National Debt Relief is one of the largest debt settlement companies in the U.S., and it’s one of Fortune’s picks for the best debt relief companies. The firm can negotiate with your lenders on your behalf, helping you settle for less than what you owe.

Here’s what you need to know about how the program works, how much it costs, who should consider it, and the risks to keep in mind before you get started.

National Debt Relief at a glance

• Eligibility & Requirements: Typically $7,500 in unsecured debt, financial hardship, and the ability to make monthly payments toward a settlement fund.
• Fees: Up to 25% of the enrolled debt (built into monthly payments, but charged only after you reach a settlement).
• Ratings: A+ from the Better Business Bureau; 4.7 out of 5 stars on Trustpilot; 4.8 out of 5 stars on Consumer Affairs.
• Potential Savings: Up to 45% before fees, roughly 20% after fees.
• Time: 24 to 48 months.

Who is National Debt Relief good for?

National Debt Relief’s program can be a good option for you if you’re behind on debt payments, and you don’t have a credit score that’s in good enough shape for debt consolidation or enough income for a debt management plan.

More specifically, here are some situations where working with the debt relief firm can make sense:

• You owe a lot of unsecured debt: You typically need $7,500 or more in unsecured debt (or $10,000 for certain programs). Keep in mind that debt relief companies typically don’t accept secured debt, such as auto loans or mortgages.
• You’re dealing with financial hardship: Examples may include a job loss, divorce, spouse’s death, high credit card balances, or unexpected expenses.
• You’re behind on payments: According to NDR, most of its clients are several months past due on their payments. At this point, other options like debt consolidation may no longer be viable.
• You can afford a monthly deposit: You’ll need to make monthly contributions to a settlement fund, which the company will use to try to negotiate with your creditors.

Who shouldn’t use National Debt Relief?

The idea of settling a debt for less than what you owe can be appealing, but because of the downsides associated with debt settlement, it’s most likely a fit for folks who could otherwise face bankruptcy. Here are some scenarios where it might not make sense:

• You’re current on payments: Creditors may not be willing to negotiate if they can tell that you can afford your payments. And, if you’re able to make at least the minimum payments on what you owe, you may have better options than accepting the substantial damage to your credit likely to follow from pursuing debt relief.
• You have good credit: As hinted at above, the debt settlement process can wreck your credit for years to come. If your credit score is in good shape, a debt consolidation loan or balance transfer credit card could be a better fit.
• You don’t have enough eligible debt: The debt relief firm doesn’t accept mortgages, auto loans, federal student loans, and several other types of debt. If you have eligible unsecured debt, your total balance needs to be at least $7,500.
• You live in a state where NDR doesn’t operate: The company doesn’t offer its services in Connecticut, Oregon, Vermont, West Virginia, or Wisconsin as of this writing.

National Debt Relief pros and cons

How does National Debt Relief work? 

Service	Cost
Debt consultation	Free
Debt settlement	Up to 25% of enrolled debt

Debt consultation
Cost	Free
Debt settlement
Cost	Up to 25% of enrolled debt

National Debt Relief can negotiate with your creditors to help you settle past-due debt for less than what you owe. The process starts with a debt consultation, in which you’ll share your situation and a dedicated debt expert will help you explore your options.

If you choose to move forward, NDR will prepare an affordable plan for you, including a monthly contribution amount and a timeline. If you approve, you’ll stop making payments to your creditors and instead contribute to your settlement fund.

Once your fund balance reaches a certain amount (usually after a few months), NDR will reach out to your creditors to start the negotiation process. Depending on the situation, they may try to negotiate a lump-sum or a monthly payment to settle the debt.

If a lender agrees, NDR will ask you to approve the agreement and a release of funds from your settlement account. Once a payment is made, the company will collect its fee. If you’re not happy with the offer, though, NDR will keep negotiating.

It’s important to know that if a creditor agrees to cancel a portion of your debt in a settlement, the canceled amount is usually considered taxable income. If the forgiven amount is $600 or more, you should receive Form 1099-C, which you’ll use to report the income on your federal tax return.

Types of debt National Debt Relief helps settle

Some of the other debts NDR can’t help you with include child support, back taxes, speeding tickets and fines, back rent for a current residence, most gambling debts, car repair bills, and insurance policies.

