What is National Debt Relief
National Debt Relief is a debt settlement company that offers to help you resolve your unsecured debts by negotiating with your creditors to accept less than what you owe. The company has been in business since 2009 and has helped thousands of people settle their debts.
How does National Debt Relief’s program work?
The process of debt settlement with National Debt Relief follows the following four steps:
- You enroll your unsecured debts (credit cards, medical bills, personal loans) into their debt settlement program.
- Instead of paying your creditors directly, you start making monthly deposits into a dedicated account that National Debt Relief controls.
- As you fall behind on your actual bills, National Debt Relief’s negotiators reach out to your creditors to try to settle your debts for less than the full balance owed.
- The negotiation process can take 2-4 years until all your enrolled debts are settled.
What are the costs?
National Debt Relief typically charges a fee that ranges from 15-25% of your total enrolled debt balance. For example, if you enroll $30,000 in debt, you could pay between $4,500 and $7,500 in fees, in addition to the money you’ll need to pay to settle your debts.
What are the risks associated with National Debt Relief’s debt settlement program?
There are significant risks to using National Debt Relief for debt settlement. The following are the most common risks:
- Your creditors are not obligated to accept settlement offers and may instead escalate their collection efforts, charge late fees and interest, or even sue you in court.
- Your credit score will take a significant hit as you stop making payments and your debts become delinquent.
- Even if a debt is successfully settled, you may owe income taxes on the forgiven amount.
- There’s no guarantee that all your enrolled debts will be settled, and you may end up owing more than when you started due to accumulated interest and fees.
- With National Debt Relief’s fees, it is possible that you will not save any money on a settled debt. Some have even experienced an increase in costs.
Is National Debt Relief legitimate?
National Debt Relief is a legitimate debt settlement company with a proven track record of helping people resolve their debts. However, it’s essential to understand that their program is not the right solution for everyone, and there are significant risks and costs involved.
What are some alternatives?
Before considering debt settlement with National Debt Relief or any other company, it’s crucial to explore other debt relief options, such as:
- Nonprofit credit counseling
- Debt management plans
- Negotiating directly with your creditors
- Debt consolidation loans
- Bankruptcy (as a last resort)
Each of these options has its own pros and cons, and the best choice for you will depend on your unique financial situation and goals.
Is National Debt Relief the right choice for me?
Whether National Debt Relief is the right choice for you depends on several factors, including the amount and type of debt you have, your current financial situation, and your willingness to accept the risks involved. It’s essential to thoroughly research all your options, understand the potential consequences of each, and consult with an unbiased expert (such as a nonprofit credit counselor) before making a decision.
The bottom line
National Debt Relief is a legitimate debt settlement company that has helped many people resolve their unsecured debts. However, their program comes with significant costs and risks that may not make it the best choice for everyone. Before enrolling in any debt settlement program, make sure to carefully assess your financial situation, explore all available debt relief options, and seek advice from a trusted, unbiased professional. Remember, there’s no one-size-fits-all solution to debt problems, and the key is to find the path that best aligns with your unique circumstances and goals.
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