National Debt Relief Review 2024 (2024)

Pros and Cons Explained

Pros

• Has multiple accreditations: National Debt Relief is accredited by multiple organizations within the debt relief industry.
• Customer support usually available: Customer support is actually available for more hours each day than it’s closed (for general inquiries), so it should be easy to contact someone if you have questions or concerns. Support hours for current clients are more limited, however.
• Good customer reviews and ratings: Most people on third-party rating sites report good success and were happy overall with National Debt Relief’s services.

Cons

• Not available in all states: National Debt Relief is widely available, but residents of Oregon, Vermont, and West Virginia will need to look elsewhere for debt settlement options.
• Provides inconsistent information: The company’s website is filled with contradictory information and inaccuracies, raising a red flag about the information you’ll get when you contact the company. The website states, for example, that “As soon as you sign the agreement, you’ll no longer be required to pay your creditors.” But this is not true—you’re obligated to pay your debts under the agreements you make with creditors, unless those debts are forgiven or settled, and creditors can take you to court for overdue debts.
• Some concerning reports of bad outcomes: Although National Debt Relief has overall positive ratings, some unhappy customers tell similar stories of National Debt Relief bumping the required monthly deposit up by several hundred dollars months into the program, extra “legal” and “accounting” fees tacked onto their bill, and even unexpected invoices for several thousand dollars due in a month’s time.

How National Debt Relief Works

National Debt Relief operates similarly to other debt settlement companies. Everyone who contacts the company gets a free consultation. According to NDR, a representative will offer “financial counseling and guidance,” and help you develop a budget. It’s not a true credit counseling agency offering comprehensive support, however; it’s a for-profit company that offers debt settlement.

The representative will check if you meet National Debt Relief’s requirements to get started, which include being at least several months past due on at least $7,500 in unsecured debt, having the ability to make monthly deposits into a savings account, and having some sort of long-term financial hardship, such as medical bills or job loss. In some cases, you may be referred to its partner lender, Reach Financial, for a debt consolidation loan. Otherwise, the rep will explain how its debt settlement process works.

All debt settlement follows a similar script, National Debt Relief included. You’ll be advised to not make any payments to your creditors and instead funnel money into a third-party, FDIC-insured account each month. After a few months, National Debt Relief will try to negotiate a lump-sum payment with your creditors using the funds you’ve been saving up. You’ll get the final say in approving any negotiated offers, and if you give it the green light, National Debt Relief will pull the money out of the account, pay the settlement(s), and charge you a fee.

Accreditations

National Debt Relief is accredited or certified by three different organizations:

• American Association for Debt Resolution (AADR)
• International Association of Professional Debt Arbitrators (IAPDA)
• Better Business Bureau (BBB)

Take note that BBB accreditation is not based directly on a company’s performance, but rather on other metrics like how the company handles BBB complaints.

How to Enroll With National Debt Relief

National Debt Relief makes it easy to start the process. Here’s how it’ll work:

1. Contact the company: You can call NDR at (800) 300-9550, or fill out an online form to submit more information and have a company representative reach out to you.
2. Explore your options: The company may decide to offer you a debt settlement plan, or you may be referred to its partner lender for a debt consolidation loan. The company also states that you may be referred for other services, such as credit counseling, and—in some states—to a bankruptcy lawyer or tax professional.
3. Open a savings account: If you proceed with debt settlement, you won’t make payments to National Debt Relief directly; instead, you’ll be required to open an FDIC-insured account where you’ll save up your payments. National Debt Relief recommends a specific company (Global Holdings) for this purpose, but you can choose any account you want.
4. Contribute to your account: National Debt Relief will recommend that you set aside a certain amount of money every month in this account, which you retain control over. After a few months, it’ll start contacting creditors to negotiate a settlement using these funds.

Types of Debt Addressed

In general, only one type of debt is usually eligible to be enrolled in a debt settlement program with National Debt Relief or any other company: unsecured debt. Two popular forms of unsecured debt are certain loans and credit card balances.

Unsecured Loans

Any debts that aren’t backed by collateral are eligible for debt settlement. This includes personal signature loans, unsecured business debts, medical bills, and private student loans. Some of these debts may be easier to settle than others. Private student loans, for example, may be more difficult to negotiate because creditors know it’s more difficult to get rid of them if you eventually file for bankruptcy.

Credit Card Debt

Credit cards are a common source of debt for many people, and you can include them in a debt settlement plan. You generally won’t be able to use credit cards you enroll in a settlement plan once you start the program, however. Most creditors will close your card once you default on your debt.

Expected Cost

The overall cost of using National Debt Relief is fairly straightforward, but when it comes to specifics and other fees you’ll have to pay, it gets blurrier. National Debt Relief charges 15% to 25% of any debt that it’s able to settle. The specific amount depends on how much debt you have and which state you live in.

It’s unclear how you pay that fee. The company states on its website that “All of our fees are included in your monthly program payment that is deposited into your FDIC insured account,” while simultaneously saying elsewhere that they “never use your escrow account money to pay your fee." Some customer complaints on review websites have mentioned receiving a surprise multi-thousand-dollar bill in the mail after agreeing to a debt settlement.

That’s how much National Debt Relief itself charges, but you may be required to pay fees to other companies as part of the service, and NDR doesn’t provide any information on its website about how much this costs. For example, if you open a savings account through NDR’s partner, Global Holdings, you may have to pay a fee. Some customers also report to the BBB about being charged extra “legal” and “accounting” fees they didn’t expect.

Expected Relief Amount

National Debt Relief is generally able to negotiate a settlement for 46% of an average client’s starting debt, according to the company, dropping down to 25% after the company takes its fees. However, NDR doesn’t provide any information about how many people drop out before they reach the end.

Depending on the settlement that National Debt Relief is able to reach, you may end up paying a lump sum from your dedicated savings account, or you may enroll in a structured payment plan. Payment plans typically make up about 58% of settlement offers from these types of companies, as reported in a 2020 report by the American Fair Credit Council.

Expected Time to Complete the Program

The company does not provide information on how long the average customer takes to complete the program. Some customers may finish in one year, while others may take four years or longer. It all depends on how much debt you have, whether your creditors are willing to negotiate, how much you can save each month, and other factors.

Additional Services

National Debt Relief offers a couple of other helpful things:

• Financial calculators and educational resources
• Referrals for debt consolidation loans through Reach Financial, as well as legal and tax assistance

Client Dashboard

You’ll get access to an online account if you sign up with National Debt Relief. It doesn’t provide any details on what you can do or monitor with the account, however, and you’ll need an additional login for the savings account you’ll use to build your lump-sum payment.

Customer Service

No matter when you work, it should be easy to get ahold of someone at the company given its wide-open business hours. Depending on where you live, you may see a different phone number on the website, but either should work.

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