How National Debt Relief fees work

National Debt Relief fees:

• Debt settlement: Up to 25% of the enrolled debt

NDR charges up to 25% of your enrolled debt, but only after three things happen:

1. Your creditor sends an offer.
2. You accept the offer and approve a release of funds.
3. At least one settlement payment is made to the creditor.

Because the fees are built into your monthly payment, the company will deduct the fee from your settlement account rather than charging you separately. Until you reach that point, NDR doesn’t charge you fees of any kind.

How does working with National Debt Relief impact credit score?

Your payment history is the most important factor in your credit score. As a result, debt settlement (regardless of which debt settlement company you’re working with) can wreck your credit score, because the entire process is based on you not paying as you originally agreed.

Additionally, if your credit card issuers close your accounts, it could spike your credit utilization rate, which can further damage your credit.

That said, the actual impact will depend on your overall credit profile. If you’re already several months behind on payments, your credit score may have already taken a significant blow. But as you continue to skip payments to focus on building your settlement fund, your score may take more hits.

If you settle a debt, the negative mark will stay on your credit reports for up to seven years from the original delinquency date.

National Debt Relief ratings

National Debt Relief has received high marks across multiple major review websites, and it’s been accredited by the Better Business Bureau since 2013. On Trustpilot, 85% of customer reviews are five stars, and just 5% are three stars or less.

How much could you potentially save by using National Debt Relief? 

According to NDR, people who stick to the payment plan and settle all their debts may pay up to 45% less than what they owe. After fees, though, the savings are roughly 20%. That said, it’s important to note that canceled debt is generally considered taxable income.

For example, let’s say you have $20,000 in eligible debt, and your creditor agrees to settle for $11,000. If your fee is 25%, you’d pay NDR $5,000 in this scenario, leaving you with $4,000 in initial savings. However, the $9,000 in canceled debt would be taxable.

The average federal income effective tax rate is 14.11%, according to the Tax Policy Center, which would result in a tax bill of roughly $1,270. That leaves you with $2,730 in savings after taxes. Depending on your situation, those savings may or may not be worth the likely damage to your credit score.

How long does National Debt Relief take to settle debt?

NDR says its program typically lasts 24 to 48 months, but the timeline will ultimately depend on how much debt you have and how much you can contribute to your settlement fund each month.

At any rate, it’ll often take at least a few months before the company will start the negotiation process.

If your income increases while you’re in the program, NDR can increase your monthly contribution, which can accelerate the timeline. At the same time, if your income drops or you need money to cover an unexpected expense, the firm can lower your payment or even defer payments for a month or two.

Other services National Debt Relief offers

Debt settlement is the core service that National Debt Relief offers. However, the company works with a variety of partners to help you tackle your debt in other ways:

• Debt consolidation: NDR partners with Reach Financial to offer debt consolidation loans. Loans range from $3,500 to $40,000, with repayment terms between 24 and 60 months. This option may be better if your credit score is in the upper 600s or higher.
• Credit counseling: NDR’s partner network includes credit counseling agencies, which may be able to provide free help with budgeting and debt.
• Bankruptcy and tax referrals: Depending on your circumstances and where you live, NDR may be able to refer you to a bankruptcy attorney or tax professional.

What are the risks with settling debt with National Debt Relief?

Debt settlement can sometimes save thousands of dollars and provide meaningful relief. But even with a reputable debt relief company like NDR, there are still risks:

• Creditors aren’t obligated to negotiate: There’s no assurance that you’ll get the deal you’re looking for, or even that your creditors will work with you. Your debt could end up getting sent to collections. If you miss several payments and don’t get an offer, you might end up worse off than you started.
• You may be sued: Your creditors may opt to sue you for payment rather than negotiate a settlement through a third party like NDR. If this happens and the creditor wins a judgment against you, you could face wage garnishment, a bank levy, and more.
• Your balances can continue to grow: Your creditors may continue to add interest and late fees while you’re building up your settlement fund, increasing the total amount you owe.
• The canceled debt may be taxable: As previously mentioned, canceled debt is typically considered taxable income, and that tax bill shrinks your potential savings.
• Your situation may change: If your financial situation worsens and you can’t keep up with monthly contributions to your settlement fund, you may be forced to consider other options.

