National Debt Relief Review [2024]: Legit Debt Help

National Debt Relief basics

Minimum debt	$7,500 in unsecured debt
Types of debt it works with	Credit card debt Personal loans Lines of credit Medical bills Collections Repossessions Business debts Certain student debt
Types of debt it doesn't work with	Secured debt, including mortgages and car loans Past-due taxes Federal student loans
Typical time in the program	24-48 months
Fees	15%-25% of the amount of your total enrolled debt
Availability	47 states and Washington, D.C. Not available in Oregon, Vermont, and West Virginia
Accreditation	AFCC, IAPDA
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What is National Debt Relief?

Like other debt settlement companies, National Debt Relief acts as a middleman between you and your creditors. It attempts to negotiate lower debt payments so you can get out of debt sooner rather than later. You make regular payments to National Debt Relief, and those payments are held in an FDIC-insured bank account and used for repayments when it reaches an agreement with your creditors.

National Debt Relief was founded in 2009 and has worked with over 500,000 people. Its longevity and high number of clients are positive signs of its legitimacy and trustworthiness.

National Debt Relief is also a member of the American Association for Debt Resolution (AADR), which represents debt settlement companies and audits its members regularly. National Debt Relief’s counselors are certified by the International Association of Professional Debt Arbitrators (IAPDA). To get certified, they take coursework about ethics, personal finance, and laws that govern debt and debt collection, which gives them the background to be able to provide accurate information.

Eligibility and requirements

To work with National Debt Relief, you need to live in a state it serves. It doesn’t service Oregon, Vermont, and West Virginia.

You also need to owe $7,500 and be at least a few months behind on your payments. Essentially, you need to be at a point where your creditors need to be concerned that you might not pay at all, and they feel settling is the best way to get any money from you.

If you want to work with National Debt Relief, you should also be able to make a monthly payment. The exact amount of that payment will be determined by you and National Debt Relief, but if you don’t have any funds to make payments, it may be better to explore bankruptcy.

National Debt Relief fees

National Debt Relief charges 15%-25% of your original debt amount when it settles.

Here’s what that looks like:

Let’s say I owed a creditor $10,000. National Debt Relief settles my debt for $5,000, or 50% of what I originally owed. Once I approve the settlement, National Debt Relief pays the creditor out of the funds I’ve paid and it also takes out its fee. Since I originally owed $10,000, my fee is based on that, so if the fee is 20%, I would owe $2,000.

In total, I would pay $7,000 ($5,000 to the creditor and $2,000 to National Debt Relief) on $10,000 of debt, which is 30% less than I originally owed.

How does it work?

National Debt Relief is a company that negotiates debt settlements for borrowers. It can also help you find a debt consolidation loan, which can simplify debt repayment. Not sure about the difference between debt settlement vs. debt consolidation? Here’s how both work:

Debt settlement

Debt settlement is when your creditor agrees to settle your outstanding debt for a lump sum that might be less than what you owe. Rather than negotiating a settlement on your own, you could hire a debt settlement program like National Debt Relief to handle this so you don’t have to deal with calls or letters.

While the exact difference you’ll see from a settlement can vary, National Debt Relief says that it’s been able to reduce customer debt load by 30% to 50% on average. This is typical for debt settlement companies, and it’s what I experienced when I worked with one.

Here’s how it works with National Debt Relief:

1. Free Consultation: You connect with a debt specialist and review your financial situation together. You’ll be able to discuss your debt relief options without any upfront payment obligations. You should have all of your debt information gathered before the consultation, including:

• The name of your creditor
• The total amount you currently owe
• The amount of your monthly payment (or the monthly payment you’re supposed to be making if you’ve fallen behind)
• Your APR

2. Create a personalized payment plan: The debt specialist will see if debt settlement makes sense for you. If it’s a good fit and you decide to move forward, the company will create a plan. National Debt Relief will determine your monthly payment amount, which may be lower than the total monthly payments on your unsecured debts.
3. Start repaying: During the program, you will be advised to stop making monthly payments to your creditors if you haven’t already. You’ll start making payments to National Debt Relief that are deposited in a separate savings account.
4. Review settlements: NDR will start handling communications with your creditors. Once you have enough money stashed away in that account, National Debt Relief will try to negotiate a deal with your creditors for less than what you owe. You review any settlements they negotiate, and if you agree, they send the funds to your creditor.
5. Pay your fee: When your settlement is paid, National Debt Relief also takes its fee of 15% to 25% of the original debt. Note that it’s based on the original debt and not the settled amount.

