National Debt Relief for Debt Settlement: 2025 Review
National Debt Relief offers debt settlement plans that can help you get out of debt, but it’s risky. Compare debt settlement with other debt payoff alternatives.
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National Debt Relief is a debt settlement company that negotiates on behalf of consumers to lower the debt they owe to their creditors.
Consumers who complete National Debt Relief’s debt settlement program reduce their enrolled debt by an average of 20% to 25% after fees, according to the company.
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Debt settlement is risky. There’s no guarantee of success, and it can seriously damage your credit. Before opting into debt settlement, NerdWallet recommends first exploring other ways to get out of debt, like enrolling in a debt management plan or applying for a debt consolidation loan.
» MORE: What is debt settlement?
National Debt Relief at a glance
Minimum debt required to enroll: | $7,500. |
Types of debt eligible for enrollment: | Unsecured debt, including credit cards, personal loans, lines of credit, medical bills, collections, repossessions, business debts and some student debts. |
Settlement fee: | Up to 25% of the total debt enrolled. |
Account fees: | $9 setup fee. $9.85 monthly maintenance fee. |
How long it may take: | Two to four years. |
How much you may save: | 20% to 25% of enrolled debt after fees. |
Availability: | Not available in: Oregon, Vermont, West Virginia and Wisconsin. |
How does National Debt Relief work?
National Debt Relief works by negotiating with your creditors to settle your debts for less than you owe.
Once you hire National Debt Relief, they’ll establish an FDIC-insured escrow account in your name. Then, rather than paying your creditors, you’ll deposit a monthly payment into this account. This monthly payment may be lower than the amount owed to your creditors, but the more you’re able to pay into the escrow account, the sooner you may be able to get out of debt.
As the amount in the escrow account increases, National Debt Relief negotiates with individual creditors on your behalf to get them to accept less than the amount you owe. Because you're no longer paying the creditor, the creditor may view getting a reduced amount as better than receiving nothing at all.
If National Debt Relief and the creditor reach an agreement, you then pay the creditor from the escrow account, and the debt is considered settled.
How much does National Debt Relief cost?
The biggest cost of debt settlement is the settlement fee. National Debt Relief’s settlement fee is 25% of the total enrolled debt, though some states cap fees as low as 15%.
Here’s how the settlement fee works: If you enroll in debt settlement with $10,000 in credit card debt, and you’re able to settle for $5,000, you’ll pay a settlement fee of $2,500 (25% of $10,000). This is in addition to the $5,000 you pay to your creditors. Altogether you’ll pay $7,500.
A debt settlement company cannot collect a debt settlement fee until it successfully settles a debt.
Other costs to using National Debt Relief include a one-time $9 setup fee and a monthly fee of $9.85 for establishing and maintaining the escrow account.
Nerdy Perspective
Expert take on National Debt Relief
“If you want to get out of debt, settlement is probably the last option I'd recommend. That’s because it can seriously tank your credit score, and it may take years to reach a successful settlement offer.
But if you're determined to go the settlement route, National Debt Relief is a nationally recognized company I'd feel comfortable directing you to. National has been around for 15 years, holds numerous accreditations and promises no upfront fees. Take advantage of the initial free phone call to get a sense of the program and ask National what you can expect in terms of timeline, costs and money saved on your debts.”
Is National Debt Relief legit?
National Debt Relief is a legitimate debt settlement company founded in 2009. It’s accredited by the Better Business Bureau (BBB) with an A+ rating and holds an accreditation from the American Association for Debt Resolution (AADR).
It’s important to carefully weigh the pros and cons before deciding whether to work with National Debt Relief.
Free initial consultation.
Multiple accreditations.
Additional services available.
Risky way to get out of debt.
No guarantee of success.
Pros of National Debt Relief
Free initial consultation: National Debt Relief offers a free, no-obligation phone call as part of its services. During this call, National Debt Relief will answer questions about debt settlement, explain how its program can help you and discuss options other than debt settlement.
Multiple accreditations: National Debt Relief holds multiple accreditations that help to establish its credibility. In addition to its BBB and AADR accreditations, National Debt Relief requires its debt arbitrators to be accredited through the International Association of Professional Debt Arbitrators (IAPDA), a nonprofit organization that helps both consumers and debt settlement companies assess debt relief options.
