National Debt Relief review
- Minimum debt
- $10,000
- Typical turnaround
- 24–48 months
- Fees
- 15% to 25%
Our verdict
National Debt Relief (NDR) has great customer ratings, but the service could come with high fees.
Founded in 2009, National Debt Relief says it has helped hundreds of thousands of people get out of debt. It can help reduce the debt you own on credit cards and medical bills and stands out by including private student loan debt as part of its service — something most competitors don’t. But the program doesn’t work for everyone, and some customers report ending up in deeper debt than what they originally owed after using the program.
Best for: People in debt and facing bankruptcy as their only other option.
National Debt Relief stands out for including certain private student loans among its services — a rarity among competitors. It also has high rankings across user feedback websites like Trustpilot and ConsumerAffairs.com. National Debt Relief may not work for all customers, as you need to prove financial hardship such as job loss or divorce that keeps you from paying off your debt. And while National Debt Relief has overall good user reviews, the negative ones state that people ended up with more debt than before they went into the program. While NDR is negotiating a settlement, you need to deposit money into an FDIC-insured account. Once a debt settlement is reached, money from this account gets disbursed to pay your creditors. Clients who stay with the program and settle their debt see savings of 50% before fees, or 30% including fees, according to National Debt Relief. However, it’s important to stick to your payments once your debt is settled. This could prevent you from accruing any other fees and interest charges from your creditors. After your debts are settled, you can expect to pay 15% to 25% of the total debt enrolled as part of your monthly payment. So, if you enroll $50,000 in debt, you may owe a total fee of $7,500. During the negotiation process, you’d need to make monthly payments to an FDIC-insured account, from which funds were disbursed to creditors after a settlement is reached. Because National Debt Relief requires you to stop making monthly payments on enrolled debt until the company can reach a settlement, these debts are marked as delinquent on your credit report and your credit score will likely take a hit. Missed payments can remain on your credit report for up to seven years. Debt relief companies typically charge a percentage of a customer’s debt or a monthly program fee for their services. And not all companies are transparent about these costs or drawbacks that can negatively affect your credit score. Depending on the company, you might pay other fees for setting up new accounts or third-party settlement services, which can leave you in a worse situation than when you signed up. Consider alternatives before signing up with a debt relief company: National Debt Relief works with various clients. Here are some eligibility requirements: When you enroll in a debt consolidation program, National Debt Relief works with your creditors, such as banks, and attempts to negotiate a lower amount than you owe. National Debt Relief can also provide a debt consolidation loan you can use to pay off your debt. You’ll then owe National a monthly loan payment. Here are the steps to enroll: National Debt Relief has overall good customer reviews on reputable websites like Trustpilot. Many users praise them for excellent customer service and open communication. National Debt Relief has received an A+ rating from the Better Business Bureau (BBB). National Debt Relief has closed more than 256 complaints in the past five years. The organization also settled charges from the Minnesota Department of Commerce about its debt settlement services in June 2021. (1) It has a physical office in New York City. Before you commit to a debt settlement program, be aware of these risks: Anna Finder Editor Hi there, looking for more information? Ask us a question. You are about to post a question on finder.com: Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our finder.com Terms of Use and Privacy and Cookies Policy. This site is protected by reCAPTCHA and the Privacy Policy and Terms of Service apply. nikkiangco May 01, 2019 Hi Jackie, Thanks for reaching out to Finder! It’s helpful to know that if you want to settle your credit card debt, you can’t keep using your credit card. If you decide to stop making credit card payments, your creditor usually closes your account. Hope this clarifies! Cheers, Linda July 12, 2018 I have no income what is the best way to get debt relief? Jhezelyn Finder July 19, 2018 Hello Linda, Thank you for your comment. There are two principal debt-relief options: debt settlement and bankruptcy. Both of these methods of debt relief will affect your credit score. Getting a debt consolidation loan or using a credit counseling service, might be one of your options as well. I am sorry to hear about you having no income. You may refer to the steps below on how to deal with debt without an income: You may want to check our list of debt relief companies. Regards,
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Where National Debt Relief falls short
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National Debt Relief details
Free quote or consultation Yes Services Debt negotiation and settlements Minimum Debt $10,000 Average turnaround 24–48 months Fees 15% to 25% Types of debt Unsecured credit cards, medical bills, personal loans, lines of credit, collections, some private student loans. Accreditations Better Business Bureau (BBB) Direct or third-party negotiations Direct and third-party negotiations. State availability Not available in: Oregon, Vermont, West Virginia Before you sign up with a debt relief company
How to qualify for National Debt Relief
How the debt settlement process works
How National Debt Relief compares to other lenders.
National Debt Relief reviews and complaints
BBB accredited
Yes
BBB rating
A+
BBB customer reviews
4.71 out of 5 stars, based on 3034 customer reviews
Trustpilot Score
4.7 out of 5 stars, based on 38,727 customer reviews.
Customer reviews verified as of
18 January 2024
Is National Debt Relief legit?
Risks to debt settlement
Your reviews
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Nikki
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– Create a Survival Budget
– Prioritize Your Debts
– Negotiate With Your Creditors
– Explore Other Sources of Income or find a temporary work
– Available public assistance programs may help
– Debt Consolidation
– Debt Settlement
Jhezelyn
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Jackie
April 30, 2019
If decide to enroll in a debt settlement plan, can I keep one credit card active and make payments to avoid not having a credit card open for such things as rental car or hotel stay where credit card is mandatory?