Why You Should Think Twice Before Using Debt Settlement Companies Like National Debt Relief

If you’re drowning in credit card bills or personal loan debt, it’s understandable to look for quick solutions. Debt settlement companies like National Debt Relief advertise an appealing promise: reduce your debt without bankruptcy. However, what they don’t highlight are the serious financial risks and potential legal consequences that come with their services. Before you sign up with a company like National Debt Relief, here’s what you need to know—and why you might be far better off hiring a licensed attorney, like those at Diwan Law, LLC.

Avoid National Debt Relif

National Debt Relief and Other Debt Settlement Companies Can’t Protect You From Lawsuits

One of the biggest misconceptions about debt settlement firms is that they can stop creditors from suing you. They can’t. While you’re enrolled in a settlement program, your creditors may still pursue legal action. In fact, some creditors accelerate lawsuits when they realize you’re working with a debt settlement company.

And once a lawsuit is filed, you’re on your own. These companies are not law firms—they can’t represent you in court. If you don’t respond to the lawsuit properly or miss deadlines, you may face a default judgment, which can lead to wage garnishment, bank levies, and liens against your property.

You Could End Up Paying More in the Long Run

National Debt Relief and other debt settlement companies often tell you to stop making payments on your accounts while they negotiate. This tanks your credit score, increases late fees and interest, and may cause your original debt to grow, not shrink. If a settlement is eventually reached, the forgiven portion may be considered taxable income by the IRS—another financial hit.

Plus, many people find out too late that not all creditors will negotiate, leaving them with unresolved debts even after months (or years) of making monthly payments to the debt settlement firm.

There’s No Guarantee Your Debt Will Be Settled

Here’s the hard truth: debt settlement is not guaranteed. Some creditors flat-out refuse to settle. Others might agree to terms the company can’t meet. And if you drop out of the program—which many people do—you’re stuck with all the original debt, plus additional fees and damage to your credit.

Instead of risking your financial future with a settlement mill, consider hiring a law firm that specializes in consumer debt defense and negotiation. At Diwan Law, LLC, you’re not just getting someone to talk to your creditors—you’re getting a licensed attorney who can:

Even worse, many consumers don’t realize that settlement fees are still owed to the company, even if only some of the debts were resolved.

Lack of Legal Oversight and Accountability

Debt settlement companies operate in a regulatory gray zone. They are not bound by the ethical obligations that attorneys are held to, and many are not licensed in e

very state they operate in. If you have a dispute or receive bad advice, your options for recourse are limited.

In contrast, attorneys are regulated by state bar associations, must act in your best interest, and can face serious consequences for unethical behavior.

Why You Should Consider a Law Firm Like Diwan Law, LLC

• Defend you in court if you’re sued
• Negotiate directly with creditors for real settlements
• Help you avoid default judgments and wage garnishments
• Provide legal advice tailored to your situation
• Explore all your options, including bankruptcy or litigation defense

Unlike debt settlement companies, Diwan Law works in your best interest—not just to reduce your balance on paper but to actually resolve your financial situation with the protection and advocacy of legal counsel.

Final Thoughts

Debt settlement companies like National Debt Relief may sound appealing, but the reality is often far more damaging than helpful. From lawsuits and default judgments to unresolved debt and worsened credit, the risks are real.

If you’re serious about tackling your debt, don’t rely on a one-size-fits-all company with no legal power. Work with a firm that can actually protect your rights and get results.

📞 Contact Diwan Law, LLC today for a consultation—and start working toward a debt-free future the right way.