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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I have been very pleased with Freedom Debt Relief and how my debt is a priority with the company. When I have a concern, I can call or email and my concerns are addressed promptly. Good job!
This has been the most stress free and professional experience under the circumstance I am going through.. This has been such a blessing for my family.. Thanks sooo much..
My wife and I want to thank the staff at Freedom Debt Relief for an awesome job on getting us out from under a big rock. We are very pleased with the whole process.
So far, I've settled 2 of my many debts. The people at Freedom Debt Relief are so helpful, and they don't make me feel bad about the financial mess I got myself into. They even sent me a birthday card full of encouragement from their staff.
I could not be happier the way freedom debt has handled my accounts and the speed in which its being handled, the negotiation are meeting my expectations, Thank you freedom debt relief
Jamie L Haynes
Freedom, has helped in reducing a considerable amount of debt that I had. It took some time to get started but once the settlements started they have been steady. I appreciate all that is being done on many behalf, my stress level has gone down considerably.
I have only been involved with FDR for less than a year and they have already helped me to settle two major debt issues. I am EXTREMELY grateful for the assistance that I have received from FDR. Without this program, I might have given up on trying to catch up on my bills. FDR representatives are always very polite and they are easy to get in contact with. The website is also very easy to access and understand. Also, FDR saved me way more money than what they charge for their assistance. I would recommend that anyone hard working person who needs help with debt issues use FDR'S program.
I am glad to hear there are some people that got help from this company... My experience was horrible.. I paid 939.00 per month for almost a year... I knew my unemployment would not support that much of a payment so I had asked for a lower payment and run it a little longer... They DROPPED me because I would not be successful if I could not meet that large payment. End result, they received 8900.00 from me and paid NO ONE.. I ended up with 2 judgements because they did not try to negotiate to pay anything and a few of the creditors worked with me and I ended up paying less than the discount I was promised by Freedom Debt... I was not able to get anyone to give me any information about the funds they received... So, to my knowledge they paid no one on my behalf and they are 8900.00 richer for it... I believe in Karma.... I do not recommend this company... Creditors are not the demons they want you to believe...
So glad we made the decision to have Freedom Debt Relief help us. It's been a very easy process and everyone is so nice and helpful.
Helthepful, took some of my stress off my shoulders! Staff were kind and helpful! The phone calls from certain collcollections is what I did not like!
all the staff of freedom debt relief are very courteous, helpful to clients and very knowledgeable in their work. I will for sure recommend FDR to my friends.
I'm almost done with my debt relief program and this was the best thing I could of done. I was over $30,000 in debt and I didn't want to file bankruptcy because these where my bills and I needed to pay for them, but not the high interest. FDR has been easy to work with for the past 3 years and I still have another year to go. They answer all my question each an very time, fax me the forms or email the forms that I need to sign. I never have received a phone call from a creditor. Thank you FDR for a peace and quite.
I am so pleased with freedom debt. They call me every now and then and congratulate me on doing so well. When one of the vendors make an offer and I don't answer right away (because I dont check email everyday) they text me and then I jump on it. Overall a great experience to my bad situation. Best decision I ever made.
Freedom Debt Relief is an amazing Company. They all work as a Team. They are kind, and recognize real hardship. I highly recommend this highly professional Team.
I have been treated with the utmost respect by Freedom Debt Relief. They are always so efficient and concerned with helping me. They came into my life when I had lost hope and they have given me hope that I can become debt free. I am so thankful for their helpm
A smooth, easy process with so much help along the way! The people I have dealt with are friendly, professional and nonjudgmental! Thank you for that!
Excellent customer service skills! I always get all of my questions answered immediately when I call Freedom! I am extremely satisfied with Freedom!
This is an amazing program for anyone suffering from anxiety due to their credit card bills. It does take some patience because they are negotiating with companies, but when you see the settlements start happening, you start feeling the sense of relief. They have great staff and customer service reps ready to answer any questions you have, and settle any fears as well. Overall, an amazing program!
I'm having a great experience dealing with Freedom Debt Relief. Every time I call and talk to a representative, they have been respectful and very knowledgeable about my cases. I am very happy I choose to work with Freedom Debt Relief.
The representative, Ross that helped us enroll was very helpful. He made the process easy and answered any questions we had. The only downside is that we weren't expecting it to take as long as it has to see settlement offers come in. We were anxious to see things start to happen. We enrolled in June and we got our first offer in January and the second in February. Hopefully, we will continue to see 1 or more a month until get to the last one. 2 down, 5 to go. Thanks FDR for reducing or debt.
Freedom is a good company. Gets expected results and service. Accredited, however, does not honor its claim to keep in touch and help with any problems you may have with Freedom. A useless appendage.
Freedom debt relief has been the best thing we had ever done now we don't have all that added stress thank you so much and we will refer our friends and family how great you all are and very patient and kind not to mention understanding and you also explain everything step by step your all awesome once again thank you all at freedom
They have been great to work with. I lost my job and they allowed me to pay what I could to keep the process going until I found a new job. They have settled one of me accounts already after 8months.
My wife and I have been satisfied with the help that we received from debt relief. The only thing we wished, there was some way to stop the harassing phone calls that we are receiving since we decided on going with debt relief.
Novellla Ann Bryant
I've been very pleased with the progress FDR is making on reducing my debt. Looking forward to being debt free!
Every thing that was agreed upon has progressed per our agreement. Things have gone so much better for my wife and myself since you took over our debt problems. Keep up the good work. Thank you so very much.
I'm fairly new to the program. However, so far my experience with the program has been an extremely positive one. Everyone has been professional and friendly. And they have already settled one of my account's. I highly recommend this company.
Aretha L. Pierre
I must admit I was a bit skeptical and frightened, but things are moving along quite well. The company keeps up with you on a monthly basis, and when I call, I get a very welcomed voice over the phone. I have not completed the program yet, but things are moving along amazingly well and effortlessly. Thank you for the experience!
Steven R. Green
I am without question extremely pleased with the results you obtained with one of my creditors in such a short timeframe. Totally remarkable! Your word & on stage showmanship is unparalled. 1 down. 2 to go. Much Love to you guys at FDR.
We have not been able to check out progress online tidied to the fact that your website is constantly down! It is SUCH an inconvenience! But we are satisfied with the company just NOT your website!
My experience has been very good so far my only complaint though is that Colonial Finance is still calling me at work and I have asked you all to contact them but so far that has not happened. Other then that everyone is amazing and very helpful.
Helen Y Cushnie
I'm pleased for the first of 7 of my settements. Looking forward to the next one.
these service has been everything i need. they are doing a great job helping me to solve my debt issues.
Freedom Deb Relief has given my husband and I a much happier outlook on life! After a job layoff and medical issues we were really struggling each month to pay our bills. We now can breathe and enjoy life! Thank you FDR for helping us!
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.
MARY ANN ARCHER
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.
Didn't take as long as first thought. all people involved in the process made the process very easy.
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.
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.
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.
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.
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.
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.
Maureen Anne Lakeberg
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.
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