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National Debt Relief is a debt settlement company that negotiates on behalf of consumers to lower how much debt they owe to their creditors.
In this review, I cover how the settlement process works with National Debt Relief, what pros and cons to consider and how to qualify.
But first I want to be clear: Debt settlement is risky. There’s no guarantee of success, and it can seriously damage your credit.
Debt settlement may be an option for those severely overwhelmed by debt. Before opting into a program, NerdWallet recommends 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?
Our Debt Relief Partners
Accredited Debt Relief
Accredited Debt Relief NerdWallet partners with Accredited Debt Relief to provide customers with over $20,000 in credit card debt with consolidation options to help them become debt free in 2-4 years by significantly reducing your monthly payment.
Freedom Debt Relief
Freedom Debt Relief NerdWallet partners with Freedom Debt Relief to provide customers with over $7,500 in unsecured debt with settlement options to reduce credit card debt, get one affordable monthly payment, and resolve their debt in as little as 24-48 months.
National Debt Relief
National Debt Relief NerdWallet partners with National Debt Relief to provide customers with over $10,000 in unsecured debt with settlement options to help them become debt free in 2-4 years with a total average savings of 23% after fees.
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, medical debt, payday loans, collections, repossessions and some private student loans. |
| Settlement fee: | 15% to 25% of the total debt enrolled. |
| Account fees: | $9 one-time setup fee. $9.85 monthly maintenance fee. |
| How long it may take: | Two to four years, on average. |
| How much you may save: | 20% of enrolled debt after fees. |
| Availability: | Not available in: Connecticut, Oregon, Vermont, West Virginia and Wisconsin. |
How does National Debt Relief work?
Once you hire National Debt Relief, they’ll establish an FDIC-insured “savings 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 savings account, the sooner you may be able to get out of debt. You can access this savings account anytime via an online customer portal.
As the amount in the savings 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 savings account, and the debt is considered settled.
It takes two to four years on average to complete National’s debt settlement program.
🤓 Nerdy Tip
Debt settlement companies often list projected savings on their website. These percentages vary significantly and may not include fees, so take them with a grain of salt. National told NerdWallet that customers can expect to save an average of 20% of their enrolled debt after fees. That means if your enrolled debt is $30,000, you could save $6,000. Projected savings are never a guarantee. 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 $15,000 in credit card debt, and you’re able to settle for $8,000, you’ll pay at most a settlement fee of $3,750 (25% of $15,000). This is in addition to the $8,000 you pay to your creditors. Altogether you’ll pay $11,750.
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 savings account.
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 Association for Consumer Debt Relief (ACDR) .
It’s important to carefully weigh the pros and cons before deciding whether to work with National Debt Relief.
Pros
Free consultation
Multiple accreditations
Debt consolidation loans
Cons
Lower projected savings
Risky way to get out of debt
No guarantee of success
Costs add up
Pros of National Debt Relief
Free consultation: National Debt Relief offers a free, no-obligation phone call as part of its services. During this call, a certified debt specialist will review your debts and give you a quote, including how much you may save with debt settlement.
Multiple accreditations: National Debt Relief holds multiple accreditations that help to establish its credibility. In addition to its BBB and ACDR 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.
Debt consolidation loans: National Debt Relief may refer you to Reach Financial, its partner in providing debt consolidation loans, if it feels a consolidation loan is a better fit than debt settlement. Debt consolidation loans are generally a safer option, because they don’t require you to withhold payment from creditors. Instead, you use the loan to pay off all your creditors at once and then repay the loan in monthly installments, which can even build your credit.
Cons of National Debt Relief
Lower projected savings: National Debt Relief’s projected savings — 20% of your enrolled debt after fees — is lower than other settlement companies reviewed by NerdWallet, many of which project savings of 25% or higher. The amount you save will likely be influenced by how much debt you enroll in the program and how quickly you can reach a successful settlement.
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: Like all debt settlement companies, National Debt Relief may not be able to settle all your debts even if you follow the program perfectly. This is because not all creditors accept settlement offers.
Costs add up: When working with a debt settlement company like National Debt Relief, you may be charged multiple fees, including a monthly account maintenance fee and a settlement fee of up to 25% of the enrolled debt. These fees are in addition to any charges you may accumulate from your creditors, like late fees or interest. Consider alternative ways to get out of debt (listed below) that may have fewer fees and cost less overall.
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, medical bills, collections, repossessions, payday loans and some 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 federal student loan debt.
The average National Debt Relief customer has more than $27,500 in total enrolled debt.
National Debt Relief does a soft credit pull during the application process to verify creditors and outstanding balances owed on each debt. This won’t hurt your credit score.
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.
- 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.
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.
Freedom’s projected average savings — 28% of enrolled debt after fees — are also higher than National’s average savings of 20% after fees.
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 can 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.
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- 1. Federal Trade Commission. Debt Relief Services & the Telemarketing Sales Rule: A Guide for Business. Accessed Feb 12, 2026.
- 2. Better Business Bureau. National Debt Relief. Accessed Feb 12, 2026.
- 3. Association for Consumer Debt Relief . Find an Accredited Debt Relief Provider. Accessed Feb 12, 2026.
- 4. Consumer Financial Protection Bureau. How long does information stay on my credit report?. Accessed Feb 12, 2026.
- 5. Consumer Financial Protection Bureau. What is a debt relief program and how do I know if I should use one?. Accessed Feb 12, 2026.
- 6. Federal Trade Commission. How To Get Out of Debt. Accessed Feb 12, 2026.
- 7. Internal Revenue Service. About Form 1099-C, Cancellation of Debt. Accessed Feb 12, 2026.
