National Debt Relief

• National Debt Relief Cost
• Great Service and Settlement Program
• Referrals For Debt Consolidation
• Other Types of Debt
• Industry Accreditations
• Money-Back Guarantee
• Availability
• Additional Services

National Debt Relief Cost

Positive National Debt Relief reviews indicate that NDR has a low cost (18-25 percent of total debt), which is one of the reasons some customers love the company. National Debt Relief works with all unsecured debt and some cases of student loans. 

Many debt relief companies may not be able to help with student loan debt, so it's unique that National Debt Relief helps with this on a case-by-case basis.

If a customer enrolls $100,000 of debt in NDR's debt settlement program, the company can generally cut the debt by 50 percent, making your debt $50,000 instead of $100,000. If you add on the 18 to 25 percent cost for NDR's debt settlement services, you'll pay between $68,000 and $75,000.

Customers should be aware that cost is difficult to forecast because of the variables of each individual financial situation. To accurately measure cost, company employees must take into account the determination of creditors, the customer's credit score, the amount of debt, and state laws governing percentages that can be charged.

Approximate cost is usually determined in a free, no-obligation consultation with a debt expert. By law, no debt settlement company can charge upfront fees. Instead, payment isn't required until after debt is settled. Most companies allow a monthly payment plan, as is the case with National Debt Relief.

Potential clients should take advantage of the free consultation to learn about specific cost information for their situation.

Great Service and Settlement Program

National Debt Relief offers great features including:

• 18-25 percent fees (competitive within the industry)
• Consultations with no fees attached
• $7,500 minimum debt required (industry average)

Past National Debt Relief clients have indicated that they appreciate the transparency offered by the company, the speed of debt resolution, reasonable costs, and professional level of support. Additionally, some reviews from former National Debt Relief customers who had canceled their service mentioned receiving unexpected refunds.

But how exactly does the National Debt Relief program work? The debt settlement program or settlement process is three-way; it involves the debtor (you), the settlement company, and the creditors.

With NDR, customers can expect to settle any type of unsecured debt (student loan debt, medical debt, credit card debt, etc.). Unsecured debt does not have any property attached to it as collateral (such as home loan debt or car loan debt).

It is important for customers to carefully monitor their credit score and credit report. Note that the nature of debt settlement will involve moderate to heavy penalties on your credit score.

Debt settlement companies generally have clients stop making payments so that the lenders become more willing to start debt negotiation. Stopping to make even minimum payments will affect your credit.

Instead, clients pay money into a savings account each month. The money in the account will be used in the settlement agreements with creditors. Once the debt is settled, the client's credit report will show that the debts were settled, not paid in full.

Many settlement companies, including National Debt Relief, do not provide credit repair or credit monitoring services.

Those considering a debt settlement program should be aware that loan forgiveness counts as taxable income. It's important to be prepared to pay taxes on forgiven debt when going through the process.

The challenge for the settlement company is to weigh the debtors present and future financial situation against the patience and requirements of the creditors. The fact that NDR is generally providing quality customer service while navigating the testy relationship between the creditors and debtors is significant.

Those with credit card debt, medical debt, and unsecured loan debt will find that NDR understands how to get ahead of creditors.

Referrals For Debt Consolidation

There are two debt solutions in the debt relief industry: debt settlement and debt consolidation. Sometimes a debt consolidation program is really a debt management program. In these programs, a debt counselor helps clients create a repayment plan and stick to it. A repayment plan may include a strategy like finding ways to save more money or increasing your monthly payment toward one or several debts to reduce the amount owed faster.

If National Debt Relief discovers that its settlement services aren't right for you, NDR will refer you to Liberty Lending for a debt consolidation loan.

The difference between a good debt settlement program and debt consolidation loans is that a consolidation loan will weigh less heavily on your credit report because you pay the debt in full while debt settlement will aim to settle your debts at a fraction of the total money owed (sometimes as low as 30 percent of your total enrolled debt).

For debt consolidation, the company puts all of your debts into one monthly payment and tries to negotiate lower interest rates with debtors, making it easier for you to track and pay your fees.

This tactic of handling debt is also referred to as a debt management plan or debt management program. These terms are more accurate because most consolidation companies help with debt management and do not offer consolidation loans to their clients. Debt management programs also offer clients counseling services which can help them avoid future debt problems and minimize unexpected financial hardship.

However, some people are in too much debt to use debt consolidation programs; this is the reason for debt settlement plans. If you decide to settle your debt instead of figuring out a payment plan, National Debt Relief is a good option.

The debt settlement fees from National Debt Relief (at 25 percent) are slightly higher than typical fees in the industry, but if the National Debt Relief program can get your fees down below 18 percent (a low among industry fees), you should consider using its debt settlement services.

