Discover the Surprising Truth: Is National Debt Relief Worth It?
What is National Debt Relief?
National Debt Relief is a debt settlement company that helps consumers reduce their debt amount with creditors. According to NerdWallet, the company requires a minimum of $7,500 up to $100k in unsecured debt from credit cards, personal loans, medical bills, and other unsecured debts. While, US News states that the company helps people with a minimum of $10,000 in unsecured debt. National Debt Relief negotiates with creditors to reduce unsecured debts, which include credit cards, personal loans, medical bills, and others, but does not offer settlement services for mortgages, car loans, child support payments, back taxes, and other debts.
How Does National Debt Relief Work?
National Debt Relief's debt relief plan involves stopping payments to creditors and focusing on making payments to a secured savings account for negotiation purposes. Enrolling in the plan may negatively affect your credit score, especially if you're still current on your bills. However, the majority of clients with low credit scores who complete the program have an increase in their credit score. According to Forbes, National Debt Relief has helped over 100,000 people become debt-free and has settled over $1 billion in unsecured debt.
Accreditation and Ratings
National Debt Relief has an A+ rating with the Better Business Bureau, and is accredited by the International Association of Professional Debt Arbitrators, according to US News.
How Much Does National Debt Relief Cost?
One of the most important factors to consider when deciding whether National Debt Relief is worth it is the cost of the program. The company charges a fee that ranges from 15% to 25% of the total debt enrolled in the program, according to NerdWallet. The exact fee depends on the amount owed and the state of residence.
Length of the Program
The debt relief program typically lasts for 24 to 48 months, according to FinanceBuzz. During this time, National Debt Relief negotiates with creditors to reduce the outstanding debt amount.
Savings with National Debt Relief
While the program fee may seem high, it is important to consider the potential savings. According to NerdWallet, National Debt Relief has helped customers save up to 30% of their enrolled debt. For example, a customer with $100,000 in debt could save $30,000 with the program.
It is important to keep in mind that there is no guarantee of success with debt settlement. However, National Debt Relief has an A+ rating with the Better Business Bureau, which suggests that it has a good track record of helping customers become debt-free.
Pros and Cons of National Debt Relief
Before deciding whether National Debt Relief is worth it, it is important to consider the pros and cons of the program. While debt settlement can provide significant savings, it is not the right choice for everyone.
Pros
Debt reduction
One of the biggest advantages of National Debt Relief is that it can help to reduce your debt amount. According to US News, the company negotiates with creditors to reduce the outstanding debt amount, which can help to make repayment more manageable.
Simplifies debt repayment
Another advantage of National Debt Relief is that it simplifies debt repayment. Instead of making multiple payments to different creditors each month, you make one monthly payment to National Debt Relief. This can help to streamline your finances and make it easier to stay on top of your debt.
One monthly payment
With National Debt Relief, you only need to make one monthly payment. This can be easier to manage than making multiple payments to different creditors each month.
Cons
Negative impact on credit score
Enrolling in a debt settlement program like National Debt Relief can have a negative impact on your credit score. According to Forbes, stopping payments to creditors can result in missed payments, which can hurt your credit score. However, the majority of clients with low credit scores who complete the program have an increase in their credit score.
Not suitable for all types of debt
National Debt Relief is not suitable for all types of debt. According to US News, the company only offers settlement services for unsecured debts, which include credit cards, personal loans, medical bills, and others. It does not offer settlement services for mortgages, car loans, child support payments, back taxes, and other debts.
No guarantee of success
One of the biggest drawbacks of National Debt Relief is that there is no guarantee of success. While the company has a good track record of helping customers become debt-free, there is always a risk that the debt settlement process will not be successful.
Alternatives to National Debt Relief
While National Debt Relief can be a good option for some people, it is not the right choice for everyone. If you're considering debt relief, it's important to explore all of your options to find the one that is best for your situation.
Debt Management
Debt management is a program that helps you to repay your debts in full over time. According to NerdWallet, a credit counseling agency works with your creditors to negotiate lower interest rates and fees. You then make one monthly payment to the agency, which is distributed to your creditors.
