Debt advice | Free debt advice | National Debtline (2024)

FAQs

Is the debt Advice Line legit? ›

We're a registered charity providing free, impartial, expert debt advice to more than 100,000 people each year.

National Debtline is a debt advice charity run by the Money Advice Trust. We are a free and confidential debt advice service for people in England, Wales and Scotland. We have helped millions of people deal with their debts.

About National Debtline

Run by national charity the Money Advice Trust, National Debtline offers practical self-help – empowering people in debt to speak to creditors directly and put solutions in place to resolve their debt problems.

Fees for National Debt Relief's Services

National Debt Relief charges a fee of 18%-25% of enrolled debt. This means if you came into the program with $20,000 in debt, expect to pay NDR between $3,600 and $5,000 in fees. There may be additional service or maintenance fees to pay depending on your state.

Debt relief companies, sometimes called debt settlement companies, are one option for those struggling with credit card debt, tax debt, personal loan debt and other types of unsecured debt. These companies can help you manage certain types of debt, but they won't be the right solution for everyone.

National Debt Relief is the best overall debt settlement company, according to our research. National Debt Relief's low-cost fee structure and referral service make it a top option for people struggling with debts. Our highest-rated debt settlement companies all charge similar fees, ranging from 15% to 25% of the debt.

National Debtline is a registered charity funded by the government and the private sector.

Our team of negotiators will negotiate with credit providers on your behalf. These negotiations comprise a new payment plan and a reduced monthly repayment amount, which will enable you to afford your monthly payment obligations.

Look for a credit counselor who can do the most for you. You might have to pay some money for help. But a good credit counselor will not ask you to pay in advance.

Payment history accounts for 35% of your FICO credit score, so enrolling in a plan with National Debt Relief could negatively impact your credit rating. The extent of that impact, however, depends on whether you're still current on your bills or not.

Do you pay for a debt management plan? ›

your DMP provider might charge you a fee, although there are several free providers you can use so there's no need to pay if you don't want to. your creditors might refuse to co-operate or continue to contact you. the DMP may show on your credit record, making it harder for you to get credit in the future.

Cons. Keep in mind that if you use a debt settlement company, you'll have to stop making payments to your creditors while the company negotiates on your behalf. Unfortunately, stopping payments — even while you're in the negotiation phase — will negatively impact your credit score.

You're at risk of missing payments

Debt consolidation can be a good idea if you're having a tough time juggling your financial obligations. Consolidating can put your debt in one place, so you have a single monthly payment. That might help you stick to your repayment schedule and avoid any adverse consequences.

A nation saddled with debt will have less to invest in its own future. Rising debt means fewer economic opportunities for Americans. Rising debt reduces business investment and slows economic growth. It also increases expectations of higher rates of inflation and erosion of confidence in the U.S. dollar.

Send the agency a letter by mail asking them to confirm their debt in writing. Search for the company name on the internet, review their website, call their number, etc. Do your homework. If they refuse to answer all of your questions, there's a good chance you're in the middle of a scam.

A legitimate debt collector can tell you their company name and mailing address, as well as information about the debt they say you owe. The debt collector should provide information about themselves and their collection agency.

They Ask for Fees Upfront

This is the most obvious sign of a debt relief scam. If the person/company offers to help get rid of your debt but first you have to pay them a fee, they're probably lying to you. Cut off contact and file a complaint with us.

If you're in a debt management plan (DMP), it may have an impact on your credit rating. This could mean you find it more difficult to get credit in the future. This page explains what you need to know about how a DMP could affect your credit rating.