National Debt Relief Review, April 2025

If you’re considering a debt settlement company like National Debt Relief to help with your high-interest debt, you’re not alone. In fact, debt resolution companies helped about 1.24 million indebted Americans save a total of $1.8 billion in 2022, according to the most recent economic impact study by the American Association for Debt Resolution.

Even so, there are a lot of inherent risks involved with settling your debt through companies like National Debt Relief that are worth weighing before moving forward. In this National Debt Relief review, we’ll examine how this company achieves debt resolution for customers like you, what risks you need to be aware of, and debt settlement alternatives to consider.

Overview of National Debt Relief

National Debt Relief is a debt settlement company whose primary service is negotiating down customers’ outstanding debts with lenders and creditors. Since 2009, National Debt Relief has helped more than 500,000 customers settle over $10 billion in unsecured debt.

According to National Debt Relief, customers who keep up with the debt relief program by paying off their reduced debt in the timeline they agreed to and get all their debt settled save an average of 46% of their total debt before fees, or 25% after the company takes its cut.

Both the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) warn Americans of the potential risk involved with debt settlement companies. 

National Debt Relief is a Better Business Bureau-accredited company with an A+ rating and strong customer reviews overall. However, a few customers had negative one-star reviews, generally dealing with excessive fees, increasing monthly payments, and settlements taking too long. At press time, National Debt Relief held the following ratings based on customer reviews:

How does debt settlement through National Debt Relief work?

National Debt Relief offers a straightforward program for debt settlement. You’ll start with a free, no-obligation consultation, during which you’ll talk about your financial situation and outstanding debts. From that information, National Debt Relief will assemble a plan for you.

While the debt settlement plan is National Debt Relief’s core focus, your assigned representative may also recommend other forms of debt relief through the company’s partners, including:

• Debt consolidation loans
• Credit counseling
• Bankruptcy help

If you choose to move forward with the proposed debt settlement plan, National Debt Relief will open an FDIC-insured savings account in your name. At that point, you will stop making payments on the debts you’re trying to settle, and instead, you’ll deposit money each month into that account.

Once you have made adequate deposits into the account (usually a few months), National Debt Relief’s team will attempt to negotiate your various debts with all of your creditors, with the goal of settling for an amount lower than what you owe. Because you’ve stopped making payments on those debts, creditors are more likely to agree to a lower amount — the idea being they’d rather get something than nothing at all.

If National Debt Relief comes to an agreement with a specific creditor, your debt relief representative will present the deal to you. You have the option to accept or reject it; only when you accept the settlement will you owe National Debt Relief a percent (15% to 25% of the enrolled debt). The funds in the savings account will then be disbursed to pay the fees and settled amount.

If the amount of money in the account does not cover the debt settlement and National Debt Relief’s fee, you will continue to make monthly payments to the account, usually over the next two to four years, until there’s enough to cover the settlement.

Pros and cons of National Debt Relief

Settling your debt through National Debt Relief can have several pros, but if you haven’t let your accounts fall into delinquency yet, you could be in for a longer and more stressful debt relief journey.

Pros

• Potential debt relief: The biggest benefit of National Debt Relief is just that — debt relief. If National Debt Relief is successful in settling your debt for less, you’ll still have to pay something, but customers who got their debt settled save 25% on average, after National Debt Relief’s fees.
• Creditor relationships: Though National Debt Relief isn’t always successful, the company goes through a comprehensive review before taking on your debt; if they move forward with your debt, they believe they have a good chance at succeeding. National Debt Relief credits this in part to their creditor relationships and knowledge of which types of debt are most likely to get settled.
• No upfront fees: You don’t pay National Debt Relief until they’ve successfully negotiated down your debt, you’ve agreed to it, and you’ve made your first payment. Note that you’ll continue to make payments based on the settlement agreement.

Cons

• Fees: While debt settlement has the potential to save you money by reducing what you owe and eliminating years of interest accumulation, you’ll still have to pay National Debt Relief a fee. National Debt Relief charges up to 25% of the amount of enrolled debt that’s settled.
• Inherent risk: Consumer watchdog agencies like the FTC and CFPB say dealing with debt settlement companies like National Debt Relief is risky. Practices such as discouraging you from paying your credit card bills can lead to late fees, severe credit score damage, and more aggressive tactics from collections agencies. In some cases, a creditor may choose to sue you if you pursue debt settlement.
• No guarantee: Debt settlement companies cannot guarantee success. While National Debt Relief offers you some protections if its team is unsuccessful (you don’t pay unless they negotiate your debt down and you agree to it), you’ll be worse off than when you started since you theoretically stopped making payments on your debts while accruing additional fees and interest.
• Damage to your credit score: Because a part of the debt settlement process with National Debt Relief entails that you stop making payments on your outstanding debts, your credit score is likely to drop. When your debt is successfully settled, the account will be labeled as “settled” on your credit report (rather than paid), which can also impact your credit.
• Tax implications: Settled debt through National Debt Relief can be considered taxable income, meaning you’ll owe money to Uncle Sam on any savings you get.

