Freedom Debt Relief
check_circle VerifiedFreedom 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.
The Good
- Excellent Settlement Program and Debt Relief Services
- Experience and Accreditations
- Great Freedom Debt Relief Reviews
- Online Dashboard
- No Fees Charged Until After Debt is Settled
Excellent Settlement Program and Debt Relief Services
Freedom Debt Relief has several great advantages to its debt settlement services including:
- Low minimum of $7,500 in debt to begin debt settlement
- Costs between 15 and 25 percent of the total unsecured debt
- Free consultation with a Certified Debt Consultant
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.
Experience and Accreditations
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.
Great Freedom Debt Relief Reviews
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.
Online Dashboard
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.
No Fees Charged Until After Debt is Settled
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.
The Bad
- Freedom Debt Relief Cost
- Limited Availability
- Complaints
- Consumer Financial Protection Bureau Lawsuit
Freedom Debt Relief Cost
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.
Limited Availability
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.
Complaints
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:
- Debt settlement takes too long or isn't as effective as people hoped
- FDR charges too much for their services, sometimes costing consumers up to 25 percent of their total enrolled debt
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.
Consumer Financial Protection Bureau Lawsuit
In 2019, the Consumer Financial Protection Bureau and Freedom Debt Relief reached an agreement that FDR would:
- Make it clear that in some cases FDR may not be able to negotiate a debt if the creditor is unwilling to negotiate
- Let consumers know that, in some cases, the creditor will only negotiate if the client is also directly involved in the negotiations, and that the consumer has the right to refuse to participate in the negotiations and can remove the debt from their program without penalty
- Make it clearer to consumers under what circumstances they will be charged a fee
- Stop charging fees on all accounts where the settlement amount was not reduced, or where the creditor wrote off the debt on their own
- Make it clearer to consumers that, if they end their program early, any money left in their program savings account belongs to them, minus any funds earned by the company according to legal statues
- Pay restitution money to injured consumers
- Pay a civil penalty
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.
The Bottom Line
Freedom Debt Relief offers several outstanding features for anyone looking to settle their debts: all major industry accreditations, ample debt settlement experience, thoughtful and experienced debt consultants, negotiation with each creditor, and more. The company's 15 to 25 percent fees are pretty standard in comparison to other debt settlement companies (like National Debt Relief).
While people interested in other debt resolution methods, like credit counseling, a debt management plan or debt consolidation loan, will need to consider other companies, Freedom Debt Relief is a good option for those seeking a debt settlement program.
FDR's debt negotiation experience is worth the money. Freedom Debt Relief customer reviews relate that the company has saved them thousands of dollars by negotiating with their creditors. If you're looking to settle your debt through debt negotiation, we highly recommend using Freedom Debt Relief if you receive a reasonable quote from them during your free consultation.
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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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Freedom Debt Relief
Best Company guarantees your satisfaction if you choose a company that has earned this distinction. If you're not satisfied after 30 days, simply let us know and we'll give you $100. Yes, it’s really that simple.
Learn MoreUser Reviews
Star Rating
12,948 Reviews
Review Breakdown
Sentiment Criteria
Verified Customer
Anonymous
They deliver what they promise and walk you through all the steps.
Verified Customer
Keith
It has been very good. My debts are slowly but surely being resolved. The dashboard is very helpful and I can see light at the end of the tunnel. My credit score has improved as well.
Brewcrew71
So easy! Set it up, pay your required amount and let them do all the work!
Karen Elston
Freedom debt Relief knocks off all the interest rates to reduce the amount to pay for credit cards. It's an wonderful program they have.