Keep in mind that NDR allows you to cancel your program at any time without penalties, though you may owe fees for debts already settled.

What is National Debt Relief’s reputation for settling debt?

National Debt Relief has settled more than $20 billion in debt for over 1.5 million people since it began operations in 2009. In addition to stellar customer service ratings on BBB, Trustpilot, and Consumer Affairs, the company is an accredited member of the Association for Consumer Debt Relief, and highlights on its website that it’s Platinum accredited through the International Association of Professional Debt Arbitrators.

Compare National Debt Relief alternatives

Working with NDR can be a path worth considering if you’ve fallen behind on payments and debt consolidation or a debt management plan aren’t viable for you. However, it’s a good idea to shop around and compare several options before moving forward. Here’s how NDR stacks up against other debt relief firms:

Company	Settlement fees	Minimum debt required	Trustpilot rating	States available
National Debt Relief	15% to 25% of enrolled debt	$7,500	4.7	45
Freedom Debt Relief	15% to 25% of enrolled debt	$7,500	4.6	40
Americor	14% to 29% of enrolled debt	$7,500	4.7	47
Accredited Debt Relief	15% to 25% of enrolled debt	$5,000	4.8	51
J.G. Wentworth Debt Relief	18% to 25% of the enrolled debt	$10,000	4.8	29

National Debt Relief
Settlement fees	15% to 25% of enrolled debt
Minimum debt required	$7,500
Trustpilot rating	4.7
States available	45
Freedom Debt Relief
Settlement fees	15% to 25% of enrolled debt
Minimum debt required	$7,500
Trustpilot rating	4.6
States available	40
Americor
Settlement fees	14% to 29% of enrolled debt
Minimum debt required	$7,500
Trustpilot rating	4.7
States available	47
Accredited Debt Relief
Settlement fees	15% to 25% of enrolled debt
Minimum debt required	$5,000
Trustpilot rating	4.8
States available	51
J.G. Wentworth Debt Relief
Settlement fees	18% to 25% of the enrolled debt
Minimum debt required	$10,000
Trustpilot rating	4.8
States available	29

Fees are generally similar across all of these companies, as are Trustpilot ratings. Depending on how much debt you have, though, one company may be a better fit than the others. For example, if you don’t quite have $7,500, you may consider Accredited Debt Relief, which has a lower threshold.

It may also depend on where you live. Some firms operate in more states than others, and if a company doesn’t provide services where you live, it won’t be a good fit.

Is National Debt Relief right for you?

It can be worth considering debt settlement through NDR if you have a sizable amount of unsecured debt and you’re falling behind on payments without a clear path to be able to repay what you owe. Even so, you’ll also need to be able to afford monthly contributions to a settlement fund for two to four years.

That said, debt settlement can do a lot of damage to your credit score, and NDR can’t guarantee results. Before you decide to work with the company, consider consulting with a credit counselor from a nonprofit counseling agency. They can evaluate your situation and help you determine the best path forward.

For example, if you have good credit, you may qualify for a low-interest debt consolidation loan or balance transfer card. A debt management plan through a counseling agency may work better if you can afford a monthly payment and want to limit the potential damage to your credit.

If you’re interested in pursuing a debt management plan, looking for a credit counseling agency associated with the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA) is a good starting point.

Finally, if your financial situation is so dire that you’re unsure whether you can afford a monthly payment at all, it may be time to consult with a bankruptcy attorney to consider your options.

Frequently asked questions

Where is National Debt Relief available?

National Debt Relief offers debt settlement programs in 45 states, plus Washington, D.C., Puerto Rico, Guam, and the U.S. Virgin Islands. It does not operate in Connecticut, Oregon, Vermont, West Virginia, or Wisconsin.

Does National Debt Relief charge upfront fees?

No. NDR doesn’t charge upfront fees. You’ll only pay a fee if you agree to a settlement offer and make at least one payment.

Will National Debt Relief stop collection calls?

Not necessarily. Creditors can continue to contact you about collecting an unpaid debt until you reach a settlement. They may even choose to file a lawsuit against you instead of negotiating through NDR.