National Debt Relief: 2025 Review

National Debt Relief can typically assist with any unsecured loan (a loan that doesn’t require you to use your home or other asset as collateral). This includes the following types of debt:  

• Back rent (if you are no longer the current resident)

• Bank, overdraft and associated fees

• Business debts

• Cell phones (not current)

• Collections

• Credit cards

• Credit unions (for non-federal and non-military employees)

• Finance companies

• Gas cards

• Installment loans

• Judgments six months or older (must be provided with documentation)

• Lines of credit

• Medical bills

• Personal loans 

• Private student loans (in some cases)

• Repossessions

• Retail cards

• Veterinarian bills (over $600)

Ineligible debts

Some debts cannot be settled by National Debt Relief. This is often because the loans are secured by collateral or because the debts are associated with the U.S. government. Ineligible debts include:

• Auto loans

• Back rent (current residence)

• Back taxes

• Bail bonds

• Car repair bills

• Cell phones (current)

• Check cashing establishments

• Child support

• Gambling debts (there may be exceptions)

• Insurance policies

• Litigation accounts (current; less than six months)

• Military AAFES or STAR cards

• Mortgage loans

• NSF (Insufficient Funds) checks

• Rent-A-Center bills

• Speeding tickets and/or fines

• Warranty contracts

If you have questions about the eligibility of your debt, you can call National Debt Relief directly at 800-300-9550.

National Debt Relief helps you settle your debts by doing all the back-end work, such as negotiating settlements and managing payments. Here's an overview of the debt relief process and the services you can expect from National Debt Relief:

• Free consultation: You’ll get a free consultation with a certified specialist who reviews your financials to confirm that you qualify for the debt settlement program. 

• Escrow account: Once you are approved and agree to join National Debt Relief, an escrow account will be opened in your name. You will no longer make any payments to your creditors. Instead, every month, you'll send the agreed-upon payment to National Debt Relief, which will deposit the payment in your escrow account on your behalf. 

• Debt negotiations: While your escrow account balance grows, National Debt Relief will attempt to negotiate debt reductions with your creditors. All debt settlement proposals will be sent to you for approval. If approved, the funds will be released from your escrow account to pay for the settlement. 

• Settlement: Your first settlement may be completed within three to six months. It generally takes between 24 and 48 months to settle all your debts, depending on how many creditors you owe and how high your debt balances are.

National Debt Relief charges fees for its debt settlement services, typically ranging from 15 to 25 percent of the total enrolled debt. These fees are only collected once a settlement is reached with your creditors and you approve the agreement. The specific percentage depends on factors like your state of residence and the total debt amount. While these fees may seem substantial, they are generally lower than the savings gained through the negotiated settlements, which can reduce your overall debt by up to 50 percent.

However, if you are unable to pay the fees or continue making deposits into your dedicated account, there can be serious consequences. The company may cancel your service, which would halt any ongoing negotiations with creditors. This could lead to reinstated collection efforts, additional interest and late fees — not to mention serious damage to your credit score.

It’s essential to have a clear plan in place and ensure you can meet the payment requirements before committing to National Debt Relief's program.

Credit score consequences

When you work with a debt settlement company, your credit score will drop (if it hasn't already) because you purposely stop paying creditors. Each missed payment shows up on your credit report and brings your score down a bit further. However, the payment stoppage is a necessary part of the negotiation process. The longer you go without paying, the more willing creditors are to reduce your debt to recover at least some of what they're owed.

Risks of debt settlement

Although having your debt reduced might seem appealing, there are significant debt settlement risks to consider, including:

• The debt settlement process may take one to two years to complete (or even longer if many creditors are involved or debt amounts are high).

• The settlement will remain on your credit report for several years after it's finalized.

• There's no guarantee creditors will agree to negotiate. This means you could damage your credit score without achieving any debt relief.

• The IRS considers forgiven debt taxable income, in which case you could owe taxes on the amount forgiven. However, there is an exemption for insolvent taxpayers (meaning their financial liabilities exceed the value of their assets). Because of the complexity of tax law, it’s best to seek advice from a CPA or tax professional before making a decision based on tax implications.    

