Citizens Debt Relief Review 2026: What To Know Before Enrolling

Quick Take: Citizens Debt Relief is a for-profit debt resolution company that helps you negotiate your unsecured debt. After your free consultation, you deposit funds into an account. Once enough funds have been received, Citizens will negotiate on your behalf for a payment amount — usually less than the original debt. 

• Features: Founded in 2017 in New York, Citizens Debt Relief offers a personal consultation for consumers. The consultation is free, and you aren't required to pay any upfront fees. Citizens states on its website that they have fast turnaround times and have constant ongoing support. There have been approximately 500 reviews on Trustpilot with a rating of four stars.

• Results: Each consumer's result can vary, and Citizens Debt Relief doesn’t offer a guarantee on reduction of debt or payoff timelines. Not everyone is guaranteed the same success or results. 

Key Takeaways

• Citizens Debt Relief is a for-profit debt settlement company, not a lender or credit counselor — it negotiates with creditors to settle unsecured balances for less than you owe.

• You need a minimum amount of unsecured debt to enroll — the company's site currently lists a $10,000 minimum.

• Fees aren't published upfront, and nothing is charged until a debt is settled — debt settlement companies typically charge 15% to 25% of enrolled debt, and customer reviews report Citizens fees on the higher end.

• Most programs run two to four years, with clients often seeing a first settlement around the fourth to seventh month.

• Clients typically settle for 40% to 60% of the original balance, but results aren't guaranteed and not all creditors agree to settle.

• Debt settlement can lower your credit score, since you're typically told to stop paying creditors while you save — accounts can go delinquent and forgiven debt may be taxable.

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Pros and Cons

What are the advantages and disadvantages of Citizens Debt Relief? 

Pros

• Dedicated specialist: You’re assigned a credit specialist dedicated to your case file. 

• Complimentary consultation: There are no fees to get a consultation. 

• No credit score requirement: You don’t need a minimum credit score to enroll in the program. 

• Good rating: Trustpilot rates Citizens Debt Relief with four stars. 

• Refund policy: Clients who want to cancel a debt settlement can do so. Accumulated funds will be returned to the client. 

Cons

• Risk of severe credit damage: Payments to creditors stop, and you're risking further damage to your credit. 

• The company is relatively new: Citizens Debt Relief is less than 10 years old and operates with fewer than 50 employees. 

• No guaranteed settlement: Creditors may not want to negotiate and can decline settlement amounts. 

• Not available in all states: Citizens Debt Relief may not be available in your state. 

Company Overview

Citizens Debt Relief is a for-profit debt resolution company, and its motto is “We change lives. Debt resolution made simple.” The company was established in 2017 in New York and offers personalized service with these core principles in mind: diversity, respect, transparency and integrity. The primary focus is to talk to your creditors, and the company “strives to reduce the total amount of your unsecured debt balance to just a fraction of what is owed.”

Essentially, Citizens Debt Relief is for consumers who want to tackle current or delinquent unsecured debt by reaching out to creditors to get a settlement. Citizens Debt Relief is not accredited by the Better Business Bureau (BBB), but is registered with the Department of Financial Protection and Innovation (DFPI). However, there's no guarantee for a positive outcome. 

Key Features

Debt Resolution Program

The Citizens Debt Relief program is straightforward. There are essentially three steps: 

1. Send in your information. The purpose of this step is to tell Citizens Debt Relief how much debt you'd like to reduce. 

2. Expect a call from Citizens Debt Relief. You'll receive a call to discuss options and then will apply for a debt plan. 

3. Citizens Debt Relief specialists negotiate. The team will negotiate on your behalf while you follow the payment plan. 

Type of Debt Categories

• Citizens Debt Relief handles debt that's not secured by collateral. This includes credit card balances, medical bills, personal loans, certain lines of credit and on a case-by-case basis student loans and business debt. 

Mission of the Program

• Citizens Debt Relief is geared toward providing a personal resolution program for your unsecured debt. Specialists at Citizens Debt Relief can reduce your debt from 40% to 60% of the original balance.

Timeline and Progress Expectations

• The website clearly states that the program length is two to four years. Keep in mind this can vary based on individual debt loads and how much you’re able to save to pay off your debt. 

• The site explicitly states that “clients can usually expect their first settlement somewhere between the fourth and seventh month in the program.” Outcomes largely depend on how much you owe on each debt and how much you’ve saved to pay off said debts. 

• Although these are expectations stated on the site, don't assume that these are guaranteed outcomes. 

Support and Resources

Citizens has several free resources on their website including the following: 

• A free consultation

• FAQs that include the answer to common questions like “Am I a good fit for debt resolution?,” “Will I be able to use my credit cards?,” and “Is my data secure?” 

