Pros and Cons Explained

Pros

• Has multiple accreditations: National Debt Relief is accredited by multiple organizations within the debt relief industry.
• Customer support usually available: Customer support is actually available for more hours each day than it’s closed (for general inquiries), so it should be easy to contact someone if you have questions or concerns. Support hours for current clients are more limited, however.
• Good customer reviews and ratings: Most people on rating sites report good success and were happy overall with National Debt Relief’s services.

Cons

• Not available in all states: National Debt Relief is widely available, but residents of Oregon, Vermont, and West Virginia will need to look elsewhere for debt settlement options. 
• Provides inconsistent information: The company’s website is filled with contradictory information and inaccuracies, raising a red flag about the information you’ll get when you contact the company. The website states, for example, that “As soon as you sign the agreement, you’ll no longer be required to pay your creditors.” But this is not true—you’re obligated to pay your debts under the agreements you make with creditors, unless those debts are forgiven or settled, and creditors can take you to court for overdue debts.
• Some concerning reports of bad outcomes: Although National Debt Relief has overall positive ratings, some unhappy customers tell similar stories of National Debt Relief bumping the required monthly deposit up by several hundred dollars months into the program, extra “legal” and “accounting” fees tacked onto their bill, and even unexpected invoices for several thousand dollars due in a month’s time.

How National Debt Relief Works

National Debt Relief operates similarly to other debt settlement companies. Everyone who contacts the company gets a free consultation. According to NDR, a representative will offer “financial counseling and guidance,” and help you develop a budget. It’s not a true 澳洲幸运5官方开奖结果体彩网:credit counseling agency offering comprehensiv💧e support, however; it’s a for-profit company that offers debt set🍎tlement. 

The representative will check if you meet National Debt Relief’s requirements to get started, which include being at least several months past due on at least $10,000 in unsecured debt, having the ability to make monthly deposits into a savings account, and having some sort of long-term financial hardship, such as medical bills or job loss. In some cases, you may be referred to its partner lender, 澳洲幸运5官方开奖结果体彩网:Reach Financial, for a debt consolidation loan. Otherwise, the rep will explain how its 澳洲幸运5官方开奖结果体彩网:debt settlement process works. 

All debt settlement follows a similar script, National Debt Relief included. You’ll be advised to not make any payments to your creditors and instead funnel money into a separate FDIC-insured account each month. After a few months, National Debt Relief will try to negotiate a lump-sum payment with your creditors using the funds you’ve been saving up. You’ll get the final say in approving any negotiated offers, and if you give it the green light, National Debt Relief will pull the money out of the account, pay the settlement(s), and 🧔charge you a fee. 

Accreditations

National Debt Re💙lief is accredited or certified by three different 𓄧organizations:

• American Association for Debt Resolution (AADR)
• International Association of Professional Debt Arbitrators (IAPDA)
• Better Business Bureau (BBB)

Take note that BBB accreditation is not based directly on a company’s performance, but rather on other metrics like how the company handles BBB complaint𒆙s.

How to Enroll With National Debt Relief

National Debt Relief makes it easy to start the process. H🍬ere’s how it’ll work:

1. Contact the company: You can call NDR at (800) 752-3612, or fill out an online form to submit more information and have a company representative reach out to you.
2. Explore your options: The company may decide to offer you a debt settlement plan, or you may be referred to its partner lender for a 澳洲幸运5官方开奖结果体彩网:debt consolidation loan. The company also states that you may be referred for other services, such as credit counseling, and—in some states—to a bankruptcy lawyer or tax professional.  
3. Open a savings account: If you proceed with debt settlement, you won’t make payments to National Debt Relief directly; instead, you’ll be required to open an FDIC-insured account where you’ll save up your payments. National Debt Relief recommends a specific company (Global Holdings) for this purpose, but you can choose any account you want.
4. Contribute to your account: National Debt Relief will recommend that you set aside a certain amount of money every month in this account, which you retain control over. After a few months, it’ll start contacting creditors to negotiate a settlement using these funds.

Types of Debt Addressed

In general, only one type of debt is usually eligible to be enrolled in a debt settlement program with National Debt Relief or any other company: 澳洲幸运5官方开奖结果体彩网:unsecured debt. ꧃Two popular forms of unsecured debt are certain loans and credit card balances.

