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 39 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 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 39 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.
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.
Terri Lynn Yada
Talk to you like a human being, they take the time to explain every step that is along the way... never felt better about resolving debt!
FDR has been such a great help. I can't thank you enough. Anytime I have questions someone is available to give me the answers. I can't thank you enough!!!
Agents are very knowledgeable , walked me through the entire process.
So far Freedom Debit Relief has done exactly what they promised to do. They have worked quickly to get my debit resolved. I thought it would take a long time to get the first credit card settlement. It took a short time and I've almost got one credit card paid off. I'm so excited.
The best, easy, friendly, super service.!!
Taken care of debt without bugging me. I can breath again knowing this debt is almost over
They have been excellent in letting me know how my debt settlement program is going
The process has been slow but I am happy with the results so far
Great company to help settle your debt problems. Been very helpful to us. Best thing that I can say THANK YOU for your help.
Wonderful! They explain everything to my understanding. No rush.just slow and easy so you know just exactly what is going on. Easy access to the site on internet so you are kept up to date on everymove made.
Excellent assistance in helping me oay off debt
So glad I decided to go with Freedom Debt Relief. Their trustworthiness is greatly appreciated. Thanks.
Not sure yet...seems to be taking longer than I was told to fix and settlement amounts are not as good as I would have liked.
Peggy Sue Black
Knowing me and my husband are doing the right thing but by the time they settle a debt the late fees and their fee to settle come to the same amount or more than originally owed.
they have been fair and worked well for me
Takes lots of stress off me, I don't have to worry abut collectors calling me at all different hours to collect. Very professional customer service. I recommend it all the time to my friends. I tell them put ur pride to the dude and become less stress and you will enjoy life better. ''
Freedom Debt Relief is the best. They keep me up to date on the progress of my program.
At first in all honesty I wasn't sure about about Freedom. I fell into debt really badly after a surgery I had and was unable to work for 3 months. I really didn't know where to turn to so my mom introduced me to Freedom and the lady we talked to was very helpful her name was Amber Thomas she help me and my mother feel more comfortable about Freedom and she answered all of our concerns. I appreciate all the people I have come in contact with overs the years even to call to change my date of payment they were understanding and did it for me. At first because of all this my credit was really low, after watching it over the years with the help of Freedom I can truly say my credit is improving because of Freedom. They were able to do something I was able to do and that was getting from behind the eight ball and still able to slowly get back on track of getting out of debt for good.
Highly recommend!!! I had credit card debt over $24,000. Started December 2016 and will be debt free August 2020!!!
FDR has always been up front and honest with me. They explained in detail how their service works and continue to be responsive to my inquiries.
I have asked more than once to cancel this account and it still has not been done. I stopped payment on my checking account. You no longer hold money out of my account.
Great! They have done exactly what they said they would do right from the start. They are easy to talk to and more than willing to answer any and all questions. Best thing I ever did concerning my financial picture,
Freedom Debt Relief is a great company for helping people get their debt issues solved. They are super at helping when you need them the most. They answer your calls or messages immediately and always there for you to talk out your situations. I highly recommend Freedom Debt Relief for everyone in need of help. Thank you.
From the first time when I called the lady was very nice and trying to explain me all the options, and then finally after few months I have the first settlement .I hope everything will be fine and why not to recommend to more people.
Betty Ann Mernatti
FDRhas relieved a lot of stress for me . and now im finally seeing some progress in my credit cards being taken care of i have never shirked my responsibility in paying my cards but the minimum payment was not working when my husband passed almost 4 years ago and i lost some income i couldnt handle it FDR is given me peace of mind and still getting my cards payed Thankyou FDR Im totally grateful
professional, courtesy, transparent, keep me informed, and above all, keep reminding me we are here to help and see that you succeed. I thank you for that encouragement.
They helped me consolidate my debt and get my credit back in good standing, I don’t think I could have done it without them
I really like the continuing communication. It makes me feel connected with the company. I don’t know that there’s anything I dislike, but I’m a fairly new client.
I emailed you guys to let you know I need to post pone a couple payment , but u guys never responded back, so my rating toward you guys not good at all! (0) at the moment. If you don't respond back on this matter . I will be looking for something else or and I stop the payment that suppose to come out this week.
They are fantastic! They do what they say they are going to to do. They are helpful and kind and take everything off your plate, including litigation. I highly recommend this organization.
