Navigating financial debt can often feel overwhelming, leading many to wonder: Is National Debt Relief legitimate? This question is common among those seeking a way out of financial distress.
In the following discussion, we'll examine the legitimacy and effectiveness of National Debt Relief to determine if it truly offers a path to financial freedom or if it could be a potential setback.
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What Is National Debt Relief
Founded in 2009, National Debt Relief is a for-profit company focused on helping individuals manage and resolve their financial debts. According to its official website, it’s one of the largest debt relief firms in the U.S., having assisted over 500,000 clients.
National Debt Relief specializes in debt negotiation, also known as debt settlement or debt resolution. This process involves working with creditors to agree on reduced debt amounts, leading to the cancellation of the remaining debt balances as agreed upon during negotiations.
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Is National Debt Relief Legit
National Debt Relief has a solid reputation for helping many individuals with debt negotiation. Their debt coaches are certified by the International Association of Professional Debt Arbitrators (IAPDA), and the company is a member of the American Fair Credit Council (AFCC), reinforcing its credibility.
How National Debt Relief Operates
National Debt Relief works with your creditors on your behalf to help settle your outstanding debts for less than what you owe, aiming to get you out of debt faster.
Here's how it works:
- Customized Plan: National Debt Relief creates a debt management plan tailored to your financial situation and budget.
- Monthly Savings: You make monthly payments into a secure savings account.
- Negotiation: National Debt Relief negotiates with your creditors to reach a settlement agreement.
- Payment to Creditors: Once an agreement is reached, payments to your creditors come from the funds in your savings account.
- Debt Forgiveness: Any remaining debt balance is forgiven, and you no longer owe payments to the creditor.
This process continues until all enrolled debts are settled. If clients stick to the plan, they become debt-free in 24 to 48 months.
National Debt Relief charges a fee for these services, which is included in your monthly deposits. The fee varies by state but typically ranges from 15% to 25% of your total enrolled debt, similar to fees charged by other debt relief companies.
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How to Enroll in National Debt Relief Services
If you're interested in debt relief services, you can start with National Debt Relief online or by phone. Here’s how to get started:
- Start the Process: Go to the National Debt Relief website and click "Apply," or call 800-287-1591.
- Provide Information: Share your name, email address, and an estimate of your total debt.
- Consultation: Consult a debt coach who will review your financial situation and suggest customized debt relief options.
- Personalized Plan: They will create a debt relief plan tailored to your financial needs.
- Agreement and Payments: Once you agree to the plan, you'll make a single monthly payment into a secure savings account that you control.
National Debt Relief focuses on helping you resolve your debt faster rather than just making minimum payments on multiple debts.
Debt Types and Additional Services
National Debt Relief can help with various types of debt, including:
- Credit card debt
- Medical bills
- Personal loans
- Lines of credit
- Collections
- Repossessions
- Some business debts
- Certain student loans
If you're behind on other loans, like a mortgage, it's best to contact your lender to discuss options. Additionally, if National Debt Relief's plan doesn't suit your needs, they can refer you to credit counseling, debt consolidation, or bankruptcy services.
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National Debt Relief Pros & Cons
Here are some pros and cons of National Debt Relief:
Pros
- Save on interest and get out of debt faster: By using National Debt Relief for debt settlement, you can negotiate to pay less than what you owe, saving on interest and helping you become debt-free sooner.
- Stop creditor calls and collection actions: National Debt Relief can halt constant creditors' calls and collection efforts, easing the stress of harassment.
- Avoid bankruptcy: Debt settlement might provide a bankruptcy alternative, helping you resolve debts without severely damaging your credit for the long term.
- Lower monthly payments: Negotiated settlements could lead to lower monthly payments than your current obligations, making financial management easier.
- Easy signup and free consultation: The signup process is simple, and the free consultation lets you explore your debt relief options without any upfront commitment.
- No upfront fees: You only pay fees as a percentage of the successfully settled debt, ensuring you only pay for results.
- Compare options with a free consultation: Discuss your financial situation with a debt counselor during the free consultation to decide if debt settlement is the right path for you.
- Real-time progress tracking: The online client portal allows you to monitor your debt settlement progress anytime, providing transparency and control.
Cons
- Service costs: National Debt Relief charges fees, although they are based on results.
- Temporary credit score drop: Debt settlement can negatively impact your credit score, which might take time to recover, affecting your ability to get new credit.
- No guarantee of creditor acceptance: Creditors may not accept settlement offers, potentially prolonging the debt resolution process.
- Some debts ineligible: Certain debts cannot be settled, limiting the available debt relief options.
- High fees: Fees can be as high as 25% of your settled debt, which may affect the overall savings from the settlement.