Unsecured Loans

Any debts that aren’t 澳洲幸运5官方开奖结果体彩网:backed by collateral are eligible for debt settlement. This includes personal signature loans, unsecured business debts, medical bills, and private student loans. Some of these debts may be easier to settle than others. 澳洲幸运5官方开奖结果体彩网:Private student loans, for example, may be more difficult to negotiate because creditors know it’s more difficult to get rid of them if you eventually file for bankruptcy.

Credit Card Debt

Credit cards are a common source of debt for many people, and you can include them in a debt settlement plan. You generally won’t be able to use credit cards you enroll in a settlement plan once you start the program, however. Most creditors will close your card once you 澳洲幸运5官方开奖结果体彩网:default on your debt. 

Expected Cost

The overall cost of using National Debt Relief is fairly st💮raightforward, but when it comes to specifics and other fees you’ll have to pay, it gets blurrier. National Debt Relief charges up to 25% of the enr🍒olled amount.

It’s unclear how you pay that fee. The company states on its website that “All of our fees are included in your monthly program payment that is deposited into your FDIC insured account,” while simultaneously saying elsewhere that they “never use your escrow account money to pay your fee." Some customer complaints on re✅view websites have mentioned receiving a surprise multi-thousand-dollar bill in the mail after agreeing to a debt settlement. 

That’s how much National Debt Relief itself charges, but you may be required to pay fees to other companies as part of the service, and NDR doesn’t provide any information on its website about how much this costs. For example, if you open a savings account through NDR’s partner, Global Holdings, you may have to pay a fee. Some customers also report to the BBB about being charged extra “legal” and “accounting” fees they didn’t expect. 

Expected Relief Amount

National Debt Relief is generally able to negotiate a settlement for 46% of an average client’s starting debt, according to the company, dropping down to 25% after the company takes its fees. However, NDR doesn’t provide any information about h🌸ow many people drop out before they r🌠each the end. 

Depending on the settlement that National Debt Relief is able to reach, you may end up paying a lump sum from your dedicated savings account, or you may enroll in a structured payment plan. Payment plans typically make up about 58% of settlement offers from these types of companies, as reported in a 2020 report by the American Fair Credit Council, which is now known as the American Assocition for Debt Resolution.

Expected Time to Complete the Program

The company says the average customer generally takes 24 to 48 months to complete the program. It all depends on how much debt you have, whether your creditors a🎐re willing to💜 negotiate, how much you can save each month, and other factors. 

Additional Services

National Debt Relie♚f offers a couple of other helpful things:

• Financial calculators and educational resources
• Referrals for debt consolidation loans through Reach Financial, as well as legal and tax assistance

Client Dashboard

You’ll get access to an online account if you s𝓰ign up with National Debt Relief. It doesn’t provide any details on what you can do or monitor with the account, however, and you’ll need an additional login for the savings account you’ll use to build your lump-sum payment. 

Customer Service

No matter when you work, it should be easy to🤪 get ahold of someone at the company given its wide-open business hours. Depending on where yღou live, you may see a different phone number on the website, but either should work.

Customer Satisfaction and Reviews

National Debt Relief has amassed a surpris🍒ingly high number of positive reviews online, gaining thousands of loyal followers:

• Google: 4.6 stars, based on over 11,000 reviews
• Trustpilot: 4.7 stars, based on over 41,000 reviews
• Better Business Bureau: 4.75 stars based on about 5,400 reviews

However, lurking under these scores of good reviews are disturbing reports that shine a ligh🎀t on some of the major drawbacks of debt settlement. We found reports of people being charged extra fees they didn’t expect, receiving bills for thousands of dollars they weren’t prepared for, and being sued by creditors. 

Reviewers on some websites, such as Yelp, only give the company 1.7 stars overall (based on only 160 reviews).

Natio🍸nal Debt Relief vs. Pacific Debt Relief vs. Accredited Debt Relief

Is Debt Settlement Worth It?

Debt settlement companies don’t offer anything you can’t do yourself. If settling your debt for less is what’s best for you, there are many resources available showing you how to do it for free, if you’re willing and able to invest a little time. However, most experts agree that debt settlement may be more harmful than helpful unless you’re prepared to deal with the significant drawbacks—and there are many.

