National Debt Relief (NDR) is a leading debt settlement company that's helped over 1.2 million people negotiate lower balances since its founding in 2009.
We like that NDR only asks clients to have $7,500 in unsecured debt to qualify, compared to some competitors who require $10,000 or more. Additionally, it has a reputation for excellent customer service, with an A+ from the Better Business Bureau and high user ratings on Trustpilot.
National Debt Relief
Minimum debt
$7,500
Fees
Settlement fee is 15% to 25%, depending on the amount enrolled and the state you live in.
Availability
Available nationwide except in Connecticut, Oregon, Vermont or West Virginia
Highlights
According to National Debt Relief, clients who complete its debt settlement plan can reduce their enrolled debt by an average of 20% to 25%, after fees.
Read our National Debt Relief review.
Pros
- Only $7,500 in debt required
- A+ rating from the Better Business Bureau
- Accredited by the American Association for Debt Resolution and the International Association of Professional Debt Arbitrators
Cons
- Not available in Connecticut, Oregon, Vermont or West Virginia
National Debt Relief Review
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
According to National Debt Relief, clients who complete its debt settlement plan can reduce their enrolled debt by an average of 20% to 25%, after fees.
Freedom Debt Relief has resolved over $20 billion in outstanding debts since 2002. It offers free credit card debt relief consultations.
How does National Debt Relief work?
National Debt Relief tries to negotiate with your creditors to reduce the total amount you owe.
According to Natalia Brown, National Debt Relief's Chief Compliance and Consumer Affairs Officer, here's how it works:
- You'll receive a free consultation with one of NDR's specialists, who will review your options. NDR will also conduct a soft credit inquiry and provide a quote on how much money you could save and how much NDR's services will cost.
- If you move forward, you will submit an application for NDR's underwriters to review. If you are a good fit for the service, you'll be enrolled in the program.
- You will start depositing payments into an escrow account that NDR opens at a third-party bank. Based on the schedule you work out, payments may be bi-weekly, monthly or semi-monthly.
- NDR will then contact your creditors to negotiate settlements. The first settlement offer usually comes four to six months after enrollment. According to the company, clients who meet their obligations usually complete the program in 24 to 48 months.
Like most debt relief companies, National Debt Relief only works with unsecured debt, like credit cards, personal loans, medical bills and private student loans. It cannot negotiate secured debts, like auto loans or mortgages, or help with tax debt.
To be eligible for National Debt Relief's service, you must have at least $7,500 in debt and be several months behind on your payments. NDR claims customers save an average of 46% of their enrolled debt before paying its fee.
If you're not eligible, NDR also refers individuals to Reach Financial, which offers fixed-rate debt consolidation loans of $3,500 to $40,000.
How much does National Debt Relief cost?
In return for lowering your balances, National Debt Relief charges a fee that ranges from 15% to 25% of the debt you enrolled in the program.
If you enroll $20,000 of debt, for example, the cost could range from $3,000 to $5,000.
Clients must deposit funds in an escrow account, which NDR uses to pay creditors. There is a one-time setup fee of $9 for your account and a monthly maintenance charge of $9.85.
National Debt Relief pros and cons
Before signing up for a debt settlement service, consider the benefits and drawbacks.
- A+ rating from the Better Business Bureau
- $7,500 debt requirement is lower than many competitors
- Free consultation
- Customers tend to complete the program in 12-48 months
- Not available in Oregon, Vermont or West Virginia
- Fee is based on the enrolled debt, not the negotiated amount
Is National Debt Relief legit?
National Debt Relief is a legitimate debt settlement company that has helped more than 1.2 million clients reduce their balances since 2009. It's a member of the American Association for Debt Resolution and has received stellar reviews from customers on sites like TrustPilot and ConsumerAffairs.
National Debt Relief also received an A+ from the Better Business Bureau, which bases its grades on reviews and complaints from the public and other information it is able to obtain about a business.
Using any debt settlement service comes with risks, however, including damage to your credit score and potential legal action from creditors who choose not to settle.
How does National Debt Relief compare?
National Debt Relief vs. Americor
Americor Debt Relief
Minimum debt
$10,000
Fees
Settlement fee is 14% to 29% of enrolled debt.
Availability
Available nationwide except in Colorado, Oregon, West Virginia
Highlights
Clients don't pay unless their enrolled debt is lowered. Americor also offers a debt consolidation loan with terms of 12 to 60 months.
Read our review of Americor Debt Relief
National Debt Relief and Americor both have a low minimum debt requirement of $7,500 with no maximum.
NDR's fee ranges from 15% to 25% of the total enrolled debt, while Americor's fee ranges from 14% to 29%. It's worth getting a consultation from both companies to see which one has a lower charge for your specific situation.
The two operate in most states, with a few exceptions: NDR is not available in Vermont, and Americor doesn't operate in Colorado. Neither is available in Oregon or West Virginia.
National Debt Relief vs. Pacific Debt Relief
Pacific Debt Relief
Minimum debt
$10,000
Fees
Settlement fee is between 15% and 25% of enrolled debt.
Availability
Available nationwide except in Oregon
Highlights
Pacific Debt Relief's fee is based on the percentage of settled debt, rather than the amount you started the program with.
While Pacific Debt Relief and National Debt Relief both charge between 15% and 25% of your enrolled debt, PDR has a $10,000 debt minimum compared to NDR's $7,500 requirement.
Their biggest difference is in availability: Pacific Debt Relief only operates in 30 states, while National Debt Relief operates in 47, plus Washington D.C.
National Debt Relief FAQs
FAQs
How much debt do I have to have to qualify for National Debt Relief?
National Debt Relief requires clients to have at least $7,500 in unsecured debt to be eligible for its services. That can include credit cards, personal loans, medical bills and private student loans. Debts backed by collateral, such as auto loans or mortgages, don't qualify.
Will using National Debt Relief hurt my credit?
Because you're no longer making payments to your creditor, working with a debt settlement company typically involves a hit to your credit. Your score can drop by as much as 100 points or more. As you make payments toward your settled balance, however, your credit score will improve over time.
How much does National Debt Relief cost?
National Debt Relief's fee ranges from 15% to 25% of the debt you enrolled in the program. There is also a one-time $9 charge to set up your escrow account, as well as a monthly account maintenance charge of $9.85.
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At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every debt relief review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of debt settlement products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.
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