Pros Explained
- Relief available for many types of debt: National Debt Relief can assist with several types of unsecured debts. It can help with typical debts like credit cards and loans, and, in some cases, less common debt like cell phone bills, vet bills, judgments, and back rent.
- Potential debt savings: After completing the program, previous customers have received approximately 25% in savings, after accounting for fees. Your actual results may vary and could be higher or lower than this amount.
- No upfront fees for settlement: You won't be charged any fees until after a settlement has been successfully negotiated and paid. If you decide to cancel, you won't be charged any fees or penalties.
Cons Explained
- Minimum $7,500 in debt required: You generally need to owe enough debt to give creditors an incentive to negotiate. National Debt Relief may not be worth it your debt load is too small.
- Must be experiencing hardship: You'll have to verify that you're having financial troubles brought on by a life event like divorce or job loss. The hardship must be severe enough that you can't afford to make your minimum debt payments.
- Not available in all states: Several states do not allow debt relief services to operate. Check with National Debt Relief before enrolling to verify whether its services are available in your state.
Types of Debt Addressed
National Debt Relief assists with several types of unsecured debt, which is debt that isn't backed by a physical or financial asset. If you're wondering whether a particular debt can be settled, you can speak with one of the company’s debt experts for a free consultation.
Credit Card Debt
Credit card interest rates are higher than rates for mortgage loans, auto loans, personal loans, and federal student loans, making credit card debt one of the most expensive kinds of debt. High interest rates can make it difficult to repay credit card debt. Balances held on major credit cards, department store cards, and gas cards are eligible. National Debt Relief will work with your credit card issuers to reduce the balance you owe.
Personal Loans
Personal loans are eligible for negotiation as long as the loan is unsecured, meaning it's not backed by collateral. These loans are often borrowed from major banks and finance service companies to cover a variety of financial needs, including emergency expenses, medical bills, home repairs, and debt consolidation.
Bank Fees
National Debt Relief can work to reduce a negative bank balance if the account has been placed with a collection agency. For instance, you may be eligible for debt relief if you have an outstanding balance due to fees charged on overdrafts, non-sufficient funds, or a negative balance.
Medical Bills
Medical expenses can be challenging, even for those with health insurance. Complex medical billing can lead to multiple, unexpected bills sometimes from a single visit. Medical debt is commonly referred to collection agencies, making it eligible for enrollment in a debt relief program for potential balance reduction.
Collections
Third-party collection agencies pursue payment on balances that were written off by the original creditor. These balances are already considered past due and are eligible for debt relief services through National Debt Relief.
Repossession Deficiency Balance
When a repossessed vehicle is sold for less than the outstanding loan balance, the lender still holds you responsible for the remaining balance. This is true even if you voluntarily handed over the vehicle. This debt, known as a deficiency judgment, may be eligible for negotiation in a debt settlement program.
Business Debts
Managing business-related debt can be challenging for business owners and entrepreneurs. Depending on the business type, you may be personally liable for debts owed by your business. Some business debts are eligible for debt settlement, but they can't be tied to collateral. National Debt Relief also prefers that the business related to the debt be closed.
Certain Student Loans
Private student loans may qualify for debt relief if they are offered by banks and other lending institutions rather than the federal government. A debt counselor at National Debt Relief can help you determine whether your private student loans qualify for debt reduction.
Not all debts are eligible for debt relief assistance. National Debt Relief doesn’t settle secured debts like home loans or auto loans. The company also does not assist with debt from lawsuits, back taxes, utility bills, and federal student loans.
Client Onboarding Process
To qualify for debt relief services through National Debt Relief, you need to have at least $7,500 in unsecured debt. You should also be past due on payments and experiencing financial hardship.
- Start the process by reaching out to National Debt Relief by phone or through its online form to schedule a free consultation. During the consultation, you'll discuss your financial situation, your debts, and your goals.
- A debt expert will review your information and will explain your debt relief options. If National Debt Relief can help you with debt settlement, it will create a plan that fits your budget.
- Once you enroll, you'll receive a welcome call, sign an agreement, and receive an electronic “success kit,” which provides more details about the program and a sample timeline.
- Activate your online account where you can track your progress in the program, manage and view deposits, upload documents, and view urgent alerts.
- Complete and return a form authorizing National Debt Relief to negotiate with creditors on your behalf.
- Stop using your credit cards and paying your bills and begin sending payments to your settlement fund, which is an FDIC-insured trust account. Your settlement fund is used to pay settlements and fees once an agreement has been reached.
By law, debt relief companies are required to provide details about their services including how long it will take to get results, how much it will cost, the risks of debt settlement, and details about the dedicated settlement account.
