National Debt Relief Review 2024 (2024)

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Our Verdict

Our Verdict

National Debt Relief, a debt settlement firm, negotiates with creditors to reduce consumer debt. They offer free consultations and will customize plans to make debt payoff affordable.

Depending on factors like your debt size, budget and negotiated amount, you could pay off your debts within 24 to 48 months. On average, consumers completing the program see a 23% decrease in enrolled debt after fees.

A big plus is that National Debt Relief doesn’t collect any fees until a settlement offer is received from the creditor, the client approves the settlement and at least one settlement payment is made to the creditor.

The drawback is that the fees for debt settlement can be relatively hefty. On average, fees are between 15% and 25% of the total debt enrolled. So, if your enrolled debt is $8,000, you may pay between $1,200 and $2,000 in fees. While some may attempt debt settlement independently, many find professional assistance worthwhile despite associated fees.

Pros

  • Save money on interest and escape debt faster
  • Eliminate creditor calls and collection actions
  • Could help you avoid bankruptcy
  • Monthly payment may be less than what you’re paying now
  • Simple signup process and free consultation

Cons

  • National Debt Relief’s services aren’t free
  • Credit score will likely go down temporarily
  • Creditors might not agree to the settlement offer
  • Certain debts are ineligible

National Debt Relief Review 2024 (1)

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Minimum debt required

$7,500

Average settlement fee

21%

Enrolled clients

500,000

Table of Contents

  • National Debt Relief Overview
  • What Does National Debt Relief Do?
  • How Does National Debt Relief Work?
  • National Debt Relief Fee Structure
  • How Will National Debt Relief Affect My Credit?
  • National Debt Relief Reviews
  • How To Sign Up for National Debt Relief
  • Alternatives to National Debt Relief
  • Is National Debt Relief Legit?
  • Methodology
  • Frequently Asked Questions (FAQs)

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Why You Should Trust Us

National Debt Relief Overview

Founded in 2009, National Debt Relief has assisted consumers with unsecured debts for 15 years. They work with customers with at least $7,500 in unsecured debt, such as credit cards, personal loans, medical bills, business debts and private student loans. There’s no upper limit on the debt amount. However, they do not handle debt from lawsuits, IRS obligations, utility bills, federal student loans, auto or home loans or other types of secured debts.

Partnering with a debt settlement company like National Debt Relief can help people avoid lawsuits by negotiating with lenders to reduce debt and establish affordable repayment plans.

According to a report by the Consumer Financial Protection Bureau (CFPB), credit card companies sue for non-payment in about one out of every seven cases, nearly 15% of the time. The debts involved in these lawsuits typically range from $2,700 to $12,300.

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What Does National Debt Relief Do?

They help consumers negotiate debt to lower payments. They cover a wide range of unsecured debts, including:

  • Credit cards
  • Medical bills
  • Personal loans
  • Lines of credit
  • Collections
  • Repossessions
  • Certain business debts
  • Certain student debts

If you’re behind on a different kind of loan, such as a mortgage, it’s a good idea to reach out to your lender to see what options might be available for getting caught up.

National Debt Relief also offers referrals for credit counseling, debt consolidation and bankruptcy services if their debt relief plan isn’t the best option for you.

How Does National Debt Relief Work?

National Debt Relief negotiates with your creditors on your behalf to help resolve your debts. The goal is to help you pay off debts for less than what’s owed and escape debt faster.

Here’s an overview of how it works:

  1. 1. National Debt Relief creates a personalized debt plan for you based on your budget and financial situation.
  2. 2. You make one payment each month into your secured savings account.
  3. 3. National Debt Relief negotiates with your creditors to reach a settlement agreement.
  4. 4. Once an agreement is reached, your creditors get paid from the money in your account.
  5. 5. The remaining debt balance is canceled, and you pay nothing else to the creditor.

The process continues until all the debts you ask National Debt Relief to negotiate are gone. The company estimates that it takes at least 24 to 48 months for clients to become debt free if they stick to their debt repayment plan.

National Debt Relief Fee Structure

National Debt Relief operates on a fee-based model. Clients are only charged fees when they agree to a plan.

The process starts when the client’s creditor submits a settlement offer and the client agrees to the settlement. Lastly, at least one payment towards the settlement must be made to the creditor to complete the process. Once your settlement is in place and you begin repaying the debt, National Debt Relief will

The fees, on average, range from 15% to 25% of the total enrolled debt. If the debt enrolled in your settlement is $10,000, your fees could range from $1,500 to $2,500. These fees are added to the amount you pay into a secured savings account each month while your debts are being negotiated

How Will National Debt Relief Affect My Credit?

One condition of this debt relief plan is to stop making payments to creditors and focus more on making monthly payments to your secured savings account. The longer creditors go without receiving payments, the more open they’ll be to negotiation.

Payment history accounts for 35% of your FICO credit score, so enrolling in a plan with National Debt Relief could negatively impact your credit rating. The extent of that impact, however, depends on whether you’re still current on your bills or not.

If you’re already several months behind, then a few more late payments might not make much of a difference to your credit score since it’s likely taken a big hit already. While late payments can remain on your credit reports for up to seven years, the impact on your score lessens over time.

