Brooklyn-based debt settlement firm negotiating with creditors to reduce unsecured balances since 2004. Claims $100M+ settled across credit cards, personal loans, medical bills, and business debt.
Data compiled from public sources · Rating from CreditDoc methodology
Angels of Debt was founded in 2004 in Brooklyn, New York, with a stated mission to provide compassionate, relationship-focused debt relief to individuals and small business owners. Operating from their Coney Island Avenue office, the company describes itself as a family-driven organization that pairs clients with debt relief specialists, attorneys, and accountants. After two decades in the industry, they claim established working relationships with major banks and creditors — a differentiator they lean on heavily in their marketing. No specific industry certifications (NFCC, AFCC, IAPDA) or BBB accreditation status were verifiable from publicly available sources.
The core service is debt settlement: the company negotiates directly with creditors to reduce the total balance owed on unsecured debts. Eligible debt types include credit card balances, personal loans, medical bills, lines of credit, collections accounts, repossession cases, and both consumer and small business loans. The minimum qualifying threshold is $10,000 in unsecured debt. Clients make periodic payments into a dedicated account while negotiations are underway, with program timelines ranging from 6 to 60 months depending on total debt volume and creditor responsiveness. Initial consultations are free and do not involve a hard credit pull.
Angels of Debt's most prominent claimed differentiator is scale — citing over $100 million in debt settled across their 21-year history. The company also points to its in-house team composition (specialists, attorneys, and accountants) as evidence of broader expertise than a simple negotiation service. Their website includes a Client Dashboard link, indicating an online portal exists for enrolled clients to monitor progress — a practical feature for engagements that can span multiple years. The firm's Brooklyn roots and emphasis on personalized, ongoing support post-settlement distinguish it from large automated national chains.
For consumers in genuine financial distress with qualifying unsecured debt, Angels of Debt offers a locally grounded, relationship-oriented option worth considering. That said, several limitations apply: the fee structure is entirely undisclosed publicly, requiring a consultation before any cost comparison is possible. BBB status and third-party certifications remain unverified. More broadly, debt settlement as a category carries inherent risks — credit scores typically decline during the enrollment period as accounts go delinquent, forgiven debt may create taxable income, and there is no guarantee every creditor will agree to settle. The 6-to-60-month program range is extremely wide, making financial planning difficult without a personalized assessment. Consolidating high-interest balances into a single installment loan with a fixed rate can reduce total interest paid and simplify monthly budgeting.
While repairing your credit, a secured card builds positive payment history from day one. Several options require no credit check.
Yes. Angels of Debt is a registered company, headquartered in Brooklyn, NY, founded in 2004.
Angels of Debt plans start at Free per month with no setup fee. No money-back guarantee is offered.
Results vary by individual situation. Contact the provider to discuss expected timelines for your specific needs.
CreditDoc Diagnosis
Angels of Debt is best suited for financially distressed individuals or small business owners carrying at least $10,000 in unsecured debt who want a locally rooted, relationship-driven firm over a large automated debt settlement chain. Their 21-year operating history and claimed $100M+ in settled debt suggest real operational experience. The main caveat: fee terms are not disclosed publicly and must be requested directly, and — like all debt settlement programs — enrollment typically involves a period of credit score damage and carries no guarantee that every creditor will agree to reduced terms. Consumers evaluating debt relief companies should also consider whether debt consolidation loans, credit counseling, or personal loans for bad credit might provide a better path to financial recovery depending on their specific situation.
A&E Financial Solutions offers credit repair, tax optimization, and life insurance planning with personalized consultations and ongoing monthly support to help clients rebuild credit and achieve financial goals.
Best for: Individuals seeking integrated financial help across credit repair, taxes, and insurance simultaneously, Consumers who prefer hands-on guidance and direct access over automated tools or large impersonal firms
TurboDebt is a debt settlement company based in Sunrise, FL, serving 47 states with BBB A+ rating and 4.9 Google stars from 7,800+ reviews. Claims 650,000+ clients served. Fees only charged after successful settlement.
Best for: Consumers with $10,000+ in unsecured debt (credit cards, medical bills, personal loans) who are already in financial hardship and behind on payments, Those who cannot afford a nonprofit credit counseling DMP and want to explore negotiated settlement to reduce total debt owed
West Miami Jewelry & Pawn specializes in collateral-based loans from $1,500–$50,000 secured by jewelry, gold, watches, and coins. They also buy, sell, and repair jewelry with competitive rates.
Best for: Individuals with valuable jewelry, watches, or precious metals needing $1,500+ loans quickly, Luxury watch or jewelry owners (Rolex, Cartier brands) seeking fair valuations locally
Compare the three most effective debt payoff methods with real examples. Find the strategy that matches your personality and financial situation.
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Read guide →Whether you're recovering from bankruptcy, divorce, job loss, or years of debt, here's a practical roadmap for rebuilding your financial life.
Read guide →New to credit and lending? Here are the key terms used on this page, explained in plain language with real-number examples.
When you fail to repay a loan according to the agreed terms — usually after 90-180 days of missed payments. It's the point where the lender gives up on collecting normally.
Default triggers severe consequences: credit score drops 100+ points, the debt may be sent to collections, you could be sued, and your wages or assets could be seized.
Example
You miss 4 consecutive car payments. The lender declares your loan in default, repossesses your car, sells it at auction for $8,000, and you still owe the remaining $5,000 (called a deficiency balance).
A federal agency created in 2010 to protect consumers from unfair financial practices. They write rules, supervise financial companies, and handle consumer complaints.