• Client Help Center that’s featured prominently on the home page 

• The site is clear about wanting to communicate frequently with its clients and advocates the following principles: “Respect. Serve. Success.”

• Testimonials are prominently featured on the site. However, this isn’t a guarantee of results. 

Costs and Fees

• Citizens Debt Relief charges no upfront fees, as noted on its website. 

• There’s no guarantee on individual reduction amounts although the site suggests that specialists will try to reduce your debt by 40 to 60%. However, this is not a guarantee. 

• Balances may grow during the process. This is because consumers have stopped making payments to creditors, so late fees and interest may accrue.

• Forgiven debt may be taxable. If you have debt that’s more than $600, the IRS will treat this as ordinary income, which can be taxable. 

Eligibility Criteria

Here's what to know before you apply: 

1. If you're seeing little progress by making minimum payments or are experiencing hardship, Citizens Debt Relief may be a good fit for you. 

2. You're a good candidate for Citizens Debt Relief if you're seeking lower monthly payments and want to shorten your payoff path. 

3. Unsecured debt is the primary target for those who want to work with Citizens Debt Relief. Debt that is secured by collateral is not eligible. 

4. Citizens Debt Relief isn't available in every state. The website doesn't list which states are excluded so you'd have to contact them directly to find out if your state is eligible. 

5. Although the testimonials on the site are positive, not all consumers are successful in the program. 

How To Apply

It’s easy to apply to Citizens Debt Relief and here's what you need to do: 

1. Submit your information. You can easily submit your information online, and you should let the specialists know how much debt you want to reduce. 

2. Speak with a specialist. Your specialist will go over a debt plan, and you will evaluate whether this works for you. 

3. Enroll in a plan. You’ll make payments into a trust account affiliated with Reliant Account Management. 

4. Negotiation begins. Once you have enough funds, Citizens Debt Relief will start negotiating with your creditors. 

5. Debt reduction. Ideally once you pay each debt one by one, you can see your debt reduced. 

Comparable Options

If you’re unsure about other options, here’s how Citizens Debt Relief compares to other choices: 

Who It's Best For

If you're an individual who struggles with several debts and are unable to make much progress with your payments, Citizens Debt Relief may be a good option. Keep in mind you must be comfortable with creditors not agreeing with settlement and your credit score taking a dip. If uncertainty bothers you and you want a guaranteed result, you may want to look at other choices. 

Final Take

If you’re struggling with financial hardship or making minimal progress with monthly payments, you may want to consider Citizens Debt Relief as an option. The company offers a hands-on, specialized approach to find a way to address unsecured debt. However, there are risks to this approach — creditors may not want to negotiate, and you risk credit damage because you stop making payments. If you’re not comfortable with the uncertainty or you’re one to two years from paying off your debts, you may want to consider other options. 

FAQs

How does Citizens Debt Relief work?

Citizens Debt Relief is a for-profit debt settlement company. After a consultation, Citizens Debt Relief will create an account in which you deposit funds.  Once you build enough funds, the company will go to creditors on your behalf to negotiate an amount — often less than you owe. 

What debts does Citizens Debt Relief handle?

Generally, Citizens Debt Relief deals with unsecured debt including credit card balances, medical bills, lines of credit and personal loans. 

How long does Citizens Debt Relief take?

It typically takes two to four years, but timelines can vary by consumer and debt. 

Will Citizens Debt Relief hurt your credit?

Since you stop making payments to your creditors, your credit score will take a dip. Once your balances are paid off, however, you should see an uptick in your credit score.

Key Terms

• Debt settlement: A process where a company negotiates with creditors to accept less than the full balance owed on unsecured debt.

• Unsecured debt: Debt not tied to collateral, such as credit cards, personal loans, medical bills and collections — the only debt type Citizens settles.

• Enrolled debt: The total balance you place into the program, which fees and savings estimates are usually calculated against.

• Settlement (or performance) fee: The charge a debt relief company collects only after it successfully settles a debt, often 15% to 25% of enrolled debt.

• Dedicated savings account: An FDIC-insured account in your name, managed by a third-party processor, where monthly deposits build up to fund settlements.

• Soft credit pull: A credit check, like the one in the company's online quiz, that doesn't affect your score.

• AFCC (American Fair Credit Council): An industry group for debt settlement firms. Citizens lists membership.

• Charge-off / delinquency: What can happen to accounts when you stop paying creditors during a settlement program, which can hurt your credit.

Sources

• CFPB — Debt settlement and debt relief: Federal guidance on how debt settlement works and its risks.

• FTC — Settling credit card debt: Consumer protections, fee rules and warning signs.

• IRS — Topic No. 431, Canceled debt: Explains when forgiven debt counts as taxable income.

• BBB — Citizens Debt Relief LLC profile: Company details, accreditation status and complaint record.

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