On the other hand, if you’re still current on bills, even one late payment could cost you significant points. In that scenario, you might want to consider other options, such as a debt management plan or debt consolidation, which can have less of a negative impact on credit scores.According to National Debt Relief, the majority of clients with low credit scores graduate the program with an increase in their credit.

National Debt Relief Reviews

This information is accurate as of April 2024.

Reputable SourcesTotal Reviews (Last 12 months) Star RatingsCustomer ComplaintsClosed Customer Complaints
TrustPilot3,2474.73% less than 3 starsN/A
BBB3,3934.7289129

How To Sign Up for National Debt Relief

If you’re interested in debt relief services, you can get started with National Debt Relief online or over the phone. Here’s what’s involved.

  1. Visit National Debt Relief’s website and select Apply or call 800-287-1591 to start the process.
  2. Provide National Debt Relief with your name, email address, and estimated amount of debt.
  3. Complete your free consultation with a debt coach, who will evaluate your situation and present debt relief solutions for you.
  4. From there, they’ll create a personalized debt relief plan that fits your current financial situation.
  5. Once you agree to a plan, you’ll make one monthly payment into your secured savings account which you control.

National Debt Relief’s approach helps you focus on controlling your debt in less time, rather than only making minimum payments for several debts all at the same time.

National Debt Relief can help with the following debts:

  • Credit cards
  • Medical bills
  • Personal loans
  • Lines of credit
  • Collections
  • Repossessions
  • Certain business debts
  • Certain student debts

If you’re behind on a different kind of loan, such as a mortgage, it’s a good idea to reach out to your lender to see what options might be available for getting caught up. National Debt Relief also offers referrals for credit counseling, debt consolidation and bankruptcy services if their debt relief plan isn’t the best option for you.

Alternatives to National Debt Relief

Freedom Debt Relief vs. National Debt Relief

National Debt Relief and Freedom Debt Relief are popular debt settlement companies that offer free consultations and negotiate with creditors on your behalf to lower your debt. They’re comparable in their services, minimum debt requirements and cost.

Minimum debt: $7,500

Types of debt:

  • Credit cards
  • Personal loans
  • Lines of credit
  • Medical bills
  • Collections
  • Repossessions
  • Business debts
  • Certain student debts

Fees: 15%-25% of the total enrolled debt amount

National Debt Relief vs. Accredited Debt Relief

National Debt Relief and Accredited Debt Relief both offer debt settlement services, which include a free consultation and negotiating debt on your behalf and consolidating debt into one payment.

Accredited Debt Relief also offers debt consolidation loans, which combine all of your debt into one loan. A debt consolidation loan can save you money by paying off high-interest debt with one loan that has a lower interest rate. It can also help you keep track of debt because instead of paying multiple creditors, you’re just paying one. Its affiliated lenders offer consolidation loan options ranging from $1,000 to $100,000, with APRs between 4.9% to 35.99%, origination fees varying from 1% to 6% and loan terms extending from 4 to 84 months.

Minimum debt: National Debt Relief: $7,500; Accredited Debt Relief: $10,000

Types of debt:

  • Credit cards
  • Personal loans
  • Lines of credit
  • Medical bills
  • Collections
  • Repossessions
  • Business debts
  • Certain student debts

Fees: National Debt Relief: 15%-25% of total enrolled debt amount; Accredited Debt Relief: 25%

Choosing the Right Company

Since both companies offer similar products to National Debt Relief, determine which one will offer you the lowest fee and meet your overall needs. Shopping around often leads to the best rates and service that fits your requirements.

Is National Debt Relief Legit?

National Debt Relief is a legitimate company that has helped hundreds of thousands of people negotiate their debts. The company’s debt coaches are certified through the International Association of Professional Debt Arbitrators (IAPDA). National Debt Relief is also a member of the American Fair Credit Council (AFCC).

Methodology

Forbes Advisor staff considered 18 important factors, such as loan amounts, APR ranges, fees, terms, customer service, and user experience, when creating this review. The editorial staff in charge of scoring, fact-checking and this overall evaluation have more than 25 years of combined expertise in editing and personal finance.

Frequently Asked Questions (FAQs)

What does National Debt Relief do?

National Debt Relief offers solutions for you to pay off or lower your debts for less than you owe. The company acts as a go-between for you and your creditors to negotiate settlement agreements, so you can get out of debt faster.

How much does National Debt Relief cost?

The fees you’ll pay to use National Debt Relief range from 15% to 25% of the enrolled debt amount, depending on where you live. These fees are added to the amount you pay into a secured savings account each month while your debts are being negotiated.

Does National Debt Relief work with IRS debt?

National Debt Relief does not offer assistance with negotiating back tax debt owed to the IRS or tax debts owed to state revenue agencies. If you have unpaid tax debts, you may be able to work out a payment plan with the IRS. Alternatively, you may want to consult a tax attorney to determine the best way to approach repayment of back taxes.

Who is eligible for National Debt Relief?

You may be eligible to enroll in a debt plan with National Debt Relief if you have at least $7,500 in debt. Eligible debts include credit card balances, medical bills, personal loans, lines of credit and certain types of business or student debt.

