If you’re paying every month and the balances still won’t move, you’re not stuck. There are real ways out, and this page shows which one fits you, what it costs and what to expect, with no surprises.
Debt relief is one of them: a company negotiates with the people you owe so you pay back less than the full balance. Answer three quick questions below and we’ll point you to the right next step, or go straight to National Debt Relief.
About how much do you owe on cards and other unsecured debt?
Where are you with payments?
National Debt Relief
You owe $7,500 or more and you're behind, which is exactly who it works with. It negotiates your card, medical and personal loan debt down so you pay back less than you owe, with one monthly deposit instead of a pile of bills.
Want the details first? See what it costs and how it works
First Advantage
National Debt Relief isn't taking sign-ups in your state, so start here. First Advantage is a free service that looks at what you owe and matches you with debt relief providers that fit your situation.
The provider you're matched with sets its own fees, so get them in writing. More on how it works
A cheaper fix probably fits you
Since you're keeping up, you likely don't need settlement, which only works once you stop paying. If your credit is good, a consolidation loan can roll your cards into one lower payment. If the interest is what's burying you, a nonprofit credit counselor can often get your rates lowered.
You can likely pay this down yourself
Under $7,500, settlement fees would eat most of what you'd save, and National Debt Relief's minimum is $7,500 anyway. A payoff plan you run yourself costs nothing.
Talk to a bankruptcy attorney first
If there's no realistic way to fund settlements for two to four years, a program just adds fees on the way to the same place. Bankruptcy can wipe out credit card and medical debt, and some attorneys will talk to you free the first time.
Settlement doesn't cover that kind of debt
Debt relief only works on unsecured debt like cards and personal loans. For a car loan, mortgage, back taxes or federal student loans, call the lender, your loan servicer or the IRS and ask about hardship options.
Owe $7,500 or more and behind on payments? National Debt Relief is our top pick. If it isn't available in your state, try First Advantage.
Still keeping up? See whether debt consolidation is a good idea. Owe less than $7,500? Here's how to pay off credit card debt. Can't see paying back even half? Read these bankruptcy mistakes first.
What Is Debt Relief?
Debt relief usually means debt settlement. A company negotiates with the people you owe so you pay back less than the full balance, and you pay the company a fee for doing it.
Here’s how it actually works. You stop paying the debts you put in the program. Instead, you make one monthly deposit into a savings account in your name. Once enough builds up, which usually takes a few months, the company offers each creditor a lump sum for less than the balance. If the creditor agrees and you approve the deal, the creditor is paid from your account and the company takes its fee.
Can a company charge you before it does anything? No. Under the federal Telemarketing Sales Rule, a debt relief company that signs you up by phone can’t take a fee until it has settled at least one of your debts and you’ve made at least one payment on that deal. The savings account has to be at an insured bank, the money in it is yours, and you can quit at any time without a penalty and get it back within seven business days.
If a company asks for money up front, walk away.
What Debt Relief Costs
Most settlement companies charge 15% to 25% of the debt you enroll. National Debt Relief’s fee is up to 25%, and where you land depends on your state and how much you owe.
Here’s what that looks like on $20,000 of credit card debt, using National Debt Relief’s own averages for clients who finish the program.
That’s about $333 a month if it takes 48 months, or about $667 a month if you finish in 24.
National Debt Relief’s own example is closer to real life. A client it calls Mary owed $22,800 on cards and a personal loan and was paying a little over $1,020 a month. She set up a $362 monthly deposit for an estimated 48 months, and it estimates her debt could be resolved for about $17,300. On minimum payments it puts her total at an estimated $63,434.
One thing to keep in mind with all of these numbers: they’re for people who finish, and not everyone does.
Want your own number? The consultation is free, and there’s no fee until a debt is settled.
See what your number would be with National Debt Relief
Is Debt Relief Right for You?
You’re a good fit if all four of these sound like you.
- You owe at least $7,500 in unsecured debt, like credit cards, medical bills or personal loans. That’s the minimum in National Debt Relief’s qualifying guide, though its program page says $10,000, so the higher number is the safer bet. First Advantage doesn’t publish a minimum.
