National Debt Relief 2026 review: how it works, costs, and risks

When debt balances keep climbing and you have fallen behind on payments, it can be hard to see a way out. If you cannot catch up, debt settlement may be an alternative to bankruptcy for unsecured obligations such as credit cards, medical bills, and personal loans.

National Debt Relief is among the largest debt settlement firms in the United States and is one of Fortune’s top picks for debt relief companies. The company works with creditors on your behalf in an effort to settle for less than the full amount owed.

Below is a look at how the program operates, what it costs, who it may suit, and the main risks to consider before enrolling.

National Debt Relief at a glance

• Eligibility & requirements: Typically $7,500 in unsecured debt, financial hardship, and the ability to make monthly payments toward a settlement fund.
• Fees: Up to 25% of the enrolled debt, built into monthly payments and charged only after a settlement is reached.
• Ratings: A+ from the Better Business Bureau; 4.7 out of 5 stars on Trustpilot; 4.8 out of 5 stars on Consumer Affairs.
• Potential savings: Up to 45% before fees, or about 20% after fees.
• Time: 24 to 48 months.

National Debt Relief

Trustpilot customer rating

4.7

Accreditations

IAPDA, ACDR

States and territories available

• Year founded: 2009
• Company headquarters: New York, NY
• CEO: Alex Kleyner

Who is National Debt Relief good for?

National Debt Relief may be a practical choice if you are already behind on payments and your credit score is not strong enough for debt consolidation, or your income is too limited for a debt management plan.

Situations where the company’s program may make sense include the following:

• You owe a large amount of unsecured debt: You generally need $7,500 or more in unsecured debt, or $10,000 for certain programs. Debt relief companies usually do not take secured debt such as auto loans or mortgages.
• You are facing financial hardship: This can include job loss, divorce, the death of a spouse, high credit card balances, or unexpected expenses.
• You are already behind: NDR says most clients are several months past due. At that stage, options like debt consolidation may no longer be realistic.
• You can make a monthly deposit: You will need to contribute each month to a settlement fund that the company uses to negotiate with creditors.

Who should avoid National Debt Relief?

Settling debt for less than what you owe can sound attractive, but the drawbacks mean it is usually most appropriate for people who may otherwise be headed toward bankruptcy. It may not be a good fit in these situations:

• You are current on payments: Creditors may be less willing to negotiate if you appear able to keep paying. If you can at least make minimum payments, there may be better options than taking the credit damage that can come with debt relief.
• You have good credit: Debt settlement can hurt your credit for years. If your score is in good shape, a debt consolidation loan or balance transfer card may be preferable.
• You do not have enough eligible debt: The company does not accept mortgages, auto loans, federal student loans, and several other debt types. For qualifying unsecured debt, the total must be at least $7,500.
• You live in a state where NDR does not operate: Services are not offered in Connecticut, Oregon, Vermont, West Virginia, or Wisconsin.

National Debt Relief pros and cons

Pros

• No upfront fees
• Potentially up to 20% savings after fees
• A+ Better Business Bureau rating

Cons

• Charges up to 25% of enrolled debt
• Debt settlement can significantly damage your credit
• Not available in all states

How does National Debt Relief work?

National Debt Relief negotiates with creditors to help settle past-due debt for less than the full balance. The process begins with a consultation, during which you discuss your situation and a dedicated specialist reviews your options.

If you decide to continue, NDR creates a plan that outlines a monthly contribution and a timeline. After you approve it, you stop paying creditors directly and instead send money into a settlement fund.

Once the account has built up enough money, usually after a few months, NDR contacts creditors and begins negotiating. Depending on the case, the company may seek either a lump-sum settlement or a monthly payment arrangement.

If a creditor agrees, NDR asks you to approve the deal and authorize a release of funds from your settlement account. After payment is made, the company collects its fee. If you do not accept the offer, NDR continues negotiating.

It is also important to know that forgiven debt is generally treated as taxable income. If the canceled amount is $600 or more, you should receive Form 1099-C to report it on your federal tax return.

Types of debt National Debt Relief helps settle

Debt settlement support

Other debts NDR cannot help with include child support, back taxes, speeding tickets and fines, back rent for a current residence, most gambling debts, car repair bills, and insurance policies.

How National Debt Relief fees work

National Debt Relief fees:

• Debt settlement: Up to 25% of the enrolled debt

NDR charges up to 25% of your enrolled debt, but only after three things happen:

1. Your creditor sends an offer.
2. You accept the offer and approve a release of funds.
3. At least one settlement payment is made to the creditor.

Because the fee is built into your monthly payment, the company deducts it from your settlement account instead of billing you separately. Until that point, NDR does not charge fees.

How does working with National Debt Relief affect your credit score?

Payment history is the most important part of your credit score. Because debt settlement is based on not paying as originally agreed, it can significantly hurt your credit, regardless of which company you use.

Credit card issuers may also close your accounts, which can raise your credit utilization rate and cause further damage.

The exact impact depends on your overall credit profile. If you are already several months behind, your score may have been damaged before enrollment. Still, as you continue missing payments while building your settlement fund, your credit may fall further.

If you settle a debt, the negative mark can remain on your credit reports for up to seven years from the original delinquency date.

