Can you cancel national debt relief and get your money back?
If we can't settle your debt or if you're not satisfied up to the point of us settling your debts — for any reason — you can cancel anytime without any penalties or fees other than any fees earned associated with prior settled debts. That's right! We get results or you don't pay.
For example, the National Debt Relief allows you to cancel the program at any time if they're unable to settle the debt or you aren't satisfied with their services. You won't be charged any penalties or cancellation fees, and you'll have your money back.
A DMP isn't a legally binding agreement. This means that you can cancel it if you want to. There are a number of reasons why you might want to cancel, including: you're not happy paying a fee each month which means there's less money left to pay your creditors.
In certain situations a debt relief order (DRO) can be stopped (revoked). If this happens to you, you'll have to find another way to deal with the debts you owe.
If you have paid money to a debt settlement or consolidation company and they have not provided any real results, you may be entitled to get your money back.
The drawback is that the fees for debt settlement can be relatively hefty. On average, fees are between 15% and 25% of the total debt enrolled.
The bottom line. Your credit score is important — and debt relief services may cause it to fall. But if your score has already been damaged by a series of poor financial habits it may be worth a temporary hit with debt relief now to improve your creditworthiness long-term.
Yes, you can buy a home after debt settlement. You'll just have to meet the lender's requirements to qualify for a mortgage.
National Debt Relief is a legitimate company providing debt relief services. The company was founded in 2009 and is a member of the American Association for Debt Resolution (AADR). It's certified by the International Association of Professional Debt Arbitrators (IAPDA), and is accredited by the BBB.
Debt relief plans can help make your payments more manageable, but they're not right for everyone. It's important for you to understand how each plan or program works and how debt relief can affect your finances.
How long are you blacklisted after a debt relief order?
A DRO stays on your credit file for six years from the date it is approved. It may be hard to take out credit during this time.
- Take advantage of debt relief programs.
- Use a home equity loan to cut the cost of interest.
- Use a 401k loan.
- Take advantage of balance transfer credit cards with promotional interest rates.
Bank accounts
After a DRO has been approved, your bank may stop letting you use your current bank account. If this happens, speak to your debt adviser to find out what options are available. Your debt adviser may be able to help you set up a new bank account which is not related to any of your debts.
It typically takes between 24-48 months with our program. By contrast, if you only make the minimum payments on your credit cards, you could be in debt for the next 10-20 years and pay back 2x, 3x, or even 4x as much as you originally borrowed.
Debt consolidation itself doesn't show up on your credit reports, but any new loans or credit card accounts you open to consolidate your debt will. Most accounts will show up for 10 years after you close them, and any missed payments will show up for seven years from the date you missed the payment.
If you do it right, debt consolidation might slightly decrease your score temporarily. The drop will come from a hard inquiry that appears on your credit reports every time you apply for credit. But, according to Experian, the decrease is normally less than 5 points and your score should rebound within a few months.
Using debt settlement options to reduce debt comes with several risks, including late payments on your credit report, potential charge-offs, settlement company fees, tax implications on forgiven balances, possible scams and the overall risk of settlement offers not working.
Debt settlement can cause your credit score to fall by more than 100 points, and it stays on your credit report for seven years. If your creditors close accounts as part of the settlement process, this can cause your credit utilization to increase, which also negatively affects your credit score.
| State | Number of people who applied or were deemed automatically eligible for relief | Number of fully-approved applications sent to loan servicers for discharge |
|---|---|---|
| California | 2,315,000 | 1,473,000 |
| Colorado | 471,000 | 295,000 |
| Connecticut | 321,000 | 208,000 |
| Delaware | 81,000 | 52,000 |
While you can still use your open credit card accounts after debt consolidation, consumers should do so with caution. If you do use your credit card after debt consolidation, be sure to pay off your balance regularly.
Can I get a credit card after debt settlement?
A secured credit card is the easiest type of credit card to get after debt settlement. Keeping credit card balances low and paying on time will help raise your credit score. Many credit card issuers offer second chance cards and credit building cards.
Summary: Debt settlement remains on your credit report for seven years, but it can take as little as 6-24 months to improve your credit score after settling. This all depends on your credit history and financial circ*mstances.
| Pros | Cons |
|---|---|
| Might be able to settle for less than what you owe | Creditors might not be willing to negotiate |
| Pay off debt sooner | Could come with fees |
| Stop calls from collection agencies | Could hurt your credit |
| Could help you avoid bankruptcy | Debt written off might be taxable |
For instance, hiring a debt settlement company can leave you with severe credit damage and no spare cash, both of which make it harder to qualify for a mortgage. Once your debts are settled, you might need a few years to recover and become eligible for a conventional (meaning not government backed) mortgage.
| City | Annual Salary | Hourly Wage |
|---|---|---|
| San Francisco, CA | $51,234 | $24.63 |
| San Buenaventura, CA | $49,781 | $23.93 |
| San Jose, CA | $49,539 | $23.82 |
| Oakland, CA | $48,478 | $23.31 |