- You’re already behind, or you will be soon. National Debt Relief says most of its clients are several months overdue.
- You can make one monthly deposit, every month, for two to four years. It replaces what you pay those creditors now, so it has to fit your budget.
- Your debt is the unsecured kind. Settlement won’t touch a mortgage, a car loan, back taxes or child support, and federal student loans usually aren’t included either.
If that’s you, here’s where to start. Pick National Debt Relief if you live in a state its sign-up covers. Pick First Advantage if you live in Connecticut, Delaware, Idaho, Minnesota, Montana, Oregon, Vermont, Virginia, Washington, West Virginia or Wisconsin, or if you’d rather get matched with a program than choose one yourself.
1. National Debt Relief
Top pick for card debt you can no longer keep up with
Big, established, and no fee until a debt settles.
National Debt Relief has negotiated credit card, medical and personal loan debt since 2009. You stop paying those creditors, save into an account in your name, and it settles each debt for less than you owe. Its fee is up to 25% of the debt you enroll, charged only after a settlement you approve.
Free call. A debt specialist reviews what you owe and what you can set aside each month
You make one monthly deposit into an FDIC-insured account in your name instead of paying those creditors
It negotiates each debt. You approve the deal, the creditor is paid from your account, then the fee is charged
Debts it takes, states it serves and how you cancel
The call is free, and there is no fee unless a debt is settled and you approve the deal.
Why it’s our top pick: it’s one of the biggest names in settlement, and its record is easy to check. By its own count, more than 1.5 million people have enrolled since 2009 and it has settled over $20 billion in debt. The Better Business Bureau gives it an A+ rating, it’s on the Association for Consumer Debt Relief’s accredited member list, and it says it’s platinum accredited by the International Association of Professional Debt Arbitrators.
It isn’t cheaper than other settlement companies, and it doesn’t guarantee a set cut or timeline. What you get is a big, established company that only gets paid when it settles something.
2. First Advantage
Best if National Debt Relief can't take you
A free way to get matched when you can't, or don't want to, pick one company yourself.
First Advantage isn't a settlement company. You answer a few questions about your debt, and it connects you with debt relief providers that fit your situation. Depending on where you stand, that could be settlement, consolidation or a referral to look at bankruptcy with a professional.
Answer a few quick questions about what you owe. It takes a few minutes
A specialist walks you through the programs you qualify for, in plain language
You choose the path. The provider explains its own fees and terms before you commit
Who you sign with, fees and what to ask
It's free, there's no obligation, and you decide whether to move forward.
Side by side, here’s how the two compare.
| Company | What it is | Minimum debt | Fee | States | |
|---|---|---|---|---|---|
| National Debt Relief | Debt settlement company | $7,500 ($10,000 on one of its pages) | Up to 25% of enrolled debt, after a settlement | Not open in the 11 states listed above | See if you qualify |
| First Advantage | Free matching service | Not published | Set by the provider it matches you with | Use it if National Debt Relief can't take you | See if you qualify |
What to Expect Once You Enroll
Here’s the honest part. Settlement only works because you stop paying, and that costs you something from the first month.
| What happens | What it means for you |
|---|---|
| Your credit drops | Missed payments on every enrolled account go on your credit report, and National Debt Relief says they stay there for seven years. The CFPB says settlement can hurt your scores and your ability to get credit later. When the program ends, these steps to improve your credit score are how you rebuild. |
| Balances grow at first | Late fees and penalty interest keep adding up while you save. If only some of your debts get settled, those charges can wipe out what you saved on the others. |
| Collectors keep calling | Enrolling doesn’t stop the calls, and creditors will likely push harder once payments stop. Here’s how to handle debt collection calls. |
| You can be sued | A creditor can file a lawsuit while you’re still saving up. National Debt Relief calls the chance slight, and the CFPB lists it as a real risk. |
| Some creditors say no | No creditor has to settle, and some won’t work with the company you pick. |
| Forgiven debt can be taxed | A creditor that cancels $600 or more reports it to the IRS on Form 1099-C, and canceled debt generally counts as income. If you owed more than everything you own was worth right before the debt was canceled, you may be able to leave some or all of it out with Form 982. Ask a tax pro. |
| Not everyone finishes | National Debt Relief says not all clients complete the program, often because they can’t keep saving. If you stop, you keep the unsettled debts and the damage. |
The Consumer Financial Protection Bureau puts it bluntly: settlement “may well leave you deeper in debt than you were when you started.”