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National Debt Relief Review 2024 (2024)

FAQs

How credible is national debt relief? ›

Customer Satisfaction and Reviews

National Debt Relief has amassed a surprisingly high number of positive reviews online, gaining thousands of loyal followers: Google: 4.6 stars, based on 7,350 reviews8. Trustpilot: 4.7 stars, based on 39,067 reviews1. Better Business Bureau: 4.72 stars based on 3,292 reviews2.

What is the downside of national debt relief? ›

The longer creditors go without receiving payments, the more open they'll be to negotiation. Payment history accounts for 35% of your FICO credit score, so enrolling in a plan with National Debt Relief could negatively impact your credit rating.

Are there any legit debt relief programs? ›

Generally, experts recommend other debt help options first. But if you decide that debt settlement is right for you, consider National Debt Relief, New Era Debt Solutions, and Freedom Debt Relief first since these companies have the highest customer satisfaction scores.

Is it worth doing a debt relief program? ›

Debt relief will also often give you a fixed payment plan and a set payoff date, which can also make it worth considering — as streamlining your payments can make it easier to manage while helping you save money on interest. "One of the biggest advantages of going through a debt relief program is the savings.

Why is debt relief bad? ›

Creditors are not legally required to settle for less than you owe. Stopping payments on your bills (as most debt relief companies suggest) will damage your credit score. Debt settlement companies can charge fees. If over $600 is settled, the IRS will view this debt as a taxable income.

What is the best debt relief program? ›

The 8 best debt relief companies of April 2024
Debt Relief CompaniesBest for
Featured partner National Debt ReliefBest for credit card debt
Money Management InternationalBest overall
Accredited Debt ReliefBest for customized options
Americor Debt ReliefBest for all unsecured debt types
4 more rows

Does national debt relief affect tax return? ›

In general, if your debt is canceled, forgiven, or discharged for less than the amount owed, the amount of the canceled debt is taxable. If taxable, you must report the canceled debt on your tax return for the year in which the cancellation occurred.

How long does debt relief stay on your credit report? ›

Debt relief can be a lifeline to help you get out from under unaffordable debt—but it can also damage your credit. So, if you're considering a form of debt relief, you'll want to bear in mind its effect on your credit report, where the information can stay for up to 10 years.

How many people have used national debt relief? ›

StateNumber of people who applied or were deemed automatically eligible for reliefNumber of fully-approved applications sent to loan servicers for discharge
California2,315,0001,473,000
Colorado471,000295,000
Connecticut321,000208,000
Delaware81,00052,000
51 more rows
Jan 27, 2023

Who is better national debt relief or accredited? ›

Accredited Debt Relief has a higher debt minimum than National Debt Relief, $10,000 compared to $7,500, so it's only a contender if you have at least that much debt. It's not available in every state. And it tends to charge a higher fee than NDR, usually 25% of the settled debt.

Is credit card forgiveness real? ›

While it's highly unlikely that any credit card company will forgive 100% of your debt without it being part of a bankruptcy, you may be able to negotiate a settlement with your lenders in which they forgive a percentage of the balance you owe.

What is the best debt relief company to work with? ›

Summary: Best Debt Relief Companies of April 2024
CompanyForbes Advisor RatingBest For
National Debt Relief4.5Best for Fee Transparency
Pacific Debt Relief4.1Best for Established Track Record
Accredited Debt Relief4.0Best for Quick Resolution
Money Management International4.0Best Nonprofit for Debt Relief Help
3 more rows
Apr 1, 2024

Can I buy a house after debt settlement? ›

Yes, you can buy a home after debt settlement. You'll just have to meet the lender's requirements to qualify for a mortgage. Unfortunately, that could be harder after you settle debt.

Can I still use my credit card after debt settlement? ›

While you can still use your open credit card accounts after debt consolidation, consumers should do so with caution. If you do use your credit card after debt consolidation, be sure to pay off your balance regularly.

What happens to your credit after debt relief? ›

Debt settlement typically has a negative impact on your credit score. The exact impact depends on factors like the current condition of your credit, the reporting practices of your creditors, the size of the debts being settled, and whether your other debts are in good standing.

Is national debt a real issue? ›

The national debt enables the federal government to pay for important programs and services even if it does not have funds immediately available, often due to a decrease in revenue. Decreases in federal revenue coupled with increased government spending further increases the deficit.

Is national debt relief a form of bankruptcies? ›

Debt relief can involve consolidation and debt counseling, which involves lowering the cost of repayment but also debt settlement which involves repaying less than is owed in a negotiated settlement with lenders. Bankruptcy involves seeking protection from creditors for debt that can not be repaid.

Does debt relief destroy your credit? ›

However, this does not influence our evaluations. Debt relief won't hurt your credit alone. However, closing your oldest accounts can drastically lower your standing.

Does debt consolidation hurt your credit? ›

If you do it right, debt consolidation might slightly decrease your score temporarily. The drop will come from a hard inquiry that appears on your credit reports every time you apply for credit. But, according to Experian, the decrease is normally less than 5 points and your score should rebound within a few months.

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