How does National Debt Relief work?
National Debt Relief is a debt settlement service. For a fee, it will negotiate with your creditors to reduce the amount of debt you owe. Typically this takes between two and four years. While you’re enrolled, you’ll contribute to an escrow account that National Debt Relief will use to pay your creditors as the debts are settled.
How much could I save with National Debt Relief?
Clients who complete the program save an average of 30% to 50% of the debt they enroll in the program — including fees. But depends on how much debt you have and how successful National Debt Relief is in negotiating with your creditors.
It also depends on if you finish the program. Based on reviews on the Better Business Bureau (BBB) website, some customers claim to have saved some money, while others claim to have ended up paying more than the original debt they owed.
How much does it cost?
National Debt Relief typically charges between 18% to 25% of the total debt you enroll over two to four years. However, your exact percentage depends on the amount you enroll and the state you live in.
What does this look like? To settle $10,000 of debt with an average interest rate of 15% over three years, you could end up with a total debt of $15,639.44 by the time you’re ready to negotiate.
Your fee would likely fall between $2,815 and $3,910.
What are the pros and cons of National Debt Relief?
- Advertises no upfront fees
- Offer a 100% money-back guarantee
- Works with some student loans
- Low minimum of $7,500
- May result in a lower credit score
- Only available in 42 states
- Secured loans not accepted
- Mixed customer reviews
Compare more debt relief companies
Before you sign up with a debt relief company
Debt relief companies typically charge a percentage of a customer’s debt or a monthly program fee for their services. And they aren’t always transparent about these costs or drawbacks that can negatively affect your credit score. You might pay other fees for third-party settlement services or setting up new accounts, which can leave you in a worse situation than when you signed up.
Consider alternatives before signing up with a debt relief company:
- Payment extensions. Companies you owe may be willing to extend your payment due date or put you on a longer payment plan if you ask.
- Nonprofit credit counseling. Look for free debt-management help from nonprofit organizations like the National Foundation for Credit Counseling.
- Debt settlement. If you can manage to pay a portion of the bill, offer the collection agency a one-time payment as a settlement. Collection agencies are often willing to accept a lower payment on your debt to close the account.
National Debt relief reviews and complaints
Many people have had positive experiences with National Debt Relief — although many of the reviews come with the caveat that they haven’t finished the program. The few negative reviews complain about fees and unexpected costs, which unfortunately is common among debt relief companies.
While some customers claim they only had to pay a fraction of their debt thanks to the company, others left reviews stating they ended up paying more by enrolling in National Debt Relief’s program. And some claimed the company tried to keep the money they’d saved in their escrow account when they canceled their enrollment in the program.
Is National Debt Relief legit?
Yes, National Debt Relief is a legit company.It’s among the most recognized debt settlement services in the country, with high rankings from the BBB and Trustpilot reviewers.
It’s also accredited with top industry associations, including the American Fair Credit Council (AFCC). And it’s been accredited with the BBB since 2013 and has an A+ rating based on factors like transparency and time in business.
Is it safe to use National Debt Relief?
Its website uses both McAfee and Norton security systems to protect your information from malware attacks and phishing. And your personal details are secured with industry-standard SSL encryption.
You’re also eligible for 90 days of identity theft coverage worth up to $100,000 after you enter your information on the site. Click the McAfee icon on the bottom of the page to sign up.
National Debt Relief is accredited with trade organizations like American Fair Credit Council and the International Association of Professional Debt Arbitrators that set the standards for the debt settlement industry.
What is National Debt Relief?
National Debt Relief is a debt settlement company founded in 2009 and licensed to work with residents of 42 states as well as Washington, DC. It doesn’t provide exact numbers on how much you could save, but some customers have been able to cut their debt by over 50%. And in addition to debt relief, it also helps its clients pursue debt consolidation and settlement.
Who is eligible for debt relief?
To qualify for National Debt Relief, you must have at least $7,500 in debt and a demonstrable financial hardship that you cannot recover from. Financial hardship includes a divorce, unemployment, loss of income, the death of a spouse and unpaid taxes. National Debt Relief uses this proof of your financial hardship as leverage to negotiate with your creditors.
How do I get started?
With National Debt Relief, you can start the process over the phone by calling 855-459-1560, by visiting a local branch or online. Follow these steps to begin online:
- Click the Check my rate button on this page to be directed to National Debt Relief’s website.
- Select the amount of debt you’d like to settle and click Continue.
- Enter your contact information and click Click Here To See If You Qualify For Debt Relief.
A National Debt Relief representative will be in touch to discuss your situation and see if they can help.
I’ve signed up. What happens next?
Once you’ve enrolled in National Debt Relief’s debt settlement program, you can expect to go through the following steps:
- Set up a payment plan. National Debt Relief works with you to set up a plan of how much you’ll pay into an account, from which it then pays your creditors and deducts its own fees.
- Start paying into your settlement fund. National Debt Relief asks you to make monthly payments into an escrow account that it can eventually use to pay your debt settlement costs. This monthly payment is typically lower than monthly payments on your debt. While you can stop making payments on your debt if it’s unaffordable, you’ll end up paying more in the end.
- National Debt Relief negotiates with your creditors. Once you have enough funds in your escrow account, National Debt Relief negotiates with creditors to settle your debt for a one-time payment. And it’s totally normal if it doesn’t work the first time.
- Authorize payments from your settlement fund. While it’s not a guaranteed outcome, if your lender decides to settle, National Debt Relief pays off your debt using your funds. It also deducts its fee from your settlement fund.
3 tips to make using National Debt Relief a smart move
Follow these pointers to make the most of National Debt Relief’s debt settlement program:
- Don’t take on more debt. Qualifying for debt settlement is a clear indicator that you aren’t in a position to afford more debt.
- Stick to a budget. Take advantage of National Debt Relief’s free budget planner, and create a spending strategy to keep from missing payments to your settlement account.
- Keep in touch. Contact National Debt Relief’s customer service line whenever you have questions. If you have trouble staying on top of your monthly payments, let them know — it could help your case.
National Debt Relief provides a helpful service for those who aren’t able to handle their debt. But before you sign up, learn more about debt relief to see how it could impact your finances.
Frequently asked questions