National Debt Relief Review: Does Debt Settlement Work
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National Debt Relief is a debt settlement company that negotiates on behalf of consumers to lower their debt amounts with creditors.
Consumers who complete its debt settlement program reduce their enrolled debt by 30% after its fees, according to the company.
But NerdWallet cautions that debt settlement, whether through National Debt Relief or any of its competitors, is risky:
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Debt settlement can be costly.
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It can destroy your credit.
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It takes a long time. Getting any net benefit requires sticking with a program long enough to settle all your debts often two to four years.
NerdWallet recommends debt settlement only as a last resort for those who are delinquent or struggling to make minimum payments on unsecured debts and have exhausted all other options. For many consumers, bankruptcy is a better option as it offers a faster route to resolving debt. And bankruptcy generally protects consumers from being sued, which is a risk while enrolled in a debt settlement program.
New York Rental Assistance For 2021
New York rent relief is available in 2021. Here are the details: News Alert for NY Rent Help: The State Senate on Monday passed a special bill to address the need for rental assistance for New Yorkers, but you must have a financial hardship. Both the Senate and State Assembly agreed on an eviction moratorium that will extend until May 1st,021. This new bill will also benefit homeowners and small landlords that own ten or fewer units, protecting them from foreclosure and tax lien sales. Financial hardship could include: lost income, increased medical expenses, increased child care and family care costs, unable to obtain meaningful employment, cant afford moving costs. Or those with a household member in a high-risk category for COVID. According to Governor Cuomo We want to protect tenants, make it simple, we dont want people evicted, we dont want them to have to go to court to fight the eviction, but we also want to avoid fraud and dont want people making false representations. The bill also protects your credit rating. If you fell behind on payments, your credit report wont be negatively affected.
Have you ever tried working with unreasonable creditors on your own, asking them to reduce your monthly payment?
Often, they wont budge on the monthly payment.
This Weeks Question: Are Any Debt Settlement Companies Legitimate Do They Have To Be Licensed
The debt relief industry has been growing in recent years, and debt settlement companies, also known as debt relief or debt adjusting companies, have been a part of that growth. Debt settlement is not the right repayment strategy for everyone. It usually benefits people who are already in debt and cannot afford any other debt relief option and are trying to avoid bankruptcy. There are legitimate debt settlement companies, and in most states, licenses are required. They must abide by industry regulations that seek to protect consumers. However, working with a legitimate company can be risky and turn out to be more expensive than other repayment options.
The Risky Business of Debt Settlement
When you settle your debt, you work out an agreement with your creditor to pay off your debt for less than what you owe. Debt settlement companies manage those negotiations for you. They may even ask you to set up an escrow-like account for you to send in payments. By law, they cannot charge any upfront fees and have to clearly inform you about all fees and payments. But, if you make just one payment under one of their settlement agreements, you may be on the hook for all fees related to the program, even if you have not paid off all your debts.
Your Debt Relief Alternatives
Choose Wisely
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Do You Want To Fight Or Settle Your Debt With Jhpde Finance Llc
On behalf of our Client’s, our debt defense lawyers have fought and resolved many cases with debt buyers and attorneys. Where possible, you might be able to settle your debt for less then the outstanding balance. In some situations, a debt might be settled for a large reduction, and may be arranged in a payment plan that provides for affordable monthly payments. When dealing with a debt owed toJHPDE Finance I LLC, having an attorney by your side can make a big difference in the resolution of your matter. We defend consumers from lawsuits in both New York and New Jersey.
Contact the Law Office of Simon Goldenberg PLLC to learn more about your legal rights!
- Flat Fee Pricing on Many Services
Our Testimonials
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Simon gave me a free consultation and really helped me to get on a path towards getting out of debt
Simon gave me a free consultation and really helped me to get on a path towards getting out of debt
Former Client
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I cannot say thank you enough!
Thanks Simon! Again, I cannot say thank you enough! The impact that you have had on my life has been tremendous! There is no way that I could ever re-pay you. You managed to get everything under control for us and help us move forward with nothing looming over us. You managed to help us see a future that I thought I would never have. Meaning, better credit, buying a house, all of those things. Thanks.
P.C.
Balance Transfer Credit Cards
A balance transfer means moving burdensome balances to low-interest or interest-free credit cards. Credit card companies typically require you to have a credit score of around 700, so this might not be the debt relief solution for you if your credit is struggling. Plus, a transfer fee of around two to three percent usually applies.
