Freedom Debt Relief 2020 Review
Freedom Debt Relief, a subsidiary of Freedom Financial Network, is currently the largest debt negotiator in the US and serves 38 states. Freedom Debt Relief aims to help Americans lower and resolve their unsecured debt including credit cards, personal loans, and medical bills.
Since 2002, they have helped over 615,000 consumers settle their debts and currently lead the industry with over $10 billion in total debts resolved.
Freedom Debt Relief states that their debt resolution services are best for customers with at least $15,000 in unsecured debt and who are considering the bankruptcy or debt consolidation process.
Freedom Debt Relief's affordable and individually customized program could help you completely resolve your debt in 24 to 48 months.
Potential clients are eligible for a 100% free no-obligation debt relief consultation to learn more about how debt settlement and consolidation can help their situation.
You can call Freedom Debt Relief and speak to a debt relief specialist who will evaluate your debts, explain the debt relief process, and give you recommendations on the best path to take based on your individual situation. Freedom Debt Relief will authorize a soft pull on your credit (which does not affect your score) to see which plan is best for you.
Once you sign up, you will have to stop making payments to your creditors and begin making monthly deposits into a savings account, which is controlled by you. The deposit you make is based on your income, debt, and other related factors.
Freedom Debt Relief negotiates with your creditors using the lump sum you have saved up and makes an offer to settle your debt. During this time, you can use Freedom Debt Relief's online dashboard to track your progress.
Currently, Freedom Debt Relief offers their services in 38 states, 3 territories, and Washington DC.
Freedom Debt Relief Pros
- #1 in Debt Settlement Clients Served: Over 615,000 clients have been enrolled in Freedom Debt Relief's program. Since 2002, over $20 billion in debt and over 4.6 million accounts have been enrolled with Freedom Debt Relief (FDR). FDR employs about 2,000 professionals dedicated to helping clients with debt.
- #1 in Total Debt Amount Settled: Freedom Debt Relief has helped resolve over $10 billion in debt for their clients (saving them over $2 billion dollars).
- Top Rated Customer Service: Overall, customers reviewed Freedom Debt Relief positively (4.6 out of 5 Trustpilot rating out of 26,481 reviews as of 2/3/2020), reporting that employees were courteous, professional, thoroughly explained the process, and kept them updated on any changes.
- Top Industry Accreditations: Freedom Debt Relief is accredited by the American Fair Credit Council (AFCC), which ensures debt settlement companies comply with industry standards, and International Association of Professional Debt Arbitrators (IAPDA), which ensures that all Freedom Debt Relief agents to undergo a three-month training to receive this certification.
- 100% Free Initial Debt Consultation: Simply fill out a form on their website or call Freedom Debt Relief.
- No Upfront Fees: You only pay if and after your debts are settled.
- Fully Customized Debt Relief Plan: You receive a customized plan that best suits your budget. You will receive a free consultation, no upfront fees, and a trained debt consultant to help with the entire settlement process.
- Track Your Progress: Freedom Debt Relief provides a personalized online dashboard for customers to view their progress in real time. This includes the amount you have saved, the status of your accounts, and any fees you owe. This online dashboard also lets you connect with customer service and access additional services.
Freedom Debt Relief Cons
- Credit scores can be negatively affected since reducing the debt could show up as a "charge-off" on credit reports.
- Their services are available in 38 states, 3 territories, and Washington DC, but do not include Colorado, Hawaii, Illinois, North Dakota, Oregon, Rhode Island, Vermont, Washington, West Virginia, and Wyoming.
- Although Freedom Debt Relief may have fees as low as 15% of the total debt enrolled, prices could also range as high as 25%. Be sure to request a free savings quote from Freedom Debt Relief before you sign up.
- Some customers reported that their debts took too long to settle. However, keep in mind that every case is unique and debt settlement timelines can vary.
Freedom Debt Relief Pricing
Freedom Debt Relief only helps with unsecured debt, such as credit cards and medical bills, rather than debt that is backed by collateral, such as home and auto loans.
