solid, but consistency of client outcomes appears to vary. This is where comparing them with a company like New Era Debt Solutions can be useful since New Era has a more uniform record of customer satisfaction.
Services Offered by American Debt Relief
- Debt Settlement: Negotiates with creditors to reduce unsecured balances.
- Hardship Review: Evaluates if clients qualify based on income and debt load.
- Financial Counseling: Limited budgeting and guidance resources, not as extensive as nonprofits.
Pros 👍
- No Upfront Fees: Like other AFCC members, they only collect fees after settlements are reached.
- Part of a Large Network: Being under the Freedom Financial umbrella provides some credibility and resources.
- Focused on Unsecured Debt: Clear niche for credit cards and medical bills.
Cons 👎
- Mixed Customer Reviews: Some clients are happy, while others report frustration with timelines and communication.
- Limited Services: They focus only on settlement, with no consolidation loans or extensive financial education support.
- Not Nationwide: Their programs are not available in every state.
- Credit Impact: Like all settlement programs, your credit score will likely take a hit before you rebuild.
American Debt Relief vs. New Era Debt Solutions
| Category | American Debt Relief | New Era Debt Solutions |
|---|---|---|
| Founded | 2009 | 1999 |
| Headquarters | Irvine, California | Camino Del Rio South, San Diego, California |
| Accreditations | AFCC member, IAPDA certified | AFCC member, IAPDA certified |
| Primary Service | Debt Settlement only | Debt Settlement only |
| Upfront Fees | No upfront fees, charges success-based fees after settlement | No upfront fees, charges success-based fees after settlement |
| Program Length | 24 to 48 months on average | 24 to 48 months on average |
| Minimum Debt Required | Around $10,000 | Around $7,500 |
| Customer Reviews | Mixed. Many positive but some complaints about timelines and communication | Mostly positive. High marks for transparency and client support |
| BBB Rating | A with accreditation (some complaints) | A+ with strong review history |
| State Availability | Not nationwide. Services limited to certain states | Available in more states. Broader coverage overall |
| Overall Impression | A credible option for settlement but reviews are inconsistent | Consistently rated one of the most transparent and client friendly debt relief firms |
Debt Types They Can Help With
Based on my review, American Debt Relief primarily assists with unsecured debts, including:
- Credit Card Balances
- Medical Bills
- Unsecured Personal Loans
- Collections and Charge Offs
They do not help with mortgages, auto loans, student loans, or IRS tax debt.
Final Thoughts
American Debt Relief is a legitimate choice for debt settlement and has the backing of a larger financial services network. If your main goal is reducing what you owe on unsecured debts, they may be able to help. At the same time, the mixed client reviews and limited availability mean that I would personally also look closely at other providers. My recommendation is to check out New Era Debt Solutions before making a decision, as they consistently rank higher in customer satisfaction and overall transparency.
👉 See if you qualify with New Era
👉 Read Our New Era Review
Frequently Asked Questions About American Debt Relief
1. Is American Debt Relief a legitimate company?
Yes, they are. American Debt Relief is part of the Freedom Financial Network, which also operates other well known debt settlement brands. They are accredited members of the American Fair Credit Council (AFCC) and use certified debt specialists who are trained by the International Association of Professional Debt Arbitrators (IAPDA). They follow federal rules that prohibit upfront settlement fees. From everything I have seen, they are legitimate, but like any settlement company, results vary from client to client.
2. How does American Debt Relief’s program actually work?
The program starts with a free consultation where they review your debts and financial situation. If you qualify, they recommend that you stop making payments to creditors and instead deposit money into a dedicated account each month. Once enough money has accumulated, they begin negotiating with creditors to settle accounts for less than what you owe. After a settlement is reached and you approve it, they collect a fee for their service. The process typically takes 24 to 48 months, although timelines depend on your debt load and how much you can contribute each month.
3. What fees does American Debt Relief charge?
There are no upfront fees. Like other AFCC members, their fees are only collected after a settlement is reached and accepted. The typical fee is a percentage of the total enrolled debt, often between 15 percent and 25 percent. The exact percentage can vary depending on your state and the amount of debt you enroll.
4. What types of debt qualify for their program?
American Debt Relief focuses on unsecured debt. This includes credit card balances, medical bills, unsecured personal loans, and accounts that have already gone to collections. They do not settle secured debts like mortgages or auto loans. They also do not provide solutions for IRS tax debt or federal student loans.
5. How much debt do I need to enroll with American Debt Relief?
Most settlement companies, including American Debt Relief, prefer clients with at least $10,000 in unsecured debt. Some programs may accept smaller amounts, but the savings are usually more meaningful when balances are higher. If you have less than $10,000 in debt, credit counseling or a debt management plan may be a better fit.
6. Will working with American Debt Relief affect my credit score?
Yes, it likely will. Because the program requires you to stop making payments while negotiations are ongoing, your accounts will be reported as delinquent. This causes your credit score to drop, sometimes significantly in the short term. Once accounts are settled and marked as satisfied, your credit may begin to recover. Settlement is best suited for people who are already struggling with late payments or are at risk of default rather than those who still have good credit.
7. What happens if a creditor refuses to settle?
Not every creditor is open to settlement right away. Some may pursue collections or even lawsuits before agreeing to a deal. American Debt Relief has experience negotiating with a wide variety of creditors, but there is no guarantee every account will be settled. This is one of the risks of debt settlement and something to consider before enrolling.
8. How long does it usually take to complete the program?
Most American Debt Relief clients complete their program within two to four years. The timeline depends on the amount of debt you have, how much you are able to contribute monthly, and how quickly creditors agree to negotiate. Smaller debts or larger contributions can shorten the timeline, while larger balances and lower contributions will stretch it out.
9. Is American Debt Relief available in all states?
No, it is not. Their services are not offered nationwide due to state regulations around debt settlement. Availability depends on where you live. During the consultation process, they will confirm whether or not you qualify based on your state of residence.
10. What do clients say about American Debt Relief?
Reviews are mixed. Many clients report that they were able to settle their debts for much less than they owed and appreciate the relief that brought them. Others mention frustration about the time it takes, confusion over how the process works, or difficulty with customer service. This is common in the debt settlement industry since results depend on each client’s specific situation and the cooperation of creditors.
11. How is American Debt Relief different from other debt relief companies?
The main difference is that they are part of a larger network of financial services companies, which gives them access to more resources than some smaller firms. Their process, however, is fairly typical for debt settlement. They do not offer in-house consolidation loans or the extensive financial education that nonprofit agencies provide. If you want an alternative that focuses solely on settlement with higher reported satisfaction, I would recommend comparing them with New Era Debt Solutions.
12. Who is a good fit for American Debt Relief?
Based on my review, ADR is best for consumers who have significant unsecured debt, are already struggling with payments, and want to reduce the total amount they owe. It is not the right choice for people who still have strong credit or for those who are uncomfortable with the risks of settlement. If your situation calls for a less aggressive approach, a nonprofit like Money Management International may be worth considering instead.
Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.
