National Debt Relief Review 2026: What To Know Before You Enroll

National Debt Relief works with consumers to resolve and settle unsecured debt through negotiations with creditors. While the company works with your creditors to reach a settlement on your behalf, you'll make monthly deposits into an account that will go toward paying off your debt.

Key Takeaways

• National Debt Relief review at a glance: National Debt Relief, founded in 2009, negotiates settlements on unsecured debt and says it has helped more than 1.3 million people resolve consumer debt.

• You pay only after a settlement: Its performance-based fee runs as high as 25% of enrolled debt, depending on your state and balance, with no charges until an account is settled.

• Expect a multiyear timeline: Clients who complete the program typically finish in 24 to 48 months, and the company cites roughly 45% average savings before fees, or about 20% after fees, for those who settle all enrolled debt.

• Forgiven debt may be taxable: The IRS generally treats more than $600 of canceled debt as taxable income unless you qualify for an exception such as insolvency.

• Results aren't guaranteed: Settlement depends on creditor agreement, so consider alternatives like a debt consolidation loan or credit counseling before you enroll.

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The company is accredited by the Better Business Bureau and other leading industry organizations, and it says it's helped more than 1.3 million people resolve consumer debt. As with all debt relief companies, savings and settlements aren’t guaranteed, since they require the participation and agreement of your creditors.

If you're eligible for the program, there are also some caveats to be aware of, such as the impact to your credit score. We’ll get into all this in our review below.

Pros and Cons

Pros

• Process starts with a free, no-obligation debt consultation to review your situation and options

• BBB, ACDR and IAPDA accreditations and very positive reviews on ConsumerAffairs and Trustpilot

• Available in most US states, with a few exceptions

• Performance-based fee structure with no charges until accounts are settled

Cons

• Fees can be up to 25% of your enrolled debt, depending on your state and amount of debt

• No guaranteed results or savings

• Can negatively impact your credit and your balances may grow during the process

Company Overview

National Debt Relief was founded in 2009 and is headquartered in New York City. The company’s stated goal is to help consumers dealing with overwhelming debt, and it says it’s helped “over 1.3 million people toward a brighter future” by helping them negotiate debt settlements.

The company works with customers who have unsecured debt, meaning anything from credit cards to loans to medical bills to certain student debts. Like other debt relief companies, its target client is someone looking for a debt relief alternative to continuing their minimum payments.

Key Features

How National Debt Relief Works

National Debt Relief follows the same core process as most debt relief companies. You'll start with a free consultation, and from there you'll work with a team member to come up with a customized debt-relief plan. 

The company will negotiate debt settlements directly with your creditors while you make monthly deposits into a dedicated savings account. If they successfully negotiate a debt settlement that you agree to, it will be paid using the money in this account. 

The company's website frames the entire process as putting the client in control while its experts do the work. As with other debt relief companies, there’s no guarantee that National Debt Relief will be able to successfully resolve debt on your behalf.

National Debt Relief Savings and Timeline

According to National Debt Relief’s website, the timeline for paying off debt can take 24 to 48 months for clients who successfully complete the program, which requires you to save up a bit so you can pay off the debt.

As for how much the company can reduce your debt, National Debt Relief cites an approximate savings of 45% before its fees, or 20% including fees. Both numbers reflect outcomes for clients who stay in the program and settle all debt through it.

The company's website also shares debt-relief success stories from former clients. For example, one customer started with $34,728 in total debt. By working with National Debt Relief, he saved 31% on debt, making monthly payments of $546 and completing the program in 46 months.

These testimonials can be useful as examples of outcomes that real customers have had, but they’re not a guarantee that you’ll be eligible or have the same level of debt settlement success.

Support, Reviews and Trust Signals

National Debt Relief positions itself as passionate in helping customers work through the stress of unpaid debt. In addition to holding accreditations with some of the most important industry organizations, including the Better Business Bureau, the Association for Consumer Debt Relief and the International Association of Professional Debt Arbitrators, it has tens of thousands of reviews on sites like ConsumerAffairs, where it has a 4.9 out of 5.00 rating.

Like most other debt relief companies, it also offers a free, no-obligation consultation so you can get a sense of how the company would approach your debt situation. 

Alternative Solutions and Partner Options

National Debt Relief works with clients and their creditors to negotiate debt settlements with the goal of reducing their amounts owed. While the company has clients deposit money into a savings account each month to go toward paying off debt, it’s not a lender or bank. 

That said, the company may refer eligible clients to its network of partners for other types of debt relief, such as debt consolidation loans, credit counseling and even bankruptcy referrals. Its specific referrals will depend on your location, your specific financial situation and your goals.

Costs and Fees

National Debt Relief charges a performance-based fee only after it successfully achieves a debt settlement that the client approves of. The exact fee will depend on the amount of enrolled debt and the state you live in, but it could be as high as 25%.

If you decide to work with National Debt Relief, ask what fee you can expect to be charged if you successfully settle debt with the company’s help. Ask if there are any extra fees, such as a setup or savings account maintenance fee, as well.

There’s one other cost of debt relief that’s worth being clear on, and it has to do with the other risks involved.

When you work with a debt relief company, you generally stop making payments to your creditors while the company negotiates with them. This means your balances will keep growing until you hopefully come to a resolution, and there’s a risk that a creditor pursues legal action against you for not making payments. 

