What National Debt Relief does and does not do about skipped payments

National Debt Relief is a debt settlement company, not a lender or your creditor. They do not have the power to skip payments on your behalf — only your actual creditor (the bank, credit card company, or collection agency you owe) can agree to that. What National Debt Relief can do is negotiate with your creditors as part of a debt settlement plan, which sometimes includes periods where you stop making payments while they work toward a reduced payoff amount.

The confusion happens because debt settlement deliberately involves payment pauses. When you enroll with National Debt Relief, you typically stop paying your creditors directly and instead deposit money into a dedicated account that National Debt Relief manages. During this time, your creditors are not receiving payments — but this is a negotiation tactic, not a formal skip or deferral. Your creditors will likely report this as delinquency on your credit report.

Key Takeaways

  • National Debt Relief cannot skip payments for you; only your creditor can agree to stop collecting temporarily.
  • Debt settlement with National Debt Relief involves intentional payment pauses while they negotiate a reduced settlement amount with creditors.
  • During these pauses, your credit score will drop because missed payments are reported as delinquency.
  • You must have enough money saved in your settlement account before creditors will accept a reduced payoff offer.
  • Debt settlement works only if creditors believe you cannot pay the full amount and will negotiate; some creditors refuse to settle.

How the payment pause works inside a debt settlement plan

When you sign up with National Debt Relief, you stop paying your creditors and instead put money into an account National Debt Relief controls. This account accumulates funds over months or years. National Debt Relief then contacts your creditors and offers them a lump sum — typically 40 to 60 percent of what you owe — to close the account.

Creditors are more willing to negotiate when they see that you have stopped paying and have money sitting in reserve. The logic is: they can either wait and hope you pay in full (which seems unlikely if you have stopped paying), or they can take a reduced amount now. National Debt Relief's role is to make that case and handle the back-and-forth.

This is not a formal payment skip or deferral. Your creditors are not agreeing to pause your account; they are being ignored while you save. The difference matters for your credit report, which will show missed payments during this period.

What happens to your credit score during the settlement process

Your credit score will drop significantly once you stop making payments. Credit bureaus report missed payments as delinquency, and this stays on your report for seven years from the date you first missed a payment. The longer the delinquency, the worse the damage — missing one payment hurts less than missing twelve.

Some creditors will sue you during this period if the debt is large enough. National Debt Relief cannot prevent a lawsuit, though they may negotiate with the creditor's attorney to settle the case. If a creditor wins a judgment, they can pursue wage garnishment or bank levies in many states.

The trade-off is intentional: you accept credit damage and legal risk in exchange for the possibility of paying less than you owe. This strategy works best if you have significant debt (usually $10,000 or more) and cannot afford to pay it back in full.

When National Debt Relief's approach does and does not work

Debt settlement succeeds when creditors believe you are genuinely unable to pay and will negotiate rather than pursue collection. This works more often with credit card companies and unsecured debts than with federal student loans, mortgage lenders, or secured debts like car loans.

Federal student loans cannot be settled through National Debt Relief; they have their own income-driven repayment plans and forgiveness programs. Mortgage lenders almost never settle because they can foreclose on the house. Secured debts (car loans, home equity lines) are harder to settle because the creditor can repossess the collateral.

Some creditors straightforward refuse to settle, no matter how long you have not paid. If a creditor sues and wins, National Debt Relief cannot stop the judgment. You remain responsible for the debt even if National Debt Relief cannot negotiate it away.

The cost of using National Debt Relief

National Debt Relief charges a fee, typically 15 to 25 percent of the amount you save. This fee is deducted from your settlement account after each creditor agrees to a deal. For example, if you owe $20,000 and settle for $10,000, and your fee is 20 percent of the savings ($2,000), you will pay $12,000 total: $10,000 to the creditor and $2,000 to National Debt Relief.

You also lose the opportunity cost of the money sitting in your account. The funds National Debt Relief holds are not earning interest and are not available to you for emergencies. If you need the money before settlements are reached, you may have to withdraw it and restart the process.

Alternatives if you want a formal payment skip or deferral instead

If you want your creditor to formally agree to skip or defer payments — rather than straightforward stop paying while a company negotiates — you need to contact your creditor directly. Many credit card companies, banks, and loan servicers offer hardship programs that include temporary payment reductions or pauses without the credit damage of delinquency.

Federal student loans have income-driven repayment plans that can lower your payment to $0 per month based on your income, and forbearance or deferment options that pause payments temporarily. These are formal agreements that do not damage your credit the way missed payments do.

A credit counselor (through a nonprofit credit counseling agency) can help you negotiate a debt management plan with creditors, which is different from debt settlement. In a debt management plan, you make reduced payments on time, and creditors may reduce interest rates. This preserves your credit better than debt settlement but requires you to pay more of what you owe.

Questions to ask National Debt Relief before enrolling

Before signing up, ask National Debt Relief which of your specific creditors they have successfully settled with in the past. Some creditors are more willing to negotiate than others, and knowing their track record matters. Ask how long the process typically takes and what happens if a creditor sues during the settlement period.

Ask for a written estimate of the total cost, including their fee and the settlement amounts they project for each creditor. Ask whether you can withdraw money from your account if an emergency happens. Ask what happens if you cannot afford to keep depositing money into the account — do you lose what you have already saved, or can you pause?

Get the terms in writing before you enroll. National Debt Relief should provide a contract that spells out their fee structure, the timeline, and what happens if the process does not work.

Frequently Asked Questions

Will National Debt Relief stop my creditors from calling me?

Once you enroll, National Debt Relief will ask your creditors to contact them instead of you. However, creditors are not legally required to stop calling, and some will continue until a settlement is reached. You can also send creditors a written cease-and-desist letter, though this may prompt them to sue faster.

Can I use National Debt Relief if I have a lawsuit already filed against me?

Yes, but it complicates the process. National Debt Relief can negotiate with the creditor's attorney, but a judgment may be entered against you while negotiations happen. If that occurs, the creditor can pursue wage garnishment or bank levies depending on your state's laws.

What if I cannot afford to keep saving money for the settlement account?

Contact National Debt Relief when ready. If you stop depositing money, creditors are less likely to settle because they see no funds available. You may be able to pause temporarily, but the longer the pause, the more likely a creditor will sue or write off the debt.

Does debt settlement hurt my credit less than just not paying on my own?

No — the credit damage is the same. Both involve missed payments reported as delinquency. The difference is that National Debt Relief negotiates a payoff, whereas ignoring the debt on your own leaves you vulnerable to lawsuits and collection efforts without any resolution.

Can National Debt Relief settle federal student loans?

No. Federal student loans have their own repayment and forgiveness programs through the Department of Education. National Debt Relief cannot negotiate those loans, and attempting to do so is a sign of a scam.