Freedom Debt Relief, a subsidiary of Freedom Financial Network, has resolved billions in debt since its founding in 2002.
The company has considerable industry experience and high client satisfaction ratings.
With all the major industry accreditations, Freedom Debt Relief is a great option for many consumers. Its minimum debt requirement is $7,500. Freedom Debt Relief accepts clients dealing with financial hardship that meet this threshold and clients that can make regular payments to an account to pay for settlements. Freedom Debt Relief employs professional debt experts to negotiate and settle debt for those suffering financial hardship.
The company offers a debt settlement program that involves negotiating with creditors to lower total debt owed and is available in 40 states.
On average, Freedom Debt Relief charges 22 percent of your total enrolled debt, which means the cost varies depending on your financial situation. To settle a $20,000 debt, it will cost around $4,000.
View Freedom Debt Relief reviews below.
Freedom Debt Relief has several great advantages to its debt settlement services including:
Freedom Debt Relief offers a free consultation with a highly trained, IAPDA-certified debt consultant when a consumer decides to enlist the company's debt settlement services.
As an accredited debt relief company, Freedom Debt Relief (FDR) has over 17 years of experience in the debt settlement industry. It has settled over two million accounts since its founding and regularly settles over 50,000 accounts monthly.
Freedom Debt Relief has years of experience standing between the creditor and the client. Freedom will work to obtain settlements that resolve credit card debt (or any type of unsecured debt).
FDR will walk clients through the debt settlement process: first, customers will voluntarily choose to stop making monthly payments to lenders. Instead, clients will elect to make a monthly deposit into a separate special purpose account to save money to pay for the settlements once negotiated. Freedom Debt Relief will then work to negotiate a settlement on behalf of its clients.
Unfortunately, this settlement process will affect your credit score. If you miss any minimum payments on your credit card or other debt, this will decrease your credit score. It's smart to have a plan for boosting your credit score before you start the debt settlement process.
If you choose a debt settlement plan to resolve your debts, the debts you settle are marked as "settled" on your credit report.
While there are some risks to debt settlement, this process allows you to settle debts, avoid bankruptcy, and become debt-free.
Most Freedom Debt reviews on Best Company are positive. They commend FDR for having good customer service, explaining debt management, and keeping them updated on where they are at in the debt settlement program.
Clients drowning in high amounts of unsecured debt (credit card debt, personal loans, medical debt, student loan debt) usually find that the company can save a large percentage of what they owe.
Despite the debt settlement program's tendency to negatively affect credit scores, clients with mountains of credit card debt find it extremely helpful for debt reduction. It's also important for people to know that forgiven debt is considered taxable income, so you may owe more in taxes when using debt settlement services.
One feature that sets FDR apart from the rest is a unique and intuitive online dashboard to track clients' pace throughout the program. This helps people to actually see their progress while settling their debts. It also offers education to help clients improve their financial knowledge.
Not many debt settlement companies in the industry offer such helpful tools.
As opposed to a debt consolidation company which consolidates all of a customer's debt into one consolidation loan and one monthly payment, debtors approach Freedom Debt Relief as a last resort in order to escape high amounts of debt and avoid declaring bankruptcy.
Freedom Debt Relief doesn't charge any fees until after debt is settled with creditors. This practic is standard for the industry. Debt Relief companies, like National Debt Relief and Pacific Debt, also do not have upfront fees.
Upon enrollment, customers will open an FDIC-insured bank account that the client controls. Clients will put all of their money that would have gone toward paying their debt into this bank account instead. This is the main reason why this program hurts your credit score more than debt consolidation.
Next, FDR or its representatives or agents will negotiate with your creditors to settle on debt to pay.
Freedom Debt Relief makes money by charging fees on the enrolled debt amount. Its average fees are a bit high (around 22 percent fees on enrolled debt), but its services are thorough.
The company's ability to help clients find an easier road to financial freedom and paying off debt is highly valuable.
One concern with Freedom Debt Relief is their price. On average, Freedom Debt Relief charges $4,000 to settle $20,000 in debt (22 percent of total debt). If Freedom Debt Relief cuts your debt in half, you would end up paying $14,000 instead of $20,000.
Users are charged an average of 22 percent of their total debt to use FDR. While this number is in line with their competitors, it is only an average. Customers could end up paying more or less than this to use FDR. FDR’s prices range between 15 and 25 percent. The rates vary depending on the state the client lives in.