Hal Lawson
Everything was great until I was assigned Michael T who would not reply to e-mails knowing I couldn’t communicate by phone
James Tinsley
I needed help with Credit Card debt. I had got careless because I had plenty of overtime where i worked for 10 years, then it came to a sudden halt, and when it did of course several unexpected expenses popped up, such as major automobile repairs, home repairs due to plumbing problems, etc. I could not get caught up. after looking into several debt relief companies online, I chose Freedom, mostly because I read several very good reviews. I contacted their service reps, and before long, they had a plan, and my obligation was to have a little over $300 dollars a month debited from my checking account and deposited into my Freedom account. They did the rest. They dealt with my creditors and saved me quite a bit of money in payments and interest that would have accrued if I had not sought help. I almost went bankrupt before talking with Freedom. They were able to keep that from taking place, leaving me much better off. I will graduate from the program in the next month or so with all of my debts settled. I started the program Sept 2016. Because of the fact that interest stopped building when Freedom took over freedom has saved me I believe over 11,000 to date, and that sum should grow before i am done in a few months. They have great customer support and as i recently made clear to Freedom, I called customer support just 2 days ago with some confusion about my account. ( because I am not a very organized person sometimes, and had neglected to take time to call them) My customer support contact really cut through the confusion. ( an email support person had helped clear things up quite a bit a few days before) The Lady i spoke with on the phone that evening is the very best customer support agent I have ever dealt with my entire life . That includes any type of support done long distance whatsoever. She worked with her team and other branches of customer support there for at least an hour, and absolutely reached the best possible outcome for me. she kept apologizing because i was waiting for her to push the necessary documents and such through the system , so there would be no doubt as to the final results. she would apoligise, and I would laugh to myself, thinking " Dear Lady, you are helping me bigtime, and doing so as quick as possible. You have no need to apologize to me, I need to be thanking you for working so hard." ( none of this would have been necessary if I would have checked in with the support group from time to time, as they repeatedly emailed me and invited me to do. But not one word was ever said about my shortcoming. I would definitely recommend this company to anyone who needs debt relief services. Give them a call, I believe they are #1. If you do chose Freedom to help you, do yourself a favor, and check in with them a couple of times a year at least. then there will never be any confusion to begin with. Freedom has been a blessing to me, and they have an excellent staff, very customer oriented. One other thing. they have a couple other business partners they work with. one does billing i think, and one is Legal representation for you, if needed. It is all good, no sweat, great system! I did not investigate my billing, aka , Freedom's Fees too closely, but my impression is that they don't really charge very much when all said and done, it is minimal, compared to what you save .
kb
Absolutely lovely. I like being able to communicate the way I want (email) instead of constant phone calls. They helped us get through this and were great.
Lisa Johnson
I can't believe how FDR has resolved most of my debt in less than a year, thanks for making my life better, I will recommend FDR to anyone that's in debt and need help
Reply from Freedom Debt Relief
Jun 27, 2020
Hello there Lisa! It's definitely rewarding to receive such positive feedback from our clients and to know we are making a difference in their life! We're proud of what we do and we look forward to assisting you in becoming debt-free. If you ever need our assistance please call Client Services at (800) 655-6303.
grace lima
They are doing exactly what they said they were going to do. Working very hard and efficiently on my behalf.
Reply from Freedom Debt Relief
Jun 27, 2020
Grace, thank you so much for such a kind review. We love to hear from our clients! If you ever need our help please call Client Services at (800) 655-6303. Thank you for choosing Freedom Debt Relief.
Luella R Hawkins
Very attuned to my wishes. Fast on making agreements. Nothing negative to say. It's been a very good experience for me. Relief from a lot of stress.
Erick Palacios
Freedom Debt Relief is a great company. They do complete the negotiation and get the best deal.
Melissa Lacy-Cliff
Very helpful in every way possible. I appreciate all they have done for me.
HStavisky
Very transparent and willing to work with you.
ChristianO
At first I was skeptical after doing some research and reading but as time has been going by there has been some positive activity and can’t wait to graduate!
Coralie Benson
Awesome experience and its really big help.
Reply from Freedom Debt Relief
Apr 09, 2020
Coralie, thank you for sharing your thoughts about our program. We are so glad to hear how we can assist you on your journey towards becoming debt-free. If you ever need our assistance please call Client Services at (800) 655-6303.
Mari Lis Espinoza
I’ve been in the program for about 18months and they had closed most of my accounts just a few left, every time I called they always answered all of my questions, they really take their time to explain all the process. Very happy with the program.
Roberta
When I’m unsure with what I wanna do they give me all my options so I can make the right decision that benefits me. I’m very happy with your company!
Karrie R.
