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 38 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 38 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.
So far I've been very pleased with the progress that I have made in reduction my debt. The associates at Freedom have been very understanding and helpful in walking me through this process. This was a very difficult decision for me to have to go this route due to the fact that I am on affixed income. I highly recommend this service to anyone facing financial difficulty.
Didn't take as long as first thought. all people involved in the process made the process very easy.
I have had an excellent experience with FDR with the exception of some faxed docs that seemed to vanish into thin air. The personnel have been unfailingly courteous and patient and have provided answers to my questions.
Ultra professional and personable. Every representative upheld the same courtesy and friendliness from day one. Of course one cannot go through something like this without worry and uneasiness but Freedom Debt Relief took away the majority of it and replaced it with a peace of mind that said all will be okay. I am so glad I made the decision to go with Freedom Debt Relief.
Not as fast as I hoped to settle with the creditors, have had 1 file in court, several sent to collection agency's that repeatedly call me. Hopefully will get them all settled soon.
Freedom Financial has been both professional and accessible. In terms of the former, they have been careful to explain the entire process and are more than diligent about keeping the client up to date. In that connection, they have a variety of "bells and whistles," i.e., things like a "dashboard" for example, that allows the client to keep abreast of his progress. Here, however, is the one problem that I have run into. Their "dashboard" is not accessible through an AOL account. Being functionally illiterate when it comes to computers and unwilling to get a second e-mail account, this has meant that I have not been able to access all of Freedom's resources via computer. Fortunately, however, Freedom Financial's accessibility offsets this problem. There has never been a time when I have called with a question that they have not been there with an answer at the ready. Indeed, Freedom's staff is friendly and understanding and has been extremely tolerant of my computer illiteracy to boot. It is hard to ask for much more. Suffice to say, needing the services of Freedom Financial has not been one of the proudest moments of my life. That said, the staff at Freedom Financial has made the experience as painless as it could reasonably asked and have maintained the highest standards of courtesy and competence. Freedom Financial deserves much praise and I give them my highest recommendation.
Quick, knowledgeable responses to my requests and questions. When and if you are having financial difficulties, Freedom Debt Relief can be the best method to stabilize your personal economic situation.
Brenda and I have been very thankful for the help and advice we are receiving from FDR. From the first representatives that we were in contact with until the present representative. This situation that we have gotten ourselves into is something I am not proud of but the people at FDR have helped to alliveate some of that guilt. The experience we have had with FDR has not only been very professional but also very friendly and personal. Thank you to the people at FDR for that.
Customer service is excellent and very knowledgeable every step of the way. So pleased with my decision to go with Freedom debt relief...
FDR has been most beneficial in getting us out of debt quickly.
I am still in the beginning stages of this process to bring down our debt. So far we have on creditor who has agreed to terms set up by your company on our behalf. The hardest part of this process is the phone calls, emails and postal mail.. I have found a lot of encouragement from James and feel secure in that he is always here if we have questions and concerns.
Freedom debt relief gives me a new hope of being free to budget my money and pay bills on time and makes me realize that budgeting money is very important. It avoids me in going into bankruptcy and frees me from the anxiety of where will the next money will come from to pay the bills. The staff are very helpful and reassuring that everything will be taken care of, from communicating to the creditors and having a legal protection in case of any legal ;lawsuits. Also, it gives me new dreams of being debt free in the near future, free of financial worries and happy to breath fresh air and able to meet the daily needs with the hope of being able to cope with whatever challenges will be in the future.
Very simple. Freedom debt has been a revelation for me. I hit a few financial bumps in the road that forced me to make some hard decisions involving my debt to creditors. They have helped with the negotiating and solving of several of these debts and are still working on others for me, and at the same time helping me rebuild my damaged credit. Highly recommend!
Ever since we contacted FDR, I have had nothing but pleasant experiences. Right from the start, the personnel at FDR have been patient, kind and thoughtful. Every representative has provided explanations and have never made us feel rushed. Even at the beginning when I kept asking the same questions, no one made me feel ignorant or was short tempered. I am grateful to FDR for helping us straighten up our financial life and can never say enough good things about them. I was so excited when I received my congratulation card on resolving my first credit card!!! I have nothing but good things to say and have referred people to them, and will continue to do so. Thanks again for all your help!
Freedom debt relief has been great I was at first wasn't sure about the company after being for six months they started talking to my credit card companies and they approved the first settlement so I'm so great full with the company right now. Working on the other two companies soon.
The agents who assisted me were incredibly helpful as well as professional. I'm so grateful for this company and it's efforts. Can't wait to finally be debt free! Thank you so much!!!
Everything is going very well I'm only eight months in and already had my first settlement on my biggest account (My Rating is. 10+) thanks
Freedom has always answered all my questions and have called just to check to see if I have questions. They explained everything before I signed up made it a comfortable experience. I'm pleased with it so far. I've been enrolled 4months and already I've settled two accounts and working on my third. It is a process so be patient.
Our experience has been very pleasant dealing with an unpleasant issue. Thank you for helping us navigate through this bad situation.
your company was very helpful in solving my dept problems they were always very courteous and understanding and always respectful
My experience with Freedom Debt Relief it has been great!!! No stress no worries!! thank you!
