Pros and Cons Explained

Pros

• Excellent customer reviews: Freedom Debt Relief has stellar customer reviews on Trustpilot. Its rating is 4.6 out of 5, based on over 45,000 reviews, putting it in the "Excellent" category. It has 4.49 out of 5 stars with the Better Business Bureau, with about 1,900 reviews.
• Program guarantee: If your total settlement cost is more than the total amount of debt you initially enrolled in Freedom Debt Relief's debt settlement program, the company may refund you the difference from its collected fees. Freedom Debt Relief bases your eligibility for the program guarantee on your combined total of enrolled debt and fees.*
• Customer support available seven days a week: Freedom Debt Relief's customer service team is available seven days a week, and existing clients have 24/7 access via the client dashboard. 

Cons

• Not available in all states: Freedom Debt Relief isn't available nationwide. It provides debt settlement services in all states except Colorado, Connecticut, Georgia,  Hawaii, Illinois, Kansas, Maine, New Hampshire, New Jersey, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, Vermont, Virginia, Washington, West Virginia, Wyoming, and the U.S. Territories.
• History of litigation and regulatory issues: Freedom Debt Relief has faced regulatory issues with the Consumer Financial Protection Bureau (CFPB) and class-action lawsuits over the past five years. The company was forced to pay $25 million in restitution and penalties after a 2019 CFPB lawsuit, which alleged that FDR charged consumers without settling their debts, among other infractions. It was later forced to pay out for a multimillion-dollar lawsuit in 2023, which alleged that the company tried to sell its services to consumers over the phone in violation of the Telephone Consumer Protection Act.

How Freedom Debt Relief Works

As a 澳洲幸运5官方开奖结果体彩网:debt settlement company, Freedom Debt Relief aims to settle your outstanding debt for less than you owe. To get started, you'll have a free debt consultation with a company representati✃ve. If they think you're a good candidate for debt settlement, they'll develop a plan a🅷nd payment schedule.

FDR recommends that you stop making payments to your creditors (which will typically hurt your credit significantly). Instead, you'll make one monthly payment into a dedicated account that you control—this money will be used to fund your settlement. Once the account has grown large enough, the company will negotiate with your creditors on your behalf to reach a settlement agreement.

If a settlement offer comes in and you agree to the terms, the money in the account will be released to pay off your debt. After an individual debt is settled and the first payment is made, FDR charges a fee of 15% to 25% of the enrolled amount of that debt. In general, Freedom Debt Relief says it takes 24 to 84 months to complete the program.

Freedom Debt Relief has a program guarantee: If your total settlement cost—the total of your debt payoff amount and fees—exceeds the amount of debt ༒you initially enrolled, the company may refund you the difference, up to 100% of your fees.*

Accreditations

Freedom Debt Relief has the following certif🅠ications, accreditations, and affiliations: 

• Member of the American Association for Debt Resolution (AADR)
• Certified by the International Association of Professional Debt Arbitrators (IAPDA)
• Accredited by the Better Business Bureau (BBB)
  

How to Enroll With Freedom Debt Relief

1. Contact Freedom Debt Relief: You can call Freedom Debt Relief at (800) 910-0065 to speak to a representative, who will guide you through the process. Or, you can use the "Get debt help now" tool on its website and enter information about your debt. The tool will ask you how much you owe in combined debt and your state of residence. 
2. Provide some personal information: The online tool will prompt you to enter personal details, including your birthdate, email address, and mailing address. Once you've submitted that information, it will tell you if you're a candidate for debt settlement. 
3. Schedule a debt consultation: If you are a candidate for debt settlement, you can schedule a meeting with a debt counselor to go over your financial situation and develop a plan to settle your debts.
4. Agree to the program terms: If you decide that the proposed debt settlement program makes sense for you (including the required monthly payment and settlement goals), Freedom Debt Relief will send you a program agreement to review and sign. Then, it will set you up with an account at FDRClient.com to track your progress. 

