Key insights
Both debt settlement companies can temporarily lower your credit score during the program.
Jump to insightNational Debt Relief offers a more straightforward debt settlement structure and no upfront account fees.
Jump to insightFreedom Debt Relief stands out for consumers with lower debt minimums or more complex debt situations.
Jump to insightNational Debt Relief vs. Freedom Debt Relief: Which is better?
Both National Debt Relief and Freedom Debt Relief offer settlement services for unsecured debt with a similar fee structure and payoff period. The better option for you generally depends on how much debt you have and if the company is available in your state.
| 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% | 40 states | ACDR |
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 claims it has helped over 1.5 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 its experts to develop a customized plan that fits your budget. It says it can help you resolve your debt in 24 to 48 months.
How National Debt Relief works
When you work with National Debt Relief, here’s what the process typically looks like:
Start by scheduling a free consultation to review your finances. NDR will share the debt settlement options that are available to you.
After you approve a plan, National Debt Relief will work to secure settlements on your behalf.
You’ll make monthly deposits into a dedicated account to pay for settlements.
Once a settlement is reached, you’ll agree to the offer.
What to consider before choosing National Debt Relief
National Debt Relief can’t help with every type of debt. It doesn’t provide relief for:
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
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?
National Debt Relief may be worth it for people who are facing significant financial hardship, aren’t able to pay their bills and have at least $7,500 in debt.
However, some reviewers on our site have reported 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.
For instance, Grace, a reviewer from Alabama, said: “From my experience, this program is not designed for people who have good credit and high FICO scores. In my case, 750. In my case, all my creditors were paid on time. [...] But with this program, it requires you to be 3 months behind in your payments to allow NDR to negotiate your settlement. I was told that my FICO scores would drop, but not badly. Before the process was completed and within one year they had dropped from 750 to 565. I was devastated by it!”
Freedom Debt Relief
Freedom Debt Relief can help clients with debt settlement, debt negotiation and debt consolidation. It has a team of over 500 certified debt consultants and more than 200 debt negotiators. It also claims to have resolved over 4 million accounts and $20 billion in debt. It 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.
How Freedom Debt Relief works
When you work with Freedom Debt Relief, here’s what the process typically looks like:
Complete a free debt evaluation and agree to your personalized debt relief plan.
Make payments into a dedicated account to fund settlements.
Approve the settlement when reached and pay a fee based on the enrolled debt.
What to consider before choosing Freedom Debt Relief
Freedom Debt Relief can’t help you find relief for the following debts:
Mortgage loans
Auto loans
Debt involving collateral
Federal student loan
Also, unlike National Debt Relief, which has no upfront fees, Freedom Debt Relief charges a one-time $9.95 set-up fee and $9.95 per month for a dedicated account, which is used to make settlement payments. This is in addition to the 15% to 25% fee of your enrolled debt.
Freedom Debt Relief pros and cons
Pros
May assist with more types of debt
Low minimum debt amount
Cons
Fees up to 25% of settlement amount
Set-up and monthly fees
Not available in all states
Is Freedom Debt Relief worth it?
Freedom Debt Relief may be worth it for people facing significant financial hardship who have at least $7,500 in debt. It can also be a good choice for individuals who have a wide range of debt that needs to be settled, since it also tackles business and private student loan debt on a case-by-case basis.
However, some reviewers on our site were unhappy with Freedom Debt Relief's fee structure.
For instance, Michael, a reviewer from Arizona, said: “You pay a monthly fee no matter what. You have no say in which accounts get paid first or last. You pay FDR a settlement fee each time an account is negotiated. It is usually 25%. FDR claims to reduce the amount you pay to your creditors. This is true. But when you also pay the 25% fee, you actually pay more than you owe.”
FAQ
Are debt settlement companies like National Debt Relief and Freedom Debt Relief legitimate?
Yes, debt settlement companies like National Debt Relief and Freedom Debt Relief are legitimate companies that are accredited with organizations like the International Association of Professional Debt Arbitrators and Association for Consumer Debt Resolution.
How long does the debt settlement process typically take?
How long the debt settlement process typically takes depends on your debt load and how much you can contribute monthly to the settlement fund, but most individuals can complete a debt settlement program in two to four years.
Will enrolling in a debt settlement program negatively impact my credit score?
Enrolling in a debt settlement program can negatively impact your credit score since you’ll generally need to close your accounts or stop payments to creditors during the process, which will lower your credit score. Your credit score will likely improve over time as you make 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?
How much a debt relief program costs depends on how much debt you owe and which company you work with, though you’ll typically be required to pay a percentage of your debt owed (typically 15% to 25%), service fees, settlement fees and sometimes legal fees.
How can I rebuild my credit after debt settlement?
You can rebuild your credit after debt settlement by paying your bills on time, limiting new credit applications and reducing your credit utilization ratio. It also helps to monitor your credit reports for any changes or errors, and building an emergency fund will help you prevent future reliance on credit.
Is National Debt Relief or Freedom Debt Relief cheaper?
Whether National Debt Relief or Freedom Debt Relief is cheaper for you 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.
However, 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 pay a $9.95 setup fee and $9.95 monthly maintenance fees for a dedicated account.
What if I live in a state where neither company operates?
If you live in a state where neither company operates, 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 declaring bankruptcy.
Bottom line: Is National Debt Relief or Freedom Debt Relief better?
Whether National Debt Relief or Freedom Debt Relief is better for you generally depends on your debt load and what you’re looking for in a debt settlement company.
National Debt Relief is typically best for people with at least $7,500 in unsecured debt who want a straightforward settlement program and no upfront account fees.
Freedom Debt Relief is typically best for people with at least $7,500 in debt or a wider range of debt types. It’s also best for people who want a larger company.
Either National Debt Relief or Freedom Debt Relief can help you relieve your current debt burden. When comparing companies, it helps to consider each company’s accreditation, licensing and reputation, along with your debt needs. Also, read through customer reviews and request a free consultation to get a better idea of which company might be better for you.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
Consumer Financial Protection Bureau, “What is a debt relief program and how do I know if I should use one?” Accessed Sept. 22, 2026.
