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.
According to a four-year study by Freedom Debt Relief, its customers start the program with a median of $28,000 in debt, which decreases to $3,800 after 45 months in the program. The graph below shows the decrease in debt over time and how this directly affects the increase in customers' credit scores.
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. A four-year study by Freedom Debt Relief found that its customers' credit scores dropped in the first six months of the debt settlement program, then began to recover. According to the study, most customers' credit scores recovered to their previous position by the time they completed the Freedom Debt Relief program. It's smart to have a plan for boosting your credit score before you start the debt settlement process.
The graph below shows Freedom Debt Relief's customers' credit scores over time as they improve their debt through the company's program.
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 in the first six months, 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. The company offers a debt settlement program that helps you get out of debt faster and for less. With over 15 years of experience working to reduce its clients’ debt, Freedom Debt Relief has 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, Freedom Debt Relief presents 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 Freedom Debt Relief collects its fee. Once the creditor has been paid according to the settlement agreement, the remainder of the debt is written off. This process is repeated 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, the company 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?
Freedom Debt Relief's 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 the company the 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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It is going well. I am wondering if we can settle the home depot account.
My experience with Freedom Debt Relief has been amazing. When I first signed up I admit to being apprehensive, wondering how everything was going to go. I couldn't be more happy with how everything has turned out. I was constantly being looked after by the staff, who made sure to let me know every step of the way what was going on with my accounts. I am now at the point where most of my debt has been resolved. Freedom Debt is keeping me up to date on the progress of my last account, and I am so looking forward to being debt free. I owe all of this to Freedom Debt Relief and the amazing support of their staff.
Saw results very quickly. Every time I called they were very helpful and knowledgeable.
the experience was fine.
Paul D. Allen
Have been very easy to work with and have been willing to be flexible while I was between jobs.
I started the program 8 months ago with the thought I would have to put up with approximately two to three months of telephone calls from creditors. Actually at 8 months they have finally started to die down. That was one of the most terrible parts of starting the program. But also during the 8 months one company has been settled with so I have four more. At this stage of participating in the program it is at a peaceful time and I am just waiting until FDR has negotiated with the four other creditors and I will be home free. Thank you because I couldn't have done it on my own.
Jacqueline M. Baker
I have had the best experience with Freedom Debt. They were are kind and caring. They treat you as a person and not just a number. I would highly refer them to anyone.
Kirk & Shari Ellis
Great customer service and response time, etc. Wish things could go a little faster, but I know it takes time!
Freedom Debt Relief has helped us so much. The calls stopped immediately and we are working on our first settlement.
Everyone has made this unpleasant situation as pleasant as possible.
We were told a pack of lies. Freedom did not even begin trying to negotiate until all the accounts were sold to 3rd party collections. We told them that we do not deal with 3rd party collections and by law we do not have to. Now we will have to wait out the 4 year statute of limitations unless we can renegotiate with the original creditor. As a result our credit rating is in the toilet. Not only will we not recommend Freedom Financial, we are actively denouncing them on social media and to our friends and business acquaintances. Freedom is a rip off company.
Freedom Financial is doing for myself what I couldn't do! Get out of credit card debit. I am very please and satisfied with their services. I thank all of them- very very much! Mary Guerguis
I started with them in August and have only had 1/7 settled. The only reason it was settled was because of collections. If it hadn't gone to collections Id still be waiting which I think is ridiculous! I just settled with one of my debtors and settled myself for 50%. When I called freedom to let them know I need to drop that account they told me to send a fax. Why do I have to justify my actions!? You guys are sitting around collecting your money while my accounts are going to collections and getting sued by these companies. There's so much mixed information from every representative you call. I do not recommend this company at all!!!
I have mixed feelings about the service. One of five debts has been resolved, but with the fees and potential for a 1099 later, the savings are not likely to be that great. Also, one of the accounts involved a creditor that will not deal with the service. That creditor sued me and refused to negotiate with me. The service was aware that the creditor had changed its policy of not dealing with the service, but did not contact me and let me know that until I informed them that I had been sued by the creditor. At that point I had zero negotiating power re the debt and was left having to agree to pay the full balance or face a judgment and garnishment. Moreover, at the time this was happening, I agreed to settle one of the accounts that would work with the service--that money should have been sent to the creditor that wouldn't work with the service, which would have enabled me to get a better deal. The service has assured me that the 3 remaining creditors deal with the service and will work out a reduction of the debt. I'm hopeful that is accurate and I won't get surprised by another process server on a Sunday night!
I am in more debt now sense I signed with Freedom they take your money first before the pay your debts I think they are money grabbers down with them
Everyone that I have talked with has been just fantastic! I am a disabled veteran and having such helpful folks has been an absolute joy! If you have debts that are out of control, THESE are the folks you want to help you!
Excellent service everyone was kind and helpful, answered my questions and assisted me with paperwork. I am glad I chose your company
FDR has been grew!! One settlement already, hopefully more soon!!
I'm pleased with the progression. I thought that we would be closer to settling with all creditors. Hopefully we can settle soon so my credit score can return to where it was. Other creditors are lowering my cc availability due to the non payment on the accounts that are under review.