National Debt Relief ratings

National Debt Relief has earned strong ratings on several major review platforms and has been accredited by the Better Business Bureau since 2013. On Trustpilot, 85% of customer reviews are five stars, while only 5% are three stars or below.

How much could you potentially save by using National Debt Relief?

According to NDR, customers who stay with the plan and settle all their debts may pay up to 45% less than they owe. After fees, the savings are closer to 20%. It is also important to remember that forgiven debt is usually taxable income.

For example, if you owe $20,000 in eligible debt and a creditor settles for $11,000, a 25% fee would mean paying NDR $5,000. That would leave $4,000 in gross savings. However, the $9,000 in forgiven debt would still be taxable.

The Tax Policy Center says the average federal effective income tax rate is 14.11%, which would create a tax bill of about $1,270. After taxes, the savings would be around $2,730. Depending on your situation, that may or may not be worth the likely credit damage.

How long does National Debt Relief take to settle debt?

NDR says its program usually lasts 24 to 48 months, although the exact length depends on how much debt you have and how much you can contribute each month.

It often takes at least a few months before negotiation even begins.

If your income rises during the program, NDR may increase your monthly payment and shorten the timeline. If your income drops or you face an unexpected expense, the company may lower your payment or pause it for a month or two.

Other services National Debt Relief offers

Debt settlement is the company’s main service, but NDR also works with partners that may help you address debt in other ways:

• Debt consolidation: NDR partners with Reach Financial to offer debt consolidation loans ranging from $3,500 to $40,000, with repayment terms of 24 to 60 months. This option may be better if your credit score is in the upper 600s or higher.
• Credit counseling: NDR’s partner network includes counseling agencies that may offer free budgeting and debt help.
• Bankruptcy and tax referrals: Depending on your situation and location, NDR may refer you to a bankruptcy attorney or tax professional.

What are the risks of settling debt with National Debt Relief?

Debt settlement can save money and provide meaningful relief, but even a well-known company like NDR comes with risks:

• Creditors are not required to negotiate: There is no guarantee you will get the result you want, or even that creditors will agree to work with you. Your debt could end up in collections, and if you miss several payments without receiving an offer, you may be worse off than before.
• You could be sued: Creditors may choose to sue for payment rather than negotiate through NDR. If they win a judgment, you could face wage garnishment, a bank levy, and more.
• Your balances may keep growing: Interest and late fees may continue while you build your settlement fund, increasing the amount you owe.
• Forgiven debt may be taxable: As noted above, canceled debt is generally treated as taxable income, which reduces your actual savings.
• Your circumstances may change: If your finances worsen and you can no longer make monthly contributions, you may need to look for another solution.

Remember that NDR lets you cancel the program at any time without penalties, though you may still owe fees on debts already settled.

What is National Debt Relief’s reputation for settling debt?

Since launching in 2009, National Debt Relief says it has settled more than $20 billion in debt for over 1.5 million people. Along with strong customer ratings on BBB, Trustpilot, and Consumer Affairs, the company is an accredited member of the Association for Consumer Debt Relief and says on its website that it holds Platinum accreditation through the International Association of Professional Debt Arbitrators.

Compare National Debt Relief alternatives

NDR may be worth considering if you are behind on payments and debt consolidation or a debt management plan are not realistic options. Even so, it is wise to compare several providers before making a decision.

Fees are generally similar across these companies, as are Trustpilot scores. Depending on the amount you owe, one firm may fit better than another. For instance, if you do not quite meet the $7,500 threshold, Accredited Debt Relief may be worth looking at because its minimum is lower.

Location also matters. Some companies serve more states than others, and if a provider does not operate where you live, it will not be a viable choice.

Is National Debt Relief right for you?

Debt settlement through NDR may be worth considering if you have a large amount of unsecured debt and are falling behind on payments without a clear path to repayment. You will also need to be able to afford monthly contributions to a settlement fund for two to four years.

Even so, debt settlement can seriously damage your credit score, and NDR cannot guarantee results. Before signing up, consider speaking with a nonprofit credit counselor who can review your situation and help you choose the best path forward.

For example, if you have good credit, you may qualify for a low-interest consolidation loan or balance transfer card. A debt management plan through a counseling agency may be a better option if you can make a monthly payment and want to limit credit damage.

If you want to pursue a debt management plan, a good place to start is a counseling agency affiliated with the National Foundation for Credit Counseling or the Financial Counseling Association of America.

If your finances are so strained that you are unsure you can afford any monthly payment, it may be time to consult a bankruptcy attorney to review your options.

Frequently asked questions

Where is National Debt Relief available?

National Debt Relief offers debt settlement programs in 45 states, plus Washington, D.C., Puerto Rico, Guam, and the U.S. Virgin Islands. It does not operate in Connecticut, Oregon, Vermont, West Virginia, or Wisconsin.

Does National Debt Relief charge upfront fees?

No. NDR does not charge upfront fees. You only pay a fee if you accept a settlement offer and make at least one payment.

Will National Debt Relief stop collection calls?

Not necessarily. Creditors can continue contacting you about an unpaid debt until a settlement is reached. They may also choose to sue instead of negotiating through NDR.