1Debt Free logo

1Debt Free

Performance-based debt settlement with no upfront fees

3.5
Michael Chen Written by Michael Chen, CFA, CFP
Rachel Kim Reviewed by Rachel Kim, JD, CRCM
Updated: March 7, 2026

At a Glance

BBB Rating
A+
Min Debt
$10,000
Avg Settlement
45-55% of enrolled debt
Fee Structure
15-25% of enrolled debt
Program Length
24-48 months
States
Most US states

Rating Breakdown

Performance Overview

Scores out of 5, based on our editorial analysis

<p>1Debt Free is a newer entrant in the debt settlement space. They follow the standard model: negotiate with creditors to accept a lump sum that's less than what you owe, and you pay them a percentage of your enrolled debt as a fee. No upfront fees — they only collect after a settlement is reached.</p><p>The company is small compared to Freedom Debt Relief or National Debt Relief. That can be a plus (more personal attention) or a minus (less negotiating power with large creditors). Their settlement averages are in the typical range for the industry.</p>

Key Features

Performance-Based Fees

You pay nothing until a debt is successfully settled. Fees range from 15-25% of your enrolled debt.

Free Consultation

Initial assessment of your debt situation with no obligation.

Dedicated Account Manager

One point of contact throughout your program.

How It Works

1

Free Consultation

Call or submit online form to discuss your debt.

2

Enrollment

Enroll qualifying debts into the program.

3

Save Monthly

Make deposits into a dedicated savings account.

4

Settlement

1Debt Free negotiates with creditors as your savings grow.

What They Do

  • Debt Settlement
  • Creditor Negotiation
  • Debt Consultation

Fee & Cost Structure

Upfront Fees
None
Settlement Fee
15-25% of enrolled debt
Monthly Maintenance
Varies

Regulatory & Trust

BBB Rating
A+
CFPB Complaints
Limited data (newer company)
Accreditations
BBB A+
States Served
Most US states

Review Summary

3.5
Our Rating
A+
BBB
Limited
Online Reviews

Notable Case Studies

Credit Card Debt Settlement

Settled for approximately 48% of total debt over 30 months. Client saved compared to paying minimum payments.

Pros & Cons

Pros

  • No upfront fees — you only pay after a settlement happens
  • Smaller company means potentially more personal service
  • BBB A+ rating

Cons

  • Newer company with a limited public track record
  • Smaller operation may have less creditor negotiating power
  • Limited online reviews make it hard to gauge real-world results

User Reviews (6)

3.8
6 reviews
5 stars
2
4 stars
2
3 stars
1
2 stars
1
1 star
0
Showing 6 of 6 reviews
C
Chris
Feb 14, 2026

Not bad. My account manager is responsive. Settled 2 of 5 accounts so far. The fees are typical for the industry. Would have given 5 stars but the online portal is basic.

M
Mike T.
Jan 10, 2026

Slow

Taking forever. I enrolled 6 months ago and nothing has settled yet. They keep saying they're negotiating but I'm making these monthly deposits and not seeing results. Starting to wonder if I should have gone with one of the bigger companies instead. UPDATE: they finally settled one but it took 7 months for the first one.

A
Anonymous
Dec 1, 2025

Mixed feelings

They settled two of my debts but the third one the creditor sued me before they could get to it. I know that's a risk with any settlement company but it was still stressful. The settlement amounts were reasonable though.

D
Dave
Nov 15, 2025

Doing ok so far

Been in the program about 8 months. They settled one of my cards already which was nice. Still waiting on the other three. Customer service has been fine.

S
Sandra
Oct 5, 2025

Good experience

Good.

K
karen m.
Sep 22, 2025

Helped me out. Grateful.

Write a Review

Frequently Asked Questions

Yes. They're BBB-accredited with an A+ rating and follow the FTC's performance-based fee model, meaning they can't charge you before settling a debt. That said, they're newer and smaller than the big players.
National Debt Relief has been around since 2009, has settled billions in debt, and has thousands of reviews. 1Debt Free is newer with a smaller track record. If you want a proven company with scale, NDR is the safer choice. If you prefer a smaller firm, get quotes from both.
Yes — any debt settlement program will hurt your credit score. You stop paying creditors while saving for settlements, which means late payments and potentially charge-offs on your report. Most people see scores drop 100+ points during the program, with recovery taking 1-2 years after completion.
Primarily unsecured debt: credit cards, medical bills, personal loans, and some private student loans. They don't handle secured debts like mortgages or car loans, and typically require at least $10,000 in qualifying debt.
Typically 24-48 months depending on how much you owe and how quickly you can build savings. Larger debts take longer. Some debts may settle faster than others.

This page is informational, not financial or legal advice. Talk to a qualified professional before making any big money decisions.

Editorial Independence

We make money from some companies on this page. That doesn't change our rankings -- the editorial team scores every product independently, and the business side has no say in what we recommend.

Last Updated
Fact-Checked