- No mobile app: While there’s an online client portal, the lack of a mobile app might be inconvenient for those who prefer managing their program on the go.
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How Will Participation in National Debt Relief Affect My Credit
As part of this debt relief program, you’ll need to stop making payments to your creditors and start prioritizing monthly contributions to a secure savings account. The longer creditors go without receiving payments, the more likely they are to negotiate.
Since payment history makes up 35% of your FICO credit score, enrolling with National Debt Relief could negatively affect your credit rating. The extent of this impact depends on whether you are current with your bills.
If you’re already several months behind, a few more late payments might not significantly worsen your credit score since it may have already dropped considerably. While late payments can stay on your credit report for up to seven years, their impact lessens over time.
However, if you’re current on your bills, even one late payment can cause a substantial drop in your score. In this case, consider alternatives like a debt management plan or debt consolidation, which may have a less severe effect on your credit scores.
National Debt Relief notes that most clients with low credit scores often finish the program with improved credit standings.
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National Debt Relief Reviews From Real Users - How Legit Is It?
To respond swiftly to your inquiry, we've thoroughly reviewed online feedback from actual users of National Debt Relief. We aim to give you a trustworthy evaluation of the company's legitimacy and effectiveness.
We gathered these reviews from Trustpilot.
National Debt Relief has a star rating of 4.7 based on 37,614 reviews on Trustpilot, indicating high customer satisfaction.
Common complaints include the website being useful for tracking debt reduction but needing better usability. Prolonged creditor negotiations can harm credit scores, highlighting the need for improved communication with creditors to avoid such issues.
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Alternatives to National Debt Relief
The company states that most clients who enroll with National Debt Relief aren’t yet delinquent on their debts. Instead, they've been making minimum payments or are close to falling behind.
For those in this situation, there are alternative methods for managing and relieving debt:
Freedom Debt Relief
Freedom Debt Relief is a debt settlement company that focuses on negotiating with creditors to reduce clients' unsecured debts. Clients usually make monthly deposits into a dedicated account, and as the funds grow, Freedom Debt Relief works to settle debts for less than the total amount owed.
Although this approach can alleviate debt, it may lower credit scores and come with service fees.
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Accredited Debt Relief
Accredited Debt Relief is a debt settlement company that assists clients in negotiating and settling their debts for less than the full amount owed. They strive to reduce the total debt and provide a structured program where clients make monthly deposits into an account.
While Accredited Debt Relief aims to help clients achieve debt freedom, the service may incur fees and impact credit scores.
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New Era Debt Solutions
New Era Debt Solutions is a credible alternative to National Debt Relief, providing various debt relief services designed to help individuals achieve financial stability. Committed to ethical practices, New Era Debt Solutions collaborates with clients to create personalized debt management plans tailored to their specific financial situations.
Their experienced team negotiates with creditors to lower total debt amounts and interest rates, aiming to guide clients toward debt freedom.
Their transparent approach, focus on customer satisfaction, and history of successful debt resolutions make New Era Debt Solutions an attractive option for those seeking effective debt relief solutions.
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Is National Debt Relief Legit – Frequently Asked Questions
Got questions about National Debt Relief and what they do? Let's dive into some common ones!
What Is the Purpose of National Debt Relief?
National Debt Relief aims to help folks lower or settle their debts for less than they owe. Acting as a go-between, they negotiate with creditors on behalf of clients to set up settlement agreements. This process speeds up debt relief for the clients.
What Are the Fees for National Debt Relief?
Fees for using National Debt Relief range from 15% to 25% of your total enrolled debt, depending on where you live. These fees are included in the monthly payments made into a secured savings account during negotiations.
Can National Debt Relief Help With IRS Debt?
National Debt Relief doesn't deal with tax debts owed to the IRS or state agencies. For unpaid taxes, you might set up a payment plan directly with the IRS or consult a tax attorney for advice on handling back taxes.
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Who Can Use National Debt Relief Services?
If you have at least $10,000 in debt, you might qualify for a debt management plan with National Debt Relief. They handle credit card debt, medical bills, personal loans, lines of credit, and some business or student debts.
How Is National Debt Relief's Customer Service?
To talk to a customer service agent at National Debt Relief, call 800-300-9550. Their hours are:
- Monday to Friday: 8 a.m. to midnight Eastern Time
- Saturday: 9 a.m. to 10 p.m. ET
- Sunday: 9 a.m. to 9 p.m. ET
Bottom Line on Is National Debt Relief Legit
National Debt Relief is a real company that helps folks manage and reduce their debts. Just like with any financial service, it's vital for you to do your research, read reviews, and fully grasp the terms and conditions before deciding if it's the right fit for your situation.
While many have found success with National Debt Relief services, how well they work can differ based on individual circumstances. So, think carefully before opting for their assistance.
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