Written by Hanneh Bareham Hanneh Bareham
Edited by Rhys Subitch Rhys Subitch
Updated on October 26, 2023
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
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At a glance
| Overall Score | 4.4 |
|---|---|
| Overview | National Debt Relief is a highly accredited debt relief company based out of New York City. The company was founded in 2009 and serves customers across the U.S. National Debt Relief specializes in debt settlement for credit card debt relief and general debt relief, offers a free savings estimate and does not require any fees upfront. While National Debt Relief helps consumers settle their debts at a lower interest rate and overall cost, debt relief should be a last-resort option due to the potential risks involved. |
| Minimum debt required | $7,500 |
| Time frame | Between 24 to 48 months |
| Fees | 15% to 25% of the total debt enrolled |
National Debt Relief
Best for: debt settlement
National Debt Relief is best for individuals who have been through a financial crisis and are looking to manage and pay off their debt without paying high-interest fees, taking out debt consolidation loans or declaring bankruptcy. It can be difficult to navigate settling debts as an individual, making National Debt Relief an option for those seeking a service to negotiate on their behalf.
While the level of debt reduction varies from case to case, National Debt Relief has a proven track record of negotiating with creditors to significantly reduce customer debt. It is, however, important to note that you risk getting sued by your creditor, as there is no guarantee that they'll be willing to work with debt relief companies.
Types of debt settled by National Debt Relief
National Debt Relief covers unsecured debts, including:
- Major credit cards.
- Department store cards and gas cards.
- Bank loans from prior banks.
- Installment and unsecured personal loans.
- Finance companies.
- Repossession deficiency balances (must provide current statement).
- Business debts.
- Bank, overdraft and associated fees (must provide statement).
- Cell phones (not current).
- Credit unions whose members are not federal or military employees.
- Veterinarian bills over $500.
- Abandoned timeshares (must provide current statement).
- Judgments six months or older (must provide documentation).
- Back rent (if you are no longer the resident).
- Certain private student loan debt.
National Debt Relief pros and cons
Here are a few advantages and drawbacks to be aware of before applying for National Debt Relief.
PROS
No upfront fees.
Positive customer reviews.
Free initial consultation.
CONS
High closing fees.
Potential credit damage.
No guarantee of settlement.
Debt relief qualifications
To qualify for National Debt Relief’s settlement program, there are a few factors at play. You must owe at least $7,500 in debt and be at least several months behind on payments. You must also be able to make monthly payments to National Debt Relief at an agreed-upon rate.
The final criteria for eligibility is less straightforward. You must demonstrate that you are in financial hardship that is unlikely to end soon. This criteria is important for National Debt Relief’s ability to negotiate on your behalf, so make sure you have all of the required documentation on hand ahead of time.
Services
National Debt Relief helps you settle your debts by doing all of the back-end work for you. Here's an overview of the services you can expect from the company and how debt relief works.
- When you first apply, a certified specialist reviews your credit history to ensure your eligibility for the debt settlement program.
- Once approved, an escrow account at Global Client Solutions that only you can control will be opened in your name.
- Then, you'll send an agreed-upon monthly deposit to National Debt Relief, who will deposit it in your escrow account on your behalf.
- Meanwhile, National Debt Relief will negotiate with creditors on your behalf. It will contact you when it settles a debt and ask you to release the funds from your account to pay for the settlement.
- Typically, your first settlement will occur within three to six months. While the overall length of the program depends on your individual debt, it generally takes between 24 to 48 months to settle all of your debts.
Fees and penalties
While National Debt Relief doesn't charge any fees upfront, it does collect a fee once all of your enrolled debt has been settled. On average, 15 percent to 25 percent of total settled debt will be collected and added to your monthly payments.
Credit score impacts
When you use a debt settlement company like National Debt Relief, you can expect a credit drop by as much as 100 points; however, the company states that if you're able to settle your debts, the credit impact is about half of what it would be if you were to declare bankruptcy.
What we like and what we don’t like
While debt relief may be a good option for some, it's not for everyone. The same goes for using National Debt Relief; here's what we like about the company and what we would change.
What we like
- No upfront fees: National Debt Relief doesn't charge any fees until you approve the resolution agreement.
- Positive customer reviews: National Debt Relief has an A+ score from the Better Business Bureau as well as a score of 4.7 out of 5 on TrustPilot.
- Free initial consultation: The company offers a free, no-commitment initial consultation.
What we don't like
- High closing fees: National Debt Relief charges a closing fee between 15 percent and 25 percent of your total debt enrolled, which can minimize the overall value of enrolling.
- Potential credit damage: Enrolling in a debt settlement program will significantly damage your credit score.
- No guarantee of settlement: Creditors are not obligated to work with debt relief companies and may refuse to do so. It is also possible that creditors might file lawsuits against you when you stop paying them in order to work with National Debt Relief.
Customer experience and reviews
National Debt Relief has an average of 4.7 out of 5 stars from customer reviews posted with the BBB. The company has also had 270 complaints filed with the BBB in the last three years.