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The Risks Of Debt Settlement
Debt settlement comes with significant risks that you should be aware of before entering into an agreement. These risks include:
- Damage to your credit. Debt settlement companies often encourage you to stop making payments to your creditors. This can severely damage your credit. It can also cause you to accrue interest, late fees and penalties on your existing debt, pushing you deeper into debt. You could receive calls from creditors or, in some cases, be sued for repayment.
- High costs. Programs for debt settlement may require you to put money away for many months or years before your debt is settled. This can be very costly and, if you cant afford the monthly payments, you may have to drop out of the program. Ensure you can truly afford to put away a significant amount of cash per month before entering into a debt settlement program.
- No guarantee. Your creditors are not obligated to negotiate with you or a debt settlement company. Theres a chance that the debt settlement company you hire wont be able to settle all of your debts, leaving you with growing debt during and after the process.
Option : Debt Settlement New York
Ready to take action?
Important point: Make sure to fully understand the potential negative consequences that can arise from a debt settlement program, such as creditors can pursue legal action, negative marks can remain on your credit report, balances will increase before getting settled, and potential tax consequences may occur. We will fully disclose and discuss each possible adverse effect and offer advice on how to deal with each result if it was to happen.
Talk to a New York IAPDA Certified Debt Counselor Now .
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Things To Consider When Choosing The Top Debt Settlement Company
Type of Debt
Some of the best debt relief companies only deal with certain debt types, like credit card debt or medical bills. If you owe something specific like business debts or private student loans, you may have to look a little harder for a debt settlement company that will handle those types of debt.
Amount of Debt
Most of the best debt relief companies require you to have a minimum debt of at least $10,000. Therefore, the amount you owe may determine your eligibility for a debt settlement program.
Better Business Bureau Rating
You can glean a lot about a debt settlement company from its Better Business Bureau rating. Almost every company receives some customer complaints from time to time. Still, if a debt settlement company has generated severalespecially if the complaints reveal a patternthen you should look for a different debt settlement provider.
Upfront Fees
In 2010, the Federal Trade Commission banned companies that conduct business over the phone, including debt relief companies, from charging up-front fees. Since there are no guarantees when it comes to debt relief, no reputable debt settlement company would dare charge a fee before serving you.
Transparency
A debt settlement company may not succeed at reducing your debt, and the best debt settlement companies will make that clear.
What Is National Debt Relief And Is It Legit
National Debt Relief is a legitimate debt settlement company founded in 2009 and licensed to work with residents of 42 states as well as Washington, DC.
It’s among the most recognized debt settlement services in the country. It’s accredited with top industry associations, including the American Fair Credit Council . It’s also accredited with the Better Business Bureau . And it hasn’t faced any issues with regulators unlike some of its competitors.
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Nyc & Ny State Senior Citizen & Disabled Debt Relief & Homeowners Exemption
You can keep your home out of a delinquent property tax sale and avoid foreclosure if you are OVER 65 years of age and own a home in New York. Debt relief for credit cards and homeowners exemption both offer you debt relief options.
There are some other qualification factors to qualify for a homeowners exemption, to avoid having your delinquent property taxes sold at an auction, that include your annual adjusted gross income must be under $58,399, and you must have lived at the address for at least 12 months .
To avoid losing your property due to unpaid property taxes, you must complete this form here:
If you are a senior citizen with credit card debt, relief programs are available here at Golden Financial Services. Give one of our IAPDA Certified New York debt relief professionals a call !
Will National Debt Relief Hurt My Credit
National Debt Relief only does a soft pull of your credit, which won’t lower your score, during the application process. However, using National Debt Relief or any debt settlement company will have a negative impact on your credit. This is because you will likely need to stop paying your creditors while National negotiates your debts. And once settlements have been reached, your credit score may be negatively impacted by closed accounts or accounts that are marked as not paid in full.
With that being said, National Debt Relief has resources on tips to help you rebuild your credit after debt settlement. You can also read our guide on building credit for more ways to boost your score.
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Is Debt Settlement A Good Idea
If youre carrying a lot of debt or high credit card balances, youve probably seen the advertisements from debt settlement or that promise to help you settle debt for a tiny fraction of the amount of money you owe to creditors. But is debt settlement a good idea? And what are the benefits of debt settlement over other ways of resolving your financial difficulties? Heres a short introduction to Is debt settlement a good idea? that offers a quick overview of this debt relief strategy.
