National Debt Relief review 2025
If you're struggling with debt payments and feeling overwhelmed, debt settlement may be a viable option to regain control of your finances. National Debt Relief is one of many debt settlement companies that have assisted hundreds of thousands of consumers in reducing their debt burden through negotiations on their behalf.
Before signing up for any debt settlement service, be aware that it can have serious consequences on your credit score.
National Debt Relief Review
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How does National Debt Relief work?
National Debt Relief's debt settlement service negotiates with your creditors to potentially save you thousands of dollars by reducing the total amount you must pay back.
National Debt Relief's Chief Compliance and Consumer Affairs Officer, Natalia Brown, explains how their debt relief process works.
- You receive a free consultation with a certified debt specialist from NDR, who reviews your debt relief options and conducts a soft credit inquiry. NDR provides you with a quote on their services' cost and an estimate of the savings you can achieve by using their services.
- If you want to move forward, you must submit an application. NDR's underwriters will confirm your debt problems are a good fit for the service and enroll you in the program.
- You open an FDIC-insured savings account at a third-party bank through NDR and deposit payments into it according to the schedule you agreed upon with NDR, which can be monthly, semi-monthly, or bi-weekly.
- After enrolling in the program, NDR will negotiate with creditors one at a time, and the first settlement offer typically appears within 4 to 6 months.
National Debt Relief specializes in resolving unsecured debt, including credit cards, personal loans, medical bills, and private student loans. This is a common practice among private debt relief companies. In addition to unsecured debt, National Debt Relief can also settle collections, repossessions, and business debt.
To qualify for National Debt Relief's service, you must have at least $7,500 in debt and be several months behind on your payments. The company states that its customers typically save an average of 46% of their enrolled debt before paying the company's fee. The program lasts between 24 and 48 months.
If you prefer debt consolidation over debt settlement, NDR will direct you to Reach Financial, a personal loan lender.
How much does National Debt Relief cost?
The cost of National Debt Relief's debt settlement service is between 15% and 25% of the debt you seek assistance with. For instance, if you enroll $20,000 of debt in the service, your fees could be between $3,000 and $5,000.
National Debt Relief: Pros and cons
Always weigh the advantages and disadvantages before enlisting the help of a debt settlement service.
Pros
- A+ rating from the Better Business Bureau (BBB)
- If there is no settlement offer, the settlement offer is not approved by the client, or the creditor does not receive at least one settlement payment, you do not pay National Debt Relief.
- Offers free consultation
Cons
- According to National Debt Relief, the program is not accessible in Oregon, Vermont, and West Virginia.
- You must have at least $7,500 in unsecured debt to qualify
- Fee is based on the total enrolled debt, not the negotiated amount
If you choose to work with a debt settlement company, you will need to halt your payments to creditors during the negotiation process. However, doing so may harm your credit score. The Consumer Finance Protection Bureau advises that creditors can still charge late fees and interest on missed payments, and in some instances, they may take legal action against you. Before deciding to use a debt settlement company, carefully consider the potential risks.
How does National Debt Relief compare?
National Debt Relief vs. Americor
While National Debt Relief and Americor are both well-known debt settlement companies, a comparison between the two reveals their differences.
Types of debt
Both Americor and National Debt Relief specialize in resolving unsecured debt, which includes personal loans, credit cards, lines of credit, medical debt, repossessions, and collections. Neither company works with secured debt such as mortgage or auto debt.
Minimum/maximum debt
National Debt Relief: $7,500 with no limit
Americor: $7,500 with no limit
Fees
National Debt Relief: 15% to 25% of the total enrolled debt
Americor: 14% to 29% of the total enrolled debt
While Americor's fees are higher than National Debt Relief's, the actual fee you're charged may vary depending on your state. It's recommended to get a consultation from both companies and compare your offers.
National Debt Relief vs. Pacific Debt Relief
National Debt Relief and Pacific Debt Relief are both debt settlement companies with comparable ratings and fees.
Types of debt
Both National Debt Relief and Pacific Debt Relief provide services for unsecured debt and collaborate with repossessions and collections.
Minimum/maximum debt
National Debt Relief: $7,500 and no maximum limit
Pacific Debt Relief: $10,000 and no maximum limit
Fees
National Debt Relief: 15% to 25% of the total enrolled debt
Pacific Debt Relief: 15% to 25% of the total enrolled debt
Although National Debt Relief and Pacific Debt Relief charge similar fees, Pacific Debt Relief has a higher minimum debt balance requirement. Additionally, Pacific Debt Relief is only available in 30 states, while National Debt Relief operates in 47 plus Washington D.C.
Is National Debt Relief legit?
Since 2009, National Debt Relief has been an accredited member of the American Fair Credit Council (AFCC) and has helped over 600,000 individuals get out of debt. It also has an A+ rating from the BBB (Better Business Bureau).
Does National Debt Relief hurt your credit?
It's common for your credit score to decrease when working with a debt settlement company.
Your credit score will decrease if you stop making payments, as payment history accounts for 35% of your FICO score. Since debt settlement companies instruct you to halt payments to your creditors, this may lead to a change in your score.
To work with National Debt Relief, you must be several months behind on your payments, which can lead to a drop in your credit score.
As you make payments toward your settled balance, your credit score will improve over time.
How to sign up with National Debt Relief
You can receive a free consultation by submitting National Debt Relief's online form or calling (888) 626-1806.
Frequently Asked Questions (FAQs)
Bottom line
National Debt Relief offers a more affordable debt settlement option with lower minimum balance requirements compared to other competitors. It is important to consult with their experts to assess your situation and make a comfortable decision.
Why trust CNBC Select?
Our goal at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of debt settlement products. At CNBC Select, we are committed to maintaining our journalistic standards and ethics, even though we earn a commission from our affiliate partners on many offers and links.
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