Risks of working with any debt settlement company

Pursuing debt settlement with any company comes with some risks. For example, not making payments to creditors will negatively affect your credit score.

When I worked with a different debt settlement company, my score dropped by over 100 points. With the trouble I was having keeping up with payments, my score was heading that direction anyway, so for me, it was worth it to not have to deal with negotiating settlements on my own. And my score recovered after all my negotiated debts were paid off.

You could also be sued by a creditor for an unpaid balance. While this sounds terrifying (and I wouldn’t call it a good time), be sure to let National Debt Relief know and send them any letters you receive from your creditor. They may still be able to negotiate a settlement in that situation. I was sued by a creditor while in debt settlement, and the company I worked with was able to negotiate a monthly payment. I can’t guarantee that will be your result, though. For me, it was helpful to have a company to work in that situation. A lawyer could also help negotiate if you find yourself in that situation.

Finally, keep in mind that the difference between your original balance and the settlement amount may be taxable. Speak with a tax professional if you have questions about how debt forgiveness might affect your tax liability.

Debt consolidation

Debt consolidation is when you use a new credit line or loan to pay off several other balances. This combines multiple different payments into one, making it easier to keep up with bills each month.

National Debt Relief doesn’t offer debt consolidation loans directly but can help you find a debt consolidation loan through Reach Financial. The application process will involve a credit check. Loan terms range from 24 to 60 months, and APR rates range from 6.25%-35.99% (as of March 26, 2024).

Using a debt consolidation loan with a lower interest rate to pay off other high-interest debt can lead to monthly and long-term savings. But unlike a debt settlement, what you owe doesn’t change when you consolidate debt. You still owe the same amount, just under a new loan.

If you qualify for a debt consolidation loan and can afford the payments, it’s a better choice than debt settlement. You’re able to pay off your creditors in full, you just have one payment, and you have a clear path to getting out of debt.

FAQs

Alternatives

If you’re not sure whether National Debt Relief is right for you, then Freedom Debt Relief is another company you might consider. It doesn’t serve as many states as National Debt Relief, but it’s also BBB accredited, a member of AADR, and its counselors are certified by the IAPDA. And, in all honesty, there’s nothing to stop you from getting free consultations from both companies and seeing which one is a better fit for you.

Our head-to-head comparison of National Debt Relief and Freedom Debt Relief goes into more depth about how they stack up.

Another alternative is to pursue credit counseling. With credit counseling, you work with a counselor and develop a debt management plan. Your counselor negotiates with creditors to make your payments more affordable. This might involve more time to pay off your debt or a reduced interest rate. Credit counseling doesn’t lower the amount you owe the way debt settlement does, though.

I recommend credit counseling over debt settlement if you’re not behind on your payments but your budget is getting tight. Counseling could give you some breathing room without the potential hit to your credit score.

Our list of the best credit counseling companies is a good place to start if that sounds like a better fit.

Bottom line

National Debt Relief’s reviews show that it’s helped thousands of people. Is it right for you? If you’re behind on payments or if you’ve accumulated more debt than you think you’ll be able to pay off, I think it’s worth consulting with them and seeing if it’s a fit. It never hurts to get more information, and you’ll leave better informed about your options.  

Learn More

No upfront costs — you pay when you accept a settlement.

Refers you to other options like debt consolidation if debt settlement isn’t appropriate.

You review every settlement National Debt Relief negotiates, and you decide whether to accept it or not. It won’t act without your permission.