Customer Service
National Debt Relief has a team of trained professionals who can provide information, guidance, and support to people looking for help with their debt or existing customers who have questions about their account. Customer service can be reached by phone seven days a week.
- Monday through Friday: 8 a.m. to midnight ET
- Saturday and Sunday: 8 a.m. to 10 p.m. ET
Enrolled customers can login online to self-serve many concerns. For example, customers can use the portal to view their current progress, approve settlement offers, change their deposit timing, and view previous deposits.
Company Reputation
National Debt Relief has been in business since 2009 and has helped hundreds of thousands of people reduce their debt. In addition, the company has gained mostly positive reviews from customers on third party sites.
Dozens of customers have submitted a complaint to the BBB within the past few years, but National Debt Relief generally responds to and resolves these complaints in a reasonable amount of time.
Expected Relief Amount
National Debt Relief reports approximate savings of 46% before fees, or 25% including fees, which is typical for the debt relief industry. This savings estimate is based on previous clients who were able to stick with the program and get all their debts settled. Your actual savings isn't guaranteed and may be different from this amount.
Expected Time to Complete the Program
Completing a debt relief program with National Debt Relief can take 24 to 48 months, which is typical for the industry. The amount of time it takes you to complete the program depends on the creditors you owe, the amount of debt you have, and the amount you can put towards your settlement fund each month.
Some previous clients may not have completed the program for a variety of reasons, including the inability to save up enough to make the payments.
You'll have access to your settlement account and you may be tempted to make a withdrawal as your balance grows. However, keep in mind that taking money away from your settlement funds will increase the time it takes to complete the debt relief program.
Expected Cost
National Debt Relief charges a flat fee of 15% to 25% of enrolled debts, which is similar to other debt relief companies. There's no signup fee when you enroll or cancellation fee if you decide to cancel services. You won't be charged any fees until after a debt has been settled successfully.
The settlement fee is calculated into your monthly payment, which makes it easy to cover the fee after a successful settlement.
Compare With the Competition
| Company | Debt Management Plans | Debt Settlement | Fee |
|---|---|---|---|
| National Debt Relief | No | Yes | 15%–25% of enrolled debt |
| Freedom Debt Relief | No | Yes | 15%–25% of enrolled debt |
| New Era Debt Relief | No | Yes | 14%–23% of enrolled debt |
| Pacific Debt Relief | No | Yes | 15%–25% of enrolled debt |
| Accredited Debt Relief | No | Yes | 15%–25% of enrolled debt |
| CuraDebt | No | Yes | Not disclosed |
Final Verdict
National Debt Relief offers a number of valuable resources to guide customers through the debt settlement process. Years of experience and thousands of positive ratings support the company's commitment to excellence. However, some consumers may find its services inaccessible due to financial and location requirements.
Is National Debt Relief Legit?
National Debt Relief is a legitimate company providing debt relief services. The company was founded in 2009 and is a member of the US Chamber of Commerce and the American Association for Debt Resolution. You can find out more information about its services through its website or follow its social media accounts for tips, advice, and customer testimonials.
Does National Debt Relief Hurt Your Credit?
Enrolling in any debt relief program can hurt your credit score depending on how your credit information changes while you're in the program. Because you stop making payments to settle your debts, late payments and rising balances can cause your credit score to drop. If you already have multiple delinquencies, your credit score may not decline as much as someone with an excellent credit score.
Does National Debt Relief Work With IRS Debt?
On its website, National Debt Relief lists back taxes as one of the debts it cannot help with. As such, the company doesn't work with IRS debt.
Who Is Eligible for National Debt Relief?
You will need to meet a few qualifications to work with National Debt Relief:
- You must live in a state where services are offered
- You must have at least $7,500 in unsecured debt
- You must be behind on payments
- You must be experiencing financial hardship and can't afford regular payments
How Long Does Debt Relief Stay on Your Credit Report?
Like most other negative information, debt settlement will remain on your credit report for seven years. After a successful settlement, your credit report will no longer reflect a balance. However, the account status will indicate that it was settled.
Methodology
Investopedia compared eight top debt relief companies to find the best in terms of reputation and stability (10%), customer satisfaction and experience (10%), services (30%), and cost and fees (50%).
We considered whether companies had a membership with the American Association for Debt Resolution (AADR), formerly the American Fair Credit Council (AFCC), as well as how long they have been in business. We reviewed the types of services offered, like counseling, debt settlement, tax relief, and more. We also compared companies' money-back guarantees, upfront fees, fee percentage closed, and cancellation policies. For more about how we rate, review, and select the best debt relief companies, read our full methodology.
