With credit cards, medical, and other debt weighing down millions of Americans, debt settlement services like National Debt Relief aim to provide a lifeline. But do debt settlement companies really help or just create more issues?
Here, we’ll look at how National Debt Relief works, its services, fees, and risks – plus what real customers have to say.
National Debt Relief Overview
Founded in 2009, National Debt Relief is one of the largest and most recognized debt settlement companies. They work to negotiate settlements with creditors to reduce clients’ overall debt balances.
National Debt Relief has helped over 600,000 customers and has an A+ rating with the Better Business Bureau. The company employs certified debt arbitrators and handles the negotiations so you don’t have to.
How Does the National Debt Relief Program Work?
Once enrolled, you’ll open an FDIC-insured account and make monthly deposits. National Debt Relief will then work to negotiate debt settlements with your creditors. They leverage your difficult financial situation and persuade creditors to agree so you can settle for less than what you owe.
The program usually takes between 24-48 months depending on your debt amount and savings ability. Once a settlement is reached, your account will be used to pay the agreed lower amount to the creditor.
Eligibility & Requirements In National Debt Relief You’ll need at least $7,500 in eligible debt to start. This includes credit cards, personal loans, medical bills, and certain other unsecured debts. National Debt Relief cannot work with secured debt like mortgages or auto loans. You will also have to demonstrate the financial hardship preventing you from paying the loan. While National Debt Relief is available nationwide, a few states prohibit debt settlement.
How to Sign Up For National Debt Relief?
You can sign up for National Debt Relief online or by calling them. A debt consultant will discuss your goals, debts, and budget to create a customized plan suitable for you.
When you enroll, you’ll get a welcome call, agreement, and access to an online account portal. This lets you track your progress and manage your account.
National Debt Relief’s Service Fees
Rather than charging upfront, National Debt Relief collects 15-25% of each settled debt. This fee gets taken from your account after settlements. There’s also a $9 monthly maintenance fee for your dedicated settlement account. While there are risks involved, the benefit is debt resolution without any upfront costs.
How Do They Affect My Credit Card?
A big downside is National Debt Relief may severely damage your credit score when you stop paying creditors and become delinquent. This hurts your score. Any settled debts will also show as settled for less which damages your credit further.
Pros & Cons Debt Settlement On National Debt Relief
Debt settlements through National Debt Relief have potential upsides but also key drawbacks and risks to consider.
- Settlements could lower your total balances.
- Settling debt may avoid a bankruptcy filing.
- Creditor calls/lawsuits may be reduced.
- Fees are only collected post-settlement.
- Your credit score will likely plummet.
- Settled debt may be taxable income.
- Interest/fees still accrue during the program.
- Success isn’t guaranteed.
Is National Debt Relief A Good Choice For Me?
While results aren’t guaranteed, National Debt Relief can be a legitimate option for some consumers. If you are struggling with a high unsecured debt balance and need relief, National Debt Relief may come in handy.
The credit impacts, fees, and risks mean you might want to consider alternatives like debt management plans, consolidation loans, bankruptcy, or negotiating directly with creditors yourself.
For customers with smaller debts or in states where National Debt Relief doesn’t operate, other options may be better suited than debt settlement. Try researching carefully before deciding if it’s the right solution for your situation.
Alternatives to National Debt Relief
Other ways to handle overwhelming debt include:
Debt Management Plans (DMP):
Work with a credit counselor to consolidate debts into one payment through a DMP. This helps pay off debt faster while paying down balances in full.
Debt Consolidation Loans:
Combine multiple debts into one through a personal loan, balance transfer card, home equity loan, etc. This simplifies payments and can lower your interest costs.
You may be able to negotiate settlements directly with your creditors either through phone calls or letters. This route takes effort but allows you to avoid third-party fees.
Filing for Chapter 7 bankruptcy stops collection calls and wipes eligible debts completely. However, bankruptcy severely damages your credit for years. Each option has pros and cons to weigh based on your specific situation. Make sure to consider all debt relief alternatives before signing up with National Debt Relief or any other debt settlement provider.
How Can I Contact National Debt Relief?
Here are a few ways you can contact National Debt Relief to learn more, ask questions, or speak to a representative:
Phone: Call their customer service line at 800-300-9550. Their support are always made available 7 days a week.
Online: Visit their website at www.nationaldebtrelief.com and click on the “Free Debt Consultation” button to schedule a call or live chat.
Send a message using their online contact form on the website.
Start a live chat through their website during business hours.
Email them at [email protected]
Physical Address: Their corporate headquarters address is: National Debt Relief 180 Maiden Lane, 30th Floor New York, NY 10038
You can call, email, visit their site to chat or send physical mail to make initial contact with a National Debt Relief representative.
This allows you to ask questions, get a free debt consultation, or learn more about their debt settlement services before deciding if it is the right option for your financial situation.
National Debt Relief can provide relief through debt settlements, but at the cost of your credit score, a lengthy process, risk, and fees. Make sure to explore the pros, cons, and alternative options before deciding if debt settlement makes sense for your situation.
While a legitimate option, debt settlement has downsides. Weigh the risks of damaged credit and continued collection calls against the potential debt reduction. National Debt Relief may be able to settle your debts, but also carefully manage expectations about the process.
More Related Content
- Best Debt Relief Companies of 2023
- Debt Relief – Tips to Choose a Good Debt Relief Provider
- What is Debt Relief and How Does It Work
- What is Debt Relief? – Taking Control of Your Financial Future
- Is Debt Settlement a Good Idea?
Check This Out:
- Debt Consolidation – Is Debt Consolidation a Good Idea
- Updated List Of Guaranty Trust Bank Sort Codes & Branches
- Tech Layoffs in 2023 – A Complete List of Tech Layoffs in 2023
- Y Combinator Strengthens its Team With Several New Key Members
- A Tech Group Characterizes India’s Proposed Guidelines Against Dark Patterns as ‘Regulatory Overlap’