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CreditAssociates is a debt settlement company that negotiates on behalf of consumers to lower how much debt they owe to their creditors.
In this review, I’m going to cover how the settlement process works with CreditAssociates, what pros and cons to consider and how to qualify.
But first I want to be clear: Debt settlement is risky. There’s no guarantee of success, and it can seriously damage your credit.
Debt settlement may be an option for those severely overwhelmed by debt. Before opting into a program, NerdWallet recommends exploring other ways to get out of debt, like enrolling in a debt management plan or applying for a debt consolidation loan.
» MORE: What is debt settlement?
CreditAssociates debt settlement at a glance
| Minimum debt required to enroll: | $7,500. |
| Types of debt eligible for enrollment: | Unsecured debt, including credit cards, personal loans, medical bills and private student loans. |
| Settlement fee: | Up to 25% of the total debt enrolled. |
| Account fees: | Varies. |
| How long it may take: | One to four years. |
| How much you may save: | 30% of enrolled debt after fees. |
| Availability: | Not available in: Colorado, Connecticut, Illinois, Iowa, Louisiana, Maine, Minnesota, New Hampshire, North Dakota, Oregon, South Carolina, Vermont, Washington, West Virginia, Wisconsin and Wyoming. |
How does CreditAssociates’ debt settlement program work?
When you enroll in debt settlement with CreditAssociates, you’ll need to stop making payments on your debts (if you haven’t already).
That’s because debt settlement rests on the idea that by not paying your creditors at all, they’re more likely to accept a smaller lump sum payment — known as a settlement offer — down the road.
When you stop paying your creditors, you’ll instead make payments into a “dedicated savings account,” which CreditAssociates helps you set up. You’ll work with CreditAssociates to figure out the right payment amount for your budget. This account is FDIC-insured, and you can access it anytime via an online portal.
Once you save enough money for a settlement offer, CreditAssociates starts negotiating with your creditors. If they accept an offer, you’ll pay the creditor from the dedicated savings account, and your debt will be considered settled.
It can take anywhere from one to four years to successfully settle your debts. According to CreditAssociates, most customers complete the program in 28 months.
🤓 Nerdy Tip
Debt settlement companies often list projected savings on their website. These percentages vary significantly and may not include fees, so take them with a grain of salt. CreditAssociates told NerdWallet that customers can expect to save an average of 30% of their enrolled debt after fees. That means if your enrolled debt is $25,000, you could save $7,500. Projected savings are never a guarantee. How much does debt settlement with CreditAssociates cost?
The biggest cost of debt settlement is the settlement fee. CreditAssociates’ settlement fee (which they may call a “success fee”) is up to 25% of the total enrolled debt. This percentage may be lower based on your state of residence.
Here’s how the settlement fee works: Let’s say you enroll with $25,000 in credit card debt, and you’re able to settle that debt for $12,000. You might pay a settlement fee up to $6,250 (25% of $25,000). This is in addition to the $12,000 you pay to your creditors. Altogether you’d pay $18,250.
A debt settlement company cannot collect a debt settlement fee until it successfully settles a debt .
Other costs to using CreditAssociates include a one-time setup fee and recurring monthly fee for the dedicated savings account. The amount for these fees depends on the account provider you choose (CreditAssociates will give you a few options). Account fees typically range from $9 to $10, based on data from other debt settlement companies.
Is CreditAssociates legit?
CreditAssociates is a legitimate debt settlement company founded in 2015. It’s accredited by the Better Business Bureau (BBB) with an A+ rating and holds an accreditation from the Association for Consumer Debt Relief (ACDR) .
It’s important to carefully weigh the pros and cons before deciding whether to work with CreditAssociates.
Pros
Faster timeline
Multiple accreditations
Offers acceleration loans
Cons
Limited state availability
Risky way to get out of debt
No guarantee of success
Costs add up
Pros of CreditAssociates
Faster timeline: CreditAssociates says that the majority of its customers complete the debt settlement process in just over two years. That’s faster than other debt settlement companies, which project an average of two years at minimum, but may be closer to three to four years.
Multiple accreditations: In addition to its accreditations from the BBB and ACDR, CreditAssociates employs debt specialists that are accredited through the International Association of Professional Debt Arbitrators (IAPDA). This is a nonprofit organization that helps both consumers and debt settlement companies fairly assess debt relief options.
Offers acceleration loans: CreditAssociates says some customers may qualify for a “program acceleration loan” through one of its lending partners. These loans give you access to a lump sum, which you use to make a settlement offer to your creditors immediately, instead of waiting for money to accumulate in the dedicated savings account.
The loan amount is based on CreditAssociates’ prediction of the amount you’ll need to successfully settle. This loan is optional, but it may stop collection calls and be better for your credit score, since you’re paying off your debts immediately.
Keep in mind you’ll need to repay the acceleration loan, likely with fixed monthly payments. Make sure you can afford this payment for the duration of the loan.
