National Debt Relief is a for-profit debt-settlement company that negotiates with creditors on behalf of consumers experiencing financial hardship. Its program primarily addresses eligible unsecured debts such as credit-card balances, personal loans and certain medical debts.
National Debt Relief does not lend money or simply combine debts into a new consolidation loan. Clients generally deposit money into a dedicated savings account while the company attempts to negotiate settlements with individual creditors. Customer experiences vary, with ratings ranging from -5 to +5 stars.
Quick Verdict
National Debt Relief is an established debt-settlement company headquartered in New York City. It has operated since 2009 and maintains an A+ rating and accreditation with the Better Business Bureau.
That does not mean debt settlement is safe or appropriate for every consumer. The process normally involves falling behind on enrolled accounts while money accumulates for settlements. Creditors can continue collection activity, add interest and fees, report missed payments or file lawsuits. Settled debt may also create taxable income.
National Debt Relief states that its performance-based fee can be as much as 25% of enrolled debt, depending on the state and program. Fees are earned only after a settlement is reached, the client approves it and at least one settlement payment is made.
Before Enrolling With National Debt Relief
- Ask for the complete estimated program cost, including settlement fees and dedicated-account charges.
- Confirm which debts are eligible and which creditors may refuse to participate.
- Understand what happens to each account when regular payments stop.
- Ask how long it may take before the first settlement offer.
- Confirm whether the monthly deposit is affordable for the entire program.
- Compare debt settlement with nonprofit credit counseling and bankruptcy advice.
- Review the cancellation and dedicated-account withdrawal terms.
- Ask about possible tax consequences from canceled debt.
What Is National Debt Relief?
National Debt Relief, LLC provides debt-negotiation and settlement services. The company evaluates a consumer’s financial hardship, eligible unsecured debt and ability to make recurring deposits into a dedicated account.
National Debt Relief then attempts to negotiate settlements in which creditors accept less than the full balance. No creditor is required to negotiate or accept a particular amount, and settlement results cannot be guaranteed.
How Does National Debt Relief Work?
The general process involves:
- Completing a consultation and financial assessment;
- Selecting eligible unsecured accounts for enrollment;
- Stopping or reducing direct payments to those creditors as contemplated by the program;
- Making scheduled deposits into a dedicated savings account in the client’s name;
- Allowing funds to accumulate for settlement offers;
- Receiving a proposed settlement from National Debt Relief;
- Approving or rejecting each proposed settlement; and
- Authorizing settlement payments from the dedicated account.
The consumer remains the owner of the money held in the dedicated account. The Consumer Financial Protection Bureau states that an independent third party must administer such an account and that consumers are entitled to withdraw their funds without a penalty.
National Debt Relief Is Not Debt Consolidation
Debt settlement and debt consolidation are different financial strategies.
- Debt settlement: Attempts to persuade creditors to accept less than the full amount owed, usually after accounts become delinquent.
- Debt consolidation loan: Uses a new loan to pay several existing debts, leaving the borrower with one new loan payment.
- Debt-management plan: A nonprofit credit-counseling agency may arrange reduced interest or fees while the consumer repays the principal through scheduled payments.
- Bankruptcy: A federal legal proceeding that may discharge or reorganize qualifying debts and provide legal protections.
The monthly National Debt Relief deposit is not a direct consolidated payment distributed among all enrolled creditors each month. It generally accumulates until enough money is available to fund an approved settlement.
What Debts Can National Debt Relief Settle?
Potentially eligible debts can include:
- Credit-card balances;
- Unsecured personal loans;
- Certain medical bills;
- Some private student-loan debts;
- Lines of credit;
- Collection accounts; and
- Certain unsecured business debts for which the consumer is personally liable.
Eligibility depends on the creditor, account status, state and individual circumstances.
Debts That Generally Do Not Qualify
- Mortgages and home-equity loans;
- Auto loans and other secured debts;
- Federal student loans;
- Most tax debts;
- Child support and alimony;
- Court fines and criminal restitution; and
- Other debts that cannot legally or practically be settled through the program.
Do not stop paying a secured debt without understanding that the creditor may repossess or foreclose on the collateral.
National Debt Relief Eligibility
National Debt Relief materials indicate that consumers generally need a significant amount of eligible unsecured debt and a genuine financial hardship. Published minimums can vary by debt type and program, commonly beginning around $7,500 to $10,000.
Consumers must also be able to make recurring deposits into the dedicated account. Enrollment is unlikely to succeed if the participant cannot save enough to fund settlements and fees.
The company states that its debt-settlement program is not currently available to consumers in Connecticut, Oregon, Vermont, West Virginia or Wisconsin. State availability and eligibility requirements may change.
How Much Does National Debt Relief Cost?
National Debt Relief states that fees vary by state and the amount of debt enrolled, with fees reaching as much as 25% of enrolled debt. No settlement fee should be charged merely for enrolling.
National Debt Relief states that three events must occur before its fee is earned:
- A creditor provides a settlement offer;
- The client approves the settlement; and
- At least one payment is made toward that settlement.