Additionally, if you get more than $600 of debt forgiven or cancelled, the IRS will consider that amount taxable income, and you’ll be required to pay taxes on that amount unless you qualify for an exception such as insolvency. 

Risks and Disclosures

• Credit score impact: There can be a negative impact to your credit score for pausing debt payments.

• No guarantees offered: There's no guarantee that your creditors will agree to settle your debt, and even if they do, you may get less of a reduction in the amount you owe than you were hoping for.

• You're still responsible for the debt: National Debt Relief doesn’t actually assume your debt or make payments to creditors, so you'll still be on the hook even though the company offers advice and negotiation on your behalf.

• Additional services are limited: It doesn't provide tax, bankruptcy, legal or credit repair services, either, though it may be able to refer you to providers in its network.

Make sure you review all program materials before you enroll in National Debt Relief’s program and ask for more information if you can’t find answers to your questions. It could be worth consulting with another professional, such as a tax professional or a bankruptcy attorney, as well depending on your specific situation.

How To Apply

Follow these steps to get started with National Debt Relief:

1. Start with a free consultation or apply online by sharing initial details about your debt and contact info.

2. Share your debt situation with a company representative and discuss your personalized options.

3. If you decide to work with National Debt Relief, you'll move forward with a plan tailored to your debt situation and budget, and you’ll set up monthly deposits in a dedicated account to go toward your debt payments.

4. National Debt Relief will negotiate debt settlements as you continue making monthly deposits.

5. If you successfully reach a settlement agreement, you'll authorize a payment from your dedicated account.

National Debt Relief vs. Comparable Options

We compared National Debt Relief to two other similar programs, CreditAssociates and DMB Financial. All three programs work similarly, but National Debt Relief has among the best fee transparency and access to help on its website, and ties with CreditAssociates when it comes to industry accreditations.

It's worth noting that debt relief programs aren't your only option for managing debt, though. You could also consider a debt consolidation loan, which can help you reduce interest payments by rolling multiple higher-interest debts into a single loan with one monthly payment.

If you want to avoid the damage to your credit that comes from pausing payments while the program negotiates settlements, continuing minimum payments and reaching out to your creditors directly could make more sense. Credit counseling is another option to consider if you don’t want to risk major damage to your credit.

Who It's Best For

National Debt Relief may be a suitable option for individuals with a large amount of unsecured debt who want assistance negotiating it down. For those with smaller amounts of debt, the downsides to a debt relief program, like the negative impact on your credit for pausing payments, may mean it’s not the best option.

This program is also most ideal for customers who can keep up with regular monthly deposits, since these are the funds that will go toward paying off settled debt.

You would also need to acknowledge that debt relief programs don't offer guaranteed results, so there's the danger that you could enroll in the program but still end up with unresolved debt or lower reductions than you'd hoped for.

Final Take

As far as debt relief companies go, National Debt Relief has some of the strongest customer reviews and a customer-support system that makes it easy to get answers to your questions. If you have a significant amount of unsecured debt, it could be worth exploring your options by scheduling a free consultation.

Just make sure you go in knowing the tradeoffs that apply to debt relief programs in general, including the possible impact to your credit, no guaranteed savings and no guarantees that every client will successfully finish the program.

FAQs

How does National Debt Relief work?

Working with National Debt Relief starts with a free debt consultation, after which the company will create a plan customized to your situation. You’ll make monthly payments into a dedicated savings account while the company contacts your creditors to negotiate debt settlements on your behalf, with the goal of using the funds in your account to pay your creditors a reduced amount.

How much does National Debt Relief charge?

National Debt Relief charges up to 25% of your enrolled debt for each debt it settles, with the exact amount depending on your state and amount of debt.

How long does National Debt Relief take?

Working with National Debt Relief can take 24 to 48 months or longer depending on your specific plan and amount of debt.

What debts qualify for National Debt Relief?

Unsecured debts such as credit cards, personal loans, business debts and lines of credit qualify for National Debt Relief.

Key Terms

• Debt settlement: An arrangement in which a company negotiates with creditors to accept less than the full balance owed on a debt.

• Unsecured debt: Debt not backed by collateral, such as credit cards, personal loans, medical bills and certain student debts.

• Performance-based fee: A charge applied only after a debt is successfully settled, rather than upfront.

• Dedicated savings account: A separate account where you make monthly deposits used to make your settlement payments to creditors.

• Cancellation of debt: Forgiven debt that a lender reports on IRS Form 1099-C when it totals $600 or more, often counted as taxable income.

• Insolvency: When your liabilities exceed your assets, which may let you exclude canceled debt from taxable income.

• Debt consolidation loan: A single loan used to combine multiple higher-interest debts into one monthly payment, often to lower interest costs.

• Credit counseling: Guidance from a nonprofit or agency that helps you build a repayment plan, sometimes through a debt management plan.

Sources

• IRS — About Form 1099-C, Cancellation of Debt. Confirms the $600 threshold for reporting canceled debt as potential taxable income.

• Consumer Financial Protection Bureau — Debt settlement and debt relief. Authoritative overview of how debt settlement works and its risks.

• Federal Trade Commission — Settling credit card debt. Consumer guidance on fees, timelines and risks of debt relief programs.

• Discover — Debt consolidation: Lender resource on using a personal loan to consolidate debt as an alternative.

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