Verified
9.9
Overall Score
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.
Freedom Debt Relief offers several outstanding features for anyone looking to settle their debts: all major industry accreditations, ample debt settlement experience, thoughtful and experienced debt consultants, negotiation with each creditor, and more. The company's 15 to 25 percent fees are pretty standard in comparison to other debt settlement companies (like National Debt Relief).
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.
While people interested in other debt resolution methods, like credit counseling, a debt management plan or debt consolidation loan, will need to consider other companies, Freedom Debt Relief is a good option for those seeking a debt settlement program.
FDR's debt negotiation experience is worth the money. Freedom Debt Relief customer reviews relate that the company has saved them thousands of dollars by negotiating with their creditors. If you're looking to settle your debt through debt negotiation, we highly recommend using Freedom Debt Relief if you receive a reasonable quote from them during your free consultation.
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.
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.
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.
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.
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.
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.
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.
Freedom Debt Relief is a debt settlement company that could help you get out of debt with no loan required. Our proven debt relief program is designed to resolve your debt faster and for less than you currently owe. If you’re dealing with $10,000 or more in unsecured debt, like credit cards or personal loans, our program could help you resolve your debt for a price you can actually afford. As the largest debt settlement company in the United States, Freedom Debt Relief has resolved over $10 billion in debt for over 650,000 clients — and we could help you, too! Find out how much you could save with our program by requesting your free debt evaluation today.
Best Company guarantees your satisfaction if you choose a company that has earned this distinction. If you're not satisfied after 30 days, simply let us know and we'll give you $100. Yes, it’s really that simple.
Learn MoreFilter by:
Sort by:
Ned Clark Los Angeles, CA
1 day ago
Reply from Freedom Debt Relief
Apr. 13th, 2021
David Martinez Ontario, CA
5 days ago
Reply from Freedom Debt Relief
Apr. 13th, 2021
Jessica Rodríguez Buffalo, NY
6 days ago
Reply from Freedom Debt Relief
Apr. 13th, 2021
Debbie Chicago, IL
1 week ago
Reply from Freedom Debt Relief
Apr. 9th, 2021
Gary Hall Jacksonville, FL
1 week ago
Reply from Freedom Debt Relief
Apr. 6th, 2021
Bill ,
2 weeks ago
Reply from Freedom Debt Relief
Mar. 31st, 2021
Verified Customer
Lindsay Brett McGowen Delano, CA
2 weeks ago
Reply from Freedom Debt Relief
Apr. 5th, 2021
John W Las Vegas, NV
3 weeks ago
Reply from Freedom Debt Relief
Mar. 30th, 2021
jjmstr Allen, TX
1 month ago
Reply from Freedom Debt Relief
Mar. 3rd, 2021
Scott Jacks Broken Arrow, OK
1 month ago
Reply from Freedom Debt Relief
Mar. 2nd, 2021
Pipersix6 Minneapolis, MN
1 month ago
Reply from Freedom Debt Relief
Mar. 2nd, 2021
Mike C. New Orleans, LA
2 months ago
Reply from Freedom Debt Relief
Feb. 5th, 2021
Verified Customer
Chester Riese Socorro, NM
2 months ago
Reply from Freedom Debt Relief
Jan. 26th, 2021
Verified Customer
