National Debt Relief, which has its headquarters in New York City, was founded in 2006. It is one of the biggest debt settlement companies in the country.
This company aims to help people seeking debt relief, giving them another option instead of filing for bankruptcy, debt consolidation, or credit counseling.
- How Does National Debt Relief Work?
- Benefits of National Debt Relief
- Drawbacks of National Debt Relief
How Does National Debt Relief Work?
National Debt Relief claims that its clients save 50 percent on average on their debts – or 30 percent after paying the company’s fees. However, only those with unsecured debt (medical bills and credit card debt) can qualify for this type of relief. People who wish to qualify must have at least $7,500 in qualifying debt to be considered.
Once you’ve been given the green light to use National Debt Relief, you will set up a payment plan. Then, you will begin making payments into a fund, which is insured to protect your investment. After you have built up a considerable amount, it will be used as leverage to try to settle with your debtors for a one-time lump sum of money.
If a settlement is reached, the payment will be sent and National Debt Relief will collect its fee from your account as well. There is no monthly fee for their services. They’ll take a portion (currently 25 percent) of the money they’ve saved you on each account instead.
National Debt Relief says it will handle any discussion with companies you owe money to and will advocate on your behalf.
Benefits of Working With National Debt Relief
National Debt Relief details on its website what it can do for its clients. It offers a comprehensive question-and-answer page that provides information about its services and other options would-be clients have.
The company is a Better Business Bureau Accredited Business with an A-plus rating, and over 200 customer reviews giving it an average of 4 out of 5 stars. You won’t be charged any fees until your settlement is concluded – therefore National Debt Relief only gets paid if they solve your problem for you.
Those seeking out this type of service are likely strapped for cash and overwhelmed by their debts. They may feel relieved to have a conclusion in sight of the seemingly never-ending debt cycle. Knowing there is a workable solution might be made even better by the fact that your new payments might be lower than what you are currently paying.
Drawbacks of Using National Debt Relief
Using National Debt Relief – or doing any sort of debt settlement through a company like it or on your own – can impact your credit score negatively for years to come. That might be because as you make payments toward your fund, you’ll likely not be making payments to your creditors. All those missed payments will hurt your credit score. Also, if you end up getting a debt settlement, that will show up on your credit report and could negatively impact your score.
While National Debt Relief could be a good way to get out of unsecured debt, you may find yourself right back in it if you don’t figure out ways to cut back on your spending.
Furthermore, some recent customer national debt relief complaints about National Debt Relief cite poor communication with customer service.
If you feel debt relief is your best bet though, National Debt Relief is a good company to check out. They have a history of handling debts in the right way for people.
National Debt Relief might be an option to consider for someone who is struggling with unsecured debt and there’s no end in sight. It is a Better Business Association Accredited Business, which should give you confidence when seeking their help.
Before deciding upon debt relief and this company in particular, remember:
- You must be at least $7,500 in debt with no other way of paying it off to qualify.
- Your credit score will be lower for potentially years after you pursue this option.
- You will be dealing with a reputable company.
- Remember to try to handle your unsecured debt better in the future by staying away from carrying a balance on credit cards or by building an emergency fund to handle unexpected expenses.