National Debt Relief: 2024 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 of 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, who will deposit the payment in your escrow account on your behalf. 

• Debt negotiations: While your escrow account balance is growing, National Debt Relief will work on negotiating 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 of your debts, depending on how many creditors you owe and how high your debt balances are.

Like other debt relief companies, National Debt Relief doesn't charge any fees upfront. Instead, it collects a fee once all of your enrolled debt has been settled. According to National Debt Relief, “the average client usually pays a fee of up to 25 percent of the total debt enrolled.” This fee is typically covered by the monthly installment payments you continue to make to your escrow account.

If you choose to exit the program early for any reason, you only owe fees for the debts that have been settled to that point. 

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

While 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 that creditors will agree to negotiate. This means you could potentially damage your credit score without achieving any debt relief.

• The IRS considers forgiven debt as taxable income, in which case, you could owe taxes on the amount forgiven. However, there is an exemption for taxpayers who are insolvent (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 

• Debt consolidation

• Debt management

To qualify for the National Debt Relief program, you must:

• Enroll at least $10,000 in qualified debts.

• Prove that financial hardship, such as divorce, job loss or unexpected expense, is preventing you from covering payments and fees.

• Live in any of the 45 states National Debt Relief serves (Alabama, Oregon, Vermont, West Virginia and Wisconsin are not covered).

• Agree to make monthly payments to National Debt Relief instead of paying your creditors.

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

• BBB customer reviews: 4.74 out of 4,735 reviews

• ConsumerAffairs: 4.9 out of 54,996 reviews

• Google reviews: 4.6 out of 9,408 reviews

• Trustpilot: 4.7 out of 40,575 reviews

Review information accurate as of September 26, 2024.

National Debt Relief has developed a reputation for excellent customer service. It has an A+ Better Business Bureau (BBB) rating and an average of 4.74 out of 5 stars. The company consistently scores over 4.5 stars on other customer review sites as well.  

As is often the case with debt relief companies, negative reviews for National Debt Relief typically come from clients who were disappointed that progress was not being made faster or were upset that their credit scores were going down. In rare cases, creditors filed judgments against the borrower before the debt could be settled. 

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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