So why do people still do it? Because for someone who truly can’t keep up, the other road is usually worse. You trade a stack of payments that never seem to shrink for one deposit, an end date two to four years out and a smaller total. In the Mary example, her deposit was about a third of what she’d been paying each month.
It works when you can fund the account every month until the last debt settles. If you can’t, one of these routes fits better.
Still think it fits? The consultation is free, there’s no fee until a debt is settled, and you can cancel without a penalty.
Check if you qualify with National Debt Relief
When Debt Relief Isn’t the Right Fit
Settlement is the wrong tool for a lot of people who search for it. If one of these is you, start here instead. Not sure your debt is really a problem yet? These four tests show how much debt is too much.
You Owe Less Than $7,500
National Debt Relief won’t take you, and at that size the fees eat most of the benefit anyway. A payoff plan you run yourself costs nothing. Start with how to pay off credit card debt when you have no money, or follow this plan for paying off $5,000 in credit card debt.
You Can Still Make Your Payments
Don’t stop paying just to chase a settlement. If you can cover your minimums but the interest is burying you, call a nonprofit credit counselor first. A counselor can set up a debt management plan: your creditors may lower your rates, you make one payment a month, and you pay back what you owe in full, so nothing is forgiven and nothing is taxed.
Ask for every fee in writing before you sign. To check an agency, use the U.S. Trustee Program’s list of approved credit counseling agencies.
Your Credit Is Still Good
A debt consolidation loan pays off your cards and leaves you one fixed payment. It only helps if the new rate is lower than what your cards charge, and it takes the kind of credit score settlement would wreck. See whether debt consolidation is a good idea for you, then compare rates in this guide to the best personal loans.
Mostly Car, Mortgage, Tax or Federal Student Debt
Settlement companies only work on unsecured debt. National Debt Relief can’t help with mortgages, auto loans, back taxes or child support, and it says federal student loans typically aren’t part of a settlement plan. Call the lender, your loan servicer or the IRS directly and ask about hardship options.
You Could Not Pay Back Even Half of It
If there’s no realistic way to fund settlements for two to four years, a program just adds fees on the way to the same place. Bankruptcy can wipe out credit card and medical debt, and the cost is that it can stay on your credit for up to 10 years. Some bankruptcy attorneys will talk to you free the first time. Read these bankruptcy mistakes before you file.
How to Check Any Debt Relief Company Before You Sign
Whoever you call, run these five checks first. They only take a few minutes.
- It charges nothing until a debt is settled. That’s federal law for companies that sign you up by phone, so a company that asks for money first is telling you who it is.
- It belongs to a trade group. Look the company up on the Association for Consumer Debt Relief member list and ask whether it’s accredited by the International Association of Professional Debt Arbitrators. Membership isn’t a guarantee, but a company with neither is a red flag.
- Its Better Business Bureau rating holds up. Check the rating on bbb.org and read a few of the newest complaints, not just the stars.
- It doesn’t promise a result. The CFPB says to avoid any company that promises a set percentage off your debt, talks up a “new government program” or guarantees your debt will go away.
- Your money stays yours. The savings account should be in your name at an insured bank, and you should be able to quit and take the money out.
National Debt Relief passes all five: it charges only after a settlement, it’s on the ACDR list, it has an A+ BBB rating, it says it doesn’t guarantee results, and it holds your deposits in an FDIC-insured account in your name. With First Advantage, run the same checks on the provider it matches you with, since that’s who you’ll sign with.