The independent company administering the dedicated savings account may also charge account-related fees. Request a written schedule covering all enrollment, settlement, banking and transaction expenses.
National Debt Relief Fee Example
If a consumer enrolls $30,000 and the applicable settlement fee is 25% of enrolled debt, the potential program fee would be $7,500. That fee is separate from the amounts paid to creditors and any dedicated-account charges.
A reduced creditor balance does not equal the consumer’s final savings. Calculate:
- Payments made to creditors;
- National Debt Relief fees;
- Dedicated-account fees;
- Interest and late fees accrued before settlement;
- Potential legal expenses; and
- Possible income tax on canceled debt.
How Long Does National Debt Relief Take?
The company commonly describes an estimated program length of approximately 24 to 48 months. Actual completion depends on:
- The amount of enrolled debt;
- The monthly deposit;
- How quickly settlement funds accumulate;
- Each creditor’s willingness to negotiate;
- Whether the consumer approves proposed settlements;
- Unexpected expenses or missed deposits; and
- Whether any creditor files a lawsuit.
National Debt Relief discloses that not every client completes the program, including clients who cannot continue saving enough money to fund settlements.
Positive National Debt Relief Reviews
Favorable client reviews commonly mention:
- Professional consultations: Some clients report that representatives clearly reviewed their debt and budget.
- Successful settlements: Customers may obtain creditor agreements for less than the enrolled account balance.
- Structured process: The dedicated deposit schedule can provide a plan for addressing overwhelming unsecured debt.
- Progress updates: Some clients appreciate online access to documents and program information.
- Reduced stress: Having a company manage negotiations can help some consumers feel less overwhelmed.
- No settlement fee in advance: The company says its fee is performance-based and charged after the required settlement steps occur.
National Debt Relief Complaints
Common complaint themes include:
- Credit damage: Clients may experience falling credit scores after stopping payments and allowing accounts to become delinquent.
- Continued collection contacts: Enrollment does not force creditors or collectors to stop calling or sending notices.
- Creditor lawsuits: A creditor may sue before enough money has accumulated to fund a settlement.
- Program fees: Some clients feel that fees consume too much of the savings produced by settlements.
- Long completion times: The program can take several years and may last longer than initially expected.
- Additional deposit requests: Consumers may be asked to increase deposits when available funds are insufficient for a proposed settlement.
- Communication concerns: Complaints sometimes involve delayed responses or uncertainty about settlement progress.
- Draft disputes: Some BBB complaints allege unexpected or disputed withdrawals.
- Cancellation and refund issues: Consumers have reported disagreements about money remaining in the dedicated account after cancellation.
- Incomplete programs: A client may leave before every enrolled debt is settled.
These are allegations and individual customer experiences. They do not establish that every client will encounter the same problems.
How National Debt Relief Affects Credit
Debt settlement can significantly damage credit, particularly when a consumer stops paying accounts that were previously current. Credit reports may show:
- Late payments;
- Charged-off accounts;
- Collection accounts;
- Settlements for less than the full balance;
- Lawsuits or judgments when applicable; and
- Closed credit accounts.
Paying an account through settlement may eventually produce a zero balance, but that does not erase the preceding payment history. Negative information may remain on a credit report for the legally permitted reporting period.
Debt-Settlement Risk Warning
National Debt Relief cannot force creditors to negotiate, stop collection activity or prevent a lawsuit. While money accumulates for settlements:
- Interest and late fees may continue;
- Accounts may be charged off or sent to collections;
- Credit scores may decline;
- Collectors may continue contacting the consumer;
- Creditors may file lawsuits; and
- The consumer may not save enough to finish the program.
Do not ignore a court summons or complaint. A debt-settlement company does not automatically represent a consumer in court. Seek qualified legal help promptly if sued.
Can Creditors Still Call or Sue?
Yes. Enrolling with National Debt Relief does not create the automatic legal protection provided by a bankruptcy filing. Creditors retain their collection rights unless they agree otherwise or applicable law limits them.
A collector must still comply with federal and state debt-collection laws. Document telephone calls, letters and messages. If a collector provides a validation notice, review the debt and dispute inaccuracies within the applicable timeframe.
Tax Consequences of Debt Settlement
The IRS generally treats canceled or forgiven debt as taxable income unless an exception or exclusion applies. A creditor may issue Form 1099-C when it cancels $600 or more.
For example, if a creditor accepts $6,000 to resolve a $10,000 balance, some or all of the canceled $4,000 may be taxable. Insolvency and bankruptcy are among the possible exclusions, but specific requirements apply.
Review the IRS guidance on canceled debt and taxes and consult a qualified tax professional about individual circumstances.
National Debt Relief BBB Rating and Accreditation
The National Debt Relief BBB profile showed an A+ rating and BBB accreditation when checked in August 2026. The company has been accredited since February 2013.
