Freedom Debt Relief is one of the nation’s premier debt settlement companies. They can assist you with settling credit card and personal loan balances for less than what they owe, potentially lowering your credit score temporarily in the process.
Once enrolled with Freedom’s program, you’ll stop paying creditors directly and instead save into an individual savings account. When your savings reach a specific threshold level, Freedom will begin negotiations with creditors on your behalf.
Cost
Freedom Debt Relief is one of the premier debt resolution companies, offering a free no-commitment consultation and money-back guarantee as well as an online calculator to estimate how much debt might be settled for. Their aim is to resolve clients’ debt in 24-48 months by tailoring solutions according to individual budgets and lifestyle needs.
Debt consolidation loans can assist with both unsecured and secured debts, including credit cards, household bills, private student loans and mortgages/auto loans. While debt consolidation cannot eliminate your debt completely, it may help lower interest rates and overall costs associated with it by reducing amounts owed as well as interest costs.
Freedom Debt Relief will conduct a free consultation to assess your finances and discuss your goals before agreeing to its program. When this step has been completed, deposits will begin flowing into a dedicated account where settlement offers may be presented for review before approval or rejection is decided upon by you or rejected altogether by Freedom Debt Relief. Monthly payments from your account to creditors you enroll are also made automatically by Freedom Debt Relief.
Dependent upon your income level, depending on whether or not forgiven debt has been taxed as income by the IRS, setting aside money may be necessary in order to pay any taxes due on forgiven debt. If this is something you wish to avoid paying, an alternative such as bankruptcy may provide relief from this tax burden.
While many debt relief companies are legitimate, it is still wise to conduct thorough research before selecting one. Utilize trusted review sites such as TrustPilot to gain an idea of other people’s experiences with them and be wary of websites which appear impartial but in reality contain ads or sponsored content – particularly websites which list multiple debt settlement companies but omit Freedom Debt Relief as America’s premier debt settlement company.
The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Freedom Debt Relief and co-CEO Andrew Housser for defrauding customers. According to the CFPB, Freedom Debt Relief misleads consumers about its fees, services offered, as well as how to manage funds deposited with them. Along with compensation for victims, civil penalties, and an injunction to stop its unlawful practices have all been sought against Freedom Debt Relief.
Time frame
Freedom Debt is one of the leading debt resolution companies, having assisted over 60,000 individuals (hablan espaol) with their debts. A member of the Better Business Bureau and offering money-back guarantees, Freedom Debt also boasts a high customer satisfaction rate.
Debt settlement involves contracting with a debt relief agency to negotiate on your behalf with creditors to settle debt for less than what they owe – helping avoid bankruptcy and providing you with a fresh start, while potentially increasing your credit score in the short term. But be wary that it could impact negatively upon both aspects of your life in terms of both reputational damage and short-term effects.
To get started with debt relief, the first step should be completing a debt assessment with Freedom Debt Relief representative. They’ll assess your current financial situation, determine eligibility for the program, discuss fees with you and send you an agreement and disclosures package to sign. Once they’ve decided on a plan they’ll send a sign-in agreement as well. Once signed you’ll enroll your debts into Freedom’s program and begin making payments into an FDIC-insured savings account where payments will go toward paying down debts before starting negotiations with creditors begins – Freedom Debt Relief won’t start negotiations until after saving certain amount has been saved into this account deposited there
Once your account has become overdrawn, Freedom Debt Relief will negotiate with each of your creditors in an effort to settle your debt for less than what it owes. They take a percentage of total debt settled, but don’t charge their fee until a final offer from one or more creditors.
Negotiation will likely decrease your monthly debt payments, thus impacting your credit score; however, if you complete two to four years with this program, your score should improve once all debts have been resolved.
Freedom Debt Relief works exclusively with unsecured debts such as credit card bills, household expenses and certain private student loans; they cannot settle secured debts such as mortgages, car loans or personal loans. Freedom Debt Relief also can assist you with dealing with collection agencies so they stop trying to collect from you directly or attempt to collect on their own.
Customer service
When enrolling in a debt settlement program, it’s essential that the company you select offers outstanding customer service. This can help guide the process and guarantee you achieve optimal results. When questions or issues arise, always reach out directly to a representative in order to address them appropriately and address all concerns or provide any necessary answers.
Freedom Debt Relief typically charges 15-25% of total debt enrolled in its program, which is fairly typical in the industry. Furthermore, clients are provided with a 24/7 online dashboard to track progress towards their goal of clearing debt within 24 to 48 months and get education via videos, FAQs and blogs as well as glossaries.
Customer service at this company is offered both through phone and email, with calls being answered promptly. Staff members are highly knowledgeable regarding all forms of debt they can manage as well as providing information regarding its advantages over bankruptcy.
Debt settlement services offer support with credit card debt, personal loans, private student loans, medical bills and medical insurance premiums – even helping negotiate directly with creditors themselves! However, be mindful that settling your debts will require taxes on forgiven amounts; furthermore it could have adverse repercussions for your credit score.
As part of Freedom Debt Relief’s debt settlement process, you will stop making payments directly to creditors and deposit them instead into an account held by them. Freedom Debt Relief will then negotiate with these creditors in an attempt to reduce what you owe; please keep in mind that this process may negatively affect your credit for 7 years.
Although debt resolution will have an adverse impact on your credit score, it remains less damaging than bankruptcy and can help save money and rebuild your financial future. Although it does come with drawbacks, debt resolution remains an effective solution for people struggling to meet minimum payments.
Overall rating
Freedom Debt Relief provides debt resolution programs designed to help consumers reduce unsecured debt and save on interest rates. They have earned high customer reviews on consumer review sites, earning an A+ rating from the Better Business Bureau as well as excellent satisfaction scores from customers; however some have reported poor communication from company customer service representatives as well as slow response times from the service representative’s end.
Enrolling in their program may temporarily impact one’s credit score due to stopping payments while negotiating with creditors.
However, according to the company’s claims, most individuals typically experience their credit score improvement six months post enrollment due to reduced debt loads. Furthermore, it provides educational videos and newsletters for its clients in their financial journeys.
Freedom Debt Relief stands out among debt settlement companies as one of the largest. Their team boasts extensive expertise and resources. Established for over a decade and offering services such as debt settlement and settlement for collections. Furthermore, Freedom has received several major industry accreditations while becoming founding members of American Fair Credit Council.
Website is easy to navigate and offers free consultation for prospective clients. Once approved, applicants can select which debts to settle and access them via an online dashboard. Furthermore, this company provides an affordable monthly fee along with a money-back guarantee.
American Fair Credit Council and accredited by IAPDA – an industry trade association dedicated to improving debt management practices – as founding members, respectively. Furthermore, it holds an A+ rating from Better Business Bureau (BBB) and earned 4.6 out of 5 stars on Trustpilot ratings.
Freedom Debt Relief specializes in settling unsecured debt, such as credit card and medical bills, on behalf of its clients at less than the full balance owed. Since 2002, they have been in operation from San Mateo, California; founder Bradford Stroh is a member of AFCC with extensive experience managing debt in his professional career.