What makes National Debt Relief shine?
National Debt Relief stands out for including certain private student loans among its services — a rarity among competitors. It also has high rankings across user feedback websites like Trustpilot and ConsumerAffairs.com.
Where National Debt Relief falls short
National Debt Relief may not work for all customers, as you need to prove financial hardship such as job loss or divorce that keeps you from paying off your debt. And while National Debt Relief has overall good user reviews, the negative ones state that people ended up with more debt than before they went into the program.
While NDR is negotiating a settlement, you need to deposit money into an FDIC-insured account. Once a debt settlement is reached, money from this account gets disbursed to pay your creditors.
How much can I save?
Clients who stay with the program and settle their debt see savings of 50% before fees, or 30% including fees, according to National Debt Relief. However, it’s important to stick to your payments once your debt is settled. This could prevent you from accruing any other fees and interest charges from your creditors.
How much does it cost?
After your debts are settled, you can expect to pay 15% to 25% of the total debt enrolled as part of your monthly payment. So, if you enroll $50,000 in debt, you may owe a total fee of $7,500. During the negotiation process, you’d need to make monthly payments to an FDIC-insured account, from which funds were disbursed to creditors after a settlement is reached.
Will National Debt Relief hurt my credit?
Because National Debt Relief requires you to stop making monthly payments on enrolled debt until the company can reach a settlement, these debts are marked as delinquent on your credit report and your credit score will likely take a hit. Missed payments can remain on your credit report for up to seven years.
National Debt Relief details
| Free quote or consultation | Yes |
| Services | Debt negotiation and settlements |
| Minimum Debt | $10,000 |
| Average turnaround | 24–48 months |
| Fees | 15% to 25% |
| Types of debt | Unsecured credit cards, medical bills, personal loans, lines of credit, collections, some private student loans. |
| Accreditations | Better Business Bureau (BBB) |
| Direct or third-party negotiations | Direct and third-party negotiations. |
| State availability | Not available in: Oregon, Vermont, West Virginia |
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 not all companies are transparent about these costs or drawbacks that can negatively affect your credit score. Depending on the company, you might pay other fees for setting up new accounts or third-party settlement services, 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.
- Nonprofit credit counseling. Look for free debt-management help from nonprofit organizations like the National Foundation for Credit Counseling.
- Debt settlement. If you can 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.
How to qualify for National Debt Relief
National Debt Relief works with various clients. Here are some eligibility requirements:
- At least $10,000 in debt
- Have unsecured debt
- Be a resident of a state NDR works in
How the debt settlement process works
When you enroll in a debt consolidation program, National Debt Relief works with your creditors, such as banks, and attempts to negotiate a lower amount than you owe. National Debt Relief can also provide a debt consolidation loan you can use to pay off your debt. You’ll then owe National a monthly loan payment.
Here are the steps to enroll:
- Visit National Debt Relief’s website
- Call 888-823-7274
- Get your free consultation
- Wait as National Debt Relief builds you a personalized plan and reaches a debt settlement.
How National Debt Relief compares to other lenders.
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Updated regularly
National Debt Relief reviews and complaints
| BBB accredited | Yes |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 4.71 out of 5 stars, based on 3034 customer reviews |
| Trustpilot Score | 4.7 out of 5 stars, based on 38,727 customer reviews |
| Customer reviews verified as of | 18 January 2024 |
National Debt Relief has overall good customer reviews on reputable websites like Trustpilot. Many users praise them for excellent customer service and open communication.
Is National Debt Relief legit?
National Debt Relief has received an A+ rating from the Better Business Bureau (BBB). National Debt Relief has closed more than 256 complaints in the past five years. The organization also settled charges from the Minnesota Department of Commerce about its debt settlement services in June 2021. (1) It has a physical office in New York City.
Risks to debt settlement
Before you commit to a debt settlement program, be aware of these risks:
- Interest continues to accrue on your debt while NDR negotiates a settlement.
- Your creditors may sue you in the process.
- There’s no guarantee NDR will reach a settlement agreement.
- The forgiven debt is subject to taxes.
