The site shares over 455 reviews - all with a five-star rating. What's more impressive is the site provides a list of "Proven Results" where any consumer can see how their plans have helped other clients, sometimes saving people over $10,000 in debt. It is clear this company knows what they are doing and we recommend requesting a free consultation or speaking to one of their certified debt counselors if you need guidance concerning reducing debt through credit card consolidation.
If you work with a debt settlement company, it will usually require you to stop paying your bills while it negotiates your new settled amount, which is typically 50% to 80% of the total balance. Late payments will be reported to the credit bureaus (Experian, TransUnion and Equifax) and will stay on your credit report for seven years. These accounts could even go into collections as you wait for your debt settlement company to complete negotiations. All of these actions will have a substantial negative impact on your credit.
Another common form of debt relief involves debt consolidation, or the combining of several higher-interest loans into a single lower-interest loan. There are several ways consumers can lump debts into a single payment. One method is to consolidate all their credit card payments into one new credit card, which can be a good idea if the card charges little or no interest during an introductory period. They may also utilize an existing credit card’s balance transfer feature (especially if it offers a special promotion on the transaction).
National Debt Relief is a ten-year-old company headquartered in the financial district of New York City. Since our founding in 2009 we have helped more than 100,000 families and individuals become debt free by resolving more than $1 billion in unsecured debts. The company is Better Business Bureau accredited and has consistently maintained an A+ rating. National Debt Relief is a member of the US Chamber of Commerce and the American Fair Credit Council (AFCC). This organization is the watchdog of the debt settlement industry. It demands that its members operate with clarity, fairness, trust and legitimacy. There is no doubt about the fact that any company that belongs to the AFCC is one that can be trusted to treat you honestly and ethically.
The most important part of credit card reduction would be to complete the process with your creditors and or collection agencies. In order to do this, it is necessary to get a debt reduction company to have you sign a legal contract and a document that legally authorizes these to negotiate along with your creditors on your behalf; this is what’s called a “Limited Power of Attorney.”

The above graph presents a single anomaly which occurred in 2005. During that time there was a severe drop in average credit card debt, despite total outstanding revolving debt continuing to rise. This outlier was likely due to the spike in bankruptcy filings in the United States around that time. A law went into effect at the end of 2005 which made it more difficult for individuals to declare bankruptcy. This resulted in a rush of filings before the law's deadline - over 2 million Americans had their debts forgiven that year due to these filings.

Anxiety and uncertainty feel like the norm these days, but as the COVID-19 pandemic continues to spread, we've also seen people and businesses coming together to assist one another in ways we've never seen before. This includes credit card companies, many of which are waiving fees and working with those affected by COVID-19 to ensure that this pandemic doesn't completely destroy their finances.
Transferring your debt to one credit card, known as a credit card balance transfer, could help you save money on interest, and you’ll have to keep track of only one monthly payment. You’ll need a card with a limit high enough to accommodate your balances and an annual percentage rate (APR) low enough and for a sufficient time period to make consolidation worthwhile.

If you’re looking for the fastest, cheapest exit possible without the expense of bankruptcy, settlement may be the best choice. Keep in mind that bankruptcy isn’t free. The filing fee for Chapter 7 is $335, then you’ll also have fees for your attorney. This is why it’s important to have the right filing expectations before you take your case to the courts.
The above graph presents a single anomaly which occurred in 2005. During that time there was a severe drop in average credit card debt, despite total outstanding revolving debt continuing to rise. This outlier was likely due to the spike in bankruptcy filings in the United States around that time. A law went into effect at the end of 2005 which made it more difficult for individuals to declare bankruptcy. This resulted in a rush of filings before the law's deadline - over 2 million Americans had their debts forgiven that year due to these filings.
A debt management plan (DMP) is a way for you to pay off your credit card and possibly unsecured personal loan debt by sending a monthly payment to a credit counselor, who distributes the funds to your creditors. Plans typically last three to five years, with the goal of deleting all the debts in the plan. You cannot obtain new debt while participating in a DMP.
The best way is to be sure you are paying all your bills on time. And, if you have credit cards, try to keep your balance to less than 30% of your credit limit (less than 10% is even better). We suggest checking your credit score monthly (you can get two scores every 30 days from Credit.com), along with personalized advice for improving your credit. Here’s how to monitor your credit score for free.