I like that Freedom Debt Relief maintains regular communication and attempts to ensure that I understand each step being taken to negotiate my debt. Freedom Debt Relief's customer service representatives are prompt and accurate when providing me information. I was very excited when I was informed of my first negotiated settlement, and even more so when I learned of the second settlement!! HOORAY and Thanks be to God!!!
Freedom Debt Relief has provided me with room to breathe by managing my debt, when it felt like I had no options left. Thank you.
Reply from Freedom Debt Relief
Jun 12, 2019
We appreciate the feedback, Pheobe. Our team is proud to have been able to remove stress from your life. We are here to support you at every step of your debt-free journey, so please feel free to contact our Client Services team any time you have questions! Give them a call at 1-800-655-6303 or reach them by email at . Thank you for choosing Freedom Debt Relief!
I am really happy with with Freedom Debt Relief the one I love most is how good they are communicating with people it’s unbelievable and they will work with everyone to help them.
I was totally overwhelmed and nervous when I first spoke with the FDR rep. She patiently explained how the program work without any pressure or threats about what could happen. She told me to take a day or so and call her back. I did!!!! One of the best decisions I made recently. Since signing up with this program, I have been able to sleep at night. I definitely suggest taking the additional legal addendum. I am extremely pleased with this program and would advise anyone having debt related problems to contact FDR. My only regret was I didn’t contact them sooner.
I give it four stars at the moment, because they are still working on my case. However, so far it's really been Five star service. They keep me informed via emails, and I'm ecstatic that they negotiated my first debt settlement, which reinforces that I made the right move in picking them to help me with my problematic financial situation. Would I recommend them to someone else? The answer is a resounding yes.
Had 40k in credit card debt that I couldn't pay back after becoming disabled and retiring early. Freedom has enabled me to structure these debts with creditors and reduce balances to better handle this life crisis.
Ronald A Teno
Great. everyone was very nice and helpful.
Keep me updated, friendly, staff knowledgeable
They have great customer service. Someone always there to answer my questions.
Freedom Debt Solution deliver what they promise. I am very happy i chose this company.
Freedom Debt Relief has been awesome! Having negotiated two of my debts already to much lower than what I owed, I couldn't be happier with the service.
I started the program almost a year ago, I am glad to have a company that works very hard on my behave to help me become dept free, it takes a lot of patients first, I started with 5 creditors and now I am down to 3. I called Freedom Debt relief a few times with questions and every time I talked to a representative they are very courteous and helpful. I am glad I made that decision to sign up. I defiantly recommend Freedom Debt Relief to any one who struggles getting out of debt by themselves. Can't wait to graduate in the near future and start saving the amount I pay every month. Thank you!
Great service and everything explained very well.
Was able to turn over all the bills to FDR and have automatic bank draft payment set up. This was easy to do and they did the work, no hassles from our creditors. Four of the seven have worked out settlements so far. It has been turn it over and let them do the worry/work, as the name implies "Freedom". We are now able to take care of our medical expenses and not go into further debt. Love it.
They make it easy, effortless, and painless.
FDR has put me on track very fast, I joined November 2018 and my credit rating was worse than zero but now its over 550 for such a short time. No irritating phone calls from creditors and the ease of automatic payments. The only thing I wish was different was that settlements would happen sooner but I understand why that is. Thanks FDR and staff for making this a great experience.
They keep their word as long as you maintain you part. I'm a believer. I have never been happier to see me debt being paid off.
I gave it 1 star just to show something. Because of their "Protocols" I was forced into bankruptcy. In addition, they could have done better if not for the fees they charged while "helping" negotiate terms with creditors. I would never recommend them to anyone.
Reply from Freedom Debt Relief
Feb 20, 2020
Ms. Kempf, we are so sorry that you feel this way. Our goal is to help clients become debt-free. A member of our team will be reaching out to you shortly to discuss your review. Thank you for choosing Freedom Debt Relief!
What else is there too say about a company... professional, friendly, prompt, and overall ALWAYS there for me as a customer! Couldn’t imagine a better company to work with!
I have a beautiful experience with Freedom Debt Relief. They know what I need. They give me peace of mind. No matter what I want I think about my dedicated account first. Because without it they can’t help my needs . Very nice and unbelievable understanding people. I trust and a lot of respect for g the hem. Thanks Team. Silotte.