Debt Consolidation
Debt consolidation involves taking out a new loan to pay off your existing debts. According to Bankrate, this can help to simplify your finances and reduce your interest rates. However, it is important to choose a reputable lender and to compare interest rates and fees carefully.
Bankruptcy
Bankruptcy is a legal process that can help you to get out of debt. According to NerdWallet, Chapter 7 bankruptcy involves liquidating your assets to repay your debts, while Chapter 13 bankruptcy involves creating a repayment plan. However, bankruptcy can have serious long-term consequences, such as a negative impact on your credit score and difficulty obtaining credit in the future.
DIY Debt Settlement
If you're considering debt settlement, you may be able to negotiate with your creditors on your own. According to NerdWallet, this involves contacting your creditors and negotiating a settlement amount. However, this can be a complex and time-consuming process, and there is no guarantee of success.
How to Decide if National Debt Relief is Right for You
Deciding whether National Debt Relief is worth it requires careful consideration of your financial situation and goals. Here are some factors to consider when making your decision.
Amount of Debt
National Debt Relief requires a minimum of $7,500 up to $100k in unsecured debt, according to NerdWallet. If you have less debt than this, you may want to consider other options, such as DIY debt settlement or debt management.
Ability to Repay Debt
National Debt Relief may not be the right choice if you are unable to make a monthly payment to a fund used to settle your debt. According to US News, customers must be able to make a monthly payment to the program.
Impact on Credit Score
Enrolling in a debt settlement program like National Debt Relief can have a negative impact on your credit score. According to Forbes, stopping payments to creditors can result in missed payments, which can hurt your credit score. If you are concerned about your credit score, you may want to consider other options, such as debt management or debt consolidation.
Other Options
There are many other options to consider when dealing with debt. Debt management, debt consolidation, and DIY debt settlement are all alternatives to National Debt Relief. Bankruptcy is also an option, although it should be used as a last resort.
Consult with a Professional
If you're not sure whether National Debt Relief is right for you, consider consulting with a financial professional. A credit counselor or financial planner can help you to explore all of your options and make an informed decision.
Is National Debt Relief Worth It? Final Thoughts
Deciding whether National Debt Relief is worth it requires careful consideration of your financial situation and goals. While debt settlement can provide significant savings, it is not the right choice for everyone. If you're considering National Debt Relief, here are some key takeaways to keep in mind:
- National Debt Relief is a debt settlement company that negotiates with creditors to reduce unsecured debts, which include credit cards, personal loans, medical bills, and others.
- The company requires a minimum of $7,500 up to $100k in unsecured debt, according to NerdWallet.
- National Debt Relief charges a fee of 15% to 25% of the total debt enrolled, according to US News.
- Enrolling in the program may negatively affect your credit score, especially if you're still current on your bills, according to Forbes.
- National Debt Relief is accredited by the Better Business Bureau and the International Association of Professional Debt Arbitrators.
Ultimately, the decision of whether National Debt Relief is worth it depends on your individual financial situation and goals. Consider all of your options and consult with a financial professional before making a decision.
Thank you for reading! Check out our other great content for more helpful tips and advice on managing your finances.
Frequently Asked Questions
Q: Who is National Debt Relief best suited for?
A: National Debt Relief is best suited for those with $7,500 to $100k in unsecured debt.
Q: What fees does National Debt Relief charge?
A: National Debt Relief charges a fee of 15% to 25% of the total debt enrolled.
Q: How does National Debt Relief impact credit scores?
A: Enrolling in National Debt Relief can negatively impact credit scores.
Q: Who is National Debt Relief accredited by?
A: National Debt Relief is accredited by the Better Business Bureau and the International Association of Professional Debt Arbitrators.
Q: What are some alternatives to National Debt Relief?
A: Alternatives to National Debt Relief include debt management, debt consolidation, and DIY debt settlement.
Q: How can I decide if National Debt Relief is worth it for me?
A: Consider your debt amount, ability to repay, and impact on credit score. Consult a financial professional if unsure.
