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Debt relief can come in many different packages, but one of the most prevalent currently seems to be debt settlement. Debt settlement is a debt relief process in which you partner with a third party. The third party then negotiates on your behalf. The goal is to pay a lower amount to your creditor and have the rest of your debt forgiven. 

While this may seem like an ideal situation, there are many potential pitfalls you have to look out for when going through debt settlement. Not only is it possible for you to end up paying more than you started out with, but you may also be put through emotional strain that you weren’t planning on. 

So what should you do if you get into a contract with a debt settlement company like National Debt Relief, but realize your expectations aren’t being met? Do you just grit your teeth and bear through it — possibly losing thousands of dollars and countless nights of sleep? Or do you have other options? 

Luckily, there is something you can do! While it may be difficult, there is a way that you can actually cancel your contract before settling an account. This article will cover how you can make that happen and other things you need to consider when canceling your National Debt Relief contract.

National Debt Relief Cancellation Policy

Per National Debt Relief’s website, cancellations are fully accepted, within a few requirements.

There are many different reasons you may decide to cancel your debt settlement program with National Debt Relief — whether you are unhappy with the amount they got your creditors to agree to, you are frustrated with their customer service or any other reason. 

The important thing to keep in mind is that you cannot cancel your contract once a negotiated price has been agreed upon with your creditor. Once this happens, National Debt Relief has fulfilled its end of the contract and you will be required to pay. Your debt settlement company does have to seek your approval before agreeing to the negotiated cost. So if you are hoping to cancel your contract, make sure you do not agree to any negotiated cost. 

According to National Debt Relief’s cancellation form, if you decide to cancel within 5 days of signing the contract, you are eligible to have everything refunded to you that you may have paid.


Here is the process to cancel your National Debt Relief contract. You should be able to find this information in your Debt Relief Agreement.

  1. Find the Notice of Cancelation form in Your Debt Relief Agreement
  2. Sign and Date the Cancelation Form 
  3. Fax Cancellation Form to 1-866-460-5541 or scan and email the cancellation form to
  4. Follow up on cancellation requests by calling the office at 888-660-7427

What Happens to Your Money in the Escrow Account

Please Note: It is illegal for your debt settlement company to charge you for their services before they have settled your debt. If you have been charged for debt settlement services prior to a negotiation, make sure you understand what the charge is for before paying. 

That being said, there are some changes that you may have to pay before your settlement company will work on your behalf. Sometimes, you have to open a new bank account, which can cost money. There may also be a processing charge for your contract that you have to pay. 

Canceling your contract within five days can allow you to receive a refund of any payments you may have made. 

Alternatively, if you cancel more than five days after the beginning of your contract, you will not be eligible for a refund. 

Also, if you have already settled a previous debt with National Debt Relief, you will still be responsible for those charges, even if you cancel a new contract. If you have other questions about what debt settlement looks like, you can read through National Debt Relief’s FAQ page for more information. 

National Debt Relief Cancellation Form

To cancel your contract, you will have to submit a cancellation form. This form can be requested through your main point of contact at National Debt Relief — whether that is your personal representative or a customer service rep. 

You also should have information on how to cancel your contract within the client service agreement form that you were likely required to sign or were given at the start of your contract. Again, this should state the information of the terms of cancellation, such as the amount of time you should take the cancellation to be processed, what refunds you may be entitled to, and more. If you have any other questions that are not outlined in your client services agreement, then reach out to a customer service rep for more information. 

What Happens To Not Fully Paid Structured Settlements After Cancellation?

If you are wanting to cancel your partnership with National Debt Relief, but you already have other debts settled with them in the form of monthly payments, then you may be wondering what happens once you cancel your contract. In short, you will now be responsible for the maintenance of your payments and the communication between yourself and the creditor. 

Once you decide to cancel your contract, you will want to reach out to your creditor to tell them that National Debt Relief is no longer granted your power of attorney, and that they should no longer be the primary point of contact. If you are switching over to a different debt relief company, you can give the creditor their information, or you can once again become the primary point of contact. 

If you initially settled with a company and agreed to monthly payments, you may want to consider asking if the creditor will still accept the terms of your previous agreement despite no longer working with the same company. 

Please keep in mind that, if National Debt Relief has settled debt on your behalf, canceling your contract with them will not relieve you of the payments you owe them. 

What Happens to the Debt National Debt Relief Has Not Settled?

If you cancel your debt settlement contract before any of your debt has been settled, you will still be responsible for your debt payments. Before moving forward, you will want to take inventory of what debts you still owe and see if there is any portion of your debt that has been settled. 

Checking your credit report is the best way to see what debts are still owed and what debts have been settled. You can access free credit reports from the three major Credit Reporting Bureaus: Equifax, Experian, and TransUnion. Typically, you can request one free credit report every 12 months. Even if you are not currently paying off debt, it is recommended that you check your credit report each year to make sure there are no mistakes that could lower your credit score. 

As mentioned earlier, you will also become the primary point of contact once again, so your creditors will begin reaching out once more. Be prepared to start fielding calls once again, especially if you have started missing payments in preparation to settle your debt. 

Luckily, you still have options if you cancel your contract with National Debt Relief. Here are just a few:

Consolidation of Settlements

If you still want to settle your debt, you can consider moving your debts over to another debt settlement company. A consolidation of settlements allows you to still move forward with debt settlement, but with a company that is better suited for your wants and desires. Check the debt settlement cost calculator to explore the cost of this option.

Settle the Debt Yourself

While this can be more daunting, you can actually settle the debt on your own. You would have to follow a similar process that you would when working with a company, however, the negotiations would fall on you instead of your representative. Sometimes creditors may be less willing to work with individuals, however, sometimes, they may be more willing to work with individuals. Reach out to your creditors to see how easy it is to get in touch with someone who is willing to work with you.

Consider Debt Payoff Planning

Using Payoff Planners can help you take care of your debt without settlement. Payoff Planners can help you organize the debt that you owe and make a plan to pay it off month by month. Keeping your debt and payments organized can help you pay off your debt as soon as possible and keep you from needing extreme debt relief measures. At Ascend, we have created our Savvy Debt Payoff Planner to do just that! Take a look at the app and see if it would be helpful for your situation. 


If debt settlement is no longer an option, but you are still in dire need of debt relief, bankruptcy may be the next best option. Bankruptcy allows you to either liquidate some of your assets to pay off your debt or create a payment schedule over 3-5 years that allows you to pay off your debt over time. Regardless of which option works best for your situation, bankruptcy can help you get out of debt fast. Ascend has a Bankruptcy Calculator that can help you understand what your options are and which may be best for your circumstances.


If you are unhappy with the service you have received from National Debt Relief, you can cancel your contract with them any time prior to agreeing on a negotiation. Keep an eye out on other debt-relief options and companies to see if you are getting the best deal possible from National Debt Relief. If you would like to talk through your options, feel free to reach out to Ascend and talk to one of our debt relief experts.

Post Author: Ascend

Group of guest writers and industry experts who have specific expertise in Chapter 13 bankruptcy, Chapter 7 bankruptcy, debt relief, debt settlement, and debt payoff.

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