National Debt Relief may appeal more to consumers who want to avoid upfront account fees and prefer a more straightforward debt settlement structure.
Jump to insightFreedom Debt Relief stands out for consumers with lower debt minimums or more complex debt situations, including some private student loan and business debt cases.
Jump to insightBoth debt settlement companies can temporarily lower your credit score during the program, especially in the early stages when accounts become delinquent.
Jump to insightNational Debt Relief vs. Freedom Debt Relief: Which is better?
We’ve compared the top features of National Debt Relief and Freedom Debt Relief. Both companies offer settlement services for unsecured debt with a similar fee structure and payoff period.
Determining which is the better debt settlement option for you depends on how much debt you have and if the company is available in your state. Reading reviews of both companies can also help you get a better idea of which company to choose.
| Company | Minimum debt | Types of debt covered | Program length | Fees | Availability | Accreditation | |
|---|---|---|---|---|---|---|---|
 National Debt Relief | Get Pricing | $7,500 | Unsecured debt | 12 to 48 months | up to 25% | 45 states | AADR + IAPDA |
 Freedom Debt Relief | Get Started | $7,500 | Unsecured debt | 24 to 48 months | 15% to 25% | 41 states | AADR |
National Debt Relief
National Debt Relief has been around since 2009 and offers debt settlement services for individuals with a wide range of unsecured debt, including medical bills and repossessions. NDR has helped over 1.3 million people with debt settlement.
The company offers a free consultation to help you choose which debt solution best fits your needs. You can then work with National Debt Relief’s experts for a customized plan that fits your budget. It says it can help you resolve your debt in 24 to 48 months.
Who is National Debt Relief best for?
- Go through a free consultation to review your finances and the debt settlement options available to you.
- After you approve a plan, National Debt Relief works to secure settlements on your behalf.
- You make monthly deposits into a dedicated account to pay for the settlements.
What to consider before choosing National Debt Relief
- Mortgage loans
- Auto loans
- Child support
- Back taxes
- Speeding tickets
- Current litigation accounts
- Non-sufficient funds (NSF) checks
- Gambling debts
- Cash advances
- Car repair bills
- Bail bonds
A few of our reviewers had a negative experience with National Debt Relief because they did not fully understand how the debt settlement process worked or that it would impact their credit.
One reviewer from Michigan was happy with National Debt Relief’s enrollment process but felt like things didn’t move well after signing up. “... As far as the communication, it’s not very good with my creditors, myself, and National Debt Relief. NDR said that they sent letters out to everybody, but nobody's gotten one yet.”
National Debt Relief pros and cons
Pros
- Free consultation with debt coach
- Free debt relief quote
- Numerous accreditations
Cons
- Will need to pay percentage of debt enrolled
Is National Debt Relief worth it?
A reviewer from Arkansas said their credit score dropped by 150 points when they first started working with National Debt Relief, but once the debt was settled, their credit started reporting as paying again. “Working with this company immediately reduced the money going out by $400 a month,” they said. “It also helped my credit score go back up.” (Note that a drop in your credit score is typical with debt settlement programs and not specific to National Debt Relief.)
Freedom Debt Relief
With a team of experts, including over 500 certified debt consultants and more than 200 debt negotiators, Freedom Debt Relief (FDR) can help clients with debt settlement, debt negotiation and debt consolidation. It claims to resolve over 31,000 accounts per month and can help clients resolve their enrolled debt in 24 to 48 months.
Potential customers can partake in a free debt consultation, and if they sign up, they will be able to track their debt settlement progress 24/7 on an online client dashboard.
Who is Freedom Debt Relief best for?
We also recommend Freedom Debt Relief if you don’t meet the $10,000 debt minimum other debt relief companies have. It takes clients with debt minimums starting at $7,500.
When you work with Freedom Debt Relief, here’s what the process typically looks like:
- Complete the digital enrollment process.
- Agree to your personalized debt relief plan.
- Approve the settlement when reached and pay a fee based on the enrolled debt.
What to consider before choosing Freedom Debt Relief
- Mortgage loans
- Auto loans
- Debt involving collateral
- Federal student loan
Freedom Debt Relief's fee structure was a pain point for a few reviewers. Unlike National Debt Relief, which has no upfront fees, with Freedom Debt Relief, you pay $9.95 upfront and once a month for a third-party dedicated account (which Freedom Debt Relief uses to make settlement payments). This is in addition to the fee of 15% to 25% of your enrolled debt — however, this fee does not need to be paid until a debt is settled, and is determined by your state of residence.
