National Debt Relief Reviews: Is It Worth It in 2024?
National Debt Relief is a legitimate debt settlement company with strong ratings and over 400,000 satisfied customers. However, you'll pay 15-25% of your enrolled debt in fees and wait 2-4 years to complete the program. Consider credit counseling as an alternative that lets you repay debts with lower interest rates and no credit score damage.
Get Lower PaymentsSettling your debts can eliminate outstanding loans you can no longer afford. Once you finish the process, you’ll be in a better position to manage your money.
If you don’t plan on managing your debt settlement yourself, you need to find a company you trust. National Debt Relief is one of the most popular debt settlement companies.
Stop Paying 15-25% in Settlement Fees
Cambridge Credit Counseling creates affordable payment plans that reduce your interest rates without damaging your credit score. Get a free consultation and start lowering your payments today.
Lower My Payments NowBut is National Debt Relief legitimate? We examined their reviews, complaints, and services to find out.
How National Debt Relief Works
National Debt Relief has been offering debt settlement services since 2009. The company has helped more than 400,000 people resolve their debts through settlements.
The Enrollment Process
Enrolling with National Debt Relief starts with a free consultation. You’ll explain your financial situation and identify your creditors. You’ll also determine the total amount you owe.
During the consultation, you provide information about your income and payment capacity. National Debt Relief accepts virtually all unsecured debts into its program.
Eligible debts include:
- Credit card bills
- Medical debt
- Collection accounts
- Personal loans
How the Payment System Works
Once enrolled, you begin making monthly payments to National Debt Relief. They hold your money in an FDIC-insured bank account.
The company saves your payments until they have enough to settle your first debt. National Debt Relief charges between 15% to 25% of your total enrolled debt.
Example: Susan owes $20,000 to various creditors. She can’t keep up with her payments. She contacts National Debt Relief for help and they accept her into their program. Susan starts making monthly payments of $500. Within three years, Susan settles all her debts. She pays $4,000 to National Debt Relief for their services. She pays $10,000 to settle her obligations. Susan saves $6,000 in total.
You could also consider working with our partner Cambridge Credit Counseling to create a structured payment plan that reduces your interest rates.
National Debt Relief Reviews and Ratings
We researched National Debt Relief on the Better Business Bureau website. The company is fully accredited and has an A+ rating with the BBB.
National Debt Relief has nearly 4,000 customer reviews on BBB. Their average rating is 4.73 out of 5 stars. Their Google reviews earned them 4.6 stars out of 5 from almost 8,000 reviews.
What Customers Like
Most reviews express high customer satisfaction. Customers note how helpful the company’s associates were in setting up payment plans.
Many clients appreciate the clear communication and guidance throughout the settlement process.
Common Complaints
Most negative reviews mention drops in credit scores after enrollment. Lower credit scores are common with debt settlement programs.
Most people don’t continue making minimum payments to their creditors during settlement. National Debt Relief could improve by better explaining how debt settlement impacts credit scores.
National Debt Relief Complaints
We checked National Debt Relief complaints on their Better Business Bureau profile. The company has received several hundred complaints in recent years.
Most complaints involve misunderstandings about the debt settlement process. One person left the company after discovering their credit score dropped due to non-payment.
Communication Issues
One customer complained about poor communication. National Debt Relief didn’t advise her of the accounts they settled. The confusion led to a double payment.
Another customer complained about an account removed from the program. The client stopped making payments to the original creditor. National Debt Relief later informed them they couldn’t settle that particular debt.
How National Debt Relief Responds
One complaint involved a 90-year-old man with cognitive and hearing issues. His daughter held his power of attorney and didn’t authorize the enrollment.
When she contacted the company, National Debt Relief responded immediately. They disenrolled her father from the program and refunded all his money.
The company responds to every complaint promptly. Their response rate demonstrates their commitment to customer service.
Is National Debt Relief Legit?
