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Freedom Vs National: Which Is The Best Debt Relief Company

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Debt is not a necessary evil that’s just a part of life.

You can conquer debt, and a debt relief company is a great way to start. Though National Debt Relief does have slightly lower average fees and provides debt relief services to more states, Freedom Debt Relief has greater customer satisfaction, more glowing debt relief reviews, better accessibility, and has been in business for a much longer time.

The final decision is up to the customer, but there’s a reason Freedom Debt Relief is ranked number one for debt relief programs on Best Company: over 10,300 positive reviews from satisfied customers resulting in 4.7/5 stars.

So, if Freedom Debt Relief wins over National Debt Relief, how does it compare to some of the other companies in the industry?

Is National Debt Relief Right For Me

Debt settlement is a gamble. Its not for everybody, but it shouldnt be dismissed outright. Just dont let the benefits suck you in without considering the whole picture.

National Debt Relief is for consumers with over $7,500 in unsecured debt, who have exhausted all other debt-relief options apart from bankruptcy.

If you dont settle the debt, you will continue paying late fees and racking up interest as your credit score plummets. If you settle, you still have fees and taxes to pay, but you will 1) be free of all unsecured debt, and 2) be on the right track towards improving your credit score.

Heres an example that may help you decide if National Debt Relief is right for you.

Say you have $10,000 in debt and NDR gets it chopped down to $5,000. Great, right? Now, consider how much of that forgiven 5k you get to keep.

You have to pay taxes on the forgiven debt. The amount you pay usually corresponds with your tax bracket.

If youre in the 24% bracket that means you will pay $1,200 to the IRS . National Debt Relief may take up to 25% of the enrolled debt, which means theyll keep up to $2,500.

In this example, NDR saves you $5,000, but $3,700 will be gobbled up by unavoidable taxes and fees. That leaves you with $1,300 in savings.

Depending on your situation, walking away with a couple of grand may not be worth a scarred credit report.

National Debt Reliefs program would work better for 5 or 6 figure debt, especially when paired with the lower end of NDRs fee scale.

How To Choose A Debt Settlement Company

Before you decide on a debt settlement service as the answer to your need for debt relief, review your options. There may be several less costly and less risky alternatives that better fit your situation.

Debt settlement is a different beast than debt management or debt consolidation, all three of which fall under the larger umbrella of debt relief. With both debt consolidation and debt management, you repay the full principal owed. Only in debt settlement, which may also be referred to as debt forgiveness, are you paying back less than the principal amount owedwhich is where several major differences arise, as discussed here.

If you choose to go the debt settlement route, its essential to vet any company youre considering for legitimacy. Check that the company has the necessary licenses to operate and make sure watchdog institutions like the AFCC accredit it.

Heres what to look for when choosing a debt settlement company:

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Fees For National Debt Reliefs Services

National Debt Relief charges a fee of 18%-25% of enrolled debt. This means if you came into the program with $20,000 in debt, expect to pay NDR between $3,600 and $5,000 in fees. There may be additional service or maintenance fees to pay depending on your state.

Keep in mind that in 2010, the Federal Trade Commission made it illegal for debt settlement companies to charge upfront fees. If a company tries to weasel your credit card number out of you before establishing your eligibility for the program, its probably a red flag.

Specialized Help For Military Service Members And Veterans

Reduce Credit Card Debt

If you are currently serving or have served in the military, then you face a unique set of financial challenges. Consolidated Credit works closely with Southern Command, Army OneSource and the Department of Defense to help military Service Members and Veterans get the financial help they need. We also offer specialized debt help for military personnel.

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Which Accreditations Does The Debt Relief Company Have

Accreditations can provide additional assurance that your chosen company is following ethical industry practices and are provided by third-party organizations designed to help regulate the debt relief industry.

The two most important accreditations are the American Fair Credit Council and the International Association of Professional Debt Arbitrators .

The AFCC is an association of professional Consumer Credit Advocates its purpose is to support consumers struggling with debt issues, to define debt relief best practices, and to push for consumer-focused legislation.

The IAPDA is an organization which trains and certifies debt negotiation professionals. Any debt relief company you consider should be accredited by at least one, but preferably both of these accreditation organizations.

Freedom Debt Relief has an A+ rating with the Better Business Bureau .

It is a founding member of the AFCC and holds a Platinum standing with the IAPDA, which indicates that their debt consultants have been trained extensively in a comprehensive range of debt relief options, laws, legislation, and more.

The company was also involved in establishing the 2010 FTC compliance rules and complies with the FTCs Telemarketing Sales Rule.

National Debt Relief has an A+ rating with the Better Business Bureau .

It is a member of the AFCC and is certified by the IAPDA.

The company complies with the FTC’s Telemarketing Sales Rule.

