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.
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 has gone way beyond my expectations. Professional, great website for keeping track of where I am, ALWAYS available for questions. Best think I have ever done...not to mention eliminating the massive stress when you live takes a nose dive. Thank You FREEDOM
Reply from Freedom Debt Relief
Jan 03, 2019
Hello Lee, We thank you very much for sharing your response. We do our best to give you outstanding results while becoming debt free and we are very pleased to have you apart of our debt resolution program. Success is coming your way soon! 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!
Worst most unprofessional company I have ever dealt with! They prey on people in financial trouble promising deep write offs. Doesn't happen. Some were less than the 21% fees they charge. Top it off, they have you change your address to theirs and now all my 1099s were mailed there and they have yet to forward them to me. It is March 10, 2015. I called and they say they never received them. Interesting that 5 creditors verify Freedom's address as where they were sent and they haven't received them? Not a coincidence. DO NOT USE THIS COMPANY!!! Call your creditors and negotiate your own settlements. That is what I ended up doing when I had multiple legal suits filed against me due to Freedom not contacting certain creditors as promised.
I am very pleased with the reponse that I have received with getting my debt taken care of. I never realized how bad off I was until I connected with Freedom Debt Relief.I am so thankful for all the help I have received.
Very pleased with the 2 settlements so far. Whenever I have called they have been very helpful. Would recommend their services.
everything is great
Thank you for all you have done and are doing. You saved me 65% on one account.
So far so good. I am paying down my debt in a way that fits well with my financial situation. I hope to be debt free within three years.
Good experience for far
I love Freedom Financial! Me and my hubby are less stress and are very happy we made this decision and I wish I would've called sooner and love Janet Song she was Super Friendly and We just loved her attitude and ability to help us.
Freedoms Debt relief is a life saver, they have resolved several of my debt and is continually working hard to resolved the rest. Thanks freedom debt staff for helping me with my debt issues!!!!
This has been the best decision I made for myself. I couldn't have done without the help and support of this company! My questions are always answered and everyone is so easy to work with and make things so easy on me. My life is turning around for the better all thanks to you! Thank you so much for everything.
Armando R. Gonzales
So far I am satisfied with the progress that has been made through Freedom Debt Relief and I hope we can continue to eliminate the rest of these debts as quickly as possible.
Good service, professional, helpful
Rolland F. Weber
Things are moving along quickly, and everyone associated with your company has been great. I'm very happy.
Have only been w FDR for a month and so far my bank account has been compromised three times. Two of my creditors keep taking money out of my account and then I'm charged a NSF fee!!!! Right now my bank account is in the negative again. FDR has not contacted any of my creditors yet and when I called today I was told to call the bank myself to resolve the issue. Of course FDR got their money am I ever going to see results??? I'm reading all of these BAD reviews and quite frankly I'm very scared!!!! Court!!! Harassing phone calls from creditors and most of all the lack of communication I'm hearing about. I thought I would be feeling better about paying my debts off, but now I'm worried for my future. Praying this company does not completely screw me over.
Everyone I have talked to are very professional. I'd I email them I get an answer within a couple of hours.They make sure they keep you up dated able every little thing that changes and they are keeping an eye open for anything else that might help me better myself. I believe in you and the company that I've given contact information to 3 other people that need help.
The Debt Relief Program is awesome and I see myself coming out of debts !
Federal Debt Relief have done a great job representing me and helping me relive my debts promptly!
Its been a tremendous weight lifted off my shoulders
This place is a scam....you will end up paying more money than paying off your credit cards yourself!!!!
