ClearOne Advantage for Debt Settlement: 2026 Review – NerdWallet

ClearOne Advantage is a debt settlement company that negotiates on behalf of consumers to lower how much debt they owe to their creditors.

In this review, I’m going to cover how the settlement process works with ClearOne Advantage, what pros and cons to consider and how to qualify.

But first I want to be clear: Debt settlement is risky. There’s no guarantee of success, and it can seriously damage your credit.

Debt settlement may be an option for those severely overwhelmed by debt. Before opting into a program, NerdWallet recommends exploring other ways to get out of debt, like enrolling in a debt management plan or applying for a debt consolidation loan.

When you sign up for debt settlement with ClearOne Advantage, you’ll stop making payments on your enrolled debts, if you haven’t already.

You’ll instead make a monthly payment into a dedicated “savings account.” This account is FDIC-insured, and you can monitor it 24/7 via an online portal. ClearOne will work with you to determine the payment amount that’s best for your budget.

As money accumulates in the savings account, ClearOne begins negotiating with your creditors to get them to accept a smaller amount. The idea is that by not paying your creditors at all, they’re more likely to accept some payment instead of risking no payment at all.

If a creditor agrees to the settlement offer proposed by ClearOne, you’ll pay the creditor from the funds in the savings account, and the debt is then considered settled. You repeat this process until all your enrolled debts are settled.

It takes 24 to 51 months, on average, for customers to complete the program, ClearOne says.

The biggest cost of debt settlement is the settlement fee. ClearOne Advantage’s settlement fee is 18% to 29% of the total enrolled debt. This percentage is based on multiple factors, including your state of residence.

Here’s how the settlement fee works: Let’s say you enroll with $20,000 in credit card debt, and you’re able to settle that debt for $9,000. You might pay a settlement fee of up to $5,800 (29% of $20,000). This is in addition to the $9,000 you pay to your creditors. Altogether you’d pay $14,800.

Other costs to using ClearOne Advantage include a recurring monthly fee of $17 for the savings account.

It’s important to carefully weigh the pros and cons before deciding whether to work with ClearOne.

Free consultation: ClearOne Advantage offers a free no-obligation phone call, so you can get familiar with its debt settlement service. During this call, a debt specialist will analyze your debts and budget and propose a settlement plan, including a monthly payment amount. The specialist may also refer you to other services, like credit counseling or debt consolidation loans, if those are a better fit.

Multiple accreditations: ClearOne is accredited by multiple institutions, like the BBB and ACDR, which help give prospective customers peace of mind. ClearOne also requires its debt specialists to be accredited through the International Association of Professional Debt Arbitrators (IAPDA), a nonprofit organization that helps both consumers and debt settlement companies assess debt relief options.

Wide state availability: ClearOne’s debt settlement program is available in 48 states. This is a larger footprint than most debt settlement companies, which may only offer debt settlement in 40 states or less. Residents in Illinois and Oregon aren’t eligible for ClearOne debt settlement.

The savings account also comes with a higher maintenance fee of $17. Most account providers charge a maximum fee of $10. However, there’s no one-time enrollment fee for the account, which is unusual.

A risky way to get out of debt: There are risks in working with ClearOne Advantage, including a major hit to your credit, falling deeper into debt as you await a successful settlement negotiation and even the possibility of being sued by a creditor. Learn more about debt settlement risks lower down.

No guarantee of success: Like all debt settlement companies, ClearOne Advantage may not be able to settle all your debts even if you follow the program perfectly. This is because not all creditors accept settlement offers.

Costs add up: When working with a debt settlement company like ClearOne Advantage, you’re charged multiple fees. These fees are in addition to any charges you accumulate from your creditors, like late fees or interest. Consider alternative ways to get out of debt (listed below) that may have fewer fees and cost less overall.

ClearOne Advantage works with consumers who have at least $10,000 in unsecured debt. This may include credit cards, store cards, personal loans, private student loans and unsecured lines of credit.

It doesn’t settle secured debts, meaning any debt tied to collateral, like an auto loan or mortgage. It also doesn’t settle select federal student loans and some medical debts.

ClearOne says its average customer enrolls with $15,000 to $30,000 in debt.

During the application process, you’ll undergo a soft credit pull, which won’t hurt your credit score. There’s no hard credit check.

It’s important to understand the overall risks of debt settlement before deciding whether to work with ClearOne Advantage.

Organizations like the Consumer Financial Protection Bureau and the Federal Trade Commission urge consumers interested in debt settlement to consider these risks:

Freedom Debt Relief and ClearOne Advantage are two large debt settlement companies that help negotiate with your creditors.

Freedom accepts smaller debts, starting at $7,500, and it charges a smaller settlement fee (15% to 25% of the total debt enrolled). It also comes with unique perks for customers, including free access to a network of attorneys, in case you’re sued by a creditor, and a program guarantee that refunds fees if you don’t save money with settlement.

However, Freedom is only available in 39 states. ClearOne’s program may also lead to higher savings at 30% of enrolled debt, compared to Freedom’s average of 28%.

Though it may seem easier to have a third party, like a debt settlement company, intervene on your behalf, you could have just as much success calling your creditors and negotiating with them yourself — and you can save thousands by not having to pay a settlement fee.

Same as with using a debt settlement company, success isn’t guaranteed, but if you owe only a few creditors, it’s worth a try.

With a debt management plan, you’ll work with a nonprofit credit counseling agency to consolidate your debts into one monthly payment, while also reducing the interest rate.

This is a good option for consumers with credit card debt who have a steady income to repay the debt within three to five years.

Unlike debt settlement, a debt management plan should help build your credit score.

By taking out a debt consolidation loan, you can pay off multiple debts at once, so you’re left with only one payment on your new loan.

A debt consolidation loan should have a lower interest rate than your current debts, which saves money and helps you get out of debt faster.

Bankruptcy lets you resolve your debt under protection from a federal court.

Chapter 7 bankruptcy, the most common form, erases most unsecured debts in four to six months. It’ll also stop calls from collectors and prevent lawsuits against you.

Like with debt settlement, your credit will suffer, so consult a bankruptcy attorney first.