Unleashing the Truth: Does National Debt Relief Really Work?
How Does National Debt Relief Work?
National Debt Relief is a debt settlement company that has been helping people get out of debt since 2009. The company negotiates with creditors to reduce the amount of debt that their clients owe. But how does National Debt Relief work, and is it right for you? In this article, we'll take a closer look at National Debt Relief and its debt settlement process.
Debt Settlement Process
According to Investopedia, National Debt Relief's debt settlement process involves setting aside a monthly amount of money in a savings account until the debts can be settled for less than what is owed. National Debt Relief negotiates with creditors on your behalf to reduce your debt amount. When a debt is settled, National Debt Relief collects a fee.
Minimum Requirements to Qualify for the Program
National Debt Relief requires a minimum of $7,500 in unsecured debt to qualify for their program, according to NerdWallet. Unsecured debt includes credit card debt, medical bills, and personal loans. National Debt Relief does not deal with secured debt such as mortgages or car loans.
Types of Debt National Debt Relief Deals With
National Debt Relief deals with several types of unsecured debt, as stated by US News. These include:
- Credit card debt
- Personal loans
- Medical bills
- Collections and repossessions
- Business debts
- Certain types of student loans
Fees Charged by National Debt Relief
National Debt Relief charges a percentage of the settled debt as its fee, according to Forbes. However, the company only collects its fee when a debt is settled. This means you won't have to pay anything upfront to enroll in National Debt Relief's program. The company is also transparent about its fees, and you can view them on their website before enrolling.
Does National Debt Relief Work?
After reviewing National Debt Relief's debt settlement process, you may be wondering if it really works. In this section, we'll take a closer look at the benefits and drawbacks of National Debt Relief's program, as well as customer reviews and ratings.
Benefits of National Debt Relief
National Debt Relief claims to have helped thousands of people get out of debt, and there are several benefits to using their debt settlement program.
Debt Reduction Percentage
According to NerdWallet, consumers who complete National Debt Relief's program reduce their enrolled debt by an average of 23% after the company's fees. This means that if you owe $10,000 in credit card debt, you could potentially settle it for $7,700 with National Debt Relief's help.
Positive Impact on Credit Scores
Contrary to popular belief, debt settlement does not always have a negative impact on credit scores. According to Forbes, most clients with low credit scores end up with an increase in their credit after completing National Debt Relief's program. This is because debt settlement helps you get out of debt, which can improve your credit utilization ratio and payment history.
Real-time Progress Tracking
National Debt Relief has an online client portal that lets you track your progress in real-time, as mentioned by Investopedia. This means you can see how much you've saved and how much progress you've made towards settling your debts.
Drawbacks of National Debt Relief
While there are several benefits to National Debt Relief's program, there are also some drawbacks that you should be aware of.
Negative Impact on Credit Scores
As mentioned earlier, debt settlement can have a negative impact on credit scores. According to Forbes, enrolling in National Debt Relief's program could negatively impact your credit rating if you're still current on your bills. However, it may have less of an impact if you're already behind on payments.
Tax Implications
According to National Debt Relief's website at the time National Debt Relief settles with your creditors, you may not have to pay any taxes on the forgiven debt. It's important to speak with a CPA or tax professional for help with this.
Customer Reviews and Ratings
National Debt Relief has an A+ rating from the Better Business Bureau (BBB) with around 250 customer complaints closed in the past three years, according to NerdWallet. The company also has a 4.7 out of 5 rating on Trustpilot, as stated by US News. However, it's important to note that customer reviews can vary, and National Debt Relief may not be the best option for everyone.
Is National Debt Relief Right for You?
While National Debt Relief may be a good option for some people, it may not be the best choice for everyone. In this section, we'll take a look at some factors to consider when deciding if National Debt Relief is right for you.
Your Debt Amount and Type
National Debt Relief requires a minimum of $7,500 in unsecured debt to qualify for their program, as stated by NerdWallet. If you have less than this amount of debt, National Debt Relief may not be the best option for you. Additionally, National Debt Relief only deals with certain types of unsecured debt, such as credit card debt, personal loans, and medical bills. If you have secured debt such as mortgages or car loans, you'll need to look for other options.
Your Financial Situation
National Debt Relief's program may be a good option if you're struggling to make payments on your debts and are facing financial hardship. According to US News, National Debt Relief helps people with $10,000 or more in unsecured debt, and who are most likely suffering a financial hardship and behind on payments. However, if you're able to make your payments and aren't facing financial hardship, National Debt Relief may not be the best option for you.
Your Credit Score
As mentioned earlier, enrolling in National Debt Relief's program could negatively impact your credit rating if you're still current on your bills, as noted by Forbes. If you have a good credit score and want to maintain it, you may want to explore other debt relief options.
Alternatives to National Debt Relief
If National Debt Relief isn't the right option for you, there are several alternatives to consider. These include:
Debt Management Plans
A debt management plan (DMP) is a repayment plan that's set up between you and your creditors, as stated by NerdWallet. A credit counseling agency negotiates with your creditors to lower your interest rates and monthly payments. You make one monthly payment to the credit counseling agency, and they distribute the funds to your creditors.
Debt Consolidation Loans
A debt consolidation loan is a loan that you take out to pay off your existing debt, as mentioned by US News. You then make one monthly payment to the lender, usually at a lower interest rate than your existing debts. This can make it easier to manage your payments and potentially save you money on interest.