Current national debt relief trends indicate that debt settlement companies tend to charge a percentage of enrolled debt as opposed to saved debt. This means that the more total debt you have, the more debt settlement companies will charge you.
Although working with a debt settlement company still saves you from paying thousands of dollars to creditors, it's better to work with companies that charge a percentage of saved debt rather than enrolled debt.
So exactly how much will Freedom Debt Relief cost you? It will cost you around 22 percent of your total enrolled debt, but customers will have to have a consultation to get an accurate estimate. The fee is competitive for the industry. The fee is assessed when a successful settlement is reached.
However, Freedom Debt Relief’s services are high quality and make it easier to make your way to being debt-free.
Freedom Debt Relief offers debt settlement programs in only 40 states. If Freedom Debt Relief does not offer services in your state, you'll have to consider other debt settlement companies.
Most debt settlement companies have a minimum debt requirement to ensure a payout. A debt settlement company that charges by saved debt will not run into this problem as much.
Freedom Debt Relief requires a minimum debt amount of $7,500 (the amount of which is charged fees between 15 and 25 percent). While this threshold is low compared to other debt settlement companies, it does rule out people struggling with lower debt amounts.
An additional limitation with Freedom Debt Relief is that the company only works with debtors with unsecured debt. Freedom Debt Relief is not an option for those struggling with secured debt.
While most of the Freedom Debt Relief reviews are positive, there are still several people who have complaints about Freedom Debt Relief. The two main complaints clients seem to have are the following:
These complaints are fairly common within the debt settlement industry. It’s important for clients to be fully informed about what debt settlement is and how it works. Potential clients should use the free consultation to learn more about the time it takes to reach a settlement and specific price information.
In 2019, the Consumer Financial Protection Bureau and Freedom Debt Relief reached an agreement that FDR would:
It's a good idea for potential clients to do some research on the process, consumers' rights, and industry standards for settlement companies before setting up a free consultation with a debt settlement service. It's also recommended to read recent customer reviews to get a better sense of Freedom Debt Relief's commitment to clients and how good its settlement services are.
Call our recommended rep over at Freedom Debt Relief below.
Freedom Debt Relief Frequently Asked Questions
What is Freedom Debt Relief?
Freedom Debt Relief is a debt settlement company. We offer a debt settlement program that helps you get out of debt faster and for less. With over 15 years of experience working to reduce our clients’ debt, we have resolved over $10 billion in debt since 2002.
How does the Freedom Debt Relief program work?
After signing up for Freedom Debt Relief, you make monthly deposits into an FDIC-insured bank account that you own and control. Once enough money has built up into this account, negotiations occur towards resolving each of your debts one by one. Once a settlement offer is obtained, we present the offer for you to sign off on. If you agree to the terms, the funds in your FDIC-insured account are used to pay the creditor. This is also when we collect our fee. Once the creditor has been paid according to the settlement agreement, the remainder of the debt is written off. We repeat this process with all of your debts until you no longer owe anything on your enrolled debts.
How does Freedom Debt Relief affect your credit?
Freedom Debt Relief could negatively impact your credit as your creditors are not being paid every month. As such, they will report your missed payments to the credit bureaus, which negatively impacts your score. If you are already behind on payments, however, your credit is already negatively affected, so you should take that into consideration.
How much does Freedom Debt Relief cost?
Our fee ranges from 15%-25% of the debt, depending on the state you live in, how much you owe, and other factors. Under no circumstances, however, will you pay us our fee in advance of a settlement on a debt.
What kind of debt does Freedom Debt Relief work with?
Debt from credit cards, medical bills, department store cards, and many other types of unsecured debt could qualify for Freedom Debt Relief. However, secured debt that involves collateral, including auto loans, mortgages, and federal student loans, do not qualify.
What happens if a creditor tries to sue me during settlement?
Since you’ve stopped making payments to your creditors, there’s a chance that they may sue you in an attempt to collect what you owe them. Freedom Debt Relief makes available to its clients an optional subscription to a legal network of lawyers, which could help in these instances where you get sued.
Is forgiven debt taxable?
According to the IRS, a forgiven debt is considered taxable income. At the end of the year, they will expect taxes to be paid on any settled debt. However, IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, may exempt you from this tax. To learn how forgiven debt could affect your taxes, talk to a tax professional.