Debt Relief FAQ
For most people with $7,500 or more in credit card, medical or personal loan debt they can no longer keep up with, <a href=”https://www.mymillennialguide.com/nationaldebtrelief” data-placement=”faq” target=”_self” rel=”nofollow sponsored” data-lasso-lid=”73466″ data-lasso-name=”National Debt Relief”>National Debt Relief</a> is the one we’d call first. It has operated since 2009, holds an A+ rating from the Better Business Bureau, is an accredited member of the Association for Consumer Debt Relief and charges nothing until a debt is settled. If you live in Connecticut, Delaware, Idaho, Minnesota, Montana, Oregon, Vermont, Virginia, Washington, West Virginia or Wisconsin, start with <a href=”https://www.mymillennialguide.com/firstadvantage” data-placement=”faq” target=”_blank” rel=”nofollow sponsored noopener”>First Advantage</a>, a free service that matches you with a provider. If you can still afford your payments, a nonprofit credit counselor is the better first call.
Three things. It costs about 15% to 25% of the debt you enroll. Your credit takes a hit because you stop paying the enrolled accounts, and collectors can keep calling or even sue while you save. And forgiven debt can be taxed as income. The Consumer Financial Protection Bureau warns that settlement can leave you deeper in debt than when you started if most of your debts don’t get settled.
<a href=”https://www.mymillennialguide.com/nationaldebtrelief” data-placement=”faq” target=”_self” rel=”nofollow sponsored” data-lasso-lid=”73466″ data-lasso-name=”National Debt Relief”>National Debt Relief</a> charges up to 25% of the debt you enroll, and only after it settles a debt, you approve the deal and a payment has gone to the creditor. On $20,000 of enrolled debt that’s up to $5,000. By its own figures, clients who finish save about 45% before fees and about 20% after fees over 24 to 48 months. Not every client finishes, and no result is guaranteed.
National Debt Relief’s qualifying guide says at least $7,500 in unsecured debt, and its program page says $10,000, so plan on the higher number. First Advantage doesn’t publish a minimum. Below about $7,500, the fees are hard to justify, and a payoff plan you run yourself or a nonprofit debt management plan fits better.
Yes. Settlement relies on you no longer paying the accounts you enroll, so late payments land on your credit report and your score drops. National Debt Relief says those delinquencies stay on your report for seven years. Late fees and interest also keep building on the debts that haven’t been settled yet.
Not exactly. First Advantage is a free matching service. It asks a few questions about your debt and connects you with third-party debt relief providers, and the provider you choose sets the fees and timeline. It’s a good first stop if National Debt Relief doesn’t take sign-ups in your state.
Often, yes. The IRS treats canceled debt as income in most cases, and a creditor that cancels $600 or more reports it on Form 1099-C. If you were insolvent right before the debt was canceled, meaning you owed more than everything you own was worth, you can exclude the canceled amount up to the amount you were insolvent by filing Form 982. Ask a tax professional before you file.
Yes. Enrolling doesn’t stop collection, and a creditor can file a lawsuit while you’re still saving for a settlement. National Debt Relief calls the chance slight. No company can promise to stop collection calls or lawsuits, and a company that does is one to avoid.
No. Debt relief, also called debt settlement, means paying back less than you owe after you fall behind. Debt consolidation means taking one new loan to pay off your debts in full, ideally at a lower rate, and it takes good credit to get one. With consolidation you keep paying on time, so you avoid the missed payments settlement relies on.
The Bottom Line
Bottom line: debt relief is a trade. You pay back less, and in return you take a hit to your credit, pay a fee of up to a quarter of the debt and spend two to four years in a program while collectors can still call. For someone with $7,500 or more on cards who truly can’t keep up, that trade can be worth it.
Call National Debt Relief first. If it can’t take you because of where you live, start with First Advantage. And if you can still make your payments, a nonprofit credit counselor is the cheaper fix.
Free, no-obligation consultation, and you pay nothing until a debt is settled.
Check if you qualify with National Debt Relief
Related in Debt: how to pay off debt fast, 7 tips to become debt free and what to do once you are debt free.
Explore more in Debt.
Our top pick for debt settlementNational Debt Relief charges nothing until a debt is settled and you approve the deal. Its fee is up to 25% of the debt you enroll, and settlement will hurt your credit while you are in the program.
See if you qualifyA+ BBB rating. In business since 2009. No fee until a debt is settled
