Debt Settlement Market Report 2026

The debt settlement market size has grown strongly in recent years. It will grow from $9.84 billion in 2025 to $10.75 billion in 2026 at a compound annual growth rate (CAGR) of 9.2%. The growth in the historic period can be attributed to increasing household debt levels, rising medical and credit card debt burdens, expansion of unsecured lending, growth of financial hardship cases, increased awareness of debt relief options.

The debt settlement market size is expected to see strong growth in the next few years. It will grow to $15.14 billion in 2030 at a compound annual growth rate (CAGR) of 8.9%. The growth in the forecast period can be attributed to growing adoption of digital-first debt services, rising regulatory oversight of settlement practices, expansion of SME debt settlement solutions, increasing demand for transparent fee structures, growing integration of financial counseling services. Major trends in the forecast period include increasing use of digital debt negotiation platforms, rising adoption of online settlement services, growing integration of ai-based repayment analysis, expansion of personalized debt resolution programs, enhanced focus on consumer financial education.

The rising use of credit cards is anticipated to drive the expansion of the debt settlement market in the coming years. Credit cards are payment instruments issued by banks or financial institutions that allow users to borrow money up to a predetermined limit for purchases or cash withdrawals, repayable later, often with interest. The growth in credit card usage is fueled by increasing consumer preference for convenient, secure, and cashless transactions. Debt settlement assists credit card holders by negotiating with lenders to reduce the total outstanding balance, enabling borrowers to pay a smaller amount than owed and avoid default or bankruptcy. For example, in May 2025, according to the Federal Reserve Bank of Atlanta, a US-based central bank specializing in payments, the average U.S. consumer made 48 payments per month in 2024, of which 17 were credit card or charge card transactions compared to 2023, indicating a growing dependence on electronic and credit-based payments. Hence, the rising use of credit cards is boosting the growth of the debt settlement market.

Leading companies in the debt settlement industry are focusing on advanced technologies such as voice AI agents to improve customer engagement, streamline collections, and maintain compliance. A voice AI agent is an artificial intelligence system that interacts with users through spoken language, automating tasks such as debt reminders, negotiations, and customer support. For instance, in April 2025, Kikoff Inc., a US-based credit-building platform, introduced an AI-powered Debt Negotiator designed to help users automate debt repayment plans and efficiently negotiate with creditors. This technology automates interactions with debt collectors, reducing debt by an average of 30%, making debt relief more accessible and affordable. It also lowers user stress by managing calls and achieves higher success rates compared to human negotiators. The goal is to offer millions of Americans a smarter, more inclusive way to manage and resolve their debt, enhancing their financial well-being.

In March 2025, Perfios Software Solutions Private Limited, an India-based B2B SaaS fintech company, acquired CreditNirvana for an undisclosed amount. This acquisition aims to strengthen Perfios’s AI-driven debt management capabilities and provide a comprehensive, technology-first financial services platform that optimizes the entire customer lifecycle for financial institutions. CreditNirvana, also based in India, specializes in debt management and offers debt settlement services.

Major companies operating in the debt settlement market are Freedom Debt Relief LLC, National Debt Relief LLC, The J.G. Wentworth Company LLC, ClearOne Advantage LLC, GreenPath Financial Wellness, Americor Funding LLC, Century Support Services LLC, TurboDebt LLC, Alleviate Financial Solutions LLC, CreditAssociates LLC, Timberline Financial LLC, InCharge Debt Solutions Inc., CuraDebt Systems LLC, DMB Financial LLC, Accredited Debt Relief LLC, Consumers Alliance Processing Corporation, Greenwise Debt Relief, New Era Debt Solutions Inc., Pacific Debt Inc., Clear Coast Debt Relief, Pioneer Credit Counseling.

North America was the largest region in the debt settlement market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the debt settlement market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the debt settlement market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The debt settlement market includes revenues earned by entities by providing services such as financial consultation, debt reduction programs, and legal support guidance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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