If you are buried in credit card debt, medical bills, or personal loans, you have probably seen National Debt Relief in your search results. They are one of the biggest debt settlement companies in the US, and they show up everywhere when people start looking for a way out.
But is National Debt Relief legit? What does the program actually cost? And is debt settlement the right move for your situation? This review covers what you need to know before you call them.
What Is National Debt Relief?
National Debt Relief is a debt settlement company. That means they negotiate with your creditors on your behalf to try to get them to accept less than what you owe as payment in full. If the negotiation succeeds, you pay a reduced lump sum and the remainder of the balance is forgiven.
They were founded in 2009 and are headquartered in New York. They hold accreditation from the American Fair Credit Council (AFCC) and the International Association of Professional Debt Arbitrators (IAPDA). The Better Business Bureau gives them an A+ rating.
National Debt Relief handles unsecured debt only. This includes credit cards, medical bills, personal loans, and private student loans. They cannot help with mortgages, car loans, or federal student loans.
If you want to see whether you qualify and what a settlement plan might look like, you can get a free consultation at National Debt Relief’s website. There is no obligation to sign up.
How the Program Works
Here is the basic process:
- You stop making payments to creditors. National Debt Relief will advise you to stop paying the accounts you want to include in the program. This is what creates leverage for negotiation — creditors are more willing to settle when an account is delinquent.
- You make a monthly deposit into a dedicated savings account. Instead of paying creditors, you deposit a monthly amount into a special account you control. This money builds up until there is enough to make settlement offers.
- National Debt Relief negotiates with creditors. Once you have enough funds, their team contacts your creditors and tries to settle the debt for less than you owe — typically 40% to 60% of the original balance.
- You approve any settlement offer. You decide whether to accept a settlement. If you do, the funds are transferred from your savings account to the creditor.
- National Debt Relief collects their fee. They charge a fee only after a debt is successfully settled.
The whole process typically takes 24 to 48 months, depending on how much debt you have and how aggressively creditors pursue collection.
Fees
National Debt Relief charges between 15% and 25% of the enrolled debt amount. The exact percentage depends on your state and the size of your debt. This fee is charged per settled account and only after a settlement is reached — they do not charge upfront fees.
For example, if you enroll $20,000 in debt and they charge 20%, the total fee would be $4,000 split across the settled accounts over time.
You should also budget for the cost of your dedicated savings account, which typically has a small monthly maintenance fee charged by the third-party bank holding the account.
Who Qualifies?
National Debt Relief has a minimum of $7,500 in unsecured debt to enroll. Most people in their program carry $10,000 to $100,000 in eligible debt.
To qualify, you typically need to:
- Have at least $7,500 in unsecured debt
- Be experiencing genuine financial hardship (job loss, medical crisis, income reduction)
- Be able to make consistent monthly deposits into your savings account
They are not a good fit for people who can still comfortably pay their minimum payments or who have primarily secured debt like mortgages and car loans.
To find out if your situation qualifies, you can start with their free debt analysis. It takes about five minutes and shows you an estimated program timeline and monthly savings deposit.
Impact on Your Credit Score
Debt settlement will hurt your credit score, and National Debt Relief will tell you this upfront. For a full breakdown of the credit impact timeline, see our guide on how debt settlement affects your credit score. The damage happens in two ways:
First, when you stop making payments at the start of the program, those missed payments are reported to the credit bureaus. Each missed payment damages your score.
Second, when a debt is settled, the creditor reports it as “settled for less than full amount.” This stays on your credit report for seven years and signals to future lenders that you did not pay the full balance.
That said, if you are already behind on payments, your credit is probably already suffering. For people in serious financial distress, debt settlement may be the fastest path to becoming debt-free, even if the credit impact is significant in the short term.
Tax Consequences
The IRS treats forgiven debt as taxable income — see our full guide on debt settlement tax consequences. If a creditor forgives $5,000 of your balance in a settlement, you may receive a 1099-C form at tax time and owe income tax on that $5,000.
There are exceptions — if you are insolvent (your total debts exceed the value of all your assets), you may be able to exclude some or all of the forgiven amount from your taxable income. Consult a tax professional to understand your specific situation before starting a settlement program.
National Debt Relief vs Alternatives
Debt settlement is one of several options for dealing with serious debt. Before comparing companies, make sure you understand exactly how debt settlement works and what the full process involves. Here is a quick comparison:
| Option | Credit Impact | Time to Complete | Cost |
|---|---|---|---|
| Debt settlement (NDR) | Significant damage | 24-48 months | 15-25% of enrolled debt |
| Chapter 7 bankruptcy | Severe, stays 10 years | 3-6 months | $1,500-$3,500 attorney fees |
| Chapter 13 bankruptcy | Severe, stays 7 years | 3-5 years | $3,000-$5,000+ attorney fees |
| Debt consolidation loan | Minimal if paid on time | 2-5 years | Interest on new loan |
| Credit counseling / DMP | Minimal | 3-5 years | $25-$55/month program fee |
Pros and Cons
Pros
- No upfront fees — you only pay when debt is settled
- A+ BBB rating and AFCC accreditation
- Can significantly reduce the total amount you pay
- Free consultation with no obligation
- Works with a wide range of unsecured debt types
Cons
- Significant damage to your credit score during the program
- Creditors can still sue you for unpaid debt during the process
- Forgiven debt may be taxable income
- No guarantee that all creditors will agree to settle
- The program takes 2-4 years to complete
Is National Debt Relief Legit?
Yes. National Debt Relief is a legitimate company with strong industry credentials. They hold AFCC and IAPDA accreditation, have an A+ BBB rating, and have been in business since 2009. They do not charge upfront fees, which is one of the clearest signs of a legitimate debt settlement company.
The bigger question is not whether National Debt Relief is legit, but whether debt settlement is the right option for you. It is a serious financial decision with real consequences for your credit and potentially your taxes. It works best for people who are already struggling to make minimum payments and need a realistic path out of debt that does not involve bankruptcy.
Bottom Line
National Debt Relief is one of the most established names in debt settlement. If you have $7,500 or more in unsecured debt and are experiencing genuine financial hardship, they are worth talking to.
Their free consultation does not commit you to anything. You can get an estimate of what your program would look like, how long it would take, and what the monthly savings deposit would be before you make any decision.
Get your free debt analysis from National Debt Relief here to see what you qualify for.