Bankruptcy
If you're unable to pay off your debts and don't qualify for other debt relief options, bankruptcy may be an option. Bankruptcy can help you get a fresh start by wiping out certain types of debt, as stated by NerdWallet. However, bankruptcy can have long-term effects on your credit score and should only be considered as a last resort.
How to Get Started with National Debt Relief
If you've decided that National Debt Relief is the right option for you, here's how to get started.
Step 1: Free Consultation
National Debt Relief offers a free consultation to help you determine if their program is right for you, as stated by Investopedia. You can call their toll-free number or fill out an online form to get started. During the consultation, a debt specialist will review your debts and financial situation to determine if National Debt Relief's program is a good fit.
Step 2: Enrollment
If you decide to enroll in National Debt Relief's program, you'll need to provide information about your debts and creditors, as mentioned by NerdWallet. National Debt Relief will then negotiate with your creditors to settle your debts for less than what you owe.
Step 3: Monthly Payments
Once your debts are settled, you'll need to make monthly payments to National Debt Relief, as stated by Forbes. These payments will go towards a secured savings account that National Debt Relief will use to pay off your debts.
Step 4: Debt Settlement
National Debt Relief will negotiate with your creditors to settle your debts for less than what you owe, as mentioned by Investopedia. Once a settlement is reached, National Debt Relief will use the funds in your secured savings account to pay off the debt.
Step 5: Completion
Once all of your debts have been settled, you'll complete National Debt Relief's program. According to NerdWallet, consumers who complete National Debt Relief's program reduce their enrolled debt by an average of 23% after the company's fees.
It's important to note that debt settlement can take time, and it's not a quick fix for debt problems. However, if you're committed to getting out of debt and willing to work with National Debt Relief's program, it can be a good option for you.
National Debt Relief Reviews and Customer Experiences
Before deciding to enroll in National Debt Relief's program, you may want to read reviews and customer experiences to get a better idea of what to expect.
Trustpilot
On Trustpilot, National Debt Relief has a 4.7 out of 5-star rating based on over 18,000 reviews, as mentioned by US News. Customers praise National Debt Relief for their excellent customer service and for helping them get out of debt.
Better Business Bureau
National Debt Relief is accredited by the Better Business Bureau (BBB) and has an A+ rating, as stated by NerdWallet. However, the company has received around 250 customer complaints closed in the past three years.
Consumer Affairs
On Consumer Affairs, National Debt Relief has a 4.8 out of 5-star rating based on over 3,000 reviews, as mentioned by Investopedia. Customers praise National Debt Relief for their knowledgeable and helpful debt specialists.
On Reddit, there are mixed reviews of National Debt Relief. Some users praise the company for helping them get out of debt, while others criticize the fees charged by the company, as noted by US News. It's important to remember that everyone's experience with National Debt Relief may be different and that it's important to do your research before enrolling in their program.
Personal Experiences
If you know someone who has used National Debt Relief's program, it may be helpful to ask them about their experience. They may be able to provide you with insight into the program and whether it's a good fit for you.
Is National Debt Relief Right for You?
National Debt Relief may be a good option for some people, but it's not the best choice for everyone. It's important to consider your debt amount and type, financial situation, and credit score before deciding if National Debt Relief is right for you. Additionally, it's important to do your research and read reviews and customer experiences to get a better idea of what to expect.
If you decide that National Debt Relief is the right option for you, remember that debt settlement can take time, and it's not a quick fix for debt problems. However, if you're committed to getting out of debt and willing to work with National Debt Relief's program, it can be a good option for you.
Thank you for reading this article on National Debt Relief. If you found this article helpful, be sure to check out our other great content on debt relief and personal finance.
Q & A
Who qualifies for National Debt Relief's program?
Consumers with $7,500 or more in unsecured debt who are behind on payments.
What is National Debt Relief?
National Debt Relief is a debt settlement company that negotiates with creditors.
How does National Debt Relief work?
National Debt Relief negotiates with creditors to settle debts for less than what is owed.
Who benefits from National Debt Relief's program?
Consumers who are committed to getting out of debt and willing to work with the program.
What are the fees for National Debt Relief's program?
National Debt Relief charges a percentage of the debts settled, but only after results.
How does National Debt Relief impact credit scores?
Debt settlement can harm credit scores, but National Debt Relief claims most clients end up with an increase in their credit after completing the program.
{“@context”:”https://schema.org”,”@type”:”FAQPage”,”mainEntity”:[{“@type”: “Question”, “name”: “Who qualifies for National Debt Relief's program?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “Consumers with $7,500 or more in unsecured debt who are behind on payments.”}}, {“@type”: “Question”, “name”: “What is National Debt Relief?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “National Debt Relief is a debt settlement company that negotiates with creditors.”}}, {“@type”: “Question”, “name”: “How does National Debt Relief work?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “National Debt Relief negotiates with creditors to settle debts for less than what is owed.”}}, {“@type”: “Question”, “name”: “Who benefits from National Debt Relief's program?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “Consumers who are committed to getting out of debt and willing to work with the program.”}}, {“@type”: “Question”, “name”: “What are the fees for National Debt Relief's program?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “National Debt Relief charges a percentage of the debts settled, but only after results.”}}, {“@type”: “Question”, “name”: “How does National Debt Relief impact credit scores?”, “acceptedAnswer”: {“@type”: “Answer”, “text”: “Debt settlement can harm credit scores, but National Debt Relief claims most clients end up with an increase in their credit after completing the program.”}}]}