Types of Debt Addressed

Freedom Debt Relief's debt settlement program is for unsecured debt. It cannot help you with federal student loans or secured debt, such as 澳洲幸运5官方开奖结果体彩网:mortgages or 澳洲幸运5官方开奖结果体彩网:car loans. The following types of debt could be eligible෴🌊 for debt settlement.

Credit Cards

Credit cards, including store cards, are usually unsecured and could qualify for debt settlement programs (澳洲幸运5官方开奖结果体彩网:secured cards are an exception).

Unsecured Personal Loans

Simple unsecured personal loans (aka 澳洲幸运5官方开奖结果体彩网:signature loans) could be eligible for debt settlement.

Medical Bills

Unsecured medical bills could be 🍃eligible for debt settlement. 

Private Student Loans

Although Freedom Debt Relief can't help you with federal student loans, it may be able to help you with outstanding 澳洲幸运5官方开奖结果体彩网:private student loans. The company says it works with priva🥂te loans on a case-by-case basis. 

Some Business Debt 

If you have business debt, such as an unsecured loan you took out to laun♑ch a side gig, Freedom Debt Relief may help on a case-by-case basis.

Expected Cost

As with all debt settlement companies, Freedom Debt Relief doesn't charge upfront fees. Instead, you pay its fee once any specific debt is negotiated, a settlement is approved, and the first settlement payment is made. The fee is based on the enrolled amount of any specific debt that is settled, rather than the settlement amount. It ranges from 15% to 25% of the enrolled debt.

Expected Relief Amount

Freedom Debt Relief doesn't disclose its typical settlement amount.

According to a 2020 study by the AADR, debt settlement clients typically reduce their debt by $2.64 for every $1 of fees.

Expected Time to Complete the Program

Freedom Debt Relief says that its clients may complete the program in 24 to 48 months. But the time it takes depends on your balance and interest rates, your creditors' willingness to negotiate, and how much money you can set aside for settlements.

Additional Services

Freedom Debt Relief is primarily a debt settlement company. However, it does offer debt consolidation loans through its affiliate, 澳洲幸运5官方开奖结果体彩网:Achieve Personal Loans. Achieve allows you to borrow $5,000 to $50,000 with repayment terms as long as 60 months. However, the loans do have origina൲tion fees and the rates can be in the double digits. 

In other cases, FDR may refer clients to a lender of 澳洲幸运5官方开奖结果体彩网:home equity loans.

Client Dashboard

Through the client dashboard, FDRClient.com, clients can view thei🍎r progress and track their payments. The dashboard alℱso has educational videos and articles. 

Customer Service

You can reach customer support seven days a week via phone or email. Hours may va✨ry slightly for prospective and current clients.

Customer Satisfaction and Reviews

Freedom Debt Relief has excellent reviews from customers. On Trustpilot, it has a rating of 4.6 out of 5 based on over 45,000 reviews. It’s a similar situation at the Better Business Bureau, where FDR has 4.47 stars. The company is also accredited by the BBB, and it has an A+ rating.

Customers praise the company's responsiveness, the knowledge of customer support representatives, and the easy-to-use client dashboard. 

However, the company has faced regulatory and litigation issues in recent years. In 2019, the CFPB alleged that Freedom Debt Relief charged consumers without settling their debts as promised, charged clients after having them handle negotiations on their own, and misled customers about its fees. The company reached a settlement with the CFPB and agreed to pay $20 million in customer restitution and $5 million in civil money penalties.

And in 2023, Freedom Debt Relief reached a $9.75 million settlement in a class-action lawsuit. The lawsuit alleged that the company violated the Telephone Consumer Protection Act with telemarketing calls that used automated or pre-recorded voices to sell its products. It also sent messages to those on the National Do Not Call Registry. 

Freedom Debt Relief vs. National Debt Relief vs. New Era Debt🔥 Solutions

Is Debt Settlement Worth It?