The Customer Service is Excellent! I had every question answered right away! This company has helped me out of a Lot of debt and I will be completely out if debt in less than 2 years! Thank you Freedom Debt Relief!
Reggie Marcotte
I was told to stop paying my credit and we would settle a lot cheaper than the balance owed.. Six months later I was sued for the balance, interest, and late fees equally $1800 more than the original balance. Their "law team" was unable to reach an agreement with the debtor and now I owe more than the original balance I started with.
Reply from Freedom Debt Relief
Jun 26, 2020
We imagine this to be extremely frustrating for you, Mr. Marcotte. Unfortunately, some creditors are more aggressive than others, choosing litigation to collect on an outstanding balance. It sounds like the options provided by our legal team were not the best fit for your needs. A team specialist will be reaching out to you shortly to further discuss your concerns. Thank you for choosing Freedom Debt Relief to serve your financial needs.
Verified Customer
Jenny
Every time I've called, everybody's been helpful and willing to take their time to explain to me. I've been very satisfied.
Verified Customer
Lynn
I look at the dashboard a couple times a week and they call me if there's a settlement. They're always willing to help me if I have a problem. They helped me out throuhg pretty hard times. They're very motivated to help people that have these problems.
Verified Customer
Anonymous
I deposited a lot of money into my account, like $50,000, and they promised me wit would be done within 4 to 6 weeks and I'm still waiting for them to finish. I've been with them for a few months.
Verified Customer
Natasha
Didn't have a long wait time in order for someone to answer the phone. They were very knowledgeable. You can go on their website and you have your dashboard to where you can keep track of progress if there were any settlemnts that need approval. I was kind of surprised as to how much they were able to settle my accounts for.
Verified Customer
Alfonso
Support is excellent, it's a good service. It's taking longer than they promised.
Cesar Corral
You guys have reduced my debts to almost 50%. Great job!!!
Reply from Freedom Debt Relief
Jun 24, 2020
Hi Cesar! We are ecstatic to hear about your saving in the program so far. We can't wait to see you become debt-free! As we continue to work on your behalf, reach out to us if you need anything, please reach out to us at 1(800)-655-6303. Thank you for choosing Freedom Debt Relief!
Diane McDonald
Ability to set up a long term plan while negotiating with lenders at a manageable income based rate. However, the fee of 25% on original debt, once a settlement is made, is a bit steep, so the negotiated settlement is a 10-25% savings in the end.
Reply from Freedom Debt Relief
Jun 24, 2020
Thank you, Diane! We work hard to negotiate great settlements for you, and we understand that our fees may play a role in your overall savings. However, please keep in mind that our settlement fees are bigger savings than having to pay your creditors the full amount of debt, plus interest, and any additional fees they may charge for the account. If you ever want to discuss this more in-depth, please reach out to our team of professionals at 1(800)-655-6303. Thank you for choosing Freedom Debt Relief!
Cubniner
The salesman lied to me. When I asked a manager to listen to the recording in which the salesman lied, I was told that he would listen would and he will get back to me. That was another lie.
Reply from Freedom Debt Relief
Jul 01, 2020
We are very disappointed to hear you feel you've been misled in any way. This is certainly not the experience we'd prefer for you to have. It seems there may be some unresolved concerns on your end and we would appreciate an opportunity to speak with you further concerning them. One of our account specialists will be reaching out to you shortly. Thank you for voicing your concerns with us today and for choosing Freedom Debt Relief.
Chris C.
Excellent communication, very friendly, helpful and knowledge staff. Excellent service, helped me through a difficult financial situation. Highly recommend!
Reply from Freedom Debt Relief
Oct 10, 2018
This is outstanding Chris! We thank you very much for your positive feedback and we are so pleased to have you enrolled in Freedom Debt Relief. We are so proud to hear about your success so early in the program and we are certain you will continue to see fantastic results. We will also continue to provide you with the utmost customer service and we are extremely excited to see you become debt free! Keep up the excellent work. Please reach out to our client services department at 1 (800) 655-6303 or you can log into your Client Dashboard at if you have any questions or comments regarding your account. Thank you for choosing Freedom Debt Relief!
Karen M.
