National Debt Relief vs Freedom Debt Relief

National Debt Relief and Freedom Debt Relief help relieve unsecured debts. But the right option depends on your priorities. Keep reading to know more.

National Debt Relief helps you relieve many types of unsecured Debts. Freedom Debt Relief, on the other hand, gives you access to partner attorneys at no additional cost.

Which company should you go for? That boils down to the type of services you need.

Read on for a detailed comparison of the two. Plus, there are alternatives in the end if neither company is the right fit.

Is National Debt Relief or Freedom Debt Relief Better?

National Debt Relief and Freedom Debt Relief have strong track records and more than a decade of experience in debt relief. But here's how to make a choice:

• Choose National Debt Relief if: you have various types of unsecured debts worth at least $7,500. Their list of supported debts is more comprehensive compared to other companies.

• Choose Freedom Debt Relief if: you owe more than $7,500 in unsecured debts and you want extra legal services.

  Freedom Debt Relief partners with attorneys who are experts in debt negotiation. They can help you deal with creditors who may want to sue you for unpaid debts.

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To further give you a reason to choose National Debt Relief, here's what the company is all about.

Why Choose National Debt Relief

National Debt Relief is one of the biggest debt relief companies around. It has been in the industry since 2009, helping more than 550,000 clients relieve unsecured debts.^[1]

The company primarily offers debt settlement services. Representatives negotiate with your creditors so you can settle your debts for a much lower amount.

But National Debt Relief can also offer you options for debt consolidation loans. Using the debt consolidation loan, you can combine multiple debts and focus on making one payment only.

National Debt Relief Pros and Cons

In spite of being an established company, National Debt Relief has its perks and downsides.

Pros

• You get to save money with reduced debt amounts, eliminated interests, and waived fees
  
• Qualifies more unsecured debts
  
• A+ rating from the Better Business Bureau (BBB)
  
• Accreditation from BBB, IAPDA, and AADR
  
• Wide network of partners

Cons

• Fees can get pricey with larger debts
  
• You can't relieve secured debts
  
• Some options have stricter eligibility requirements

To help you further compare the two, here's a little background on Freedom Debt Relief.

Why Choose Freedom Debt Relief

Like National Debt Relief, Freedom Debt Relief also offers debt settlement services. Debt experts negotiate with your creditors on your behalf.

The company started a little earlier than National Debt Relief and has been in the industry since 2002. Freedom Debt Relief has resolved over $18 billion in debt and has helped over 1 million clients since then.^[4]

Also, Freedom Debt Relief partners with the Legal Partner Network. So, you get access to legal assistance from expert attorneys and debt negotiators. You can get help for negotiating and settling debts under litigation.

Freedom Debt Relief Pros and Cons

Here are some reasons why you may or may not opt for Freedom Debt Relief.

Pros

• You can settle your debts at a much lower amount
  
• More experience than National Debt Relief
  
• A+ rating from the Better Business Bureau
  
• Accreditation from BBB, IAPDA, and AADR
  
• Get support from partner attorneys without extra fees

Cons

• The company may cover fewer unsecured debts than National Debt Relief
  
• You need to pay some fees for your dedicated account
  
• Freedom Debt Relief handles partner attorney fees, but not filing fees or court costs

National Debt Relief vs. Freedom Debt Relief: Detailed Comparison

There are categories where National Debt Relief or Freedom Debt Relief is the better option. Read on to find out which is which.

Debt Relief Services — Winner: National Debt Relief

National Debt Relief offers two debt relief services: debt settlement and debt consolidation. For example, National Debt Relief may qualify you for a debt consolidation loan.

Debt consolidation loans can help you settle multiple debts at once. This means you can get rid of high interest debts and potential penalties. You can also waive fees and focus on paying off a loan with much lower interest than your individual debts.

Freedom Debt Relief, on the other hand, focuses on debt settlement services. But they can refer you to other services that may better fit your needs.

Pricing — Winner: National Debt Relief

Both National Debt Relief and Freedom Debt Relief charge around 15–25% of your total enrolled debt as fees.^[8][9] So, you may pay the same range for the entirety of your service.

You will open a dedicated account for both debt relief companies. You will make your monthly deposits (which include the fees) in this dedicated account.

Unlike National Debt Relief, however, Freedom Debt Relief charges a one-time fee of $9.95 for setting up this FDIC-insured dedicated account. Plus, you need to pay an additional $9.95 monthly to cover account servicing.^[10]

Guarantee — Winner: Freedom Debt Relief

Freedom Debt Relief's Program Guarantee entitles you to refunds if your settlements and fees exceed the enrolled debts. You can get refunds for the difference once you graduate from your program.

On the other hand, National Debt Relief provides a Satisfaction Guarantee. They won't charge you any fees unless you approve the reduced debt and settle it using the accumulated deposits in your dedicated account.

Having said that, penalties, interest, and applicable fees still apply even if you enroll your debt in a debt relief program. These costs may be eliminated and waived if the debt relief company negotiates for you successfully.

Covered Debts — Winner: National Debt Relief

Both companies cover unsecured debts, but National Debt Relief offers a more comprehensive list:^[12]

• Major credit cards
  
• Department store cards
  
• Unsecured personal loans
  
• Certain student debts
  
• Medical bills
  
• Business debts
  
• Gas cards
  
• Bank loans from prior banks
  
• Installment loans
  
• Finance companies
  
• Repossessions
  
• Qualified business debts
  
• Cell phones (not currently used)
  
• Veterinarian bills over $500
  
• Credit unions (members who are not federal or military employees)
  
• Abandoned timeshares with current statements
  
• Judgments older than 6 months
  
• Back rent (not a current resident)
  
• Bank, overdraft, and associated fees

On the other hand, here are some of what Freedom Debt Relief covers:

• Credit Card debts
  
• Personal Loans
  
• Medical Debt
  
• Qualified Student Loans
  
• Certain business debts

You'll need to inquire with Freedom Debt Relief if you have other types of debts not part of the list.

