Pros / National Debt Relief has the highest average debt reduction of the settlement companies we reviewed.
Cons / You won’t get a dedicated point of contact when you enroll in a settlement program.
Verdict / National Debt Relief is one of the strongest debt settlement firms for quick customer service that honestly explains the benefits and drawbacks of its programs.
National Debt Relief is one of the best options for debt settlement. Customer service and debt negotiation are provided in-house, but you won’t receive a dedicated customer service rep. Customer service is extremely quick to respond and will thoroughly explain the process to you during your initial consultation.
Cost & Fees
On average, National Debt Relief can reduce enrolled debt by around 49 percent which is slightly higher than Freedom and New Era. You will pay fees of between 15 to 25 percent on the amount that is settled. This debt relief company doesn’t charge any upfront fees, so you’ll only pay on the debts that are settled. Keep in mind, though, that the fees are in addition to the settlement, so a 20 percent fee in addition to a 49 percent settlement ends up being 69 percent of the original amount.
The typical debt settlement program lasts between 24 and 48 months. One important thing to know is that entering a debt settlement program can have immediate and lasting impacts on your credit score. You’ll stop paying your creditors and your accounts become delinquent. This can lead to calls from collection agencies. National Debt Relief advises you to give its contact information to your creditors and collections agencies when you join.
The minimum debt required for a debt settlement plan with this firm is $7,500, and the minimum for each account you enroll is $500. If you don’t meet the minimum threshold, you may be referred to a credit counselor who can help you manage your debts. National Debt Relief also offers debt consolidation loans through Liberty Lending.
We value transparency in a debt settlement company, and National Debt Relief was one of the most forthcoming with information. When we spoke on the phone with a customer service rep, they explained the program in detail, spelling out the benefits and drawbacks and offering recommendations on alternatives. They were quick to respond to our follow-ups and provided some of their onboarding information for us to look over.
It’s important to know that as part of this first call National Debt Relief will run a soft credit check to see who your creditors are, how much you owe and if your debts are eligible to be included in a debt settlement plan. We recommend taking quick stock of your budget and your monthly expenses. The debt specialist you speak to will ask about this so they can calculate how much you can afford to pay into a debt settlement plan.
This company works with unsecured debt – typically credit cards – as well as medical debt, private student loans and personal loans. Its debt settlement plans require you to stop paying your creditors and instead make payments into an escrow account set up by National Debt Relief. You control the money in this account. After several months of making installments into this account the settlement firm will begin negotiating with your creditors.
Once you’ve signed up for a debt settlement program, you’ll get access to the client dashboard that allows you to track how much you’ve saved and which accounts have been settled. It also provides you with financial tools such as calculators and budget worksheets. You’ll also be given form letters to send to your creditors, informing them that you’re in financial hardship and requesting that they not contact you to collect.
National Debt Relief is accredited by the American Fair Credit Counsel, an industry group that audits debt settlement firms to ensure they adhere to FCC guidelines. Customer service reps are trained and certified by the International Association of Professional Debt Arbitrators.
National Debt Relief offers debt settlement programs on as low as $7,500 of debt. If you have trouble making payments on time or recently had a big change in income, this debt relief firm can help you negotiate down your debt. It charges 15 to 25 percent on the amount of debt you enroll in the program.