When debt becomes overwhelming, many people start looking for help beyond banks and credit cards. One name that appears very often in debt-relief searches is National Debt Relief. The company promises to help reduce unsecured debt and make monthly payments more manageable. But because money and credit are involved, the question is important: is National Debt Relief legit, or is it risky?
Let’s explain everything step by step:
National Debt Relief Company Background
National Debt Relief was founded in 2009 in the United States. It was created after the financial crisis, when many people were struggling with credit card debt, personal loans, and medical bills. Since then, the company has grown into one of the larger debt settlement firms in the country.
National Debt Relief is a real, registered company that has been operating for more than a decade. It is not a new or temporary website, which already separates it from many scam operations in the debt-relief space.
What National Debt Relief Actually Does
National Debt Relief is not a lender and not a government agency. It does not give you a loan and it does not erase debt overnight.
The company offers debt settlement, also known as debt negotiation.
Here’s how it usually works:
1. You enroll your eligible unsecured debts (credit cards, personal loans, medical bills)
2. You stop paying creditors directly
3. You make monthly deposits into a dedicated account
4. National Debt Relief negotiates with creditors to settle debts for less than you owe
5. Settlements are paid from the account over time
This process typically takes 2 to 4 years, sometimes longer.
Is National Debt Relief Legit or a Scam?
Yes, National Debt Relief is legit and legally operating. It is not a scam company. Many clients have completed programs and reduced their total debt.
However, “legit” does not mean “easy” or “risk-free.” Debt settlement has serious consequences, and understanding those risks is critical.
Fees and Cost Structure (Very Important)
National Debt Relief does not charge upfront fees just for signing up. This is important, because upfront fees are illegal for debt settlement companies in the U.S.
Instead:
1. Fees are charged only after a settlement is reached
2. Fees are usually a percentage of the enrolled debt or settled amount
3. Total fees can be significant over time
This means even if your debt is reduced, you still pay the company for the service. Many people overlook this when hearing “debt reduction.”
Impact on Credit Score
This is one of the biggest downsides.
During the program:
1. Accounts often go into delinquency
2. Credit scores usually drop, sometimes sharply
3. Late payments and settlements appear on credit reports
National Debt Relief does not hide this fact, but some people underestimate how serious it can be. Credit recovery usually starts only after the program is completed.
Are Lawsuits or Collections Possible?
Yes, this is a real risk.
Because you stop paying creditors directly:
1. Creditors may send accounts to collections
2. Some creditors may file lawsuits
3. Wage garnishment is possible in rare cases
National Debt Relief cannot stop lawsuits, though they may guide clients on next steps if one happens.
Customer Experience and Reviews
National Debt Relief has mixed but generally above-average reviews compared to many debt settlement companies.
Common positive feedback:
1. Clear enrollment process
2. Professional customer service
3. Real debt reductions for some clients
Common complaints:
1. Credit score damage
2. Fees feeling high
3. Stress during the settlement period
4. Slow progress in early months
These complaints are usually about the nature of debt settlement, not fraud.
Who National Debt Relief Is Best For
National Debt Relief may be suitable if:
1. You have large unsecured debt
2. You are already struggling to make minimum payments
3. Bankruptcy feels like the only alternative
4. You understand and accept credit damage
It is not ideal if:
1. You have secured debt (mortgage, car loan)
2. Your credit score is still strong and important to you
3. You can qualify for a low-interest consolidation loan
4. You expect quick fixes or guaranteed results
Alternatives You Should Consider
Before choosing National Debt Relief, people should also look at:
1. Credit counseling agencies
2. Debt management plans (DMPs)
3. Debt consolidation loans
4. Bankruptcy consultation
Debt settlement is only one option, and not always the best one.
Legal and Regulatory Standing
National Debt Relief operates under U.S. regulations and follows federal rules regarding debt settlement. It discloses risks, fees, and timelines in its agreements. This compliance is one reason it is considered legitimate, even though the service itself is controversial.
Pros and Cons Summary
Pros include a real, long-running company, no upfront fees, professional negotiation services, and potential debt reduction. Cons include credit score damage, settlement fees, risk of collections or lawsuits, long timelines, and emotional stress during the process.
Final Verdict
National Debt Relief is legit, real, and legally operating. It is not a scam. The company does help some people reduce debt, especially those already in financial trouble.
However, debt settlement is a last-resort solution, not a harmless shortcut. It can damage credit, take years, and cause stress before things improve.
If you are already falling behind and need an alternative to bankruptcy, National Debt Relief may be worth considering. If your finances are still stable, safer options usually exist.