Antonio from New Mexico was surprised to see that the debt settled was counted as extra income and affected their taxes. “For some not a big deal, for me, it sucked. It was the difference in paying or getting a refund.” (Note that tax implications are a consideration with any debt settlement and not specific to Freedom Debt Relief.)
Freedom Debt Relief pros and cons
Pros
- No fees until settlement reached, authorized by client
- Has resolved over $20 billion in debt in 20-plus years
- Works with high debt amounts
- Long-term credit recovery
- Legal assistance at no additional charge
Cons
- Fees up to 25% of settlement amount
- Short-term impact on credit
Is Freedom Debt Relief worth it?
Since 2020, 88% of the reviews posted for Freedom Debt Relief were a 4- or 5-star rating. According to the company, Freedom Debt Relief has helped over 850,000 customers and settled over $20 billion in debt since 2002.
Reading through the company’s reviews, you will find that some clients were able to turn their lives around with Freedom Debt Relief’s help.
“This was one of the best decisions in my life!” said reviewer Anthony from New York. “Today, I only owe on my student loan, and my credit score has gone up over 200 points. My borrowing power has increased tenfold.”
Another reviewer from Indiana saw results after being a customer for 60 days, saying, “We have already saved $1500.00 on one of our collection debtors.”
FAQ
Are debt settlement companies like National Debt Relief and Freedom Debt Relief legitimate?
Yes. Both National Debt Relief and Freedom Debt Relief are legitimate debt settlement companies and accredited members of recognized associations, such as the American Fair Credit Council and the International Association of Professional Debt Arbitrators. It is important to note that both companies, along with most debt settlement companies, do not offer any guarantees or money-back refunds.
» READ MORE: How do debt relief companies work?
How long does the debt settlement process typically take?
The average time it takes an individual to complete a debt settlement program is between two and four years. The process length will vary depending on your debt load and how much you can contribute monthly to the settlement fund.
» LEARN MORE: Debt settlement pros and cons
Will enrolling in a debt settlement program negatively impact my credit score?
Debt settlement can negatively impact your credit score, especially if your score is good to excellent before you enroll in the program. During the early stages of debt settlement programs, debt settlement companies require you to prove financial hardship, which is done by halting payments to creditors. This will result in negative reports on your credit.
After your debts are resolved, your credit score will likely improve over time if you continue making on-time payments, lower your overall debt and avoid taking on new high-interest debt. Some may see credit improvement within months, while others may take several years to fully rebuild their credit.
How much does a debt relief program cost?
The cost of debt relief includes a percentage of your debt owed (typically 15% to 25%), service fees, settlement fees and sometimes legal fees. The total cost varies widely depending on how much debt you owe and which company you work with.
The fees for National Debt Relief are up to 25% of your debt owed and the fees for Freedom Debt Relief range from 15% to 25%.
How can I rebuild my credit after debt settlement?
Rebuilding your credit after debt settlement takes time and effort. Here are some things you can do to rebuild your credit.
- Monitor your credit report.
- Pay bills on time.
- Use secured credit cards (keep your balance low and pay off the full amount every month).
- Limit new credit applications.
- Build an emergency fund to prevent future reliance on credit.
Is National Debt Relief or Freedom Debt Relief cheaper?
It’s hard to say which company is cheaper because the overall cost for National Debt Relief and Freedom Debt Relief depends on the amount of debt you enroll, where you live and how long it takes to settle your accounts. Both companies typically charge fees ranging from 15% to 25% of your enrolled debt, and neither company charges settlement fees until a debt is successfully resolved.
National Debt Relief may be the less expensive option for some consumers because it does not charge monthly account maintenance fees. Freedom Debt Relief requires customers to use a third-party dedicated account that comes with a $9.95 setup fee and monthly maintenance fees.
What if I live in a state where neither company operates?
If Freedom Debt Relief or National Debt Relief is not available in your state, you can search for a debt settlement company that serves your area. Or you can look into alternative options for managing your debt, such as credit counseling, balance-transfer credit cards, debt-consolidation loans, or bankruptcy.
Bottom line: Is National Debt Relief or Freedom Debt Relief a better debt settlement company?
When comparing National Debt Relief and Freedom Debt Relief, it’s important to consider each company’s experience, accreditation and license, customer service and reputation, and most importantly, your debt needs.
Both companies can help you relieve your current debt burden and make paying off your credit cards and loans more manageable. Read through each company’s reviews and request a free consultation to better see which program you want to sign up for.
- National Debt Relief: Best for people with at least $10,000 in unsecured debt who want a straightforward settlement program and no upfront account fees.
- Freedom Debt Relief: Best for people with at least $7,500 in debt or a wider range of debt types who want a larger company with a robust online dashboard and access to legal help.
» NEXT: How to avoid debt relief scams
