Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Personal Finance Is National Debt Relief Legit? 2024 Review Updated Nov 15, 2024 7-min read Reviewed by Catherine Collins Reviewed by Catherine Collins Expertise: Budgeting, Mortgages, Credit, Debt, Personal loans, Small business, Entrepreneurship Learn more about Catherine Collins Visit Website Debt Relief Thousands of positive customer reviews No upfront payments Accreddited by the BBB, AADR, and IAPDA Negative impact on your credit score Lengthy process Lack of fee transparency Min. required debtTypically $7,500Settlement feeUp to 25% of total debt enrolled in the programAccount feesN/AHow much can you save?Approximately 50% of debt before debt relief fees and 30% of debt after fees Yes, National Debt Relief is a legitimate company with an A+ Better Business Bureau (BBB) rating and thousands of positive reviews on reputable sites such as Trustpilot. In this National Debt Relief review, we’ll explain how National Debt Relief works, who is eligible, what it costs, and the pros and cons. A drawback consumers should be aware of is that working with National Debt Relief means you’ll see a drop in your credit score because you must stop making debt payments for the company to negotiate on your behalf. If you don’t want to do that, we’ve also listed several alternatives to consider to help you in your debt payoff journey. Table of Contents Skip to Section How does National Debt Relief work?Is National Debt Relief legit?Pros and consAlternatives How does National Debt Relief work? National Debt Relief is a for-profit company that helps its customers reduce their debt by negotiating with creditors on their behalf. For this process to work, you have to stop making payments on your debt, which will negatively impact your credit score. Creditors might still call you asking for payment, and creditors can still sue you for debt owed during this process. Once your accounts are behind from non-payment, National Debt Relief negotiates with your creditors and asks them to settle your debt for less than you owe. Each time the company gets a settlement offer from one of your creditors, you’ll get an offer to approve or deny. Once you approve it and make a settlement payment, National Debt Relief takes its fee. According to the National Debt Relief website, this process can take 24 to 48 months. The company’s service is not a loan. It’s a negotiation service that reduces the amount you owe, but results are not guaranteed. You must make agreed-upon monthly payments to National Debt Relief during this process, which it will use to pay your creditors and withdraw its own fees. Am I eligible for National Debt Relief? If you have a significant amount of unsecured debt, like credit card debt or bank loans, you might be eligible to work with National Debt Relief. The table below shows the eligibility requirements for consumers, including whether the company is available in your state. Eligibility RequirementsNational Debt ReliefRequired debt amountTypically $7,500Types of debt allowedNational Debt Relief will work with debts, including credit card debt, bank loans, unsecured personal loans, business debts, and more. However, National Debt Relief does not assist with mortgages, car loans, child support, back taxes, and several others.Monthly paymentsTo qualify, you must be able to make consistent monthly payments.LocationsNational Debt Relief is not available to consumers living in Oregon, Vermont, and West Virginia. How much does National Debt Relief cost? The cost of National Debt Relief’s service varies based on the total debt you enroll in the program. Under service cost, on the Frequently Asked Questions page, it says the average client will pay fees of up to 25% of the total amount of debt they enroll. National Debt Relief does not charge fees until customers get a debt settlement offer, accept it, and make at least one settlement payment. One of National Debt Relief’s drawbacks is the price of its service. Listing a service fee cost of “up to 25%” is vague, and negative customer reviews reflect this sentiment. Several reviewers listed a lack of transparency over fees as a primary complaint, explaining that the company was not upfront about how much the fees would be when they signed up. Is National Debt Relief legit? Yes, National Debt Relief is a legitimate company with tens of thousands of positive reviews on reputable websites such as Trustpilot, Google, BBB, and Consumer Affairs. National Debt Relief has been in business since 2009 and has earned an A+ BBB rating. The company’s co-founder, Danny Tilipman, created National Debt Relief after his own personal experience with debt. Now, the company has served more than 550,000 customers. Some reviews on the BBB website mention phrases like “very professional,” “very helpful and knowledgeable,” and “thorough” to describe National Debt Relief. Below is a summary of customer ratings and the number of reviews from several respected sites. SourceCustomer ratingNumber of reviewsTrustpilot4.7/540,798Google4.6/59,799Better Business Bureau4.74/54,962Consumer Affairs4.955,482Collected on November 5, 2024. National Debt Relief pros and cons Each accredited debt relief company has pros and cons. National Debt Relief is no exception. Before using National Debt Relief to help you reduce your debt, here are some benefits and drawbacks. Pros Positive reviews National Debt Relief has thousands of positive customer reviews across many platforms. Its track record is evident across many reviews, highlighting good customer service, among other accolades. Accredited National Debt Relief is accredited by numerous organizations. These include the Better Business Bureau (BBB), the International Association of Professional Debt Arbitrators (IAPDA), and the American Association for Debt Resolution (AADR). No upfront payments National Debt Relief does not charge fees until you get a debt settlement offer from a creditor, approve it, and make at least one settlement payment. Cons Negative impact on your credit score National Debt Relief works by asking you to stop making payments on your debt. This is because creditors typically won’t negotiate unless your account defaults. However, discontinuing making payments will negatively impact your credit score. Lengthy process Some negative reviews on Trustpilot say, “The process is painfully slow” and “very slow to resolve consolidation issues.” National Debt Relief responded to several reviews explaining that the length of time debt relief takes will vary depending on individual circumstances. Lack of fee transparency National Debt Relief earns money by charging customers a fee of up to 25% of the total debt enrolled once they secure a settlement and you approve it. However, customers report not being informed of fees or say the fees were more than they expected. How to get started with National Debt Relief If you want to work with National Debt Relief, here are the steps. Apply: Go to National Debt Relief’s application page, select your debt amount, and click “Let’s Go.” You’ll be taken to the next page, which asks for your name, phone number, and email address. Get a free consultation: National Debt Relief will contact you after you fill out your application, and you can explain your current financial situation during the free consultation. The website says a representative will call you “in the next few minutes” after submitting, so you should be able to speak with someone quickly. Sign an agreement. If, after having your consultation call, you decide you want to work with National Debt Relief, you’ll sign an agreement to work with the company, which includes agreeing to make set monthly payments to them. The company uses this money to pay your creditors if you approve settlement offers. Stop paying your cards. As part of the debt settlement process, National Debt Relief will advise you to stop making debt payments because your accounts must be in default before creditors will make settlement offers. Wait for debt settlement offers. National Debt Relief will negotiate with creditors on your behalf to reach a settlement. Once the company receives settlement offers from your creditors, you can approve or reject the offer. Debt relief alternatives You have other options if you don’t want to work with National Debt Relief. Here are a few alternatives to consider. Debt consolidation loan A debt consolidation loan is when you take out a new loan, like a personal loan, and use it to pay off your debts. This enables you to consolidate several debts into one payment, which can help you streamline your debt payoff process. The downside is that most debt consolidation loans require you to have good credit, so not everyone will be eligible. Negotiate with creditors on your own If you’ve been unable to make payments and creditors call you regularly, you can try to negotiate your debt settlement on your own. The benefit is this can save you from paying hefty debt settlement fees to a company. The drawback is that you might not be successful in reducing your debt. Get a Debt Management Plan (DMP) If you don’t qualify for a debt consolidation loan, consider getting a Debt Management Plan. Several nonprofit organizations offer debt management plans as well as support and education that can help you get on your feet. The downside is these companies usually require you to close your accounts, which can negatively affect your credit.