National Debt Relief is one of the largest debt settlement companies in the United States, helping people resolve unsecured debt for less than the full amount owed. Debt settlement is a legitimate but consequential debt relief strategy, and evaluating the specific company matters enormously. Is National Debt Relief a legitimate company — and is debt settlement the right choice for your situation?
What Is National Debt Relief?
National Debt Relief is a debt settlement company founded in 2009 that negotiates with creditors on behalf of clients to reduce the total amount of unsecured debt owed. It targets individuals with $10,000 or more in unsecured debt (credit cards, medical bills, personal loans) who are struggling to make minimum payments. The settlement process typically takes 2–4 years.
Is National Debt Relief Legitimate?
Yes — National Debt Relief is a real, accredited debt settlement company. It holds an A+ rating from the BBB, is a member of the American Association for Debt Resolution (AADR), and has helped hundreds of thousands of clients settle debt. It is not a scam.
How National Debt Relief Works
- You stop making payments to creditors and instead deposit money into a dedicated savings account monthly
- National Debt Relief negotiates with creditors once enough savings have accumulated
- When a settlement agreement is reached, funds are paid from your savings account
- National Debt Relief charges a fee (typically 15–25% of enrolled debt) only when a successful settlement is achieved
Important Consequences of Debt Settlement
Debt settlement has real consequences that must be understood before enrolling:
- Credit score damage — stopping payments to creditors significantly damages your credit score, which may not recover for several years
- Creditor lawsuits — creditors can sue for unpaid debt during the settlement process
- Tax liability — forgiven debt is typically treated as taxable income by the IRS; you may owe income tax on the settled amount
- No guarantee — not all creditors agree to settle; there is no guarantee of the outcome
Is Debt Settlement Right for You?
Debt settlement makes most sense for people who are already delinquent on debt, cannot afford minimum payments, and for whom bankruptcy is the realistic alternative. For people who are current on payments and can make minimums, less damaging alternatives (debt management plans, credit counselling) are worth exploring first.
Our Verdict
National Debt Relief is a legitimate debt settlement company that delivers real results for appropriate candidates. The key is understanding the significant trade-offs — credit damage, tax implications, and process duration — before enrolling. Consult a non-profit credit counsellor (NFCC member organisations offer free counselling) to evaluate all options before committing to any debt relief programme.