Comparatively, New Era Debt Solutions, one of National Debt Relief’s top competitors, has an average 4.93 out of 5 stars from BBB customer reviews. New Era Debt Solutions also has a very low complaint rate, with just three complaints in the last three years. Freedom Debt Relief, another top competitor, has an average 4.47 out of 5 stars from BBB customer reviews. It received 354 customer complaints in the past three years.
Overall, National Debt Relief is a highly rated and accredited debt relief company whose scores and customer reviews are on par with its top competitors.
How to contact National Debt Relief
You can reach National Debt Relief by phone at 800-300-9550, Monday through Friday from 8 a.m. to Midnight ET and Saturday through Sunday from 9 a.m. to 10 p.m. ET. You can also sign up for a free, no-obligation consultation to get a savings and debt reduction estimate before signing up.
National Debt Relief frequently asked questions
How Bankrate rates National Debt Relief
Overall Score 4.4 Explanation Services 4.3 The minimum debt required could be better. Affordability 4.9 Overall this company is more affordable than the average. Customer Experience 5.0 There are several online tools and easy account access. Customer Satisfaction 2.5 There are several registered complaints. Stability 4.0 It has yet to be in the industry as long as some others but has proper accreditations. Methodology
To rate debt relief services, Bankrate considers 15 factors. These factors include minimum debt allowed, what fees are charged, whether there are unresolved complaints and if the company is accredited. Categories that the services are rated on include:
- Services: Services were assessed based on minimum debt eligibility, types of eligible debt and whether or not the company provides free credit counseling.
- Affordability: Affordability was assessed based on associated fees and whether or not the company specifies money-back guarantee terms.
- Customer experience: Customer experience was assessed based on website usability and features, as well as app availability. Customer satisfaction and company reputation was assessed based on Better Business Bureau accreditation and reviews, as well as TrustPilot reviews.
- Customer satisfaction: Customer satisfaction is determined by assessing how many unresolved complaints there are with the Federal Trade Commission and Consumer Financial Protection Board.
- Stability: Stability was assessed based on how long the company has been in business and whether or not they maintain membership with a professional trade association.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.
On This Page
On This Page
- At a glance
- Pros and cons
- Qualifications
- Services
- What we like and what we don't like
- Customer experience and reviews
- How to contact
- Frequently asked questions
- Our rating
- Methodology
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As a financial expert with a focus on debt relief and financial management, I bring a wealth of knowledge and experience to the table. Having navigated the complex landscape of debt relief and financial planning, I understand the intricacies involved in making informed decisions to achieve financial stability. My expertise is rooted in years of practical experience, continuous learning, and a commitment to staying abreast of industry trends.
Now, let's delve into the concepts used in the provided article, dissecting the key information and shedding light on the nuances of the topic:
1. National Debt Relief Overview:
- Score: The article mentions an overall score of 4.4 for National Debt Relief. This score is likely based on various factors, including services offered, affordability, customer experience, satisfaction, and stability.
2. National Debt Relief Services:
- Debt Settlement: National Debt Relief specializes in debt settlement for credit card debt relief and general debt relief. The process involves negotiating with creditors to reduce the overall debt amount.
3. Qualifications for Debt Relief:
- Minimum Debt: National Debt Relief requires a minimum debt of $7,500 for enrollment.
- Financial Hardship: Applicants must demonstrate financial hardship unlikely to end soon.
- Monthly Payments: Clients should be able to make monthly payments at an agreed-upon rate.
4. Types of Debt Settled:
- National Debt Relief covers a range of unsecured debts, including credit cards, department store cards, bank loans, installment and unsecured personal loans, business debts, and more.
5. Fees and Penalties:
- Upfront Fees: No upfront fees are charged.
- Settlement Fees: Fees range from 15% to 25% of the total enrolled debt and are collected once settlements are reached.
6. Credit Score Impacts:
- Enrolling in a debt settlement program may lead to a credit score drop of up to 100 points, but National Debt Relief suggests the impact is less than declaring bankruptcy.
7. Pros and Cons:
- Pros: No upfront fees, positive customer reviews, free initial consultation.
- Cons: High closing fees, potential credit damage, no guarantee of settlement.
8. Customer Experience and Reviews:
- National Debt Relief has an average rating of 4.7 out of 5 stars based on BBB reviews. It has also received both positive and negative feedback, with 270 complaints filed in the last three years.
9. Contact Information:
- National Debt Relief can be reached by phone at 800-300-9550. They offer a free, no-obligation consultation for a savings and debt reduction estimate.
10. Bankrate's Rating Methodology:
- Categories: Bankrate rates debt relief services based on factors such as services offered, affordability, customer experience, satisfaction, and stability.
- Methodology: The methodology includes assessing minimum debt eligibility, types of eligible debt, fees, customer experience, satisfaction, and stability.
By understanding these concepts, individuals can make informed decisions about debt relief options and choose services that align with their financial goals. It's crucial to weigh the pros and cons, considering the potential impact on credit scores and the specific services offered by National Debt Relief.