Note: These advantages and disadvantages are not exclusive to National Debt Relief; you’ll encounter similar pros and cons of debt settlement with other debt settlement companies.

How to qualify for National Debt Relief

Not everyone is eligible for debt settlement through National Debt Relief. Here are a few criteria you must meet:

• Minimum debt: For National Debt Relief to take on your case, you need to have at least $10,000 in unsecured debt.
• Overdue payments: National Debt Relief won’t take you on if you’re only a month or two behind on payments. You’re not likely to win any negotiations if you aren’t that deep in the hole.
• Financial hardship: You’ll need to prove to National Debt Relief that you’re facing real financial hardship, such as a job loss, divorce, death of a spouse, medical issue, or massive tax bill. This strengthens your case with creditors.
• Ability to make monthly payments: National Debt Relief needs to ensure you can make monthly payments into the savings account they establish for you. This monthly payment will be used to pay your reduced debts — and to pay National Debt Relief.
• The right kind of debt: National Debt Relief can help with a long list of debt, but it has to be the right kind of debt. The table below breaks down debts the company can and can’t help with.

Alternatives to debt settlement with National Debt Relief

Debt settlement companies like National Debt Relief might sound like the answer to your debt problems, but you have other options, depending on the severity of your hardships.

Meet with a credit counselor

Credit counselors are free or low-cost financial experts, often available via a nonprofit, who can help you make strategic decisions to get out of debt. They might help you design a budget that prioritizes paying down debt, review your credit report, and put together a debt management plan (DMP) for you.

It’s worth meeting with a credit counselor before taking any kind of drastic action to address a debt, especially if the resource is free.

Try debt repayment strategies

If you’re not too far behind on your debts, and you can live on a tighter budget while prioritizing paying your debts down, consider one of the classic debt repayment strategies: debt snowball or debt avalanche.

• Debt snowball means making minimum payments on all your debts, and then putting any extra money you can toward your smallest debt. Once that debt is paid in full, you can direct your attention to your next-smallest debt. The benefit of this method is psychological; getting early wins by paying off small debts can help build momentum (and give you fewer bills to stress about).
• Debt avalanche means making minimum payments on all your debts, and then putting any extra money you can toward your debt with the highest interest rate. Once that debt is paid in full, you can direct your attention to the debt with the next-highest interest rate. The benefit of this method is about spending less money overall. It may take you longer to pay off that first high-interest debt, but by prioritizing debts with the highest interest rates first, you’ll spend less money on interest in the long run.

These strategies only work if you can make enough room in your budget to make additional payments toward a debt each month and can avoid taking on more debt. If you don’t have money set aside for emergencies or unexpected expenses, it may be hard to succeed.

Get a debt consolidation loan

If you have a fair credit score or better, you might get a personal loan and use the funds to pay off all your existing debts. Now, you’ll have a single monthly loan payment, ideally at a lower interest rate. This is called a debt consolidation loan.

The best debt consolidation loans have reasonable interest rates, low or no fees, and flexible repayment terms. Some lenders offering these loans may even pay off your debts directly for you.

Balance transfer credit card

If you’re dealing with high-interest debt across multiple credit cards, the solution — as odd as it sounds — may be opening another credit card. Balance transfer credit cards allow you to move existing balances from other cards to the new card (usually for a 3% to 5% fee). Ideally, the balance transfer card should have an introductory period where there is a 0% APR.

The catch is twofold. One, you’ll need a good-enough credit score to qualify for a balance transfer credit card. Two, you’d need to prioritize paying off that debt in full while the 0% APR intro period is in effect. Once the period ends, you’d have to start paying interest on that debt at the card’s standard rate.

Compare: Debt Consolidation Loan vs. Balance Transfer

Bankruptcy

Bankruptcy is a legal process that can offer a fresh financial start if you’re overwhelmed by debt. Unlike debt settlement, which is a negotiation with creditors to pay less than what's owed, bankruptcy is a court-ordered procedure that can eliminate or restructure debts. Chapter 7 bankruptcy, often called liquidation, involves selling non-exempt assets to pay off debts. Chapter 13 bankruptcy involves creating a repayment plan to pay off debts over a period of three to five years.

While bankruptcy can severely impact your credit score and remain on your credit report for up to 10 years, the damage could be less severe in some cases than settling debt through a debt settlement company. Plus, creditors are generally required to stop pursuing you for collection once you file. 

However, bankruptcy is a serious decision with long-term consequences that should be considered only after exploring other debt relief options. Consult with a qualified bankruptcy attorney to determine if it's right for you.

Compare: Debt Consolidation vs. Bankruptcy: How To Choose