I was very happy with the way FDR has done my debt consolidation up until the last few months of paying off some of the last balances. Either there is major training issues with new people and not knowing how to figure payoffs, or theirs some funny business going on. The amount owe to a creditor is in writing, and the amount of interest FDR collects for their service is in writing per day; so what is so hard in figuring out the payoff date and amount to the creditor. If I had the figures in front of me, I could figure it out? It's easy math!!! My problem with this company is I received information from one FDR Rep, in June 2014 that our FDR account would be paid off in October 2014. October comes by and my call-in reveals that it's not so, that I would not be paid off until December 2014, with the last payment probably being lower than the usual monthly draft amount. Strike one for FDR. November draft happens and a couple weeks later I called-in asking if they could approx. figure the last December draft of our account, knowing it would not be the total of the usual draft amount. The FDR Rep, figured the amount would be definitely be under the draft amount and for sure be under $400. I asked her if she was absolutely sure this was so and she stated that it was, and that I could actually have the draft amount taken down now to $400, for the last draft, she was that sure. I stated that I would like to do this; she showed me how to change the draft amount for December 2014 to $400, and I did so online in the FDR site. She also guaranteed me that there would be no other drafts coming out of my account. The $400 draft came out on December 28, 2014 and I would receive a refund amount shortly after my draft was taken, approx. 3 weeks or so as soon as the creditor was paid. Now it's February 1, 2015. Yesterday, attempting to buy groceries and can't even buy $43. worth in account, and was promised was not going to be drafted in January 2015. Your promise broken, the original draft came out on January 28th, 2015!!! Cause and effect: overdrafts out of my account!!! Rip-roaring-mad!!! Strike two FDR. 1st statement from 'Misty'-a FDR Lead- states, yes in fact the January usual draft is owed, plus the $400 in December in order to payoff the last creditor. No way-Hosea! I was promised December. But she says, "Our Rep. gave bad information, it was not so...", and she repeated her info about the two amount were owed. Strike three FDR! She stated that she would email me to say that my account was paid off, to get this in writing, and would send a print-out of the statement showing what had been owed after the $400 payment, but she needed an hour to do this for me. Approx. 20 minutes later, FDR calls and it's 'Misty', "Calling to let you know, I have good news you may be correct and have substantial money to be receiving back; she had checked and saw the 1099's from Chase, and wasn't taking into account those write-offs, as the last Rep did, and would request the time be extended so she could print this info out for you. Would tomorrow be okay the extension?" She also stated that she is emailing the statement about no more drafts would take place and sending it to my email. But as I look on the website, there is several places where it shows a February draft will be taken for the original amt. I don't trust FDR at all and will address this issue after I receive the confirmation in my email. Please FDR, you need to change up you training and information on your website! Follow thru will your "Yes will be Yes!", in promising NO MORE DRAFT! In my last review, I neglected to mention why FDR drafted in January 2015, after they promised to not draft after my last lower draft amount in December 2014 to finish off my debt payments; it was because I had 3 out of 7 credit card (all one creditor for the 3 cards), write off my credit card balances and issue 1099’s for each credit card. Even though this had been done since June 2014, when they called to tell me this credit card company was writing-off 3 of their balances for us, I at this time also asked for an approx. pay-off amount for October as they stated. They stated it was too soon; the FDR Rep just didn’t want to have to figure that far in advance, and I understood. I called back after the September 2014 draft and they also reneged her too and stated the payoff was in December. So really it’s up to Strike four, which is way, way unprofessional, even past Strike one! My point I’m trying to make, if this happens to you, is get these FDR Reps to give this information to you in writing. It took me FOUR STRIKES, which I shouldn’t have put up with. And also my fault, not reminding them that the last three credit cards by the same creditor are written-off every time I call in, so that they know, FOR SURE when you are paid off!
We are very satisfied
Dania Del Castillo
Freedom Financial has provide a sense of security during a difficult financial crisis. The associates at Freedom Financial have been professional and compassionate in guiding me through the process. I would defiantly recommend Freedom Financial to any one in credit card debt.
Great experience, Great staff. Always ready to help me with any questions I may have. Banks can be annoying and harassing for a time, but I got great counseling and was provided with the right tools to deal with their displays. It's a great feeling to know I'm in the right track to find my financial freedom. Thank you Freedom Debt Relief, to help me in my quest to find my Financial Debt Success.