They have helped me to reduce my debt. I have Cancer. It has wiped us out financially. We are struggling to stay afloat. If not for Freedom Debt Relief I don't think we could make it. Thanks to all that help us every day.
Reply from Freedom Debt Relief
Jun 23, 2020
Hi Karen! We are very happy we could step in and assist you in your time of need. We are glad we could make this process as stress free as possible! Feel free to lean on us and to reach out to Client Services if you ever have any questions at (800) 655-6303. Thank you for choosing Freedom Debt Relief!
Lorren U
Freedom Debt Relief has been helping me beyond my expectations. As one of those desperate debtors, I thought I'll give it a try. Good decision, although it's up to my deposit and payment amounts, FDR had lived up more to what I expected them to be.
Reply from Freedom Debt Relief
Jun 24, 2020
Thank you, Lorren! We are so glad we exceeded your expectations for the program! We love to see our client's successes throughout this journey. As you continue, utilize your Client Dashboard to check for updates and alerts concerning your program. Thank you for choosing Freedom Debt Relief!
Verified Customer
April Beebe
Very excellent customer service, they answer any questions a client may have and are very knowledgeable
Verified Customer
Jeannie Gremmell
They are really good about working with you when you loss your job and facing tough times. They go out of their way to settle the debt as best they can. Many of them that work there have been through it themselves.
Verified Customer
Jesse Dominguez
Excellent service, and friendly customer support.
Verified Customer
Babar Malik
Great . Very satisfied with the services. Thank you Freedom for the relief. I do recommend to use freedom debit Relief services.
Verified Customer
Priscilla Gardner
I have been very happy with them. If I ever had a concern they have always addressed it in a timely manner.
Verified Customer
William
Been in the program just over one year. Two accounts paid and three in process. They are working on settlments for twom more. Very saisfied at this point. Dropped credit score a lot at first but now on the way back up. it has gone back up about 80 points.
Reply from Freedom Debt Relief
Jun 24, 2020
William, thank you for sharing your experience with us. We are glad to hear that everything has been successful for you. If you are ever concerned about your account remember you can reach our client service at (800) 655-6303. Thank you for being the best part of Freedom Debt Relief.
Verified Customer
Lacy McClure
Great let's you know hat's going on and you only ha e to make one payment.Staff is very helpful
Verified Customer
Heather Koons
They've helped me pay off debt for way less
Verified Customer
John Vasquez
Excellent Customer Service; Caring and looking out for me
Verified Customer
Virginia Schepleng
they are informative, helpful, and polite
Verified Customer
Jennifer
Freedom Debt Relief has been in contact with me all the way. The staff answers my questions in a way in which I can understand them
Verified Customer
Carol
The process is slow, however it is getting done. I have been pleased with the program so far. You just have to be patient.
Verified Customer
Magdalena Palmieri
Its been great. No issues at all. They took my information set up my account and its been so easy. I have my account pay each month and i only have one more year left.
Verified Customer
Charles Hayes
They made a decision without my consent with a creditor when another was already on record by me requesting a payment could have been made.
Verified Customer
Anonymous
Very professional and understanding when I had some issues with my payment
Verified Customer
R. Hiralall
Everyone on a different page and I didn't expect fdr to take settlement fees upfront before paying creditor
Reply from Freedom Debt Relief
Jul 06, 2020
Hi R. Hiralall, thank you for bringing this to our attention. We would like an opportunity to discuss the mentioned concerns with you. One of our experienced team members will be reaching out to you shortly. We truly appreciate your review. Thank you for choosing Freedom Debt Relief.
Verified Customer
Rosetta Young
It seems to work for me,I don't have to be bother with them calling wanting a payment.I'm okay with them.
Verified Customer
Daniel
The best ever feeling I had in 2020 is when three of my credit cards were settled. I recommend this program to everyone trying to clean your debt for cheap.
Verified Customer
William D Webb
Nice and easy. Tamara J D was very helpful getting my credit cards enrolled in the program. During the entire process everything has been easy to understand. Great progress has made and I am very happy with it. Great job in everyone performance.
Verified Customer
patricia metzger
great. the technician are knowledgeabble and professional. They arrive at fair settlement as soon as funds are available.