In your search for the right debt management company, be sure to give lower fees a high priority. However, it is important to take into account how much NDR can lower the total debt from your creditors.

Creditors have been known to settle with debt settlement companies for around 30 percent of the total debt amount. To figure out how much this will cost the debtor total, you must add the company’s fees (around 18 percent) to the debt settlement amount (between 30 and 50 percent). This means the customer will likely pay around 50 to 70 percent of the total debt amount.

Because National Debt Relief refers clients whose financial situations are better suited to consolidation, potential clients can trust National Debt Relief to put their interests before its business interests.

Other Types of Debt

National Debt Relief focuses on helping customers in trouble with unsecured debt creditors, like credit card companies, but also some forms of debt as well, including private student loan debt, which is rare in this industry.

Many debt relief companies work solely with customers with unsecured debt. Additionally, the company claims to offer debt consolidation services (which do require higher credit scores), another rare occurrence in the debt relief industry.

Once NDR identifies a customer's type of debt and verifies that it can help with that specific problem, the customer will open a special savings account in their name. Instead of paying your creditors, you will deposit your money into this private savings account. These funds are then used to pay the settlement.

Industry Accreditations

Another great part about National Debt Relief's service is their industry accreditations with the American Fair Credit Council (AFCC) and the International Association of Professional Debt Arbitrators (IAPDA). National Debt Relief is also compliant with the Federal Trade Commission (FTC).

These accreditations help legitimize the organization and ensure debt settlement companies follow consumer-friendly best practices.

Money-Back Guarantee

A money-back guarantee is a must-have in the debt settlement industry. National Debt Relief offers a 100 percent money-back guarantee. Companies offer money-back guarantees and take preventative measures in order to lessen the risk you take.

The fact that debt relief companies rarely guarantee a time or price range for settlement negotiation makes customers a bit hesitant.

To combat this, most debt arbitrators will check your credit report and ask for income information in order to ensure more accurate rates.

Availability

National Debt Relief's debt settlement and debt consolidation services are available in 41 states and territories, a higher availability than most debt relief companies. The company is not available in Connecticut, Illinois, Kansas, Maine, New Hampshire, Oregon, South Carolina, Vermont, or West Virginia.

Additional Services

National Debt Relief provides additional services for those customers who would be better served by not using debt settlement. Some customers would prefer debt consolidation, bankruptcy, or simple financial education services. Of course, if one can get out of debt on their own, one should try to do so.

If a customer needs help deciding whether bankruptcy is a good option (and whether to file chapter 7 or chapter 13), National Debt Relief will counsel customers on the right path forward.

The company also provides extensive financial education services to help you stay on your feet after you get out of debt.

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• Short Time in Business
• No Permanently Assigned Representative
• Few Additional Services

Short Time in Business

One concern with National Debt Relief is that they have only been in business since 2009. While this is not a major problem, it is shorter than many competitors.

Additionally, the company has only been offering in-house debt settlement services since 2017, so you might not be able to deal with as many debt settlements experts at NDR as opposed to other debt settlement companies (the same goes for the company's debt consolidation services).

Usually, when customers approach the debt settlement program, it is with reluctance, poor credit scores, and few assets; this means that those with high credit card bills or medical bills are risking their credit scores on a company with lower experience than other debt relief companies.

However, those in risk of bankruptcy are still better off with NDR, as credit scores usually bounce back faster following debt settlement as opposed to the increase of credit score following bankruptcy.

No Permanently Assigned Representative

National Debt Relief does not have one representative assigned to each individual client's case. This can be frustrating for those who call in to talk about their situation with creditors or to view case information because they will often talk to a new representative each time.

Not every customer has the same type of debt or financial situation; one customer might have high student loan debt while another might have credit card debt. This can cost both the debt settlement company and the client time and cause frustration.

Independent of whether you have student loan or credit card debt, not having an assigned representative or a credit counselor can make the whole process harder to handle.

Because debt collectors are constantly harassing you, it's always good to have someone familiar to talk to about your situation. You are also more likely to get sincere customer service from companies that offer assigned reps. Every debt relief company should assign a personal rep.

Few Additional Services

The company's disclaimer states that it does not make payments to creditors, provide tax, bankruptcy, or legal advice. Some debt relief companies (both debt settlement and debt consolidation companies) provide such services in addition to the debt relief services offered. For example, if you are overwhelmed by secured debts, National Debt Relief's services may not be available to you.

Additionally, NDR does not offer credit repair services. Such financial and legal services can be extremely useful, as debt settlement will result in a lower credit score and has been known to prompt the occasional lawsuit against the debtor.

However the specialization in debt settlement is especially valuable for clients because it means that the company focuses its energy on offering quality negotiation services.