However, it's important to consider that while National Debt Relief offers a legitimate service, debt settlement can come with drawbacks. Settling debts can negatively impact your credit score, and the process can take several years to complete.
Depending on your personal situation and whether you have already missed payments to your creditors, debt settlement programs may have a negative impact on your credit score. Due to it being a separately regulated service, we do not provide credit repair services or offer advice on ways to improve your credit.
You will not benefit from using a debt relief company, these companies do not protect your credit or guarantee agreements with your creditors. Your options are to pay it off, consider rolling your debt into some 0% interest accounts and aggressively work on paying them off to avoid interest.
When it comes to credit card debt relief, it's important to dispel a common misconception: There are no government-sponsored programs specifically designed to eliminate credit card debt. So, you should be wary of any offers claiming to represent such government initiatives, as they may be misleading or fraudulent.
The short answer is yes, credit card debt forgiveness can negatively affect your credit score. However, the impact depends on various factors, including your current credit score and the specifics of your debt settlement agreement.
A risky way to get out of debt: There are risks in working with National Debt Relief, including a major hit to your credit, falling deeper into debt as you await a successful settlement negotiation and even the possibility of being sued by a creditor.
So, while you can use your credit card accounts after consolidating your debt in most cases, it could be a bit more difficult to open and use new credit cards — and the route you take to consolidate your debt could play a role as well. Learn how the right debt relief strategy could help you now.
Over the past four years, the Administration has approved nearly $180 billion in student debt relief for 4.9 million borrowers through various actions, taking historic steps to aid hardworking Americans across the country who have worked to repay their student loans but remained in debt.
The bottom line. The journey from debt settlement to homeownership is typically a matter of years rather than months. While the exact timeline can vary based on numerous factors, most individuals should expect to wait at least 2-3 years, with 4-7 years being more common for conventional loans.
This means you'll have to make monthly payments to National Debt Relief for a period before you're in the clear. How much you'll pay depends on many factors, but clients typically take 24-48 months to complete the program.
Credit Score Damage: One of the major downsides of debt settlement is the negative impact on credit scores. The process can lower a credit score by 100 points or more, depending on the individual's credit history. This can make it harder to qualify for credit, loans, or favorable interest rates for several years.
Keep in mind that the government doesn't offer grants to help Americans pay off consumer debt from things like credit cards. It does, however, offer financial support for Americans struggling with a range of tough financial situations.
Duration on your report: Debt settlement can stay on your report for up to seven years. Debt settlement occurs when a company contacts creditors and negotiates a settlement on your behalf. The debt settlement company may ask you to stop paying your creditors and instead pay an amount into a separate account.
For example, paying all bills on time, finding the best credit cards for those with poor credit scores, or pursuing a credit builder loan. In most instances, reasonable expectations for a post-debt settlement recovery range from approximately 12 to 24 months.
When enrolled in a debt management program, creditors will freeze your credit card accounts to reduce your interest rates from 0 to 10 percent. You may be able to hold onto one card for emergencies.
Which Is Better: Paying in Full or Settling? It's better to pay off a debt in full than settle when possible. This will look better on your credit report and potentially help your score recover faster. Debt settlement is still a good option if you can't fully pay off your past-due debt.
Perhaps the most common debts that cannot be discharged under any circumstances are child support, back taxes, and alimony. Here are some of the most common categories of non-dischargeable debt: Debts that you left off your bankruptcy petition, unless the creditor had knowledge of your filing. Many types of taxes.
Currently, no government-sponsored or government-backed programs provide credit card debt relief to consumers. For example, unlike what you see with federal student loans, you cannot apply to have credit card debt forgiven without penalties.
If our long-term fiscal challenges remain unaddressed, our economic environment will weaken as confidence suffers, access to capital is reduced, interest costs crowd out key investments in our future, the conditions for growth deteriorate, and our nation is put at greater risk of economic crisis.
Freedom Debt Relief is a legitimate debt settlement company founded in 2002. It's accredited by the Better Business Bureau (BBB) with an A+ rating and holds an accreditation from the American Association for Debt Resolution (AADR).
Overall consumer debt has increased for Americans, average credit card balances jumped to $7,236 according to Lendingtree's 2025 Credit Card Debt Statistics. Debt.com's latest survey of 1,000 credit card users shows 1 in 5 have between $10,000 and $30,000 in credit card debt.