Freedom Debt Relief provides assisted debt settlement services, specializing in negotiating with creditors to settle credit card debt for less than what it owes.
Providers also assist clients with settling medical and private student loan debt, though not federal student loans or mortgages. There are no upfront fees or percentage of debt settled for clients – no hidden charges!
What Is Debt Settlement?
Debt settlement can be an effective option for consumers looking to reduce the amount they owe on debts such as credit card debt, while still paying back all or some of what is owed. Debt relief comes with its own set of risks; for instance, it may negatively impact your credit score and incur additional fees such as interest and late charges; furthermore it may take several years before completion and be expensive overall; yet if you’re struggling to keep up with payments or being harassed by collectors then debt relief might just be an effective option worth considering – debt relief may provide relief that works in terms of cost effectiveness!
Freedom Debt Relief works with creditors to negotiate lower payoff amounts for your debts, typically charging 15-25% of total debt enrolled as their service fee. They specialize in helping consumers resolve unsecured debts such as credit card, personal loan and medical bills but don’t work with federal student loans or income tax debt.
Start saving by making monthly deposits into an FDIC-insured savings account dedicated to your debt. Once enough funds have accumulated in this account, Freedom Debt Relief will start haggling with creditors on your behalf – usually starting by calling your largest creditor first, before gradually approaching other smaller balances one at a time.
Once an agreement has been made with creditors, you’ll make one payment to a company which will distribute it among your creditors and begin rebuilding your credit – hopefully more effectively than before joining this program.
Another alternative to consider is a debt management plan, similar to debt settlement programs. Under such plans, a credit counselor will help create a repayment plan which should take between three and five years to complete. While such plans will impact your credit, they’re less costly than debt settlement and may provide the opportunity for you to pay all of your enrolled debts back at once.
Though debt settlement may damage your credit, it can also be an effective tool for reducing debt and getting your financial life back on track. Just make sure that you carefully compare all available options and select the one best suited to your individual situation.
How Does Freedom Work?
Freedom Debt Relief takes over your outstanding debt by depositing money into a dedicated account with them, then negotiating with creditors to reduce what you owe and settle it at less than what it’s currently worth. Once an offer has been accepted by one or more of your creditors, you will be notified so you can approve or decline it directly from your dedicated account – this process typically lasts between two and four years during which your credit score can decline significantly due to missed payments, late fees and defaults.
Freedom Debt Relief differs from debt consolidation companies in that instead of consolidating all your outstanding debt into one payment, they negotiate and settle each individual debt on your behalf. According to their statistics, clients typically complete their programs within 24 to 48 months.
As part of their free debt evaluation service, companies offer complimentary debt evaluations. Once approved, they’ll ask about your situation and goals before creating a custom debt reduction plan that fits within your budget. Once agreed to, deposits will begin rolling into a dedicated account as your money accumulates – when this money accumulates enough the company contacts each of your creditors to see if they would accept reduced settlement offers; should any be accepted, payments would then come directly out of this dedicated account to pay your creditors directly while charging a fee for its services.
Freedom Debt Relief makes the negotiation of debt easier by providing several advantages that make the process simpler for their customers. They employ over 200 debt negotiators who will assist in getting your debt under control, managing communication with creditors on your behalf and taking care of any federal or state taxes associated with debt reduction.
Freedom Debt Relief has an A+ rating with the Better Business Bureau, yet their complaint history shows customer concerns with them. In 2017 and 2018, Freedom Debt Relief was even sued by the Consumer Financial Protection Bureau alleging they charged consumers without actually settling their debts as promised.
What Are the Fees?
Freedom Debt Relief charges a fee based on a percentage of your total debts that it settles, typically between 15% and 25% depending on state regulations.
Consider that any fee charged by Freedom Debt Relief could greatly diminish any savings that you achieve through their services. Assume, for example, that you owe $10,000 in debt and Freedom Debt Relief negotiates to settle it for $6,000 instead. Your savings would amount to $8000 but due to Freedom’s 20% fee structure they’ll actually require an additional payment of at least $1250 (and possibly even more).
While this shouldn’t be a deal-breaker, it should be kept in mind before enrolling in their program. Since you will essentially become delinquent on credit card payments while debt settlement discussions take place, your credit score could take a hit as a result of these discussions.
Legal fees may also be necessary if creditors take legal action against you while working through Freedom to settle your debt, although this cannot be guaranteed as every situation differs.
Debt relief services offer several advantages to their users: first and foremost is saving yourself the hassle and time associated with dealing with creditors directly, negotiating settlement offers on your behalf, and making payments to creditors. Additionally, debt settlement can often save more money than simply paying your debts off in full over time.
Although bankruptcy may not be suitable for everyone, it could be an ideal solution for those buried deep in debt who are unable to make minimum credit card payments or facing foreclosure of their homes. As with any financial decision-making strategy, however, consultation with a professional should come before choosing any type of debt relief strategy like this one.
Freedom Debt Relief claims to have helped many clients manage their debt, yet there have been negative Freedom Debt reviews posted on the Better Business Bureau website. Some complaints revolve around their ineffective communication and slow support specialists’ response times.
Are the Results Worth It?
Freedom Debt Relief has helped more than 650,000 clients settle their debt, charging on average 15%-25% of the amount owed compared to 10%-12% by most other debt settlement firms. Yet Freedom Debt Relief boasts very high client satisfaction ratings at both Trustpilot and Consumer Affairs.
For this program to apply, individuals must be in financial hardship with between $7,500 to $14,000. The company considers various factors when assessing whether an individual meets those criteria – job loss, reduction of hours worked or medical emergencies being just some examples – plus your ability to meet minimum payments and whether daily expenses are being covered adequately.
An initial consultation will give a debt consultant ample time to explain the program in depth, answer any questions that arise and ease your anxieties surrounding negotiating and settling debt. They’ll also inform you if there are any accounts they cannot settle such as purchase money security interest loans, personal or student debt.
Freedom Debt Relief’s primary area of expertise lies with credit card debt; however, they also specialize in negotiating and settling other unsecured forms such as medical or student loan debt. Their team can even work directly with healthcare providers to lower total patient bill costs, potentially saving thousands in savings for patients.
Freedom Debt Relief’s service may be expensive, but their debt settlement program for people struggling with unsecured debt is comprehensive and successful. While their fees may be higher than other providers’ offerings, many customers have found their investment worthwhile.