Pandemic Poses Many Unique Financial Challenges For New Yorkers
The pandemic caused by COVID-19 had drastic financial implications for the state of New York in 2020.
Early in 2020, when COVID-19 lockdowns went into effect, New York saw a large spike in unemployment insurance claims, and while the long-term economic impact isnt fully known, it will certainly have a lasting impact.
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New York Debt Settlement Program Benefits
GFS recommends an attorney-model program to settle debt because clients get additional benefits when using a lawyer under the Fair Debt Collection Practices Act . NY Debt settlement programs that dont include an attorney can still work but are just not effective because the FDCPA law does not apply in the same beneficial way. Not only that but also, when represented by a NY debt settlement law firm, you also get the legal protection that could be required while on the plan. Here are some of the benefits of an attorney-based debt negotiation NY program:
How Much Does Citizens Debt Relief Cost
Citizens Debt Relief claims to have flexible pricing, but its website is not transparent about its rates. Regardless, the company does not charge any fees until it has successfully reduced your enrolled debt. Reach out to the company for a free consultation to get a better idea of what debt resolution may cost you.
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National Debt Relief Cost
Positive National Debt Relief reviews indicate that NDR has a low cost , which is one of the reasons some customers love the company. National Debt Relief works with all unsecured debt and some cases of student loans.
Many debt relief companies may not be able to help with student loan debt, so it’s unique that National Debt Relief helps with this on a case-by-case basis.
If a customer enrolls $100,000 of debt in NDR’s debt settlement program, the company can generally cut the debt by 50 percent, making your debt $50,000 instead of $100,000. If you add on the 18 to 25 percent cost for NDR’s debt settlement services, you’ll pay between $68,000 and $75,000.
Customers should be aware that cost is difficult to forecast because of the variables of each individual financial situation. To accurately measure cost, company employees must take into account the determination of creditors, the customer’s credit score, the amount of debt, and state laws governing percentages that can be charged.
Approximate cost is usually determined in a free, no-obligation consultation with a debt expert. By law, no debt settlement company can charge upfront fees. Instead, payment isn’t required until after debt is settled. Most companies allow a monthly payment plan, as is the case with National Debt Relief.
Potential clients should take advantage of the free consultation to learn about specific cost information for their situation.
Option : Debt Validation Program In New York
- Disputes your alleged debts and includes credit repair FOR FREE you may not have to pay the debt, and it could come off your credit report entirely.
- Debt validation can be the least expensive method to resolve an unsecured debt and get it completely removed from your credit report. Think about if you were to get a speeding ticket. You could plead guilty, where you would pay a fine, go to traffic school and get points on your license. You could also hire an attorney to fight the ticket, and in many cases, get it completely dismissed as if it never existed.
- Debt validation is similar to getting a speeding ticket. You can fight the debt and prove it to be legally uncollectible, where legally the debt collection companies can no longer report the debt and negative marks on your credit report, and you wouldnt have to pay the debt.
- Golden Financial Services can introduce you to a debt validation program that comes with a money-back guarantee and stays with you until your debt is completely removed from your record due to the statute of limitations.
- Debt validation will cost less than a settlement in most cases because the account is not getting paid with validation.
Talk to a New York IAPDA Certified Debt Counselor Now .
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What Does A Debt Relief Company Do
Debt relief companies are for-profit organizations that help consumers settle their debts for less than what they owe. These companies gear their services to clients who are so overwhelmed with debt that they cannot figure out a solution on their own.
While there are plenty of reputable debt relief companies out there, its important to note that the debt relief industry is rife with scams. The Federal Trade Commission says its wise to be judicious about companies you work with for this reason. You should also strive to avoid working with debt relief companies that try to collect fees before they settle your debts or ones that advertise a new government program that could help.
How Does Citizens Debt Relief Work
With Citizens Debt Relief, you first go through a free consultation where the companys debt specialists help you see if youre a good candidate for debt settlement. If the debt is too high or if saving for a settlement is unrealistic, Citizens Debt Relief might not take your case. However, if the debt specialist deems your situation a good fit, they figure out a plan of attack for your unsecured debts.
The Citizens Solution is the companys step-by-step approach to debt resolution. It includes:
- Establishing a monthly payment plan
- Creating a savings account with a Citizens Debt Relief partner
- Communicating with creditors
- Negotiating a lower rate
Clients usually see their first settlement after four to seven months in the program, but you can expect the entire program to take two to four years. This process typically reduces clients original debts by 40% to 60%.
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