Maybe a friend mentioned National Debt Relief, or an ad promised to cut your debt in half. Before you call, it makes sense to ask what the company actually is, whether it is legitimate, and whether it is worth it for someone in your position.
This guide answers those questions in plain English. We will explain what National Debt Relief does, confirm whether it is legit, and give you a simple framework for deciding. If you want a deeper look at costs and process, see our full National Debt Relief review.
What Is National Debt Relief?
National Debt Relief is a debt-settlement company. It is not a lender and it does not consolidate your loans into one new loan. Instead, it negotiates with your creditors to try to settle your debts for less than the full balance.
The company works with unsecured debt, mainly credit cards and personal loans. Secured debts like a mortgage or car loan generally do not qualify, since the lender can take the property instead of settling.
Founded in 2009, National Debt Relief has settled debt for more than a million customers. This is a different approach from a debt management plan, where a nonprofit lowers your interest while you repay the full amount you owe.
How Does It Work in Plain English?
The basic idea is simple. You stop paying your creditors directly and start setting money aside each month into a dedicated account that you control. As that account grows, National Debt Relief uses the funds to negotiate lump-sum payoffs with your creditors, one account at a time.
You do not pay the company a fee until it settles a debt and you approve the deal. That protection is required by law, so be cautious of any company demanding large upfront fees.
If you would rather handle negotiations yourself and skip a full-service firm, a do-it-yourself platform like SoloSettle lets you settle directly with creditors, with no middleman and no phone calls. You pay only when you reach a deal.
SoloSettle
SoloSettle
Settle your debt directly with your collector. No phone calls and no middleman. SoloSettle's platform handles the negotiation and paperwork, and you only pay when you reach a deal.
Standout feature
Direct written negotiation with collectors, no phone calls
Fees
Up to 19% of face value, paid only on settlement
Pros
Negotiate directly with collectors in writing — no stressful phone calls
Cons
Fee of up to 19% of face value and settlement isn't guaranteed
Is National Debt Relief Legit?
Yes, National Debt Relief is a legitimate company. It has operated since 2009, holds an A+ rating with the Better Business Bureau, and has been BBB-accredited since 2013. It is also an accredited member of the American Association for Debt Resolution, and it has no major federal enforcement actions on record.
Still, legitimate does not mean it is risk-free or the right choice for everyone. The risks of debt settlement come from the strategy itself, not from the company being fake. A reputable firm cannot remove the credit damage or lawsuit risk that comes with settling debt.
As with any provider, read your agreement carefully and make sure you understand the fees and the process before you sign.
The Risks You Should Know
These trade-offs apply across the debt-settlement industry, including National Debt Relief.
- Your credit usually takes a hit, because the program often involves missing payments on purpose.
- Accounts can be charged off or handed to collections.
- Creditors can keep contacting you and may file a lawsuit while you save up.
- Fees typically run around 15 to 25 percent of enrolled debt. Check the company's site for current fees.
- Forgiven debt of $600 or more may be reported on a 1099-C and counted as taxable income.
- There is no guarantee that every account will settle.
Debt settlement is never zero risk. Understanding these downsides up front helps you avoid surprises later.
Is National Debt Relief Worth It? A Simple Framework
Whether it is worth it depends on your finances, not just the company's reputation. Walk through these questions:
Can you still pay your minimums?
If you can keep up, a debt consolidation loan for bad credit or a counseling plan may protect your credit better than settlement.
Are you already behind or about to be?
Settlement tends to make the most sense when full repayment simply is not realistic anymore.
Can you handle a credit hit?
If you plan to apply for a mortgage or car loan soon, weigh the damage carefully. Here is what to expect for your credit score after debt settlement.
Do you want help or prefer to do it yourself?
If you are willing to negotiate, you can learn how to negotiate a debt settlement and avoid paying a percentage fee.
Rebuilding After You Settle
Getting your debts settled is a big step, but it is not the finish line. The next job is rebuilding your credit so the temporary dip does not hold you back for years.
Kikoff's Premium and Ultimate plans include debt-negotiation help, and the platform also rebuilds your credit by adding positive payment history once your accounts are resolved. Pairing a settlement plan with consistent rebuilding is how most people get back on track.
Kikoff Credit Account
Kikoff Credit Account
Everything you need to build your credit, right in one app. Build credit, lower debt, and unlock progress with tools that actually work.
Loan Amount
$750-$3,500 depends on the plan
Term
12 months
APR
0%
Admin Fee
$0
Monthly Fee
$5/month for Basic plan, $20/mo for Premium plan $35/mo for Ultimate plan
Credit Check
No
Average Score Increase
An avg increase of +86 points within a year with on-time payments
The Bottom Line
National Debt Relief is a real, established debt-settlement company with a strong BBB record, not a scam. Whether it is worth it comes down to your numbers. If you are deep in unsecured debt, already behind, and ready to accept a temporary credit hit, settlement can be a legitimate way forward.
If you can still make your payments, look first at consolidation or a nonprofit credit counseling plan. Terms and conditions apply, and debt settlement is not the only option, so it pays to compare a few approaches before you commit.
Frequently Asked Questions
Is National Debt Relief a scam?
No, it is not a scam. It is a legitimate, BBB-accredited company with an A+ rating that has settled debt for more than a million customers since 2009. The risks come from debt settlement as a strategy, not from the company being fake.
Does National Debt Relief charge fees upfront?
No. By law, it cannot charge a fee until it settles a debt and you approve the deal. Its fee typically runs around 15 to 25 percent of enrolled debt, so check its site for current pricing.
Will National Debt Relief hurt my credit?
Usually yes, at least for a while. The program often involves missing payments, which lowers your score and can lead to charge-offs. Many people recover over time once their debts are settled and they begin rebuilding.
How is this different from debt consolidation?
Debt settlement negotiates to pay less than you owe and can damage your credit. Debt consolidation rolls your balances into one new loan or payment so you still repay the full amount, often with less harm to your credit.
