A key part of building wealth is minimizing your debt burden, but that may not be possible given the sudden and frequently changing nature of today’s markets and life in general. In that case, it is often beneficial to try to save money when paying off your debts by negotiating with your creditors. Debt settlement companies do just that, and National Debt Relief is one of the top players in that business. Our article, aimed at professionals looking to retire by 37, gives you a full detailed account of this firm. This National Debt Relief review will look into the pros and the cons of choosing this company for your debt consolidation needs.
National Debt Relief Company Overview
Let’s begin this National Debt Relief review by taking a quick look at the company itself. Established in 2009, it has grown to become one of the top firms in the debt settlement business. It is particularly liked for its excellent customer service and lower fees compared to competitors.
- Minimum debt required: $7,500
- Average debt: $20,000
- Fees: between 18% and 25%, no monthly account or consultation fees
- Timeframe: 24 to 48 months
- How much you are likely to save: average of around $6,296
How It Works
Debt settlement companies work by directly negotiating with your creditors on your behalf to get them to settle for only a portion of the original debt that you owed them. In order to qualify, you need to have at least $7,500 in unsecured debts, such as credit cards, medical bills, or some kinds of private student loans, as well as a reason why you are unable to pay them. Those could be things like unemployment, illness, a sudden death in the family, and so on. Then you pay a monthly payment into an account set up by the firm.
The debt settlement company then uses the reasons you give them to negotiate with your creditors, offering them a smaller amount to settle the entire debt. Because many such debts are not repaid for years or even at all, creditors tend to settle, and the company pays them from the account where you’ve been making monthly payments. That is also where their fee comes out of as well.
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This service may not be for everyone, as it does come with a few downsides. Mainly, it is only possible to negotiate on unsecured debts, and each settlement comes with a hefty hit to your credit score. If you have a good credit score, debt consolidation may be a better option. Since secured debts are not covered, National Debt Relief can’t help you much if you owe a lot on your mortgage or car payment.
In addition to the actual debt settlement, it is important to point out in our National Debt Relief review that it also provides a number of other useful services as you work with them. They offer budget planning advice and several different repayment options and schedules.
They also provide legal advice, and will represent you in court should a legal issue arise between you and one of your creditors. Most of these tools are available free of charge if you are enrolled in their debt relief program, adding considerably value to their service beyond simply reducing your debts.
Benefits of Using National Debt Relief
Over the course of our National Debt Relief review, we’ve found several areas where it stands above its competitors. The pleasant employees and excellent customer service are regularly mentioned in online reviews, which are generally positive.
It is also one of the few debt relief services that does not charge additional monthly fees or account fees, simply charging a percentage of your total debt. It is also unique in that it can even negotiate some kinds of private student loan payments. Because the student loan market is heavily regulated, most companies won’t even consider negotiating with student loan servicers, but National Debt Relief can settle some kinds of student loan debt.
In addition to those benefits, National Debt Relief also provides a free quote and a 100% money back guarantee. They can give you an estimate of how much you can save based on the kinds of debts you have, and will refund you for the money spent if you are not happy with how much they are saving you or the time that it is taking them to negotiate with your creditors.
What Are the Risks?
It would be a mistake to leave out the downsides and the potential risks out of the National Debt Relief review. Like all debt settlement services, it requires that your debts are in arrears before it can begin negotiating with your creditors. There is no reason for a bank to negotiate your debts down if you continue paying them on time. That means that using a debt relief service comes with a significant hit to your credit score as all of those missed payments are added to your credit report.
There are also a few risks that are specific to National Debt Relief. While it does charge lower fees than most of its competitors, it also tends to be a weaker negotiator. On average, the reductions in debt that it gets are lower than other companies in the business.
If a reduction of around 30% in your debts is enough to put you on a solid financial footing, then National Debt Relief can be a good choice, but if you are looking for reductions of closer to 50%, then it may make more sense to pay the monthly fees of one of its competitors. It is also not available for residents of Connecticut, Georgia, Kansas, Maine, South Carolina, Oregon, Vermont, West Virginia or New Hampshire, which can be a problem for some potential clients.
It is easy to understand how National Debt Relief can help you by looking over some sample debt math. Let’s assume that you are roughly $10,000 in debt. You sign up with National Debt Relief, and start making payments of $200 per month. They negotiate your debt down to $5000, and add their fee of 18% of the original debt – $1,800.
Your total that you pay is then $6,800. You pay it over the next 34 months, saving $3,200 or approximately 32% off of your original debt. This is a simple example, as in most cases you will be paying off and the debt settlement firm will be negotiating several different debts in parallel, but it is a good overview of how the process works.
You can contact National Debt Relief by phone or through their website.
- Website: National Debt Relief
- Phone: Toll-Free 800-300-9550; (855)-459-1560
- Email: firstname.lastname@example.org
- National Debt Relief Login Page
- Social Media: Facebook, Twitter, LinkedIn
Based on the information we’ve discovered during our National Debt Relief review, we can recommend it to our readers who have significant debts. While those with a good or excellent credit score may want to first look into debt consolidation instead, National Debt Relief provides a good way for many people in debt to significantly reduce the cost of paying them off. What has your experience with National Debt Relief been like? Tell us all about it!