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Freedom Debt Relief has over 20 years of experience in helping people lower the total amount of their debt. Its representatives work directly with creditors, negotiating and lowering debt totals. The company’s easy to understand relief plan has helped over 850,000 people lower their various unsecured debts, including debt from credit cards, medical bills, personal loans, or other sources.
Millions of Americans struggle with some form of debt; your average person has at least $5,000 in credit card debt. While it can be difficult to get rid of it all on your own, Freedom Debt Relief works to lower its customers’ financial burden. With its team of trained negotiators and valuable industry connections, the Freedom Debt Relief program helps people have a better chance at lowering their debt totals.
Freedom Debt Relief has racked up an impressive list of positive reviews in its 20 years of operation. The BBB rated Freedom Debt Relief an A+, accrediting the business back in 2021. Trustpilot awarded Freedom Debt Relief a 4.5/5, with over 36,850 positive reviews sourced from customers.
Freedom Debt Relief uses a traditional debt settlement strategy: a team of negotiators works on a customer’s behalf, negotiating directly with the customer’s creditors to lower their debt total.
Even taking into account service fees, Freedom’s debt relief program could still save you money.
Freedom Debt Relief’s primary goal is to lower the total amount of debt you owe by negotiating directly with your creditors. If you have multiple creditors, your representatives will tackle one negotiation at a time. Once a negotiation’s terms are settled, Freedom Debt Relief asks you to approve the new settlement before officially closing the deal with your creditors.
Let’s break down Freedom Debt Relief’s settlement process, step-by-step:
After confirming that you qualify, a Freedom Debt Relief representative will speak with you about the details of the program. You’ll then chat about what your personal debt relief path might look like, such as how much you’ll need to deposit each month, what your fees will look like, and more.
Before signing a Debt Resolution Agreement (i.e. the contract between you and Freedom), your Freedom Debt Relief representative will cover a variety of disclosures. You’ll discuss topics such as credit impact, legal action, tax implications, among others.
Once you’ve reached and signed an agreement, you’ll follow the advice of your Freedom Debt Relief representative and start despositing into a Dedicated Account each month. During the remainder of the debt settlement program, you typically suspend payments toward your current debts, which may result in a hit to your credit score.
Your representatives begin negotiating with your creditors on your behalf. You can monitor the progress of negotiations on your customized Freedom Debt Relief customer portal.
Once your Freedom Debt Relief representatives reach a settlement amount with a creditor, your representatives will ask for your permission to authorize the settlement.
After you authorize a settlement and teh first payments has been made, Freedom Debt Relief will charge you a percentage of the enrolled debt amount.
If you have debts with multiple creditors, steps 3, 4, and 5 will be repeated for each of them, until all of your enrolled debts are settled and resolved.
From the start, there’s some good news: you’ll only be charged fees if Freedom Debt Relief is successful. As with all debt relief companies, Freedom Debt Relief cannot charge you until they have successfully negotiated a lower settlement amount, after you authorize and the first payment has been made.
Once a debt amount is lowered, Freedom Debt Relief will charge you between 15% and 25% of your enrolled debt.
To give an example, let’s say one your enrolled debts is $10,000 in unsecured debt. Freedom Debt Relief’s negotiators could help you reduce that total amount owed. As your representative successfully lowered your total, they charge you 20% of $10,000, or $2,000. Even with the fees FDR charges and with the remaining debt after negotiation, you could potentially pay less to creditors than what you originally owed.
For starters, Freedom Debt Relief customers must live in one of the 32 states where Freedom Debt Relief operates. To see if you’re in the right state, we recommend you contact Freedom Debt Relief either by phone or through their website.
Secondly, you need a minimum total debt of $3,500 to qualify. Also note that Freedom Debt Relief can only help unsecured debt, meaning debts that are not backed by some kind of collateral. Credit card debts, medical bills, and personal loans are the most common types of unsecured debt.
Freedom Debt Relief representatives may consider additional factors during the screening process. The best way to see if you qualify for support from Freedom Debt Relief is to contact a representative directly.
With an A+ rating from the BBB and 20 years of experience, we’re confident in recommending Freedom Debt Relief for anyone looking to reduce their unsecured debt. We especially recommend Freedom Debt Relief to readers with only one or two creditors, as these debts are more likely to be resolved quickly and affect credit scores less.