Minimum Debt for a Debt Relief Program
Most debt relief programs require a minimum unsecured debt balance to enroll. Here's what's typical and what to do if you're under it.
In This Article
Why Programs Have Minimums
Debt settlement companies charge fees based on a percentage of enrolled debt. Below a certain balance, the math doesn't work well for either the consumer or the company, fees can eat too much of the potential savings, and it may make more sense to pay off smaller balances directly.
Typical Minimum Debt Requirements
Most reputable debt relief companies require $5,000 to $10,000 in unsecured debt to enroll, though this varies by company. Some specialize in larger balances and set higher minimums.
What Counts Toward the Minimum
Eligible debt typically includes:
- Credit card balances
- Medical bills
- Personal loans
- Some private (non-federal) student loans
- Collection accounts and charged-off debt
Secured debt like mortgages and auto loans generally does not qualify.
What If You're Under the Minimum?
If your total unsecured debt is below a program's minimum, consider:
- DIY debt payoff using the avalanche or snowball method
- A balance transfer card to reduce interest while you pay it down
- Nonprofit credit counseling, which has no minimum debt requirement
- Negotiating directly with each creditor yourself
Does a Higher Balance Mean Better Savings?
Not necessarily, but larger enrolled balances often give companies more room to negotiate meaningful percentage-based reductions, and the fixed costs of running a program are spread across a larger balance, which can improve the overall value.
What If You're Under the Minimum?
- 1DIY debt payoff using the avalanche or snowball method
- 2A balance transfer card to reduce interest while you pay it down
- 3Nonprofit credit counseling, which has no minimum debt requirement
- 4Negotiating directly with each creditor yourself
Most reputable debt relief companies require $5,000-$10,000 in unsecured debt to enroll, though this varies by company.
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This article was researched using publicly available information from government agencies, consumer protection organizations, and, where applicable, official lender or provider disclosures. Sources were compared for accuracy before publication and are periodically reviewed for updates. See our Research Process and Content Review Policy for details.
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