• After factoring in settlement fees, taxes on forgiven debt and the time involved, you might end up paying more than if you had simply repaid the debt in full on your own. 

Because of these risks, it’s best to explore other debt-relief options before proceeding with debt settlement. Other options include:

• Credit counseling: By working with a certified credit counselor, you can develop a tailored budget and repayment strategy. These experts assist you in gaining a clearer understanding of your financial picture, offering guidance on managing debt effectively. They may also negotiate with creditors to secure lower interest rates or fee waivers, helping you avoid negative impacts on your credit score.

• Debt consolidation: This approach merges several debts into a single loan, often at a reduced interest rate. With more affordable monthly payments, debt consolidation can make managing finances easier and save you money on interest in the long run. However, favorable loan terms typically require good credit.

• Debt management: A debt management plan, available through credit counseling agencies, consolidates unsecured debts into one predictable monthly payment. Credit counselors work with creditors to lower interest rates and waive fees. Although your credit accounts may be closed, this option avoids the credit score damage that can result from debt settlement.

To qualify for debt relief with National Debt Relief, you must meet several key requirements that demonstrate you are a good fit for the program. 

Minimum debt amount

The process of negotiating settlements with creditors is generally more effective when dealing with larger debt amounts. As a result, National Debt Relief typically requires clients to have at least $7,500 in unsecured debt. 

Documentation and information needed

When applying for National Debt Relief, you’ll need to provide comprehensive details about your financial situation. This includes documentation such as:

• A list of all your creditors and outstanding balances

• Recent credit card and loan statements

• Proof of income (such as pay stubs or tax returns)

• Personal identification and proof of address

This information helps the company assess your financial situation and determine if debt settlement is the right solution for you. The process typically starts with a free consultation to evaluate whether you're eligible for the program.

Financial hardship

To qualify for National Debt Relief’s program, you must also demonstrate financial hardship. This could include scenarios in which you’re struggling to make minimum payments or are falling behind on your debts due to a job loss, medical emergency or other significant financial challenges. National Debt Relief works best for individuals who are unable to keep up with payments but still want to avoid bankruptcy.

Enrollment process

Once it’s determined that you meet the qualifications, you will work with a debt specialist to create a plan. You’ll begin by making monthly deposits into a dedicated, FDIC-insured account, which will be used to accumulate the funds needed to negotiate settlements with your creditors. You’ll also be required to stop making payments directly to creditors during this time.

By understanding these qualifications and the types of documentation needed, you’ll be better prepared to decide if National Debt Relief is the right option to help resolve your debt situation.

• BBB rating and accreditation: BBB Accredited with an A+ Rating

• BBB customer reviews: 4.74 out of 5,202 reviews

• ConsumerAffairs: 4.9 out of 55,942 reviews

• Google reviews: 4.6 out of 10,375 reviews

• Trustpilot: 4.7 out of 41,136 reviews

Review information accurate as of Jan. 6, 2025.

Many customers praise National Debt Relief for its helpful and knowledgeable staff, transparent communication and successful debt reductions. Clients frequently report relief from overwhelming debt after working with the company, with some noting that they were able to resolve their financial issues within a reasonable time frame. The online dashboard that allows clients to track their progress is also widely appreciated.

However, there are some negative trends in reviews as well — though the specific complaints are common to any debt relief service. A common complaint is the impact on credit scores, as clients are required to stop making payments to creditors, which leads to accounts going into default. Some customers express frustration with how long the debt settlement process can take — sometimes longer than anticipated. Additionally, a few reviews mention dissatisfaction with fees or the amount of debt forgiven being less than they expected.

Accreditations

National Debt Relief holds the following accreditations and certifications:

• Accredited by the Better Business Bureau (BBB)

• Accredited member of the American Association for Debt Resolution (AADR)

• Certified by the International Association of Professional Debt Arbitrators (IAPDA) 

Phone: 800-300-9550

Operating hours: 

• Monday through Friday: 8 a.m. to Midnight EST

• Saturday: 8 a.m. to 11 p.m. EST

• Sunday: 8 a.m. to 10 p.m. EST

Address: 180 Maiden Lane, 28th Floor, New York, NY 10038

Fax: 888-688-3291

Email: success@nationaldebtrelief.com

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