National Debt Relief Review 2024

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.

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.

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 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

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.

This information is accurate as of April 2024.

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.

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.

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).

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.