OMG, how do I even start to thank Freedom Debt Relief for setting me free from sleepless nights, a horrible pit and sickness in my stomach, lots of gray hair, endless days and nights of crying, and getting nowhere with making just the minimum payments every month. When Freedom Debt Relief found me, and I made that call to them, a big credit weight was lifted off my shoulders. There"s a small light I see at the end of the tunnel, and soon that light will become brighter and brighter! Freedom Debt Relief is my life saver, in the sea of credit card bills, thank you for your outstanding help, I could never thank you enough. Denise Naylor
Have been very satisfied with them ,took care of one of my debts within first couple of months! They continuously keep in touch with me monthly if I have any questions and always are very helpful!
I'm new to this debt relief program and so far I have not been dissatisfied with the communication with me but the communication with the credit card companies has been very slow and even though I provided the information to the companies I still receive numerous calls. One would think that the calls would stop once companies have been informed the account is currently being handled by a debt resolution company.
Freedom Debt Relief has lifted a heavy weight off my shoulders. Sign up ans customer communications is excellent. I'm not done with the program yet which is why I rated an 8
The program really works and takes off much faster than we had anticipated. So far we are thrilled to have Freedom Debt Relief representing us to negotiate our Debt. Keep up the good work!!
Luis r Garcia
Amazing company to be a client of. They handle matters very professional and in a timely manner. Always making sure you the customer are taken care of. I would highly recommend this company to anyone trying to consolidate their debt and live a better life debt free
I am very pleased to this point in the process.
Thank you so much freedom for helping me get out of debt.
Still in the debt resolution process. It was a bit scary the first three months, but once my creditors started working with freedom debt relief everything has settle down. Freedom debt relief handles all the settlements with the creditors. Haven't received calls from creditors for a while. Just statements that my debts are being paid down.
I was nervous upon entering your program, but you made me feel relax and assured me everything be ok
Wonderful! Thank you all so much for your help!
service has been great, but the communication needs work , what i mean is that when i have to talk to certain people i have not got a phone call back.
It is taking a little longer than I thought it would take to get creditors to accept settlements. It appears that only one creditor has responded and I am still getting phone calls and threatening letters from the other creditors.
SMOOTH SAILING ALL GREAT SERVICE
From the beginning of my experience with Freedom Debt Relief, I have had nothing but great results. First, all personnel were exceptionally helpful and kept in touch with me the whole way. Their program is extremely professional with the best results and well suited for the help I needed. It is with gratitude and appreciation that I most highly recommend this service to all who need it. Hooray and kudos for FDR!! Margaret Tafoya
I am very disappointed. They never closed out a small bill, and went right for the largest debt we owed. Then proceeded to take their 20%. So now no money to work on other bills. I was told they would settle the smaller ones first. Feeling very deceived.
Excellent service and progress so far... Been in the program for almost 4 months and settled 3 debts already! Glad we are letting Freedom Debt reliefl help!
The people at Freedon Debt are so helpful and friendly, I would and have already recommended them to friends
The people at Freedom Debt are so helpful and friendly, I would and have already recommended them to friends.
I am so happy with Freedom Debt Relief's progress in eliminating my debt. So far I have 1 down but it still feel good. Thank you !
The staff have been so helpful and nice. It was great experience dealing with everyone.
My husband went thru freedom and they settled his debt for one amount and now he owes them over double what he owed his creditors. I would not recommend anyone use this company! !!
Horrible ! Kills your credit ! Takes your $$$. You can negotiate on your own! They lied to me from day 1 and when I withdrew from program they kept my bank escrow after telling me I was getting the refund within 3-5 days! I have been where you all are - it's scary ! But you can do this on your own ! Call the credit card companies yourselves !!
I am very pleased with what has happened so far. The results have been great and the people that I deal with are very patient and understanding.
i am very grateful for all that you have done for me so far. It is a blessing, so to anyone out there who is having financial difficulty. Contact FDR
Very pleased so far, extremely professional and caring company. My stress level has gone way down and I don't feel so helpless and alone in my battle with debt! I have a ways to go but grateful Freedom Debt is on my side!