Qualifications How does the Debt Relief Program Work? Updated For 2020
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Debt relief programs have been around for many years in one form or another. However, they’ve gained in popularity in recent years as more and more Americans have fallen into serious problems with their debts. One recent study reported that the average American household now has more than $16,000 just in credit card debt – not including personal loans, medical debts, mortgages and so forth. Also, the way that our economy has transformed from manufacturing to more of a service economy has caused a disruption that, in turn, has left many people unemployed or underemployed. And the harsh truth is that many people are knee-deep in debt because they badly mishandled their credit.
The credit card companies aren’t doing you any favors either – the average credit card interest rate is 17.30% according to creditcards.com as of February 12th, 2020. If you can only afford the minimum payment on your credit cards, it can take you up to 25 years or more to pay off your credit cards.
There are a number of ways to achieve debt relief. The most popular debt relief programs are debt negotiation (also called debt settlement), consumer-credit counseling, debt consolidation loans, balance transfers and the most serious of all declaring bankruptcy.
Each of these options has the same goal, which is to provide debt relief. However, consumer credit counseling, debt consolidation loans and bank transfers have one serious negative in common. They cannot reduce anyone’s debts. The only option capable of doing this is debt negotiation when it leads to debt settlements.
The debt settlement process
Our debt settlement process begins when we accept a person into our program. He or she then begins sending National Debt Relief money to fund an escrow account over which they have total control. When a sufficient amount of money has accumulated in the escrow account we begin contacting the client’s lenders to negotiate settlements. The way it works is that one of our debt counselors will offer to settle the debt with a lump sum payment but for less than the debt’s face value. As an example of this, our counselor might negotiate with a credit card company to get our client’s debt reduced from $10,000 to $5000. In the event the lender agrees to our settlement offer we will then ask our client to release enough money from his or her escrow account to pay the settlement. Of course, not all lenders will agree to settle for less than the total amount of the debt. However, we will never give up. We will continue contacting that lender until we are able to successfully settle the debt or it becomes absolutely clear that the lender will never negotiate.
Would you qualify for a debt relief program?
As noted above, to qualify for a debt relief program, you must be able to make a monthly payment into a settlement fund, which will be used to settle with your creditors. For many consumers, this monthly payment will be lower than the total monthly payments on their credit cards. This can help provide much needed financial relief to help with their debt problems.
You must also owe more than $7500 and be several months behind in your payments. This is because if you owe less than this and are only a month or two behind on your bills your creditors will have no incentive to negotiate. At this stage they would rather keep harassing you with the hope that they will ultimately be able to collect the full amount of the your debts.
One last criteria for our debt relief program is that you must be going through a financial crisis with no quick end in sight. This could be due to a recent job loss or reduction in hours, a separation or divorce which caused a reduction in income, death of a spouse, unexpected medical or hospital bills, student loans, or IRS taxes to name a few.
We have to demonstrate a financial hardship to your creditors to show that you qualify for a debt relief program. Once we can demonstrate a financial hardship, your creditors will be more likely to listen to our offers for settling your debts for less than the full balance because you cannot afford to pay off the full amount or afford their monthly payments anymore for the time being.
Below is a list of debts and creditorswith which we can and cannot work
Debts That Qualify Are:
- Major Credit Cards (Visa, MasterCard, Discover Card, American Express, etc)
- Department Store Cards Including Furniture (Sears, Macy’s, Gap, Paypal Store Cards)
- Gas Cards
- Bank Loans from Prior Banks
- Installment Loans
- Finance Companies
- Unsecured Personal Loans (American General, CitiFinancial)
- Repossession Deficiency Balances – you must have the current statement
- Business Debts – We do prefer for your business to already be closed. Also, you cannot have anything secured tied to any of the business accounts.
- Bank, Overdraft, and Associated Fees (you must have a statement and the debt must be with a collection agency)
- Cell Phones (Not Current)
- Credit Unions whose members are not Federal or Military employees
- Veterinarian Bills over $500
- Abandoned Time Shares – You must have current statements provided for them
- Judgments 6 months or older must be provided with documentation
- Back Rent (if you are not the current resident any longer)
Debts We May Be Able To Assist With
Student Loans – Private student loans only. Please Contact Us To Discuss Your Specific Situation.
