Freedom Debt Relief Review 2024 (2024)

• Freedom Debt Relief Overview
• Who Does Freedom Debt Relief Help?
• How Does Freedom Debt Relief Work?
• How Much Does Freedom Debt Relief Cost?
• How Will Freedom Debt Relief Affect My Credit?
• Freedom Debt Relief Customer Reviews
• How To Sign Up for Freedom Debt Relief
• Alternatives to Freedom Debt Relief
• Is Freedom Debt Relief Legit?
• Methodology

Freedom Debt Relief was founded in 2002. The company offers debt settlement services that help struggling borrowers lower their debt and affordably pay it off. Freedom Debt Relief will negotiate with creditors on your behalf to settle debts for less than the total amount owed. Consultants will devise a personalized debt relief plan aligned with your budget and goals.

One drawback is that the company’s fees range from 15% to 25% of the enrolled debt amount. So, if you’re settling $15,000 in debt, you may have to pay between $2,250 and $3,750 in fees alone. You’ll also have to pay a one-time fee of $9.95 to set up your account and a monthly fee of $9.95 for account servicing.

Debt-relief services can provide an affordable solution for people grappling with unsecured, high-interest debts. As an alternative to consolidating debt within a single loan, these services negotiate to lower their clients’ debt burdens, helping people move toward financial stability without filing for bankruptcy.

Freedom Debt Relief requires consumers to have a minimum of $7,500 in debt. It focuses on different types of unsecured debt. You might be able to enroll if you have unpaid:

• Credit cards
• Medical bills
• Personal loans

You cannot, however, enroll secured debts such as a mortgage or car loan. Freedom Debt Relief also doesn’t negotiate federal student loan debt, though help with private student loans may be available on a case-by-case basis.

Here are the seven stages that a Freedom Debt Relief client would go through:

1. Credit concerns. You don’t need good credit to enroll in the Freedom Debt Relief program, and there are no upfront fees.
2. Enrollment. If you sign up for Freedom Debt Relief’s program, its negotiators commit to settling your eligible unsecured debt for less than what you owe.
3. Depositing funds. Each month, you put money into an FDIC-insured program account that you control.
4. Negotiation. After enough funds accumulate in your program account, Freedom Debt Relief works to reach settlements with each of your eligible creditors.
5. Authorization. Once a settlement agreement is reached and you have authorized it, your accumulated funds are used to pay your creditors via Freedom Debt Relief’s payment processing partner. At this point, Freedom collects its fee. The fee amount is disclosed up front and remains fixed; it won’t increase later.
6. Settlement. After each debt settlement has been completely paid off, that creditor will report the account to credit bureaus as settled.
7. Debt-free and done. If you successfully complete the program, you walk away owing nothing to the creditors you included in your plan.

Debt relief can negatively impact credit scores. That’s because creditors typically won’t negotiate with you or a third party until you miss payments. Payment history heavily influences credit scores, however, so late or missed payments can cause your score to drop.

If you’re already behind on payments, following this program may not significantly worsen the situation; if you’re current on bills, expect a bigger score drop. However, credit scores can recover over time. Although late payments stay on reports for up to seven years, their impact diminishes. Responsible financial habits, like timely bill payments in the future, can help your score improve faster.

Getting started with Freedom Debt Relief is straightforward. You can start the debt relief process online or by calling the company at 800-910-0065.

To enroll online, follow these steps:

1. Visit Freedom Debt Relief’s website and click “See If You Qualify.”
2. Fill out the questionnaire with your estimated debt amount.
3. Provide your name, email, phone number, and state of residence.
4. Schedule a free appointment with a certified consultant.

After a free consultation, you can decide if Freedom Debt Relief’s debt settlement program is right for you.

Freedom Debt Relief vs. Accredited Debt Relief

Freedom Debt Relief and Accredited Debt Relief are both reputable companies that help people with debt. Freedom Debt Relief specializes in settling many types of unsecured debts, while Accredited Debt Relief offers debt settlement plus options for consolidating debt with loans. Both companies can significantly reduce debt through negotiated settlements, helping you become debt-free in 24 to 48 months.

Freedom Debt Relief vs. National Debt Relief

You can expect similar costs for National Debt Relief and Freedom Debt Relief because both charge fees ranging from 15% to 25% of your total enrolled debt. With both companies, you set up a dedicated account for your monthly deposits, including the fees. However, Freedom Debt Relief charges an extra one-time fee of $9.95 to set up this FDIC-insured account, along with a monthly fee of $9.95 for account servicing, while National Debt Relief does not.

Freedom Debt Relief is a legitimate company established in 2002 to provide debt negotiation services. It’s a founding member of the American Association for Debt Resolution (formerly the American Fair Credit Council) and affiliated with the International Association of Professional Debt Arbitrators.

While debt negotiation is its primary service, the company is dedicated to helping clients find the most suitable solution for their financial situation. This process may include refining budgets, credit counseling, debt consolidation or bankruptcy. The company maintains transparency regarding its services and associated costs, with support available via phone or email for any inquiries.

Debt relief services, including those offered by Freedom Debt Relief, can ease overwhelming debt burdens for individuals struggling to meet their financial obligations. However, if you’re considering debt settlement, it’s crucial to explore all available debt management options to determine the best course of action for your specific needs.

When compiling this review, Forbes Advisor staff considered 18 important factors, such as loan amounts, APR ranges, fees, terms, customer service and user experience. The editorial staff in charge of scoring, fact-checking and overall evaluation of this service have more than 25 years of combined expertise in editing and personal finance.

Helping You Make Smart Financial Decisions

Get the Forbes Advisor newsletter for helpful tips, news, product reviews and offers from a name you can trust.

Thanks & Welcome to the Forbes Advisor Community!

I agree to receive the Forbes Advisor newsletter via e-mail. Please see our Privacy Policy&nbspfor more information and details on how to opt out.