The did what they said they would / we were going to file a chapter 13 bk with 50k of debt FREEDOM DEBT RELIEF recommended there debt reduction program instead, we listened and now our debts are gone and my wife just started up her own business life is great thanks to freedom
my experience is good with freedom debit select because they are help me with my debit account
has worked very well.
I have been with the program since Aug 2014. Since then I have had one credit card settled. I was told it would take about 6 months, so I haven't been worried until now. AMX filed against me in court. I was alarmed at this and called FF and they said not to worried about it, so I didn't. Then I received an email from FF stating they were unable to negotiate with AMX and my time to legally respond to the court papers was almost up! I had about 3 days left. I was so confused and called FF again, and talked with several people all with different answers. I missed the 30 day deadline to respond because I was given misinformation to start with. I have also received a call from a representative from Citibank, also stating they don't deal with FF and I would need to work out my settlement directly with him. When I called FF, they said they do work with Citibank, but they also told me they work with AMX and now I have found out that they don't. So far I have mixed feelings and am very worried about my situation.
Thank you FDR for all your help and guidance. God bless every single one of you that has worked with me one on one in trying to solve my debt. We're getting there little by little. Thanks again for helping me when no one else would and most of all for believing in me.
Above everything, I want to thank God for leading in the right path towards becoming debt free soon in the near future; thank you Freedom Debt Relief for coming to my rescue. Your services are awesome and I won't hesitate to tell others about you. This has been one of the best answers to my prayers for all troubles I have been in. I couldn't be more grateful. Thank you all of you who are working very efficiently on my behalf. I trust you will continue to help me resolve my problem. I am tremendously relieved. May God bless you for your wonderful job which I would like to tell the WORLD loud and clear. I feel I am going to have a new life, a debt-free life!!!' With great appreciation & gratitude, Salud
I am a little upset. I have done this since last June. I was told that it would all be settled within a year. So far, I have had only one really great settlement. Mark C. called me about getting a loan to pay it off, but I took my time doing what I needed to do. I guess he just dropped it. I wanted to make sure that if I had a settlement that it would be in the loan. Most of the time, I am just shuffled from one person to the next. The person that signed me up for the program told me that he would be with me all the way. I have never been able to talk to him since that first call. I am stuck in the program, because I committed myself to it. My credit is ruined, which it was excellent before I started. I knew that it would be, so I can only blame myself. My mistake... I will be forced to hold on to the end. I just hope that it comes sooner than later.
I have been very pleased with Freedom Debt Relief since I got into the program with them in the Fall. So far they have helped me settle with two accounts and have always been helpful when I had to call up and talk to a Service Rep. about a question that I had at the time. Their professionalism has been outstanding!
Settling takes to much time. I would like to see this happen in a quicker fashion.
Lucien Langlais Jr
So far so good. I have only be in the program for a short time but it's been good. I have a way's to go yet but I'll get there. I just hate getting the letters from my credit card company's..
So far it's ok but not great I would have gave a 10 but lacking communication on your part , I was ked to right a letter for confirming I wanted an account added and was told just take a pic and email it and countess weeks or I think was a month went by i had been calling and calling and asked about the account being added said was still in review and finally got a curtious, call I asked about it and was said it didn't work it needed to be faxed and I never got no phone call or email in regards , i could have taken care of this matter long ago , still waiting to here back from you about the new account being added to the program
Edwin Douglas Deck
It's been quite an experience with this debt consolidation process. I've never went through this before in my life. I always check out a company by using the BBB first. This company does have an "A" rating with the BBB which means this is a reputable company to use. It has been difficult trying to explain that one creditor changed from Discover to Master Card. It still shows Discover in the statement and "Home" page with the wrong credit card number. I do believe they have it correctly but just not changed in their on line system. Being disabled and on a low monthly income, it is very hard to save up the required amount they take each month. But, if this is the way it has to be - so be it. Thank you for your service in helping me get closer to being debt free. Just to note: one company that has been paid off just sent me a notice to reopen another credit card with their company. WOW, how they want those fees!
You guys are great with answering all questions in detail. Thank you.
Good so far have been in program since October 2014 and have had one debt settled. Just wish it would go faster and have more debts settled.
It was a bit confusing in the beginning but I'm not as stressed out as before. A lot of the calls have cease.
Keith L hall
once we got on the same page together I feel we our get things done
everything is good ,But I would like to here more updates on what's going on thanks
So far my experience has been very good with the Freedom Debt Relief program. Two of my debts have been resolved by 50% within 5-6 months and I cant wait to see the rest of my debt paid off. I will definitely recommend this program to others once I see all my debt paid off. The only downfall is the collectors of the debt call everyday wanting a payment or offering you a discount of some sort. This is the only disadvantage but its not the program's fault.
I was beginning to feel the panic of falling deeper in debt, and as a public school teacher I thought I was used to living with debt. Yet, with the high interest comes the inability to ever catch up... Freedom Debt Relief is proving that there is help for us out there, and with their support the cycle of debt can be broken.
Since this is the only type of organization I've ever dealt with, I can say FDR is giving me very good service.
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!!!!