If you do business with a debt settlement company, you may have to put money in a dedicated bank account, which will be administered by an independent third party. The funds are yours and you are entitled to the interest that accrues. The account administrator may charge you a reasonable fee for account maintenance, and is responsible for transferring funds from your account to pay your creditors and the debt settlement company when settlements occur.
In that same scenario, if you paid an extra $50 a month, for a total of $250 a month, you would pay off the balance in 24 months at 15.24% APR and pay $805 in interest. At the higher APR of $29.96% you would pay off the balance in 29 months and pay $2,014 in interest. Paying just $50 extra a month could shave off 7 to 11 months of payments and save you quite a bit in interest.
Hi Donna, I would suggest seeking advice from a nonprofit credit counselor as well as a reputable bankruptcy attorney. Clearpoint offers free credit counseling through Money Management International and you can reach us at 877-877-1995. If you need referral to an attorney I would start with you local legal aid, as you may qualify for assistance. You can get in touch with them by using Google or contacting your local United Way 2-1-1 and asking for legal aid. If you do not qualify, you can get a referral to an attorney via your local bar association as well. Once you have talked it over with both of these, you can make an educated decision. Good Luck!
It’s true that many people get into debt because they lose their jobs. But some people get into debt despite having well paying jobs. It’s good to share information so that people have a plan to save while they have a job so they can weather a job loss. And for those who accumulate debt beyond their means while employed, it’s good to give them a plan of action to “right the ship.” Hope you find something that helps you weather your storms.
Before you enroll in any debt settlement program, the Consumer Financial Protection Bureau recommends contacting your state attorney general and local consumer protection agency to check whether there are any complaints on file. The state attorney general’s office can also check if the company is required to be licensed and whether it meets your state’s requirements.
Conventional wisdom has long held that certain types of debt are generally good. For instance student loans are considered a good debt, because they provide an education that, in theory, leads to a high-paying job. Mortgages are also often labeled as a good debt, because real estate generally appreciates in value over time, and the interest expense may be deducted from taxes. Meanwhile, high-interest credit card debt is regularly categorized as bad debt and never beneficial.

Only time can make accurate information go away. A credit bureau can report most accurate negative information for seven years and bankruptcy information for 10 years. Information about an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. The seven-year reporting period starts from the date the event took place. But there are steps you can take to repair your credit over time.
Tip: Before you do business with any debt settlement company, contact your state Attorney General and local consumer protection agency . They can tell you if any consumer complaints are on file about the firm you're considering doing business with. Some states require debt settlement companies to be licensed. You can check with your state regulator or ask your state Attorney General if the company is required to be licensed to work in your state and, if so, whether it is. You can also view the Federal Trade Commission's page on "Coping with Debt " for more information.
Forgiven debt may be considered taxable income by the IRS unless you are insolvent, which is when your debt totals more than the total value of your assets. Insolvency can be hard to determine, so contact a tax professional to find out more about whether you qualify. Even if you do need to pay taxes on forgiven debt, however, paying taxes on $25,000 of forgiven debt is better than paying the entire $25,000 amount.
Of course, knowing you need a repayment plan is just the first step -- you also need to figure out which plan is the right one for you. There are two primary options to consider that many borrowers have found success with: the debt snowball approach and the debt avalanche approach. Both have their pros and cons, so you'll need to decide which is right for you.
You can contact NDR directly via telephone (1-888-919-1355) or you can apply online. As with most sites, their application process requires you to enter your information. Once contacted, you'll discuss your financial situation with one of NDR's certified debt counselors, who will walk you through a free debt analysis to determine the right course of credit card consolidation for you.
I have 5 CC’s, combined debt of $13,000. The utilization of these CC’s are over 30%. My overall utilization is around 45%. One card is at 70% because it was used for medical bills ($5000). This has been on deferred interest for the past 6 months and this offer is due to expire in August, which will give me a lot of extra interest charges. I need to do something to move the $5k off the credit card and am wondering how a debt consolidation loan would impact my score. I can’t balance transfer anything. Would it be better to just put $5000 on a loan? The other problem I have is that I also need to get a car loan ($6k) in August. I’m concerned about too many things hitting my report but I don’t really have a choice. Recently, one of my CC companies reduced my CL but after a conversation, they reinstated it. I’m anxious to clean up my report. My score is in low 700s. What should I do?

Be careful while getting debt solutions from a company as scams are rampant in the country. Check the accreditations and affiliations of a company before signing a written agreement. In case of bankruptcy, make sure youre working with an attorney who is well acquainted with all the laws. If youre opting for a self repayment plan, then go through the FDCPA laws minutely.


A debt consolidation program is a service designed to help borrowers pay off their outstanding debt. In these programs, consumers receive the tools to develop a loan repayment strategy with which to manage their existing debts. These programs allow the borrower to make one monthly payment, which goes toward all outstanding debts, usually on a timeline to get the borrower completely out of debt in 3-5 years. A credit-counseling agency or debt settlement company usually manages these debt consolidation programs, and the mission is to help consumers get out of debt and become financially independent.
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