Freedom debt relief provides clients with legal representation if their creditors threaten to sue them, and also partners with lawyers to negotiate on their behalf with creditors on their behalf. While this process will negatively impact your credit score, it remains cheaper than bankruptcy which can reduce it by over 100 points.
Customer service
Freedom Debt Relief offers several customer service options for its clients, including phone, email and online chat. Certified Debt Consultants are available Monday to Thursday 8am to 9pm and Saturday and Sunday 10am to 8pm; additionally they will offer you a free consultation where they will assess your unique debt situation before offering solutions that best meet your needs.
Better Business Bureau-accredited and boasting high customer ratings, this company stands out with courteous, professional, and thorough explanations of the debt settlement process as well as ongoing updates regarding your debt reduction program and any tax implications of settlement.
While some may view debt settlement as a scam, it’s an effective solution for those struggling with large amounts of unsecured debt such as credit card bills. Debt settlement works by negotiating with creditors to settle your debt for less than you owe; when choosing a company it’s essential that they are experienced and possess a proven track record; furthermore be mindful of fees involved as well as whether or not they provide money-back guarantees if possible.
Debt settlement has one major drawback – it can lower your credit score. By removing accounts from your report, debt settlement companies often work with creditors to clear delinquent accounts off your report – something which makes qualifying for mortgages and auto loans much harder. While debt settlement companies don’t work for everyone who can’t pay their current balances off right away.
Debt settlement industry has often come under criticism from consumer advocates and lawmakers, particularly Freedom Debt Relief’s co-CEO Andrew Housser. In 2017, the Consumer Financial Protection Bureau sued them alleging that they charged consumers without fulfilling their promises, required them to negotiate their own settlements, misrepresented services provided, misled about scope of services offered etc. However, Freedom Debt Relief settled this lawsuit by paying fine and compensating some customers.
Pricing
Freedom Debt Relief is a debt settlement company offering various services to assist its customers in getting out of debt. Their flagship service involves negotiating with creditors to reduce what customers owe; loan repayment programs help people pay off debt faster; fees typically are determined based on how much money is saved, without up-front fees charged up-front; however there is one-time setup and account servicing fee of $9.95 which must be paid separately each month.
Freedom Debt Relief will create a detailed plan outlining their plan to settle your debts, then ask you to stop making payments to creditors and depositing into a dedicated bank account instead. Over time, as this money accumulates they will negotiate with each creditor individually to settle for less than what is owed; during negotiations creditors often agree to reduce your debt as an alternative to going to court.
Debt settlement may provide an effective solution for those in financial difficulty; however, it must be remembered that it will have a lasting effect on both your credit score and future applications for credit applications due to any delinquency on accounts – something which stays on your report for seven years after having settled debts.
Additionally, you should know that other forms of debt relief such as bankruptcy and credit counseling exist. Although bankruptcy should only ever be used as a last resort, as it will have a devastating impact on your credit rating for two to three years after filing; credit counseling offers another alternative, suitable for those able to make regular payments towards reducing debt.
Freedom Debt Relief can only handle unsecured debt, such as credit cards, medical bills and household bills; as well as some private student loans secured with collateral such as mortgages or auto loans. Unfortunately, Freedom Debt Relief cannot settle federal student loans or child support – however these may still be settled without their services but this may take longer.
Payment options
Freedom Debt Relief offers various payment options, such as online banking and bill pay. In addition, they offer free debt consultation and client portal access so you can track your progress online or over the phone – however be mindful that utilizing this service could have negative repercussions for your credit rating.
Negotiated settlements offered by debt settlement companies may not suit every consumer; for example, some major creditors prohibit negotiation through such companies and some consumers find they must negotiate directly with their creditors themselves to reach a satisfactory outcome; this may incur higher fees to consumers as well.
Freedom Debt Relief may have an excellent reputation, but before signing on with them it’s important to be aware of its drawbacks. First off, they require you to sign a contract and provide potentially sensitive personal data which puts you at risk in light of recent data breaches and breaches. Furthermore, it remains unclear whether there is an established system to safeguard this data.
Other issues related to their fees are also of great concern; including $10 to write a check, monthly charges of 9.95 dollars and one-off charges of $50. Furthermore, their total costs won’t become apparent until after enrolling.
Debt management may provide the solution you’re searching for to avoid these fees and expenses, with its more affordable payments helping to clear off debt in 36-60 months, without damaging your credit rating like debt settlement can do.
As with any business, customer reviews provide the best indicator of its quality and performance. While Freedom enjoys a strong rating on Trust Pilot, much of its positive feedback appears to have come from people invited by Freedom to review the site – this could distort results and may explain its high rating. Furthermore, many reviews were submitted shortly after consumers first interacted with Freedom, suggesting they’re eager to sign clients up quickly.
Reputation
Reputation is an abstract concept that can be measured in multiple ways. It can be affected by various aspects of customer service and product quality. A positive reputation will help your business flourish; on the other hand, an unfavorable one could potentially hinder it and reduce profits. There are ways to manage and strengthen it over time, however.
Many Freedom Debt Relief reviews are positive, with customers often commending their friendly and helpful customer service team as well as Freedom’s ability to negotiate debt settlement agreements that save them money – especially beneficial for people in deep unsecured debt such as credit card, personal loan or medical bill debt or student loan debt.
However, if you’re considering debt settlement it is essential that you are aware that it could have a devastating effect on your credit score. Since debt settlement requires stopping paying creditors while saving up for their settlement; their accounts could become delinquent on your report and harm future applications for credit or employment.
No matter the company’s reputation, it’s crucial that you consider all available debt relief programs before selecting one. Options other than debt settlement include bankruptcy and credit counseling – bankruptcy may cause irreparable damage to your credit rating while credit counseling may provide solutions to your debt problems.