The CFPB is your most powerful ally against predatory lenders. Filing a complaint with them gets a response from the company within 15 days — companies take CFPB complaints seriously.
Example
A debt collector calls your workplace after you told them to stop. You file a CFPB complaint online. Within 15 days, the collection agency responds and agrees to stop. The CFPB tracks complaint patterns across all companies.
A federal law that limits what debt collectors can do. They can't call before 8am or after 9pm, can't harass you, can't lie, and must stop contacting you if you request in writing.
Knowing your FDCPA rights stops abusive collection tactics. If a collector violates the law, you can sue for up to $1,000 per violation plus attorney fees.
Example
A collector calls your workplace 3 times after you told them not to. That's 3 FDCPA violations. You hire a consumer attorney (free — they get paid by the collector). The collector settles for $3,000.
A court order that requires your employer to withhold part of your paycheck and send it directly to a creditor. Usually happens after a creditor sues you and wins a judgment.
Federal law limits garnishment to 25% of disposable income. Some states have lower limits. Student loans and taxes can be garnished without a court order.
Example
You owe $8,000 on a defaulted credit card. The bank sues, gets a judgment, and garnishes your wages. On a $3,000/month net paycheck, they take $750/month until the debt is paid.
A time limit (typically 3-6 years, varies by state) after which a creditor can no longer sue you to collect a debt. The debt still exists, but they lose the legal power to force payment.
Knowing your state's statute of limitations prevents you from being tricked into paying debts that are legally uncollectable. Beware: making a payment can restart the clock.
Example
You have a $3,000 credit card debt from 2019. Your state has a 4-year statute of limitations. In 2024, a collector calls demanding payment. The statute has expired — they cannot sue you.
A type of bankruptcy where you keep your assets but follow a court-approved 3-5 year repayment plan to pay back some or all of your debts. Stays on credit for 7 years.
Chapter 13 is better than Chapter 7 if you have a home or assets you want to keep. It can stop foreclosure and let you catch up on mortgage payments over 3-5 years.
Example
You're 3 months behind on your mortgage and have $30,000 in credit card debt. Chapter 13 stops foreclosure and puts you on a 5-year plan: you pay $600/month to catch up on the mortgage and pay 40% of the credit card debt.
A type of bankruptcy that wipes out most unsecured debts (credit cards, medical bills) by liquidating non-exempt assets. It stays on your credit for 10 years.
Chapter 7 gives you a fresh start but at a steep cost: 10 years on your credit, difficulty getting loans, and you may lose assets. Income must be below your state's median to qualify.
Example
You have $45,000 in credit card debt and earn $35,000/year. Chapter 7 erases the debt. You keep exempt property (basic car, household items). Your score drops to ~500 but you're debt-free.
When a creditor declares your debt a loss after 180 days of nonpayment and removes it from their books. But you still owe the money — they just stop expecting to collect it themselves.
A charge-off is one of the most damaging entries on your credit report and stays for 7 years. The debt is usually sold to a collection agency who will pursue you for it.
Example
You stop paying your $4,000 credit card. After 180 days, the bank charges it off and sells the debt to a collector for $800. The collector now contacts you demanding the full $4,000 (they profit from what they collect above $800).
When an unpaid debt is transferred or sold to a third-party collection agency that specializes in recovering the money. Collection accounts appear on your credit report for 7 years.
Even a $50 collection account can drop your score 50-100 points. Some newer FICO models (FICO 9) ignore paid collections, but many lenders still use older models.
Example
An old $200 gym bill goes to collections. It appears on all 3 credit reports and drops your 720 score to 640. Paying it helps with newer scoring models but under FICO 8 (still widely used), a paid collection still hurts.
Combining multiple debts into one single loan with one monthly payment, ideally at a lower interest rate. It simplifies repayment and can reduce total interest.
Consolidation works best when you get a lower rate than your existing debts. But it doesn't reduce what you owe — and extending the term can mean paying more total interest.
Example
You have: $5,000 at 22% (credit card), $3,000 at 18% (store card), $2,000 at 25% (payday loan). A $10,000 consolidation loan at 11% saves you ~$2,100 in interest over 3 years.
Negotiating with creditors to accept less than the full amount you owe — typically 40-60 cents on the dollar. Usually done after you've already fallen behind on payments.
Settlement can save thousands, but it severely damages your credit (settled accounts show for 7 years) and the IRS may tax the forgiven amount as income.
Example
You owe $15,000 on a credit card and negotiate a settlement of $7,500 (50%). You save $7,500 but: your credit drops 100+ points, the account shows 'settled' for 7 years, and you may owe taxes on the $7,500 forgiven.
The percentage of your monthly gross income that goes toward paying debts. Lenders use it to judge whether you can afford another loan payment.
Most lenders want DTI below 36% for personal loans and below 43% for mortgages. Above that, you're considered overextended and likely to be denied.
Example
You earn $5,000/month gross. Your debts: $1,200 mortgage + $300 car + $200 student loans = $1,700/month. DTI = 34%. A new $400/month loan would push you to 42% — risky for lenders.
A court ruling that says you legally owe a specific amount to a creditor. It gives the creditor power to garnish wages, freeze bank accounts, or place liens on your property.
Judgments are enforceable for 10-20 years (varies by state) and can be renewed. They give creditors far more collection power than a simple unpaid debt.
Example
A credit card company sues you for $8,000 and wins a judgment. They can now garnish 25% of your paycheck ($750/month on a $3,000 net salary) and freeze your bank account.
Want to learn more? Read our Financial Wellness Guides for in-depth explanations and practical advice.
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