It’s also not guaranteed to work. Creditors aren’t required to settle your debts. In fact, the FTC reports that creditors end up filing lawsuits against nearly 1 out of every 10 people trying to settle their debt, which can eventually cause wage garnishments, liens on your home, etc. It’s one of the reasons why half of people end up dropping out of debt settlement programs entirely. 

What is guaranteed is long-term credit damage. 澳洲幸运5官方开奖结果体彩网:Debt settlement companies tend to skirt around the fact that you’ll need to intentionally default on your debts so they can negotiate a settlement. Defaulted debts will remain listed on your credit reports for the next seven years. This will 澳洲幸运5官方开奖结果体彩网:tank your credit score and make lenders wary of approving you for any further credit.

However, if you’re dealing with unmanageable debt, your credit may be suffering already, or you may start missing full payments. And other methods of debt forgiveness, like 澳洲幸运5官方开奖结果体彩网:bankruptcy, also have serious credit implications. Take the time to explore 澳洲幸🐲运5官方开奖结果体彩网:all your possible debt relief options and try to find one with the least downside and the most upside. Consider seeking a 澳洲幸运5官方开奖结果体彩网:nonprofit credit counselor for help.

Is Debt Relief Through Debt Settlement Taxable?

Generally, settled debt is taxable. Any debts that your creditors forgive through debt settlement must be 澳洲幸运5官方开奖结果体彩网:reported as taxable income on your tax return. Depending on your situation, that could result in hundreds or thousands more on an unexpected tax ꧒bill.

The Bottom Line

National Debt Relief is one of the best companies when it comes to debt settlement—but debt settlement is risky, and it’s costly even when it’s successful. Debt settlement companies like ND✨R can and do provide help to people who need it. But if you choose debt settlement, you should understand exactly what you’re getting into and the possible consequences.

Frequently Asked Questions (FAQs)

Is National Debt Relief Legit?

National Debt Relief is a legitimate company providing 澳洲幸运5官方开奖结果体彩网:debt relief services. The company wꦍas founded in 2009 and is a ꦅmember of the American Association for Debt Resolution (AADR). It’s certified by the International Association of Professional Debt Arbitrators (IAPDA), and is accredited by the BBB. 

How Much Does National Debt Relief Cost?

National Debt Relief charges up to 25% of the enrolled debt. It doesn’t mention how much its partner companies charge for required services, such as monthly charges for a savings account. It also doesn’t delve into the secondary 澳洲幸运5官方开奖结果体彩网:costs of debt settlement, such as potential legal fees to defend you from creditor lawsuits, extra taxes on forgiven debt, long-term credit damage, or the extra fees and interest that bu🅠ild up on debt it’s not able to successfully settle. 

Does National Debt Relief Hurt Your Credit?

Enrolling in any debt settlement program can 澳洲幸运5官方开奖结果体彩网: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 c🌠redit 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⛦ fౠew qualifications to work with National Debt Relief:

• You must live in a state where services are offered (all states except Connecticut, Oregon, Vermont, and West Virginia).
• You must have at least $10,000 in unsecured debt.
• You must be behind on payments.
• You must be experiencing 澳洲幸运5官方开奖结果体彩网:financial hardship and can't afford regular payments.

How We Determine the Best Debt Relief Companies

To determine the best debt relief companies, we reviewed various databases, competitive analyses, consumer behavior🔥, and more, ultimately narrowing down the list to 40 companies that offered debt settlement and/or credit counseling services. We developed a quantitative model in whic♎h we identified 53 important criteria across five categories. We weighted each category as follows for this article:

• Costs and fees: 41.00%
• Availability: 22.50%
• Reputation and stability: 19.00%
• Customer experience: 9.50%
• Services: 8.00%

We then gathered data for the 53 criteria direct✱ly from companies via websites, media contacts, and existing partnerships. Data was collected between Oct. 19, 2023, and Dec. 18, 2023. This resulted in over 2,000 data points in our rubric, which we used to score and determine the best debt relief companies (including debt settlement and credit counseling services) for people looking to manage and get out of debt.

To learn more about our process for finding the best debt relief companies, read our 澳洲幸运5官方开奖结果体彩网:full methodology.