Debt settlement can be appealing since you may be able to settle your debt for less than you owe. But debt settlement can be risky; there's no guarantee your creditors will agree to sett𒈔le your debt, and tღhe fees can be significant.

Debt settlement may be worth exploring if you have unsecured debt you're unable to repay on your own, but only after you've looked at other methods of debt relief. We recommend speaking with a credit counselor and considering other solutions—such as a 澳洲幸运5官方开奖结果体彩网:debt management plan—before making a decision.

Is Debt Relief Through Debt Settlement Taxable?

If your creditors agree to settle your debt for less than you owe, the difference between the original balance and your settlement amount is typically 澳洲幸运5官方开奖结果体彩网:taxable as income. You must report the canceled debt on your tax return for the year in which the cancellation or settlement occurred.

The Bottom Line

If you have unsecured debt that you're unable to pay, Freedom Debt Relief may be able to negotiate on your behalf and convince your creditors to settle for less than you owe. The company has strong reviews, but its fees can be as high as 25% of your enrolled debt, so we suggest exhausting other debt repayment methods—such as debt consolidation, debt management plans, or the 澳洲幸运5官方开奖结果体彩网:debt avalanche repayment strategy—first. 

Frequently Asked Questions (FAQs)

Is Freedom Debt Relief Legit?

Freedom Debt Relief is a legitimate company. It is 澳洲幸运5官方开奖结果体彩网:BBB-accredited ಞand is rated A+. It is also a member of the Americꦑan Association of Debt Resolution (AADR) and is certified by the International Association of Professional Debt Arbitrators (IAPDA).

Does Freedom Debt Relief Hurt Your Credit?

Enrolling in debt relief with Freedom Debt Relief 澳洲幸运5官方开奖结果体彩网:could hurt your credit score, depending on how your credit report changes after enrollment. Because the debt settlement process relies on delinquent accounts, and credit scores are based in large part on your on-time payment history, the process will likely hurt your credit score. Removing active debt from your credit reports can be good for your credit score, but the settlement, missed payments, and delinquent accounts can have negative effects for up to seven years.

How Do You Get Out of Freedom Debt Relief's Program?

You can end your participation in Freedom Debt Relief's program at any time. You must provide a written notice of termination, but you can send that notice electronically or through the mail. Once Freedom Debt Relief receives your notification, it will close your account. It will return any funds left in your dedicated account, minus fees for services already provided, within seven business days.

Do You Have to Pay Back Freedom Debt Relief?

Freedom Debt Relief doesn't charge upfront fees, but you'll pay a fee of 15% to 25% of your enrolled debt if a setꦜtlement agreement is reached. The first payment to FDR occurs after the client authoriz🥃es a settlement.

How We Determine the Best Debt Relief Companies

To determine the best debt relief companies, we reviewed various databases, competitive analyses, consumer behavior, and more, ultimately narrowing down the list to 40 companies that offered debt settlement and/or credit counseling services. We developed a quantitative model in which we identified 53 important criteria across five categories. We weighted each cate🐽gory as follows for this article:

• Costs and fees: 41.00%
• Availability: 22.50%
• Reputation and stability: 19.00%
• Customer experience: 9.50%
• Services: 8.00%

We then gathered data for the 53 criteria directly from companies via websites, media contacts, and existing partnerships. Data was collected between Oct. 19, 2023, and Dec. 18, 2023. This resulted in over 2,000 data points in our rubric, wh🎉ich we used to score and determine the best debt relief companies (including debt settlement and credit counseling services) for people looking to manage and get out of debt.

To learn more about our process for finding the best debt relief companies, read our 澳洲幸运5官方开奖结果体彩网:full methodology.

*Disclaimer from Freedom Debt Relief in regards to the services offered by and information obtained from Freedom Debt Relief:

Our (Freedom Debt Relief's) 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, including New Jersey, 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.