The BBB profile also contains customer complaints involving billing, withdrawals, communication, program expectations, cancellation and credit impact. Accreditation and an A+ rating do not mean a company has no complaints or that debt settlement is suitable for every consumer.
Is National Debt Relief Legit?
National Debt Relief is a legitimate, established debt-settlement company with a public headquarters, customer-service operation and longstanding BBB accreditation. Its website discloses program fees, risks and the fact that not all consumers complete the program.
Legitimacy should be considered separately from suitability. Debt settlement may help a consumer who cannot repay substantial unsecured debt, but it can also result in credit damage, collection activity, lawsuits, taxes and significant fees.
Alternatives to National Debt Relief
Nonprofit Credit Counseling
A nonprofit credit counselor may offer budgeting assistance or a debt-management plan. A debt-management plan usually attempts to reduce interest or fees while repaying the principal, rather than asking creditors to accept less than the full balance.
Direct Creditor Hardship Programs
Credit-card issuers and medical providers may offer reduced payments, temporary interest reductions or extended payment plans. Contacting the creditor directly can avoid a settlement-company fee.
Debt Consolidation Loan
A qualifying borrower may use one loan to pay several accounts. This can simplify payments and possibly reduce interest, but it does not reduce principal and may be difficult to obtain with damaged credit.
Do-It-Yourself Negotiation
Consumers can contact creditors or collectors directly and attempt to negotiate. Obtain every settlement offer in writing before sending money and confirm how the account will be reported.
Bankruptcy Consultation
Bankruptcy can have serious consequences but may provide legal protection from collections and lawsuits. A consultation with a qualified bankruptcy attorney can help consumers compare Chapter 7, Chapter 13 and non-bankruptcy alternatives.
Questions to Ask Before Signing Up
- Which debts and creditors will be enrolled?
- Which enrolled creditors have previously refused to negotiate?
- What fee percentage applies to each settlement?
- Who administers the dedicated savings account?
- What banking or transaction fees apply?
- When is the first settlement realistically expected?
- What happens if a creditor files a lawsuit?
- Does the program include legal representation?
- Can the monthly deposit be changed?
- How can the program be canceled?
- How quickly can remaining dedicated-account funds be withdrawn?
- What happens to unsettled accounts after cancellation?
How to Contact National Debt Relief
- Consultation phone: 1-800-300-9550
- Website: NationalDebtRelief.com
- Contact page: National Debt Relief contact information
- Client dashboard: National Debt Relief client login
- Headquarters: 180 Maiden Lane, 28th Floor, New York, NY 10038
The company lists consultation hours as Monday through Friday from 8:00 a.m. to midnight Eastern, Saturday from 8:00 a.m. to 11:00 p.m. Eastern and Sunday from 8:00 a.m. to 10:00 p.m. Eastern. Hours may change.
How to File a National Debt Relief Complaint
- Write down the account, settlement, draft or communication being disputed.
- Download the enrollment agreement and current dedicated-account statement.
- Gather creditor statements, settlement approvals and payment records.
- Contact National Debt Relief and request a case or reference number.
- Explain the requested correction in writing.
- Request a complete accounting of deposits, creditor payments, fees and remaining funds.
- Contact the dedicated-account administrator separately if the dispute involves a bank transfer.
- Contact the creditor directly if its records do not show the agreed settlement payment.
- Preserve all correspondence and call records.
Consumers can also submit eligible complaints through the Consumer Financial Protection Bureau or call 1-855-411-2372. State attorneys general and financial regulators may provide additional assistance.
Share Your National Debt Relief Experience
Have you enrolled in National Debt Relief? Share the amount enrolled, fee percentage, monthly deposit, program length and whether each creditor accepted a settlement. You can also discuss communication, withdrawals, cancellation, lawsuits or tax forms.
Do not publish account numbers, Social Security numbers, creditor correspondence containing private information or login credentials.
Rate National Debt Relief
Use the ZeroStars rating scale:
- 🔴 -5 Stars: Highly dissatisfied
- 🟠 0 Stars: Neutral or no significant impact
- 🟢 +5 Stars: Highly satisfied
Scroll down to leave a National Debt Relief rating, review or complaint.
Conclusion
National Debt Relief is an established debt-settlement company that may help qualifying consumers negotiate eligible unsecured debts. Some clients report successful settlements and appreciate having assistance with creditor negotiations.
However, debt settlement is not a simple consolidation plan. Clients may stop paying creditors while depositing money into a dedicated account, potentially leading to credit damage, collection activity, lawsuits, additional interest and taxable canceled debt. Fees can reach 25% of enrolled debt, and not every client completes the program.
Before enrolling, compare the full projected cost with nonprofit credit counseling, creditor hardship programs and bankruptcy advice. Make sure the proposed monthly deposit is sustainable and that every material promise appears in the written agreement.
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Disclaimer: ZeroStars.org is an independent review platform and is not affiliated with National Debt Relief. This page provides general consumer information and is not financial, tax or legal advice. Results and eligibility vary by client, creditor and state.
Information checked and updated August 2026.