How To Get Started With Debt Consolidation

If you believe that this is the best option for to better manage your debts, National Debt Relief Services is your go-to-agency. We provide you available debt relief options and help you choose the best debt solution for your current situation.

With National Debt Relief Services, you dont have to pay an upfront fee. We keep all your personal information private and confidential. By contacting us, you get a personalized debt savings plan from our certified and skilled team of debt specialists.

In addition to these amazing benefits, you will be able to consolidate other types of unsecured debts including Personal Loans, Car Loans, Taxes, CERB, HST, 407, Household Bills, Payday Loans and Student Loan.

We care for your health and safety, stay home and get your free consultation via phone call or zoom.

Read Also: Can Student Loans Be Part Of Bankruptcy

How To Settle Credit Card Debt

Enrolling in a debt settlement program to lessen credit card balances can be helpful, but make sure to do your research. You are hoping to settle debt and this involves spending your money to pay down your debt and companies will also need to get paid for their time and negotiations. If you are concerned with a debt settlement company, check out the company with your state Attorney General and local consumer protection agency. National Debt Relief is in good standing with the BBB and our customers have positive experiences they have shared on Trustpilot.

Debt settlement is an agreement between a lender and a borrower for a large, one-time payment toward an existing balance in return for the forgiveness of the remaining debt. Someone who owes $10,000 on a single credit card, for example, may approach the credit card company and offer to pay $5,000. In return for this one-time payment, the credit card company agrees to forgive or erase the remaining $5,000 still owed.

Some options when you want to settle your credit card debt are:

Talk To Us We Will Help You Get Out Of Debt

NATIONAL DEBT RELIEF GETTING CLIENTS INTO MORE DEBT DEBT SETTLEMENT COMPANIES

We will help you reduce as much as 75% of your debts and consolidate it into a single affordable monthly payment. Your creditors will stop harassing you and all interest will freeze if you get into our Ontario Government Debt Relief Program.

Many Ontarians are already benefiting from our Debt Relief Program, YOU should too!

Find out how much you can write off portion of your debts by getting your Free Savings Estimate below. A debt specialist from National Debt Relief Services in Ontario will discuss all options and provide you tailor-fitted Debt Relief Program.

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National Debt Relief Review: Does Debt Settlement Work

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.

National Debt Relief is a debt settlement company that negotiates on behalf of consumers to lower their debt amounts with creditors.

Consumers who complete its debt settlement program reduce their enrolled debt by 30% after its fees, according to the company.

But NerdWallet cautions that debt settlement, whether through National Debt Relief or any of its competitors, is risky:

  • Debt settlement can be costly.

  • It can destroy your credit.

  • It takes a long time. Getting any net benefit requires sticking with a program long enough to settle all your debts often two to four years.

NerdWallet recommends debt settlement only as a last resort for those who are delinquent or struggling to make minimum payments on unsecured debts and have exhausted all other options. For many consumers, bankruptcy is a better option as it offers a faster route to resolving debt. And bankruptcy generally protects consumers from being sued, which is a risk while enrolled in a debt settlement program.

Consolidate Your Credit Cards Into Just One Repayment

  • One Simple Monthly repayment
  • Poor or bad credit applications welcome
  • Pay less interest & Fees than your credit cards
  • Fast and Easy Loan Application

One credit card can be a handful let alone multiple credit cards. When you have many cards, with different rates, limits, interest free periods and late fees, effectively managing your money can be a bit tricky. This is where credit card debt consolidation can be super helpful.

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The Risks Of Debt Settlement

Debt settlement comes with significant risks that you should be aware of before entering into an agreement. These risks include:

  • Damage to your credit. Debt settlement companies often encourage you to stop making payments to your creditors. This can severely damage your credit. It can also cause you to accrue interest, late fees and penalties on your existing debt, pushing you deeper into debt. You could receive calls from creditors or, in some cases, be sued for repayment.
  • High costs. Programs for debt settlement may require you to put money away for many months or years before your debt is settled. This can be very costly and, if you cant afford the monthly payments, you may have to drop out of the program. Ensure you can truly afford to put away a significant amount of cash per month before entering into a debt settlement program.
  • No guarantee. Your creditors are not obligated to negotiate with you or a debt settlement company. Theres a chance that the debt settlement company you hire wont be able to settle all of your debts, leaving you with growing debt during and after the process.

Get Credit Card Debt Under Control

Apply For Debt Relief
  • Stop the credit card companies and debt collectors calling
  • Learn to budget effectively and relieve money worries
  • We deal with the credit card companies on your behalf
  • We negotiate with the creditors to lower your overall debt
  • Stop or reduce credit card debt interest so you can lower the balance
  • We take care of multiple payments so you just pay one regular repayment.
  • We are also experienced in the process of credit repair

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How National Debt Reliefs Program Works

First, National Debt Relief reviews your credit history to make sure youre eligible. There is no minimum credit score requirement, but keep in mind NDR can only settle unsecured debt like credit cards or personal loans. It cant do a thing about your mortgage or auto loan.

