How does National Debt Relief work?

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    Jordan Moore
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    Jordan Moore
    Keymaster

    Despite its name, National Debt Relief is not a government-backed debt relief program. It’s a private company that offers debt settlement services. 

    National Debt Relief works by negotiating with creditors on behalf of their clients to settle debts for less than the total amount owed. 

    National Debt Relief starts with a free consultation where a debt counselor evaluates if their program suits your financial situation. If you enroll, you’ll stop paying creditors directly and instead make monthly deposits into a savings account you control, managed by a third-party bank. As funds accumulate, National Debt Relief negotiates with your creditors to settle your debts for less than what you owe—for example, settling a $10,000 debt for $5,000.

    National Debt Relief makes money by charging fees on the debt they successfully negotiate. Typically, they charge a percentage of the debt enrolled or a percentage of the amount saved through the settlement. These fees are only charged after a debt is successfully settled.

    If you’re looking for debt relief options supported by the government, you might want to explore programs like consolidation loans for federal student loans or counseling services provided by HUD-approved housing counselors for mortgage assistance. These programs are backed by the government and designed to help individuals manage and overcome debt.

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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