Freedom Debt Relief is definitely my recommended process of relieving debt. I was left stranded with overwhelming credit card debt after a relationship ended and immediately knew I would need to find a solution to help with the transition of recovery. I followed the steps exactly as they were presented to me and have settled for 45% with the first creditor, which will be eliminated within a year. That is such a relief. FDR has not hassled me in any way, they dealt with the creditor directly so that I did not have to, and they are very non-intrusive into my life...no excessive calls, no badgering or inconsiderate intrusions into my daily life...just a highly professional organization that goes to bat for those of us who were too stupid to stay out of debt in the first place. Highly recommend!
I would rate it higher, however, I have only been in this for three months with one settlement out of 13. I am happy with the progress and with the courtesy I have encountered when I have a question. Another result is a significant decrease in spending on a tight budget. My counsel to others is that one persist and be patient.
they are doing a good job so far.
Very easy to work with!
10, freedom has provided excellence service for me and been there when i need them.
I am only 3 months into a 4 year program, but everything seems to be moving along very well. I am very pleased so far.
when i called them they hung up on me TWICE not happy at all
So far everything has been great.
We really needed some help in finding a solution to relieve our debt of over $70,000. Freedom was able to put a program together that worked for us. I would highly recommend them to anyone that is in a struggling debt situation.
Experience was delightful. Carly was professional and accomplished everything I needed to. The settlement offers started coming in a couple weeks ago and I can see the light at the end of the tunnel.
I'm 67 years old. I accumulated 30k worth of credit card debt.I tried to deal with credit card companies but didn't have any success. I had perfect payment history. my ratio's were high, none of the companies, I spoke to, would lower any of the interest rates. I spoke with freedom debt relief worked out a monthly payment ,I could afford and in 42-46 months ,I would be credit card debt free.I've been in the program for seven months and 75% of my debt has been settled. I'm very pleased and would recommend freedom debt relief to anyone who needs debt reduction. thank you from Glenn in Virginia
Freedom Debt Relief is negotiating on my behalf and making headway. The only reason they are not getting a perfect 10 is because I just wish it would happen quicker although I understand that it is a process and takes time. It is understandable but I would like to get from under debt that I can not pay. Truly, thank you for all your help!
I have been very pleased with the process so far. I have already paid off one loan. GREAT.
So far you are doing what is expected. and I am hoping to have more debt remove soon. Again I thank you for all the help
Once all the kinks were worked out I have been very pleased with Freedom Debt Relief. Thank you so much for doing all you do!!!!
he instant I signed with Freedom Financial to help me settle my debt problems, I felt like a million pounds disappeared off my shoulders. The quickness the amount adds up surprised me that they were able to settle the first of my debts in such a quick, timely manner and at such a savings, that it definitely picked up my spirits that this can and will be done. Thank You Freedom Financial Debt Relief. Can't wait til I'm a winner. S.Lynch
I realize there is more debt to pay down, but I am so pleased at the first payoff. I am really experiencing freedom from being overwhelmed by debt and a ringing phone due to late payments or no payments. Yeah!!!!!!
I am please with the progress being made in eliminating my credit cards debts FDR .Keep up the good work.
Dialing the number I jotted down from a radio add I was a bit hesitant, nervous, and not sure what to expect when call a debt relief company. I was at my wits end, I tried to get help from all avenues and was turned down because my debt to income ratio was too high. Paying all my debt left me in hardship every month and was starting to put stress in my life. While speaking with the Rep from Freedom Debt relief I could feel the stress, although I was not sure if this was the right choice, dissipate. As the months have gone by and we settled one of my debtors I am amazed how smooth this experience has been and look forward to becoming debt free. My stress is gone and I am looking forward to a better financial future. All of us spend more than we have and think we can handle the payoff, but when it gets out of control and no where else to turn, Freedom Debt Relief is the best answer to a debt-free life. As I continue this path along with the great, hardworking, caring professionals of Freedom Debt Relief, and as each debt is resolved, I feel grateful and not alone in this journey.
I'm pleasantly surprised how quickly they got my first settlement. I have not had to deal with any of my creditors. They truly have made this a painful process.
FDR is very helpful so far, the process has been easy and the results are quick. Thank you FDR
It feel good that you're helping me to achieve that goal in getting me out debt. Once that's done I will never again get my self in debt again. One down and two to go. Continue your good work in accomplishing that goal. Thank you
I am very pleased with the support from freedom financial regarding my debt relief. Everyone is very helpful and professional. Thank you for the progress updates via phone and emails.
After only 3 months, everything is proceeding as promised. So far am pleased and looking forward to the next 3 months.
Has done all you said you would. Only wish is it went a little faster on settlements.
Very professional. Answer all questions quickly. They are very knowledgeable
Excellent work but wish the perocess could be somewhat shorter than current.
This company set up my account. All good and well. They proceeded to deduct the payment out of my account on the wrong date bouncing five payments on my checking account. This also tied up any funds in my account for five days, hence no money in my accout and $140 in over draft fees. Be CAREFULL!