Additional services available: During your initial call, National Debt Relief may recommend services besides debt settlement that fit your situation, including debt consolidation loans, credit counseling or a bankruptcy referral. This can help you make a more informed decision about how best to approach your debt.
Cons of National Debt Relief
A risky way to get out of debt: There are risks in working with National Debt Relief, including a major hit to your credit, falling deeper into debt as you await a successful settlement negotiation and even the possibility of being sued by a creditor. Learn more about debt settlement risks lower down.
No guarantee of success: National Debt Relief says it can’t guarantee that creditors will accept a debt settlement offer, no matter how long you pay into the escrow account. This is true of all debt settlement companies, and it’s an important risk to keep in mind.
How to qualify for National Debt Relief
National Debt Relief works with consumers who have at least $7,500 in unsecured debt from credit cards, personal loans, lines of credit, medical bills, business debts and private student loan debts.
It does not settle secured debts, meaning any debt tied to collateral, like an auto loan or mortgage. National Debt Relief also doesn’t settle back taxes or child support.
National Debt Relief does a soft credit pull during the application process to verify creditors and outstanding balances owed on each debt. A soft credit pull does not affect your credit score.
National Debt Relief is not available in Oregon, Vermont, West Virginia and Wisconsin.
Know the risks of debt settlement
It’s important to understand the overall risks of debt settlement before deciding whether to work with National Debt Relief.
Organizations like the Consumer Financial Protection Bureau and the Federal Trade Commission urge consumers interested in debt settlement to consider these risks:
It will hurt your credit: Because you’re required to stop making payments on enrolled debts, those accounts will be marked delinquent on your credit reports. Your credit score will take a significant hit, especially if you weren’t already delinquent on those accounts. Delinquencies and settled accounts stay on your credit reports for seven years.
Interest and fees continue to accrue: Until you enter a settlement agreement, you’ll accrue additional interest and late fees on your debt. If you don't stick with the program to completion, or if the debt settlement company can't negotiate a settlement, you may end up with an overall higher balance.
You may still hear from creditors or debt collectors: There’s no guarantee your creditors will want to work with a debt settlement company, and you may be contacted by debt collectors or sued by creditors during the process.
Forgiven debt may be considered taxable income: Forgiven debts over $600 may be counted as income on your taxes. Creditors may send a 1099-C form to you in the mail and to the IRS. One exception is if you are insolvent (your liabilities exceed your total assets) at the time the company settles with your creditors.
National Debt Relief vs Freedom Debt Relief
National Debt Relief and Freedom Debt Relief are two large debt relief companies that offer similar debt settlement programs. Both settle unsecured debts with a minimum requirement of $7,500, and they charge the same settlement fee (up to 25% of enrolled debt) for their services. Both project the same average savings after fees and the same average time frame.
National Debt Relief is available in more states compared to Freedom Debt Relief, but may lack some perks like a program guarantee that refunds fees for customers who don’t save on their settled debts. However, National’s debt arbitrators are all accredited through the International Association of Professional Debt Arbitrators (IAPDA).
Alternatives to hiring a debt settlement company
Do-it-yourself debt settlement
Though it may seem easier to have a third party, like a debt settlement company, intervene on your behalf, you could have just as much success calling your creditors and negotiating with them yourself — and you may save thousands by not having to pay a settlement fee. Same as with using a debt settlement company, success isn't guaranteed, but if you owe only a few creditors, it’s worth a try.
Debt management plan
With a debt management plan, you’ll work with a nonprofit credit counseling agency to consolidate your debts into one monthly payment, while also reducing the interest rate. This is a good option for consumers with credit card debt who have a steady income to repay the debt within three to five years. Unlike debt settlement, a debt management plan should help build your credit score.
» MORE: What is a debt management plan?
Debt consolidation loan
By taking out a debt consolidation loan, you can pay off multiple debts at once, so you’re left with only one payment on your new loan. These loans are available to borrowers across the credit spectrum, and you can often pre-qualify with lenders to see your rates with a soft credit check. A debt consolidation loan should have a lower interest rate than your current debts, which saves money and helps you get out of debt faster.
Bankruptcy
Bankruptcy lets you resolve your debt under protection from a federal court. Chapter 7 bankruptcy, the most common form, erases most unsecured debts in four to six months. It’ll also stop calls from collectors and prevent lawsuits against you. Like with debt settlement, your credit will suffer, so consult a bankruptcy attorney first.
» MORE: The six types of bankruptcy