Freedom Debt Relief's fees for services are generally 15 to 25% of the client's total debt, which is comparable to the rest of the debt consolidation industry. This fee is based on a number of factors, including the state and the amount of debt.
Clients are given an online portal which allows 24/7 access to see progress as it happens. Freedom Debt Relief's customers only pay if their debt is reduced (no fees are charged until you see results), and the program could help resolve debt in 24-48 months.
Freedom Debt Relief is one of the largest debt settlement companies in the debt relief space and carries an industry-leading reputation of professionalism and great customer service with experienced debt consultants, all while meeting industry accreditations and backing their service with a money-back guarantee.
However, their potentially high rates may be a concern, so if you are interested you should call to receive a free consultation and savings quote from the company before moving forward.
Freedom Debt Relief disclaimer: Our estimates are based on prior results, which will vary depending on your specific enrolled creditors and your individual program terms. Not all clients are able to complete their program for various reasons, including their ability to save sufficient funds. We do not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Our service is not available in all states and our fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. Read and understand all program materials prior to enrollment. The use of debt settlement services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements we obtain on your behalf resolve the entire account, including all accrued fees and interest. C.P.D. Reg. No. T.S.12-03825.
Frequently Asked Questions
What is the minimum debt needed to qualify for Freedom Debt Relief's services?
The minimum unsecured debt needed to enroll in Freedom Debt Relief's services is $15,000.
What are Freedom Debt Relief's fees for debt reduction?
Freedom Debt Relief's fees range from 15% to 25% of the total unsecured debt enrolled in the program. You pay no fees upfront, you only pay if a debt settlement is successfully negotiated with your creditor.
Should I include all of my credit cards in the Freedom Debt Relief program?
If you have a low balance credit card, it is advised to pay that off. However, the program will not work generally unless you enroll all of your high balance (greater than $500) credit card accounts. Open credit cards make it difficult to negotiate with creditors because they see you settling on some accounts but not others.
When does Freedom Debt Relief start negotiating with creditors?
Until you have enough money saved in your settlement account, negotiation activity is limited. The first settlement typically happens between months two and four of the customer’s program. However, this depends greatly on your monthly deposit amount, how many creditors you have enrolled in your program, and the balance on each account. In some cases, it may be more than six months before the first settlement is reached.
What happens if my debts are sent to a law firm?
Lawsuits are only filed on a small percentage of enrolled debts. However, in the case that a lawsuit is filed, Freedom Debt Relief is established with a third party service from a law firm that can negotiate with the goal of resolving the debt.
Does Freedom Debt Relief work with all types of debt?
Freedom Debt Relief deals with unsecured debts such as credit cards, medical bills, and personal loans. They don't work with secured debt like auto loans, federal student loans, or mortgages.
Will I have to take out a loan to cover my existing debts?
Freedom Debt Relief's services don't require you to take out a loan to pay off your debts. Most clients make a monthly deposit into their savings account to fund their settlement. Freedom does have a relationship with a lender, so customers who consistently make a monthly payment are eligible for a loan to pay of at least one of their settlements.
Will I owe taxes on any forgiven debt?
The IRS code states any forgiven debt from a creditor should be treated as income. However, if you are unable to pay any of your owed debts and your insolvency was greater than the amount of debt settled, you are not required to pay taxes on the amount of debt relieved. Either way, you must attach Form 982 to notify the IRS when you file your tax return.
If you are unsure of your exact situation, you can contact a tax specialist for more information.
Will late fees and interest accrue on my accounts?
Your creditors will add late fees and interest to your balances as your accounts become delinquent, so your total balance increases until a settlement is reached. Your interest will accrue even if you make minimum payments on your account. Freedom Debt Relief aims to negotiate large reductions on your debt, even with the added fees and interest.
Do I have control of the savings account that holds my funds before settlement?
Yes. Your savings account is set up in your name so you have complete control of the funds.
Reviews for Freedom Debt Relief
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4.9 out of 5 stars(245 Reviews)
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- Year Founded 2002
- Minimum Debt Amount $15,000
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