• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

National Debt Relief

National Debt Relief - A+ BBB Accredited Business - Get Relief From Credit Card Debt, Medical Bills And Unsecured Loans

Talk to a debt counselor toll free:

800-300-9550

Get Relief From Credit Card Debt

Medical Bills and Unsecured Loans

  • Apply Now
    • Qualifications
    • Is This Right For Me?
  • Proven Results
    • Debt Relief Benefits
    • Credit Card Debt Relief
  • Debt Relief
  • Credit Card Debt Relief
  • Debt Consolidation
  • Login
HomeBlog Debt SettlementDebt Reduction vs. Debt Settlement – And The Winner Is …
Video Transcript

Free Debt Consolidation Quote

By clicking "Get Free Quote", you agree that the phone number you are providing may be used to contact you by National Debt Relief (including autodialed and prerecorded calls, as well as text/SMS messages). Msg. and data rates apply, and your consent to such contact is not required for purchase.
  • National Debt Relief, LLC BBB Business Review
  • McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

Debt Reduction vs. Debt Settlement – And The Winner Is …

March 15, 2013 by National Debt Relief

Sign saying Debt Relief with arrow pointing aheadI recently came across an article promoting a way to deal with debt called debt reduction. The article defined it as “a unique debt relief approach.” It was said that it would reduce the amount of debt you’re obligated to pay and would speed up the time it would take you to get out of debt. The article went on to say that you could do this through a professional debt reduction company or you could do it on your own.

The types of debt that can be reduced

What types of debt can be reduced? The article listed these as types of debt that can be reduced.
1. Credit Card Debts
2. Online Payday Loans
3. Storefront Payday Loans
4. Medical Bills
5. Car Loan Repossessed and Sold
6. Accounts in Collection
7. Unsecured Line of Credit

How debt reduction works

According to this article, debt reduction is a six-step program that begins with contacting a debt reduction company. Step two is to fax the company your most recent statements, including your creditor’s names, your current balances and a short history of your account activity. The next step or step three is when the debt reduction company assesses your overall finances, your debts and your interest rates.

A person called a “debt arbiter” will then discuss the program and help you decide whether or not debt reduction would be your best option. If you’re convinced that it could help, step four is when the debt arbitrator sends you a written agreement. If you sign this agreement, the debt reduction company next opens a trust account where you will be required to deposit at least one half of your total outstanding debts.

Finally, step six is when the money is in your trust account, the debt arbitrator will contact your creditors and attempt to settle your debts. If they accept the settlement offers, the debt reduction company will create a formal contract. All involved parties will be required to sign the contract. The debt arbitrator will then settle the debts with lump sum payments. They will paid with money that’s taken out of funds in the trust account. The creditors will report your debts as “paid as agreed” or “paid as settled” on your credit reports.

What are the benefits of debt reduction?

The advantages of a debt reduction program are that they will relieve you from the anxiety and stress associated with having to deal with a big load of debt. It will reduce the number of collection calls you receive and will provide you with affordable payments.

How is debt reduction different from debt settlement

The truth is that debt reduction is basically the same as debt settlement, which is what we do. The fact that you are on our website means you have eliminated step one. You are already in touch with a debt arbitrator or debt counselor. If you feel that you could benefit from debt reduction or debt settlement, all you have to do is call us or tell us the amount of your debt using the form on this page. We will explain debt settlement and why it might or might not be your best option. If we agree that debt settlement could help, you will need to fax us information about the names of your creditors, your balances and, if possible, a copy of your credit report. This will put you well on your way towards getting your debts settled and becoming debt free in 24 to 48 months.

And the winner is …

In the question of debt reduction versus debt settlement, the winner is … you. Debt reduction and debt settlement are basically the same program and one that can save you thousands of dollars and help you pay off all your debts.

Do you qualify for debt consolidation?

National Debt Relief
National Debt Relief

National Debt Relief is one of the largest and best-rated debt settlement companies in the country. In addition to providing excellent, 5-star services to our clients, we also focus on educating consumers across America on how to best manage their money. Our posts cover topics around personal finance, saving tips, and much more. We’ve served thousands of clients, settled over $1 billion in consumer debt, and our services have been featured on sites like NerdWallet, Mashable, HuffPost, and Glamour.

