The process of settling your debts is an excellent way to get rid of outstanding loans you are unable to repay. Once you have completed the process, you will be in a better position to manage your finances, but simply deciding to settle your debts is not enough.
There are a number of debt settlement companies out there, but one of the most popular is National Debt Relief. If you don’t plan on managing the debt settlement process yourself, you’ll need to find a company you want to work with.
In light of this, you may wonder whether National Debt Relief is a legitimate debt settlement company. Let’s find out!
National Debt Relief’s Debt Settlement Process
National Debt Relief has been providing debt settlement services since 2009. Since then, more than 400K people have been able to resolve their debts through these services.
The process of enrolling in a National Debt Relief program is rather straightforward. You begin the process by undergoing a free consultation during which you will describe your financial situation, identify your creditors, and determine how much you owe. In addition, you will provide National Debt Relief with information regarding your personal circumstances, including your income and the amount you can afford to pay toward a settlement.
If you enroll in National Debt Relief’s program, you will begin making monthly payments to them. The program accepts virtually all unsecured debts, including medical and credit card bills, collections, and personal loans. Until you are able to settle your first debt, they will hold your money in an FDIC-insured bank account.
Despite the fact that National Debt Relief charges for these services, most clients pay 15 to 25% of their total debt toward the company’s debt settlement assistance.
Consider the following example.
In the case of Susan, who owes $20K to various creditors, National Debt Relief accepts her into their program and she begins making $500 monthly payments. She is unable to keep up with her payments, so she contacts National Debt Relief for assistance. She is able to pay off all of her debts in three years after giving National Debt Relief $4,000 for help and $10,400 to pay off her debts. She saves $6K overall.
What Their Customer Reviews Reveal
The company is fully accredited by the Better Business Bureau and has an A+ rating with the organization. Although customer reviews do not influence the BBB’s rating, other factors, such as the company’s complaint history, its time in business, and its licensing, do.
A strong BBB rating of 4.59 out of 5 is an excellent rating for National Debt Relief, as it has over 1.6K customer reviews with a rating of 4.59 out of 5. Most clients express high satisfaction with their experience, pointing out how helpful the company’s associates were in setting them up with a debt settlement plan they could follow.
The majority of negative reviews pertain to a drop in credit scores following enrollment in the program. In most cases, people do not continue making their minimum payments to their creditors after completing debt settlement programs, leading to lower credit scores. By making sure that clients understand how debt settlement can negatively impact credit scores in certain situations, National Debt Relief may be able to improve these ratings.
There Are Also Many Complaints Against National Debt Relief
National Debt Relief has received 251 complaints on the BBB website in the past three years. Companies that receive complaints on the BBB website have the opportunity to resolve these issues with their customers.
Generally, individuals leave the program due to a misunderstanding of the debt settlement process. For example, one individual left after discovering that their credit score dropped as a result of non-payment to their creditors.
In one case, National Debt Relief failed to inform the customer of the accounts they settled, resulting in some confusion and double payment.
A second customer complained about an account that National removed from the program. The client had stopped making payments to the original creditor, but was left in a difficult position when National Debt Relief informed them that the account would not be settled.
It stands out that a 90-year-old man who had cognitive and hearing issues participated in the program even though his daughter held his power of attorney. In light of her father’s lack of mental capacity to understand his actions, she contacted the company and requested a refund of the money. As a result of National Debt Relief’s response, the man was disenrolled from the program and his entire investment was returned to him.
A legitimate debt settlement company, National Debt Relief can assist customers in resolving their financial concerns. Their customer reviews are overwhelmingly positive, and the company responds to every complaint promptly. Those who wish to enroll with National Debt Relief should feel confident in their choice.
Be prepared, however, to pay large service fees and spend many months, even years, saving before you can settle your debt.
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