How reputable is national debt relief?
Is National Debt Relief legit? National Debt Relief is an accredited member of the American Association for Debt Resolution (AADR). It has been around since 2009 and has helped over 600,000 individuals reduce their debt. It also has an A+ rating from the BBB (Better Business Bureau).
National Debt Relief is a legitimate company that has helped hundreds of thousands of people negotiate their debts. The company's debt coaches are certified through the International Association of Professional Debt Arbitrators (IAPDA).
National Debt Relief ratings
The company is accredited by the Better Business Bureau (BBB) and it has an A+ rating. On TrustPilot, it has a 4.7 out of five rating based on over 39,000 reviews.
Unfortunately, there is no such thing as a government-sponsored program for credit card debt relief. In fact, if you receive a solicitation that touts a government program to get you out of debt, you may want to think twice about working with that company.
Depending on your personal situation and whether you have already missed payments to your creditors, debt settlement programs may have a negative impact on your credit score. Due to it being a separately regulated service, we do not provide credit repair services or offer advice on ways to improve your credit.
Creditors are not legally required to settle for less than you owe. Stopping payments on your bills (as most debt relief companies suggest) will damage your credit score. Debt settlement companies can charge fees. If over $600 is settled, the IRS will view this debt as a taxable income.
Debt relief will also often give you a fixed payment plan and a set payoff date, which can also make it worth considering — as streamlining your payments can make it easier to manage while helping you save money on interest. "One of the biggest advantages of going through a debt relief program is the savings.
Fees for National Debt Relief's Services
National Debt Relief charges a fee of 18%-25% of enrolled debt. This means if you came into the program with $20,000 in debt, expect to pay NDR between $3,600 and $5,000 in fees. There may be additional service or maintenance fees to pay depending on your state.
If you're behind on your credit card payments and looking for a solution, you might be considering debt settlement, which promises to help clear your debts. However, debt settlement is risky and should be a last resort for most borrowers.
- Best for credit card debt: National Debt Relief.
- Best overall: Money Management International.
- Best for customized options: Accredited Debt Relief.
- Best for all unsecured debt types: Americor Debt Relief.
- Best for customer support: Pacific Debt Relief.
- Best in availability: Century Support Services.
Does debt forgiveness hurt your credit?
Debt forgiveness may negatively affect credit scores, making it challenging to obtain future loans or credit. Forgiven debt of more than $600 may be considered taxable income, potentially resulting in a hefty tax bill.
An offer in compromise lets you settle your tax debt for less than you owe. This used to be called the Fresh Start program. See if you're eligible for an offer in compromise.
| National Debt Relief | |
|---|---|
| Minimum debt required | $7,500. |
| Fees | 15% to 25% of enrolled debt. |
| Typical time frame | 24 to 48 months. |
| Average net savings | 23% after fees. |
Summary: Ultimately, it's better to pay off a debt in full than settle. This will look better on your credit report and help you avoid a lawsuit. If you can't afford to pay off your debt fully, debt settlement is still a good option.
The short answer is Yes, people are generally allowed to use their credit cards after debt consolidation as it does not typically involve closing credit card accounts.
Working with a debt settlement company may lead to a creditor filing a debt collection lawsuit against you. Unless the debt settlement company settles all or most of your debts, the built-up penalties and fees on the unsettled debts may wipe out any savings the debt settlement company achieves on the debts it settles.
Is National Debt Relief legit? National Debt Relief is an accredited member of the American Association for Debt Resolution (AADR). It has been around since 2009 and has helped over 600,000 individuals reduce their debt. It also has an A+ rating from the BBB (Better Business Bureau).
"Credit card debt forgiveness or a settlement typically remains on your credit report for around seven years from the date the account first became delinquent," explains Michael Broughton, founder and CEO of the credit building app, ALTRO.
Debt relief service scams target consumers with significant credit card debt by falsely promising to negotiate with their creditors to settle or otherwise reduce consumers' repayment obligations.
Debt Settlement Impact on Credit Score
While not as devastating as a bankruptcy, debt settlement will have a negative impact on your credit score if you work directly with your creditors, as the settlement may be reported by the creditor to each of the three leading credit bureaus.
Can I buy a house after debt relief?
Yes, it is possible to buy a home after debt settlement, but it may present challenges. Lenders may view individuals who have settled debts as higher risk borrowers, which could affect their ability to qualify for a mortgage or result in higher interest rates.
The Biden-Harris Administration's one-time student debt relief plan is necessary to address the financial harms of the pandemic, provide borrowers with a smooth transition back to repayment, and help borrowers at highest risk of delinquency or default once payments resume.
We researched more than a dozen debt relief companies and New Era Debt Solutions was one of our top picks, thanks to its lower fees and high customer satisfaction ratings. If you owe more than $10,000, National Debt Relief is also a strong choice.
What credit score is needed to use National Debt Relief? National Debt Relief doesn't have a credit score requirement. It does, however, require you to prove longstanding financial hardship, in addition to having at least $7,500 in unsecured debt and be behind on payments.
That said, if you are unhappy with the service you have received from National Debt Relief, you can cancel your contract with them any time prior to agreeing on a negotiation. Keep an eye out on other debt-relief options and companies to see if you are getting the best deal possible from National Debt Relief.