National Debt Relief is a legitimate debt settlement company. Their customer reviews are overwhelmingly positive. The company responds to every complaint promptly.
Individuals who want professional debt settlement assistance should feel confident enrolling with National Debt Relief.
Drawbacks to Consider
Consumers pay substantial service fees for National Debt Relief’s services. You’ll spend months or even years saving before debts get settled.
Your credit score will likely drop during the program. You must stop paying creditors while saving for settlements.
Alternative Debt Management Options
You have several options beyond traditional debt settlement companies. Each approach has different costs and timelines.
Credit Counseling and Debt Management Plans
Credit counseling offers a structured approach to debt repayment. A debt management plan can lower your interest rates significantly.
You make one monthly payment to the counseling agency. They distribute payments to your creditors. Our partner Cambridge Credit Counseling specializes in creating affordable payment plans.
Debt management plans typically take 3-5 years to complete. You pay back the full amount but with reduced interest rates.
DIY Debt Settlement
You can negotiate directly with creditors without using a company. Direct negotiation saves you the 15-25% service fee.
You need to understand negotiation tactics and settlement terms. You must communicate clearly with debt collectors.
Bankruptcy as a Last Resort
Some debts may be too large for settlement programs. Bankruptcy might be your best option for a true fresh start.
Chapter 7 bankruptcy can eliminate most unsecured debts in 3-4 months. You can speak with a bankruptcy attorney for free to explore your options.
Comparing Costs and Timelines
Understanding the full cost of debt settlement helps you make informed decisions.
National Debt Relief Costs
Service fees range from 15% to 25% of enrolled debt. On a $20,000 debt, you’d pay $3,000 to $5,000 in fees.
Settlement amounts typically range from 40% to 60% of original debt. Your total payment includes both settlement amounts and service fees.
Timeline Expectations
Most programs take 24 to 48 months to complete. Larger debts require more time to accumulate settlement funds.
Your first settlement typically occurs after 6-8 months of saving. Subsequent settlements follow as funds accumulate.
What to Know Before Enrolling
Debt settlement isn’t right for everyone. You should understand all implications before enrolling.
Credit Score Impact
Your credit score will drop during the program. Missed payments get reported to credit bureaus.
Settled accounts appear on your credit report for seven years. The notation shows you paid less than the full amount.
Tax Implications
Forgiven debt may count as taxable income. The IRS considers debt forgiveness over $600 as income.
You’ll receive a 1099-C form from creditors. Consult a tax professional about your specific situation.
Creditor Lawsuits
Creditors may sue you during the settlement process. Stopped payments increase the risk of lawsuits.
You need a plan to respond if you get sued. National Debt Relief doesn’t provide legal defense services.
Alternatives Worth Considering
Several alternatives to National Debt Relief exist. Each option serves different financial situations.
Credit Counseling Agencies
Non-profit credit counseling agencies offer free consultations. They help you create realistic budgets and repayment plans.
A debt management plan through our partner Cambridge Credit Counseling can reduce your interest rates to as low as 8%.
You pay back the full amount but save thousands in interest. Your credit score improves as you make consistent payments.
Debt Consolidation Loans
A consolidation loan combines multiple debts into one payment. You need decent credit to qualify for favorable rates.
The single payment simplifies your finances. Lower interest rates reduce your total repayment amount.
Balance Transfer Cards
Some credit cards offer 0% introductory APR periods. You transfer existing balances to the new card.
You must pay off the balance before the promotional period ends. The strategy works best for smaller debts you can pay quickly.
Making the Right Choice for Your Situation
Your best debt solution depends on your specific circumstances. Consider your total debt amount and monthly income.
Debt settlement works best for people who can’t afford minimum payments. You need enough income to make monthly program deposits.
Credit counseling suits people who can afford current payments but need lower interest. Bankruptcy helps when your debt exceeds your ability to repay.
Compare multiple options before committing to any program. Get free consultations from different types of services.