Program Length — Winner: Tie

National Debt Relief and Freedom Debt Relief programs last 24–48 months.^[13][14] You will, more or less, finish your program at the same time with either company.

However, remember that results vary per person. Your program length depends on how long debt negotiations last.

Success Rates — Winner: Tie

National Debt Relief has established relationships with more than 10,000 creditors and an average negotiation rate of 50%.^[15] Clients who have completed their program save as much as 46% (25%, including National Debt Relief fees).^[16]

For Freedom Debt Relief, more than 60% of clients get their first settlement within 3 months of enrolment.^[17] Plus, Freedom Debt Relief settles 45,000 accounts every month on average.^[4]

Years in the Industry — Winner: Freedom Debt Relief

Freedom Debt Relief has been in the industry since 2002. National Debt Relief started a little later, in 2009.

That said, Freedom Debt Relief has more experience and has helped more clients in general. If you prefer a more experienced company, Freedom Debt Relief is the better option.

Contract Cancellation — Winner: Tie

You can cancel your contract with National Debt Relief and Freedom Debt Relief without penalties or termination fees.

Just keep in mind that for Freedom Debt Relief, you need to send your notice of termination 3 business days before your next scheduled payment.

State Availability — Winner: National Debt Relief

National Debt Relief is more transparent with where they offer debt relief services. National Debt Relief is not available in Connecticut, Oregon, Vermont, and West Virginia.^[18]

On the other hand, Freedom Debt Relief specifically states that its services aren't available in some states, including New Jersey.^[19] It's best to schedule an initial consultation, discuss your debts and inquire if they offer debt relief options in your state.

National Debt Relief Customer Reviews

National Debt Relief has gained a lot of clients over the years. Here's how people rated this debt relief company.

A lot of clients have pointed out that National Debt Relief has excellent customer service. Plus, some clients immediately got settlement offers from their creditors like Orvic.

However, they're not all good reviews. Some clients, like Hope, commented on National Debt Relief's slow negotiation process.

To further compare the two companies, here's what clients say about Freedom Debt Relief.

Freedom Debt Relief Customer Reviews

Freedom Debt Relief has been around longer than National Debt Relief. And many clients have left their ratings and stories about their debt relief experience with the company.

Good comments usually consist of good customer service and fast negotiations. This was the case with Sonya's experience.

However, they're not all rosy stories. According to Patricia, Freedom Debt Relief kept changing her program duration, prompting her to stay longer and pay more for her service.

There are limitations to the services of these debt relief companies. Be sure to keep these in mind to help manage expectations and properly plan your course of action.

Limitations of Debt Relief Companies

National Debt Relief and Freedom Debt Relief mainly negotiate with creditors. That said, they won't do the following:

• They cannot improve your credit score
  Your credit score may drop once you miss your debt payments and enroll unsecured debts into a debt relief program.

  The two debt relief companies won't fix this damage for you. But you can opt for credit repair companies to help you out.

  Does debt relief hurt your credit?
  Yes, some debt relief options like debt settlement can hurt your credit. You need to stop paying your debts so creditors will be more open to negotiations. As a result, you may gain missed payments on your credit reports. However, you can slowly build your credit by paying off your negotiated debts one by one.

• They won't assume your debts
  Neither company can assume your debt responsibility. You need to settle your enrolled debts after approving the negotiated amounts.

  If you don't agree with the negotiated amount, the company can renegotiate on your behalf.

• They will not make your monthly payments for you
  You approve the settlement amounts of your debts. You also need to pay for them afterwards.

• They won't provide you with professional advice
  You cannot ask for legal, accounting, tax, or bankruptcy advice from the two companies. There are other professional services licensed to offer such advice if you need it.

If neither company can help you, it's time to look at other options.

National Debt Relief And Freedom Debt Relief Alternatives

You can turn to other debt relief companies or credit counselors to help relieve your debts.

• Americor
  Americor can help you settle debts in 24–48 months, the same as National Debt Relief and Freedom Debt Relief. Plus, you can get your settlement within 4–7 months from the start of your program.^[21]

  However, Americor is on the pricier side. You'll be charged 14%–29% of your total enrolled debts as your fees.^[22]

• J.G. Wentworth
  J.G. Wentworth offers debt settlement and debt consolidation options. But it does require your minimum debt to be at least $10,000, which is higher than National Debt Relief and Freedom Debt Relief's minimum.

  J.G. Wentworth's services are also more expensive, with fees ranging from 18–25% of your total enrolled debts.^[23]

  However, if you live in California and Utah, you may be eligible for a Personal Loan of up to $25,000 to pay for your smaller debts.^[24]

• Credit Counseling
  Credit counselors help you with your finances as a whole. And they often work with nonprofit organizations.

  They're also licensed by the state, so they have the training and experience to help you in all aspects of your finances.

  They'll help you create a plan to tackle your debt, manage your money, and deal with your credit.

  Find out how debt management from credit counseling agencies differ from National Debt Relief and Freedom Debt Relief in this guide.

Bottom Line

Between the two choices, your decision-making may be tough. But a good rule of thumb would be to choose National Debt Relief if you have more unsecured debts.

Its comprehensive list of supported debts may mean you can enroll more in your program.

On the other hand, choose Freedom Debt Relief if you need legal services with your debt relief program. The company's partnership with attorneys means you have access to legal professionals in case of lawsuits.

Imagine Living Life Without Debt

• Get a free savings estimate today
• See how quickly you can be debt free
• No upfront fees and no obligation

Apply for Debt Relief

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References