National Debt Relief review: A leading debt settlement company with high ratings

National Debt Relief is a leading debt settlement company that works to settle clients’ balances for less than they owe. It’s highly rated by its clients, and it’s accredited by the American Association for Debt Resolution (AADR). 

According to the company, its clients can become debt-free in 24 to 48 months, and they may save up to 25% after deducting the cost of fees. 

The New York-based company is available in most states. However, debt settlement isn’t appropriate for everyone. Depending on your situation, other options, such as debt consolidation or a debt management plan, may be a better choice. 

National Debt Relief at a glance 

  • Eligibility & Requirements: National Debt Relief requires at least $7,500 of unsecured debt
  • Fees: 15% to 25% of settled 
  • Ratings: A+ from the Better Business Bureau
  • Savings: 46% before fees; 25% after fees
  • Time: 24-48 months

Who is National Debt Relief good for?

National Debt Relief is a debt settlement company, meaning it negotiates with creditors in an attempt to convince them to settle their clients’ debt for less than they owe. If successful, the debt is settled, and the account is closed. As a debt settlement company, National Debt Relief is best for those who have significant amounts of unsecured debt, such as credit card balances, medical bills or personal loans, and who are unable to manage their debt on their own. 

Who shouldn’t use National Debt Relief? 

National Debt Relief isn’t a good fit for everyone. It only works with borrowers with unsecured debt; if you’re struggling with mortgages, auto loans or federal student loans, those accounts aren’t eligible for debt settlement. 

You also must have at least $7,500 of unsecured debt to qualify for its debt settlement program; if you have a smaller amount of debt, you’re not eligible for its program.

Pros Cons
Works with private student loans and business debt Not available in all states
Customer service available seven days a week Past history of litigation
Debt consolidation options available Can damage credit

How does National Debt Relief work? 

National Debt Relief provides debt settlement services, including free debt consultations. 

Debt settlement requires you to pause your creditor payments. Instead, you will make payments directly to National Debt Relief, and the company will deposit the money into a savings account for you. Once you’ve built up a large enough balance, National Debt Relief will begin reaching out to your creditors to attempt to negotiate a settlement. Through debt settlement, you may be able to eliminate your debt in 24 to 48 months.

National Debt Relief Costs
Debt consultation Free
Debt settlement 15% to 25% of enrolled debt

Types of debt National Debt Relief helps settle

Like most debt settlement companies, National Debt Relief only works with unsecured debt, meaning debt that isn’t secured by collateral. Commonly included debts are credit cards, personal loans and private student loans. Other forms of debt, such as home mortgages, car loans and federal student loans, are excluded from its debt settlement programs. 

Debt settlement support
Auto loans No
Business debt Yes
Credit card Yes
Medical bills Yes
Mortgages No
Personal loans Yes
Student loans Only private student loans

How National Debt Relief fees work

Debt settlement companies like National Debt Relief are highly regulated. Companies are prohibited from charging upfront fees; they can only charge you when they have successfully reached a settlement agreement with your creditors. Typically, debt settlement companies charge a percentage of your enrolled debt. In National Debt Relief’s case, the fee varies by location and balance, but ranges from 15% to 25% of your enrolled debt. 

How does working with National Debt Relief impact credit score

LIke all debt settlement companies, National Debt Relief can have a negative impact on your credit. Because debt settlement requires you to stop making payments to your creditors, you’ll miss your payment due dates. Your payment history is one of the most important factors affecting your credit score, so every missed payment can damage your credit. 

If the creditor agrees to settle your debt, they will close the account once it’s settled. Closed accounts will reduce your available credit and the age of your credit history, so your credit score may drop even more. 

National Debt Relief ratings

In general, National Debt Relief has strong customer reviews. The company is accredited by the Better Business Bureau (BBB) and it has an A+ rating. On TrustPilot, it has a 4.7 out of five rating based on over 39,000 reviews. Customers praised the company’s responsive customer support staff, affordable payments and user-friendly platform.

National Debt Relief Ratings
TrustPilot 4.7 out of 5
Consumer Affairs 4.9 out of 5

How much can I save by using National Debt Relief? 

According to the company, customers save an average of 46% of their enrolled debt before accounting for National Debt Relief’s fees. After fees, the typical savings rate is about 25%. 

However, keep in mind that your savings may be taxable as income. Forgiven or canceled debt is reported to the IRS, so it could result in a larger tax bill. 

How long does National Debt Relief take to settle debt?

Debt settlement isn’t a quick process. National Debt Relief says clients usually spend 24 to 48 months in the program before successfully settling their debt. 

Other services National Debt Relief offers 

For those who haven’t yet missed payments or who have good credit, another option is National Debt Relief’s debt consolidation option. With this approach, you take out a new loan for the amount of your existing balances, and you use it to pay them off. With good credit, you may qualify for a loan with a lower rate than you have on your credit card balances, so it can help you save money. If you choose debt consolidation, you may repay your debt in three to five years. 

Are their risks with settling debt with National Debt Relief?

Working with any debt settlement company, including National Debt Relief, poses some risks. Many creditors refuse to negotiate with debt settlement companies, so the company may not be successful in reducing your debt. And even if they are successful, you will have to pay up to 25% of your enrolled debt, and any savings may be taxable as income, negating some of the value of debt settlement. Additionally, in most cases, your credit score will be impacted negatively.

National Debt Relief reputation for settling debt?

National Debt Relief is highly regarded, and according to customer reviews, it is often successful in negotiating settlements for its clients. 

However, National Debt Relief has had some past issues with litigation. In 2023, a class-action lawsuit was filed against the company alleging that it installed IP trackers on users’ web browsers without their consent; the case was filed in New York, and is still pending. 

Compare National Debt Relief alternatives

States of operation Debt Settlement Fees Debt Consolidation
Current Selection
National Debt Relief
46 15% to 25% of enrolled debt Yes
New Era Debt Solutions 47 14% to 23% of enrolled debt No
CuraDebt 35 25% of enrolled debt No
Freedom Debt Relief 22 15% to 25% of enrolled debt Yes
Current Selection
National Debt Relief
15% to 25% of enrolled debt
New Era Debt Solutions No
14% to 23% of enrolled debt
CuraDebt No
25% of enrolled debt
Freedom Debt Relief Yes
15% to 25% of enrolled debt

Is National Debt Relief right for you?

Debt settlement through National Debt Relief can make sense if you’ve explored other debt management options, such as following the debt avalanche repayment strategy or consulting a non-profit credit counselor. It can be a good step to try before turning to more extreme options, such as bankruptcy, with the potential of eliminating your debt for less than you owe. 

However, debt settlement can severely damage your credit, and the fees can be expensive. If you have a smaller amount of debt, you may be better off by creating a budget, trimming your spending and paying down your debt on your own. 

Frequently asked questions

Where is National Debt Relief available? 

National Debt Relief is available in most states and Washington D.C. Only residents of the following states are ineligible: Connecticut, Oregon, Vermont and West Virginia. 

Does National Debt Relief charge upfront fees? 

Legitimate debt settlement companies like National Debt Relief are legally prohibited from charging upfront fees; you’ll only pay the company once it has negotiated a settlement with your creditors. 

Will National Debt Relief stop collection calls? 

Unfortunately, working with National Debt Relief or another debt settlement company won’t end collection calls. Since you aren’t making payments, debt collectors will still try to get you to pay what you owe, so the calls and emails will continue.

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