Cons of CreditAssociates
Limited state availability: CreditAssociates’ debt settlement program is only available in 34 states, which is a much smaller footprint than other debt settlement companies. CreditAssociates isn’t available in Colorado, Connecticut, Illinois, Iowa, Louisiana, Maine, Minnesota, New Hampshire, North Dakota, Oregon, South Carolina, Vermont, Washington, West Virginia, Wisconsin and Wyoming.
If you live in a state not serviced by CreditAssociates, consider other companies — like Pacific Debt Relief or National Debt Relief — which offer similar debt settlement services and are available in at least 45 states.
A risky way to get out of debt: There are risks in working with CreditAssociates, including a major hit to your credit, falling deeper into debt as you await a successful settlement negotiation and even the possibility of being sued by a creditor. Learn more about debt settlement risks lower down.
No guarantee of success: Like all debt settlement companies, CreditAssociates may not be able to settle all your debts even if you follow the program perfectly. This is because not all creditors accept settlement offers.
Costs add up: When working with a debt settlement company like CreditAssociates, you may be charged multiple fees, including a monthly account maintenance fee and a settlement fee of up to 25% of the enrolled debt. These fees are in addition to any charges you may accumulate from your creditors, like late fees or interest. Consider alternative ways to get out of debt (listed below) that may have fewer fees and cost less overall.
How to qualify for debt settlement with CreditAssociates
CreditAssociates works with consumers who have at least $7,500 in unsecured debt. This may include credit cards, personal loans, private student loans and medical bills.
It doesn’t settle secured debts, meaning any debt tied to collateral, like an auto loan or mortgage. It also doesn’t settle federal student loans.
CreditAssociates says its average customer enrolls with $20,000 to $30,000 in debt, spread out over five or more accounts
During the application process, CreditAssociates conducts a soft credit pull, which won’t hurt your credit score. There’s no hard credit check.
Know the risks of debt settlement
It’s important to understand the overall risks of debt settlement before deciding whether to work with CreditAssociates.
Organizations like the Consumer Financial Protection Bureau and the Federal Trade Commission urge consumers interested in debt settlement to consider these risks:
- It will hurt your credit: Because you’re required to stop making payments on enrolled debts, those accounts will be marked delinquent on your credit reports. Your credit score will take a significant hit, especially if you weren’t already delinquent on those accounts. Delinquencies and settled accounts stay on your credit reports for seven years .
- Interest and fees continue to accrue: Until you enter a settlement agreement, you’ll accrue additional interest and late fees on your debt . If you don't stick with the program to completion, or if the debt settlement company can't negotiate a settlement, you may end up with an overall higher balance.
- You may still hear from creditors or debt collectors: There’s no guarantee your creditors will want to work with a debt settlement company, and you may be contacted by debt collectors or sued by creditors during the process .
- Forgiven debt may be considered taxable income: Forgiven debts over $600 may be counted as income on your taxes . Creditors may send a 1099-C form to you in the mail and to the IRS. One exception is if you are insolvent (your liabilities exceed your total assets) at the time the company settles with your creditors.
Alternatives to hiring a debt settlement company
Do-it-yourself debt settlement
Though it may seem easier to have a third party, like a debt settlement company, intervene on your behalf, you could have just as much success calling your creditors and negotiating with them yourself — and you can save thousands by not having to pay a settlement fee.
Same as with using a debt settlement company, success isn't guaranteed, but if you owe only a few creditors, it’s worth a try.
Debt management plan
With a debt management plan, you’ll work with a nonprofit credit counseling agency to consolidate your debts into one monthly payment, while also reducing the interest rate.
This is a good option for consumers with credit card debt who have a steady income to repay the debt within three to five years.
Unlike debt settlement, a debt management plan should help build your credit score.
» MORE: What is a debt management plan?
Debt consolidation loan
By taking out a debt consolidation loan, you can pay off multiple debts at once, so you’re left with only one payment on your new loan.
These loans are available to borrowers across the credit spectrum, and you can often pre-qualify with lenders to see your rates with a soft credit check.
A debt consolidation loan should have a lower interest rate than your current debts, which saves money and helps you get out of debt faster.
Bankruptcy
Bankruptcy lets you resolve your debt under protection from a federal court.
Chapter 7 bankruptcy, the most common form, erases most unsecured debts in four to six months. It’ll also stop calls from collectors and prevent lawsuits against you.
Like with debt settlement, your credit will suffer, so consult a bankruptcy attorney first.
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- 1. Federal Trade Commission. Debt Relief Services & the Telemarketing Sales Rule: A Guide for Business. Accessed Feb 18, 2026.
- 2. Better Business Bureau. Credit Associates, LLC. Accessed Feb 18, 2026.
- 3. Association for Consumer Debt Relief. Find an Accredited Debt Relief Provider. Accessed Feb 18, 2026.
- 4. Consumer Financial Protection Bureau. How long does information stay on my credit report?. Accessed Feb 18, 2026.
- 5. Consumer Financial Protection Bureau. What is a debt relief program and how do I know if I should use one?. Accessed Feb 18, 2026.
- 6. Federal Trade Commission. How To Get Out of Debt. Accessed Feb 18, 2026.
- 7. Internal Revenue Service. About Form 1099-C, Cancellation of Debt. Accessed Feb 18, 2026.
