Freedom Debt Reviews – A Review of Freedom Debt Relief

Freedom Debt Relief claims it can settle your unsecured debt for less than what is owed. Through their program, you contribute to an account and they negotiate directly with creditors on your behalf – saving time and making debt management simpler than attempting to manage multiple accounts independently.

By enrolling, you voluntarily stop making payments to creditors and place that money in an FDIC-insured bank account instead. Unfortunately, enrolling can damage your credit score, with delinquent accounts remaining on your report for seven years after becoming delinquent.

It’s a scam

Freedom Debt Relief is a debt settlement company that claims it can negotiate lower interest rates and fees from creditors for its clients who are struggling with credit card, personal loan and medical bill debt. Freedom Debt Relief charges a fee typically equivalent to 20% of total debt owed and offers free debt evaluation to assess each customer’s individual financial circumstances and suitability for its program.

Enrolling in the company’s debt settlement program means switching your payments away from creditors and into an exclusive savings account instead. They then work with each creditor individually to settle it for less than what you owe – this process may take months or years and have an adverse effect on your credit score; during which time they may make aggressive collection attempts or file lawsuits against you from their creditors.

It is not a scam to use this company’s services, but doing so requires stopping payments on debts and may have an adverse impact on your credit. Before enrolling, be sure to understand how the program works and read all fine print; failing which you could end up spending more money than needed on paying your debts in time.

Debt negotiation requires pulling and reporting your credit every month to three major credit bureaus, which could significantly restrict your ability to apply for new credit or employment and will remain on your report for seven years. Creditors may even sell your debt directly, further damaging it.

Once your savings account is sufficiently funded, Freedom Debt Relief will notify you of a potential settlement with one or more creditors. Once approved, this settlement offer can only be finalized when enough payment covers your monthly payment to Freedom Debt Relief; usually creditors won’t offer lower amounts unless shown that they are serious about paying their debts and Freedom Debt Relief cannot guarantee they accept your proposal.

It’s not a scam

Freedom Debt Relief is a debt settlement firm offering its services to consumers with more than $5,000 of unsecure credit card debt. Their representatives negotiate on clients’ behalf with creditors to lower what is owed; additionally they offer credit repair services and financial counseling advice. Nonetheless, Freedom Debt Relief may have its share of controversy; prospective participants should take care when enrolling into its program.

One of the primary concerns surrounding debt settlement is that it can cause irreparable damage to your credit score. Debt settlement involves stopping payments to creditors, which could cause your scores to decrease drastically – this could pose issues for people looking to get loans or employment later on. But with help from an established debt settlement provider, your score should improve significantly once your program is finished.

Freedom Debt Relief will create a separate bank account in your name and will make monthly deposits into this account, based on both your ability and total debt enrolled. Once enough leverage has been built up for negotiation with creditors, Freedom Debt Relief will start reaching out directly and attempt to settle debt for less than what you owe.

Process can be cumbersome and lengthy when dealing with multiple creditors at once. Negotiations of settlement offers could take up to 24 months before you reach an agreement, and some may decide to sue over unpaid debts; however, most clients that enrolled with Freedom Debt Relief found their service worthwhile.

Debt settlement companies typically charge 15% to 25% of enrolled debt and an ongoing monthly maintenance fee, and these fees can quickly add up. Furthermore, debt settlement may temporarily impact your credit score as payments may be missed during negotiations; however, according to most of their customers they usually see improvement after six months.

It’s not a good deal

Freedom Debt Relief’s fees may appear high at first, but they shouldn’t necessarily be seen as excessive or unacceptable. With debt settlement services like Freedom Debt Relief saving so many people money is definitely worthwhile; however, before enrolling it’s essential that all terms and fees of their program are understood thoroughly before making your decision.

Freedom misleads consumers by misrepresenting its experienced negotiators as directly dealing with creditors or collection agencies on their behalf, but in reality coaches them to do it themselves and settle debt themselves. It also misinforms about its services since some major creditors do not permit debt-settlement companies and therefore may require consumers to negotiate their settlements themselves.

Consumers enrolled in Freedom Debt Relief must stop paying their unsecured debt, which will then be marked delinquent on credit reports, which can have serious repercussions for seven years and make future applications for credit more challenging. Furthermore, any legal fees accrued during collection by creditors will become the client’s responsibility as well. Despite all of this, many Freedom Debt Relief customers rate the company highly; its Better Business Bureau page has given it a 4.36 star rating which raves about customer service and ease of the process! Despite all these concerns many Freedom customers rate this company highly; many reviews on websites praise its customer service and process ease as well.

It’s not a good service

Freedom Debt Relief offers its services to individuals struggling with high amounts of unsecured debt such as credit card bills. They help clients negotiate with creditors to reduce what they owe by settling debt for less than they owe. However, keep in mind that by opting for this route you must stop making payments on your debt, which will cause it to appear delinquent in your credit reports. National Debt Relief provides a more reasonable fee structure and boasts higher customer satisfaction ratings, making them more suitable than debt collectors for managing your finances.

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