*** Important – Please Read ***
Debts We Cannot Assist With
- Mortgage Loans
- Auto Loans
- Child Support
- Back Taxes
- Speeding Tickets and/or Fines
- Current Cell Phones, back rent (current residence)
- Current litigation accounts (less than 6 months)
- NSF (Insufficient Funds) Checks
- Gambling Debts – There are exceptions, must pre-approve
- Newly taken/high cash advances, Balance Transfers and Large Luxury Purchases where 3-6 payments have been made (case by case depending on amount and timing of the transaction)
- AAFES or STAR (military)
- Car Repair bills
- Rent-a-center bills
- Warranty Contracts
- Insurance Policies
- Check Cashing Establishments
- Bail Bonds
NOTE: This list is not exhaustive, we have outlined the majority of the debts that do or do not qualify for a debt relief program. If you have a question about a debt you are not sure about, please do not hesitate to give us a call and we’ll see if we can help with that particular debt.
Our debt relief experts are here to help you discuss your specific situation and let you know how and if we can help you get out of debt and get your life back. We know how suffocating a mountain of debt can be. The constant worry about checking the mail, the dread of another debt collector phone call…there is help and hope available.
About National Debt Relief
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 Association for Debt Resolution (AADR). 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 AADR is one that can be trusted to treat you honestly and ethically.
National Debt Relief has many reviews online and the overwhelming majority of them are very favorable. It ranks highly on web review sites such as Top Consumer Reviews, Best Debt Companies and 2020 Best Debt Relief Services. In fact, Top Consumer Reviews has ranked National Debt Relief as the number one or best option for debt settlement.
We don’t want repeat customers
Some companies thrive by having repeat customers. As an example of this just think where Amazon.com would be today if it’s customers only bought one item wants. In contrast, we neither have nor want much in the way of repeat customers. Our goal is to help our customers become debt free in as short a time as possible so that they can then get back to living the lives they deserve. There has been the occasional time when one of our customers unfortunately fallen back into debt into debt and required more of our help but this is by far the exception to the rule. We never see more than 99.9% of our customers ever again and that’s the way we like it.
What our customers say about us
Here’s a small sampling of what our customers have told us after we have helped them with their debts.
“Love NDR!! At first I was skeptical about them but I am so glad I decided to join them, they are great!!”
–Diego Nazabal
“Recently, I happen to receive very good news from National Debt Relief on settling a past business debt. I was quite relieved on how they were so quick and efficient in getting one of my matters resolved. I have worked with them in the past and it happened to be one of the reasons why I had made the personal decision to reapply back to their organization to eliminate my debt in order to rebuild my life again. Thanks for all you do.”
–Christopher Wilkinson
‘I’m so happy that I reached out to the National Debt Relief company! I never have a problem reaching a live representative and have been very impressed with their customer service. They recently negotiated with one of my creditors on my behalf and reduced my credit card debt with them by a substantial margin. I look forward to the day when all of my credit card debt is gone, and with National Debt Relief helping me, I’m sure it will happen!”
–Anonymous from North Carolina
“I was a little nervous going into the program but after 7 months now
it’s proved to say and do everything it claimed. The customer service is amazing and very polite every time I call.”
–Christina
“National Debt Relief has literally saved my life. Thank you so much for your help and guidance”.
–Clara McNeil
“Pleased and surprised that they settled so fast with my creditor. I have always been treated with respect and understanding. Showing that I come first and my needs. Very easy to work with but very professional”
–Janice L.
What it costs to have National Debt Reliefsettle your debts
Some debt settlement companies will take a percentage of the money they are able to save you. They argue that this is the fairest way to charge because the more they save you the more money they will earn. However, many debt settlement companies – including National Debt Relief – charge a flat fee that is a percentage of 15% to 25% depending on the amount of your debt. We think this is the fairer of the two options because you will know before we begin settling your debts exactly how much it will cost you. While a fee of 25% might seem steep it’s important to remember that we’re probably cutting your debt by 50%. If you were to owe $20,000 our fee would be $5000. However, if we were to reduce that $20,000 debt to $10,000 you would still come out ahead by $5000. Plus, you would be completely debt-free and how good would that feel?
For that matter, using National Debt Relief to settle your debts can actually cost you less than if you were to pay off credit card debts yourself over a five-year period. Here’s the math. If you owed $10,000 at 15% and your goal was to become debt free and assuming your monthly payment was $225 you would not be debt-free until the year 2020 and you would have paid $4688 in interest. In comparison, if we were to handle that $10,000 debt with a 20% fee it would cost you just $2000 or $2688 less than if you were to pay off that credit card debt yourself.
NationalDebtRelief.com can help you find the right solution with a free consultation. You can fill out our Short Application and one of our debt specialists will contact you within minutes, or you can call now – 800-300-9550.