If youre eligible for the program, you will begin depositing money into an escrow account, which only you have access to. National Debt Relief wont start negotiations with your creditors until the escrow account has reached a certain amount, usually around 25% of the debt owed.

This is not a fee. Once NDR and your creditors reach an agreement, the escrow funds are withdrawn and handed over to your lenders. This usually falls short of the total amount your creditors were willing to settle for.

This means youll have to make monthly payments to National Debt Relief for a period before youre in the clear. How much youll pay depends on many factors, but clients typically take 24-48 months to complete the program.

You will be advised not to pay your debts while negotiations are ongoing, and this will sink your credit score. However, if youre considering debt settlement, your credit score is likely near the bottom of the barrel already. It may be worth the negative marks if you can save enough money. National Debt Relief claims it can reduce debt by up to 50%.

ยป Learn more:How Debt Relief Programs Work

Am I Eligible For A Debt Agreement

You can lodge a debt agreement proposal if you:

  • Are unable to pay your debts when they are due.
  • Have not been bankrupt, had a debt agreement or personal insolvency agreement in the last 10 years.
  • Have unsecured debts and assets less than the set amount.
  • Estimate your after-tax income for the next 12 months to be less than the set amount.

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Contact Your Credit Card Issuer

It might not sound like the best move when you can’t pay your credit card balance, but contacting your credit card company is always a good idea if you’re worried about missing a payment.

Depending on your situation and the card issuer, potential relief can come in the form of one of the following:

  • Reduced interest rate: Some credit card companies may agree to lower your interest rate for a set period to cut the amount of interest that’s accruing on your balance.

  • Lower monthly payment: Your card issuer may agree to a modified payment plan that involves a reduced monthly payment for a set amount of time.

  • Forbearance: In some situations, you may be able to get your credit card payments paused for a short period of time. That said, interest may still continue to accrue, and forbearance doesn’t reduce your actual balance.

  • Fee waivers or refunds: If you’re already behind, you may be able to convince your credit card company to waive late fees or refund past late fees that have already been added to your account.

Keep in mind that these options are entirely at the discretion of your card issuer, so there’s no guarantee that you’ll get the relief you’re looking for.

“The best approach is to be persistent and polite. You will need to keep good records of your debt,” says Latham. “A realistic goal is to negotiate a modified payment plan that either extends the repayment period, reduces the amount you owe or a combination of both.”

How National Debt Relief Works

In The News – Debt & Your Mental Health

When choosing to work with National Debt Relief, it is important to know what to expect from the process. When you first apply, a certified specialist reviews your credit history to ensure your eligibility for the debt settlement program. Once your eligibility is confirmed and you begin working with National Debt Relief, an escrow account at Global Client Solutions that only you can control will be opened in your name. You will then send an agreed-upon monthly deposit to National Debt Relief, to be deposited in your escrow account.

Meanwhile, National Debt Relief will negotiate with creditors on your behalf. They will contact you when they settle a debt and ask you to release the funds from your account to pay for the settlement. Typically, your first settlement will occur within three to six months. While the overall length of the program depends on your individual debt, it generally takes between 24 to 48 months to settle all of your debts.

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Federal Debt Relief For Military Members

If you’re a member of the armed forces, you can automatically qualify for the only known credit card debt relief government program. It delivers a reduced interest rate on certain credit card debt and other types of debt.

In fact, the Servicemembers Civil Relief Act sets a 6% capsome lenders willingly go as low as 4%for interest rates on debt you took out prior to entering active duty military service, but only if you’re currently in active duty service. Some card issuers may also waive your annual fee during this time.

“That is a huge reduction from the interest rates most credit cards charge,” says Andrew Latham, a CFP and managing editor of SuperMoney.com. “The only thing servicemembers have to do to qualify is notify their lender in writing and attach a copy of their orders to active duty service and a letter from your commanding officer showing when you started active duty service.”

Debt Relief: Understand Your Options And The Consequences

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.

Find that you’re just not making progress on your debt, no matter how hard you try? If that’s the case, you might be facing overwhelming debt.

To break free of this financial burden, look into your debt relief options. These tools can change the terms or amount of your debt so you can get back on your feet more quickly.

But debt-relief programs are not the right solution for everyone, and its important to understand what the consequences might be.

Debt relief could involve wiping the debt out altogether in bankruptcy getting changes in your interest rate or payment schedule to lower your payments or persuading creditors to agree to accept less than the full amount owed.

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