National Debt Relief Review 2024 (2024)

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Our Verdict

Our Verdict

Debt relief companies offer solutions for people who have substantial debt and need help taking control of their finances. National Debt Relief helps its clients pay off or reduce their debt for less than what’s owed.If you’re struggling with credit card bills, medical bills or other debts, the best debt relief companies are worth considering. The following National Debt Relief review offers a closer look at how it works, as well as the pros and cons.

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

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Minimum debt required

$7,500

Average settlement fee

21%

Enrolled clients

500,000

Table of Contents

  • What Is National Debt Relief?
  • How Does National Debt Relief Work?
  • How To Sign Up for National Debt Relief
  • How Will National Debt Relief Affect My Credit?
  • Is National Debt Relief Legit?
  • National Debt Relief Reviews
  • Frequently Asked Questions (FAQs)

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Why You Should Trust Us

What Is National Debt Relief?

Founded in 2009, National Debt Relief is a for-profit company that helps its clients resolve their debts. According to National Debt Relief’s website, it’s one of the largest debt relief companies in the United States, having helped more than 500,000 people.

National Debt Relief specializes in debt negotiation, which you may also see referred to as debt settlement or debt resolution. Debt negotiation simply means working with creditors to get them to agree to accept less than what’s owed. Any remaining debt would be canceled as part of the negotiation agreement.

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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:

  • National Debt Relief creates a personalized debt plan for you based on your budget and financial situation.
  • You make one payment each month into your secured savings account.
  • National Debt Relief negotiates with your creditors to reach a settlement agreement.
  • Once an agreement is reached, your creditors get paid from the money in your account.
  • 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.

In exchange, you will pay a fee to National Debt Relief for their services. The fees are built into the amount you deposit in your dedicated savings account. Fees vary by state and range from 15% to 25% of your total enrolled debt amount. That’s similar to what other debt relief companies charge.

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.

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.

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).

National Debt Relief Reviews

Looking at reviews of debt relief companies can be a good way to learn what people do or don’t like about them. Overall, National Debt Relief reviews are largely positive.

The company has a 4.7-star rating with Trustpilot. Many clients have left positive comments about National Debt Relief’s helpfulness and overall client service in guiding them through the debt negotiation process.

National Debt Relief has an A+ rating with the Better Business Bureau and is BBB-accredited. The company earns a 4.58-star rating based on client reviews. The BBB collects information about consumer complaints, and there have been 259 complaints closed in the last three years and 88 complaints closed in the last 12 months. Past complaints largely centered on billing and collection issues.

Bottom Line

National Debt Relief could help you get out of debt, but it’s not always a fit for every situation. Understanding how debt negotiation works is a good place to start when deciding how to manage your financial obligations best. If you’re interested in National Debt Relief specifically, it’s important to thoroughly understand what you’re agreeing to before signing up.

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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 $10,000 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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FAQs

Is National Debt Relief trustworthy? ›

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.

What is the US national debt 2024? ›

U.S. publicly held debt 2013-2024

In March 2024, the public debt of the United States was around 34.59 trillion U.S. dollars, almost two trillion more than in July when it was around 32.6 trillion U.S. dollars.

Will national debt relief hurt my credit? ›

Debt relief services may have a negative impact on your credit score, but that impact may not be as big as you think — and in some cases, it can help your credit.

Is debt relief program legit? ›

If a debt relief organization you're considering demands upfront payment, guarantees to settle your debts for a fraction of what you owe, refuses to send free information about its services, or promises to stop all debt collection calls and lawsuits, steer clear. Those are red flags that indicate a possible scam.

What is the downside of national debt relief? ›

LIke all debt settlement companies, National Debt Relief can have a negative impact on your credit. Because debt settlement requires you to stop making payments to your creditors, you'll miss your payment due dates.

What is the disadvantage of debt relief program? ›

Cons of debt settlement

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.

How much debt does the average American have? ›

The average debt an American owes is $104,215 across mortgage loans, home equity lines of credit, auto loans, credit card debt, student loan debt, and other debts like personal loans. Data from Experian breaks down the average debt a consumer holds based on type, age, credit score, and state.

Why is America in so much debt? ›

One of the main culprits is consistently overspending. When the federal government spends more than its budget, it creates a deficit. In the fiscal year of 2023, it spent about $381 billion more than it collected in revenues. To pay that deficit, the government borrows money.

Who has the most debt in the world? ›

United States. The United States boasts both the world's biggest national debt in terms of dollar amount and its largest economy, which resolves to a debt-to GDP ratio of approximately 128.13%. The United States' government's spending exceeds its income most years, and the US has not had a budget surplus since 2001.

Why is debt relief bad? ›

Using debt settlement options to reduce debt comes with several risks, including late payments on your credit report, potential charge-offs, settlement company fees, tax implications on forgiven balances, possible scams and the overall risk of settlement offers not working.

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 to get rid of credit card debt without paying? ›

Bankruptcy is your best option for getting rid of debt without paying.

How much are the fees for national debt relief? ›

Fees for National Debt Relief's Services

National Debt Relief charges a fee of 18%-25% of enrolled debt.

How to wipe credit card debt? ›

Filing for Chapter 7 bankruptcy wipes out unsecured debt such as credit cards, while Chapter 13 bankruptcy lets you restructure debts into a payment plan over 3 to 5 years and may be best if you have assets you want to retain.

What is the best debt relief program? ›

Summary: Best Debt Relief Companies of April 2024
CompanyForbes Advisor RatingBBB Rating
Accredited Debt Relief4.0A+
Money Management International4.0A+
CuraDebt3.9A+
New Era Debt Solutions3.8A+
3 more rows
Apr 1, 2024

How do I know if a debt relief company is legit? ›

They Ask for Fees Upfront

This is the most obvious sign of a debt relief scam. If the person/company offers to help get rid of your debt but first you have to pay them a fee, they're probably lying to you. Cut off contact and file a complaint with us.

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.

Do you have to pay taxes on national debt relief? ›

Most canceled debt is taxable

Similar to income tax forms, you will also receive a copy of the 1099-C forgiveness of debt form from the forgiving creditor in the tax year the final payment is made. “That form will give you the amount forgiven,” says Tayne, which is the amount that's considered taxable income.

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