Many of my readers have asked me about debt settlement companies and if there are any I would recommend. While I’ve touched on the subject in previous posts, I’ve never properly reviewed a reputable debt settlement company such as National Debt Relief.
How National Debt Relief Works
Debt settlement is when you or somebody on your behalf (usually a debt settlement company) negotiates with your creditors to accept less than what you owe on the debt. For example, if you owe $5,000, it might get negotiated down to half that. This usually works well when you’re already significantly behind on your payments.
When you choose to go with National Debt Relief’s debt settlement service, you’ll stop making payments to your creditors and you’ll start depositing a monthly payment into an escrow account that’s in your name. Once you have enough money in the account where a settlement can be considered, National Debt Relief will negotiate on your behalf to settlement the debt by using the money you’ve saved to pay the negotiated amount.
It’s important to keep in mind that if you stop making payments to your creditors, your credit score will take a hit. However, if you’re in a position to settle your debts, that is you’re already behind on your payments, your credit score has probably already taken a hit.
How Much Does Debt Settlement Cost
National Debt Relief generally charges 20% on the total amount settled, however this may vary depending on your specific situation. It’s also worth noting that there are no up front costs (by law), and therefore you’ll only be charged once the debt has been settled.
Let’s look at an example in order to illustrate how the cost works out. For example, let’s say you owe $20,000 and National Debt Relief is able to negotiate the debt down to $10,000. In this case you’ll end up paying $10,000 to your creditors and $4,000 (20%) to National Debt Relief. As you can see in the end you save $6,000.
After looking at several other debt settlement companies, the fee they charge is very competitive and even more affordable than other services I looked at.
National Debt Relief Pros
Let’s get into some of the reason why I believe National Debt Relief is a good option if you’re considering debt settlement.
- Accreditation — National Debt Relief is accredited by the Better Business Bureau , International Association of Professional Debt Arbitrators, and is also a member of the American Fair Credit Council.
- Fees — No up front fees, very competitive and affordable.
- Free quote — National Debt Service will provide you with a free quote in order to go over your options.
- Success stories — Negotiated over $100 million in debt.
What to Do After Debt Settlement
After you have settled your debts, it’s time to start looking at improving your credit score. The first part of this process should be to consider getting a secured credit card in order to start building positive credit history.Get a Free Debt Relief Quote Now →