Michael C Davis Bayside, CA
2 months ago
Reply from Freedom Debt Relief
Jan. 22nd, 2021
Verified Customer
Ruby Antoine Sherwood, MI
2 months ago
Reply from Freedom Debt Relief
Jan. 21st, 2021
Verified Customer
Tina Staten Island, NY
2 months ago
Reply from Freedom Debt Relief
Jan. 21st, 2021
Lacountysfinest ,
4 months ago
Reply from Freedom Debt Relief
Nov. 18th, 2020
Veronica Vienna, VA
5 months ago
Reply from Freedom Debt Relief
Nov. 9th, 2020
Tiffphelps Hayward, CA
5 months ago
Reply from Freedom Debt Relief
Nov. 6th, 2020
Derek Daniels Long Beach, CA
5 months ago
Reply from Freedom Debt Relief
Nov. 5th, 2020
Melinda Taylor Falls Church, VA
5 months ago
Reply from Freedom Debt Relief
Nov. 2nd, 2020
hockeycub19 Laguna Hills, CA
5 months ago
Reply from Freedom Debt Relief
Oct. 23rd, 2020
Verified Customer
James E. Rodriguez Dallas, TX
7 months ago
Reply from Freedom Debt Relief
Aug. 25th, 2020
Chanda Reed Memphis, TN
7 months ago
Reply from Freedom Debt Relief
Aug. 25th, 2020
Dayna Young Allen, TX
7 months ago
Reply from Freedom Debt Relief
Aug. 25th, 2020
Monica Birch Menifee, CA
7 months ago
Reply from Freedom Debt Relief
Aug. 25th, 2020
Andrea Tencza Seneca, SC
7 months ago
Reply from Freedom Debt Relief
Aug. 25th, 2020
Manny Lujan Sedalia, MO
7 months ago
Reply from Freedom Debt Relief
Aug. 25th, 2020
robert watkins Troy, MI
7 months ago
Reply from Freedom Debt Relief
Aug. 25th, 2020
Manahil Farman Mechanicsville, VA
7 months ago
Reply from Freedom Debt Relief
Aug. 18th, 2020
Jonathan James New York, NY
8 months ago
Reply from Freedom Debt Relief
Jul. 31st, 2020
HollyAnn Povee Sun City, AZ
8 months ago
Reply from Freedom Debt Relief
Jul. 29th, 2020
Verified Customer
Frances Dias
8 months ago
Reply from Freedom Debt Relief
Jul. 25th, 2020
Marshall Reynolds Boulder, CO
8 months ago
Reply from Freedom Debt Relief
Jul. 23rd, 2020
Shannon Banner Independence, MO
8 months ago
Reply from Freedom Debt Relief
Jul. 20th, 2020
Donny Jacksonville, FL
8 months ago
Reply from Freedom Debt Relief
Jul. 16th, 2020
Christie DeFurio Louisville, CO
9 months ago
Reply from Freedom Debt Relief
Jul. 14th, 2020
Reggie Marcotte Lake Jackson, TX
9 months ago
Reply from Freedom Debt Relief
Jun. 26th, 2020
Verified Customer
John Slein Brandon, FL
9 months ago
Reply from Freedom Debt Relief
Jun. 26th, 2020
Annie Manno Memphis, TN
9 months ago
Reply from Freedom Debt Relief
Jun. 19th, 2020
Verified Customer
Good Citizen Cocoa, FL
9 months ago
Reply from Freedom Debt Relief
Jun. 17th, 2020
Lori Thurman New Albany, OH
10 months ago
Reply from Freedom Debt Relief
Jun. 14th, 2020
Bernie Alleman Akron, OH
10 months ago
Reply from Freedom Debt Relief
Jun. 1st, 2020
Akinbo Olalekan Houston, TX
10 months ago
Reply from Freedom Debt Relief
May. 28th, 2020
Polly Hornberger Birdsboro, PA
10 months ago
Reply from Freedom Debt Relief
May. 27th, 2020
Jodie Mccartor Corpus Christi, TX
10 months ago
Reply from Freedom Debt Relief
May. 21st, 2020
Grammie Ty McGee Cleveland, OH
10 months ago
Reply from Freedom Debt Relief
May. 15th, 2020
Sam Ardeno Bulls Gap, TN
11 months ago
Reply from Freedom Debt Relief
May. 1st, 2020
Kim M Tortora Delray Beach, FL
11 months ago
Reply from Freedom Debt Relief
Apr. 21st, 2020
Verified Customer
Anonymous
11 months ago
Reply from Freedom Debt Relief
Apr. 17th, 2020
We're on a mission to empower consumers to make the best decisions and connect confidently with companies that deserve their business.
© 2021 BestCompany.com LLC - All rights reserved Privacy Policy | Terms | Do Not Sell My Personal Information