Follow National Debt Relief: Facebook Twitter Instagram Linkedin

Primary Sidebar

Consolidate Your Debt!
Find out how NDR could help.
  • Get one low monthly payment
  • Avoid bankruptcy
  • Get out of debt in 24-48 months
Get Your Free evaluation
Free Debt Consolidation Quote
By clicking "Get Free Quote", you agree that the phone number you are providing may be used to contact you by National Debt Relief (including autodialed and prerecorded calls, as well as text/SMS messages). Msg. and data rates apply, and your consent to such contact is not required for purchase.
 Trusted By Our Clients

"Enrolling with NDR was easy. I liked how the rep gave me the exp"

Moderate National Debt Relief Caller: Charlotte Transcribed WE 1/24/2021 Charlotte: Our call is recorded. How did you first hear about National Debt Relief? SABAD: Oh, I was just Googling, “How do you solve for debt collection?” And this is what comes up in the research. Charlotte: Was there any particular reason that you selected National Debt Relief as opposed to the others that came up as well? SABAD: Honestly, no. There's no reason. I just thought this was the best. Charlotte: Tell me about the service that they provided for you. SABAD: The service they provided was getting like, “You have 24 months to 42 months to get debt relief. This is how much you have to pay. You have to [reapply 0:01:19]. We can contact all the credit --” All the details they gave me, actually was knowledgeable. And I talked to one of my coworker, and she told me she did it like a year ago. I'm like, “Oh, I just signed in.” And she's like, “Yeah, they're the best.” Charlotte: What did you think about the enrollment process as far as how easy or difficult would you say it was? SABAD: I believe it was easy. I don't think it was hard. Anybody can do it. Charlotte: Do you remember the name of your negotiator? SABAD: Yeah, I think it was Oscar. I don't remember his last name. Charlotte: Is there anything about him that stood out and impressed you at all? SABAD: The way he explained to me, how he gave me the explanation. He didn’t put me in a pressure. He say, “Hey, take your time.” He gave me like three days to enroll. He say, “Hey, I’ll give you three days. You can go and research. Here’s my telephone number. Here’s my fax.” The way he provided all of it, that’s what made me say, “Hey, I think I can trust these people and do it.” Charlotte: How comfortable did you feel working with National Debt Relief through this whole process? SABAD: 100%. Charlotte: Is there anything about your negotiator that really stood out and impressed you? SABAD: Everything he did impressed me. Charlotte: Is there anything about this process that you would have liked to have seen handled differently? SABAD: Maybe quick -- but I believe it depends on your budget and the time, so I think they're trying their best. But everything’s take a long time. So, I don't wanna be [unclear 0:03:20]. Charlotte: If you had to rate this experience on a scale of one to five stars, five stars is that you would recommend to friends and one star is you're pretty dissatisfied, how would you rate? SABAD: You said 5 is the what? Charlotte: Five is the very highest you could rate them. SABAD: I will say actually 5. My opinion, I would say 5. Charlotte: Would it be okay if I posted your comments as a review on our public website for National Debt Relief? SABAD: Absolutely. Charlotte: I have you at sabadsamatar2014@gmail.com. SABAD: Yes. Charlotte: How would you say that working with National Debt Relief has impact your life? SABAD: It’s impact everything the last two years. I don't think I would survive without them. Whatever happen right now, to me, especially when COVID happened, I'm like, “Thanks, God.” It was the right time for me. I think God opened a door, say, “There we go. This is your right door that I opened.” Charlotte: We’re recorded.

Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating

Sabad Samatar
ConsumerAffairs Reviews

Latest Debt Settlement Posts

  • Debt Settlement – 7 Truths Everyone Struggling with Debt Needs to Know
  • 3 Signs That Debt Settlement Is The Right Debt Solution
  • 10 Ways You Can Support Your Debt Reduction Plan
  • Debt Settlement Doubts? 4 Reasons Why It Is Your Best Option
  • 7 Myths About Consumer Credit Counseling
National Debt Relief, LLC BBB Business Review AFCC Top Ten Reviews Gold Top Consumer Reviews Consumers Advocate Trust Pilot
Company
  • About Us
  • Contact Us
  • Blog
  • Careers
  • Corporate
  • Privacy Policies
  • Terms Of Site
  • Disclaimer
  • Sitemap
Products
  • Debt Relief
  • Credit Card Debt Relief
  • Debt Consolidation
  • Debt Settlement
  • Calculators
  • FAQs
Debt Resources
  • Credit Card Debt
  • Medical Debt
  • Personal Loan Debt
  • Unemployment
  • Divorce Debt
  • Retiree Debt
  • Veteran Debt
  • Business Debt
  • Personal Finance
Follow Us
  • Facebook
  • Twitter
  • Linkedin
  • Instagram
  • Pinterest

© 2021, National Debt Relief, All Rights Reserved.

Disclaimer
Disclaimer
Disclaimer