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Enrolling with Freedom Debt Relief was the best course of action I've done after coming to terms that I was way over my head with debt. From my own personal experience Freedom Debt Relief associates have been nothing more than kind and reassuring in my journey to get out of debt. With their helpful associates and helpful articles/videos I've ceased worrying and continue to pay into my account to help speed up the graduation program. I am happy to say that from the nine in my account have been completed, three being paid off and the remaining in negotiations. Another thing that I'd like about it they give you the option to either increase your payments for a faster completion or pay more into when you can.
Flexible worked with me during covid layoff
this has been quick and easy, the representatives are attentive and understanding and if I have a question they are quick to answer
Freedom Debt Relief has been wonderful in helping me get my life back in order. I couldn't have done it without getting Freedom Debt Relief's help! Thank You and your employees you all have been great! Thank You!
They was able to settle my debit fast. and at way less that I thought it would me.
Excellent service, I would recommend them to anyone that needs the help
Daleya D. Johnson
They helped me pay debts at a reduced amount
They helped me with just about every concern and questions I had about this program and it has been an easy transition
I am very grateful to Freedom Debt Relief. I could not get my financial situation under control after my wife that passed over 8 years ago. I was still paying my bills but only minimum payments. The more I owed the more might credit score was going down. I finally feel now that I've been with Freedom Debt Relief for over a year and a half that my financial status it's getting better and better. After having 9 creditors I owed, I only have one left to settle with. I am very excited about having my credit is paid off. Thank you so much Freedom Debt Relief.
Not truthful and lack of communication with in the office
Great customer service what they say they're going to do, they do it
Paul R. George
Great experience, always helpful and friendly
Great customer service. Representatives are informed and patient with providing information and support during these uncertain times.
Donald R Kenney Sr
The Program Customer Service Knowledge Very Proffessional
Michael C Davis
Not good. They couldn't settle one of my cards. Now owe the original balance, plus accrued interest.
It was a easy and wonderful experience and even though I'm glad it's over I'm glad that I did have their help.
Very quick to respond to any question I have
Efficiency of handling cases or accounts. Friendliness of staff.
Being able to adjust the payment if an unexpected bill came up, and honestly them doing all the work. It was my wife who actually referred me because she had success through this program.
Very professional, very discreet, have done exactly what they said they would do!
Really effective helping me to lower my credit card debt/
Customer service is the best. Response time is almost immediate
Great Team work, and responsable in comunication.
It has been a good experience. They made me feel comfortable when I was extremely embarrassed. Glad I reached out to them.
awesome the best choice I ever made to help with my situation, customer service excellent!
Experience with Freedom Debt Relief has been easy and friendly
Great customer service. I have found them responsive, I find that the payment schedule is very reasonable and very flexible.
Good job relieving my debt. When I have questions they get answered fast.
FDR took away the anxiety and concern over my debts and made it so easy to do.
It was great. You will be stressed in the beginning but hang in there and keep depositing extra money. They answered any and every question we had with great satisfaction. As great as they were, I hope to never need their service again.
Huge rip off - do not do it. They charge you a TON upfront. You're better off paying that fee to your debtor.
It's been very easy and definitely worth it.
Professional, liberating, life changing, and exemplary.
They're good at what they do. They handle everything professionally.
I like that they settle debt in a good time, but wish some would settle faster.
A while back I made contact with them to see if I could lower my payments and they were very accommodating. I truly felt like my situation was their concern.
They have met my needs and have helped me pay down my debts
I have been very happy with the way my account has been handled. My questions were always answered clearly.
They have helped me already pay one debt off and working on paying another off. I saved over three thousand on first one.
They answer a question completely and fairly so that you can understand what they are saying to you
Very help full and pleasant customer service. Also very informative.
negotiation have been fair and timely and on track for graduation
It's been horrible I would not recommend them to anyone. They tell you one payment and you end up paying a payment you can not afford.
They are there for you when needed, giving me a lot of confidence in them.
Very professional, excellent service and they helped me together better my finances.
It has been a great experience i was very nervous about the whole process but they have eased that from the start. Answered all my questions.
Extremely helpful customer service. Easy process
They promise to reduce my credit card debt and they have done just that.
I was vry satisfied with the help they gave me in settling my acounts in a reasonable length of time.
WERY GOOD COMPANY. THEY MAKE SURE YOU KNOW WHAT IS GOING ON