Debt can be a burden that weighs heavily on individuals and families, causing stress and anxiety about financial stability. Freedom Debt Relief, one of the nation’s largest debt relief companies, claims to offer a solution to this problem by helping clients settle their debts and regain their financial freedom.
With an impressive track record of assisting 850,000 clients in settling over $15 billion in debt as of September 2020, Freedom Debt Relief seems to be a significant player in the debt relief industry. However, with any financial decision, it is crucial to be cautious and do thorough research to ensure legitimacy and effectiveness.
In this comprehensive review, we will examine the ins and outs of Freedom Debt Relief, evaluating its services, pricing, customer reviews, and more to determine whether it is a viable solution or possibly a scam.
Summary of Freedom Debt Relief:
Freedom Debt Relief is a prominent debt settlement company that aims to help individuals struggling with high debt and low credit scores. Established in 2002, it has assisted a vast number of clients in settling their unsecured debts, such as credit cards, medical bills, personal loans, and department store credit cards.
The company negotiates with creditors on behalf of clients to reduce their outstanding balances, providing an opportunity for debt-ridden individuals to regain their financial footing. However, it’s important to note that Freedom Debt Relief cannot guarantee debt settlement for all clients, and exploring other debt-relief options before opting for their services is highly advised.
Pros and Cons of Freedom Debt Relief:
As with any financial service, Freedom Debt Relief has its share of advantages and drawbacks. Let’s take a closer look at some of the pros and cons associated with their debt relief program:
- No Upfront Fees
- Lower Debt Potential
- Possibility of Becoming Debt-Free
- High Settlement Fees
- No Settlement Guarantees
- Negative Credit Impact
Freedom Debt Relief Services:
Freedom Debt Relief specializes in negotiating settlements for various types of unsecured debt, such as credit cards, medical debt, personal loan debt, department store credit cards, collections, and lines of credit.
They may also be able to assist with payday loans, repossessions, and private student loan debt, although these cases often require more verification and are a longer process. However, it is essential to note that Freedom Debt Relief does not help with taxes, some utility bills, lawsuits, secured loans (HELOC, mortgage, auto), or federal student loans.
Freedom Debt Relief Pricing:
The pricing structure of Freedom Debt Relief involves charging fees between 18.25% and 25% of the total amount of debt settled. This fee is typically added to the monthly payment once the debts are successfully settled. The exact fee amount may vary based on the state regulations and the individual’s specific financial situation.
How to Qualify and Application Process:
To qualify for Freedom Debt Relief’s program, individuals must have at least $7,500 of unsecured debt. Those with high debt and low credit scores are considered ideal candidates for the program. The application process involves five steps:
Assessment:
A debt consultant from the company will conduct a financial assessment to determine eligibility for the program. This initial step is free and aims to ensure the client’s suitability for the debt relief program.
Deposit:
Qualified applicants who choose to enroll will start making monthly deposits into an FDIC-insured account under their control. During this phase, they will be advised to stop paying their creditors. The negotiation process begins once enough funds have accumulated in the dedicated account.
Negotiation:
Freedom Debt Relief’s team will negotiate with creditors to lower the debts. The duration of this process varies depending on the number of debts to settle and the negotiation period with creditors.
Settlement:
Upon reaching a settlement agreement, the payments are made to the creditor, and the client’s payment to Freedom Debt Relief is collected.
Graduate:
Successful settlement of all debts leads to the client becoming a graduate of the debt relief program. However, it’s important to acknowledge that not all program participants reach this stage, as debt settlement outcomes cannot be guaranteed.
Freedom Debt Relief Contact Info:
Freedom Debt Relief offers a comprehensive customer service infrastructure to assist prospective and current clients. Prospective clients can contact the company through the following channels:
- Phone: 800-910-0065 (Monday to Friday, 8 a.m. to 11 p.m. ET; Saturday to Sunday, 9 a.m. to 9 p.m. ET)
- Email: info@freedomdebtrelief.com
Current clients can reach out through the following channels:
- Phone: 800-655-6303 (Monday to Thursday, 8 a.m. to 9 p.m. ET; Friday, 8 a.m. to 8 p.m. ET; Saturday to Sunday, 10 a.m. to 8 p.m. ET)
- Email: support@freedomdebtrelief.com
It’s important to note that the call center is closed on certain public holidays, including Memorial Day, Independence Day, Labor Day, Thanksgiving Day (and the following day), Christmas Eve, and Christmas Day.
Freedom Debt Relief Customer Reviews:
Customer feedback and reviews play a crucial role in assessing the performance and reliability of a debt relief company. Freedom has garnered an average rating of 4.4 out of 5 stars through customer reviews on the Better Business Bureau (BBB) website, with an impressive A+ rating.
While some negative comments highlight concerns about high settlement fees, numerous positive reviews speak of genuine help provided with debt settlement, leaving clients satisfied with the company’s services.
Conclusion
In conclusion, Freedom Debt Relief is a substantial player in the debt relief industry, providing assistance to numerous clients in settling their debts. Its impressive track record, extensive range of services, and commitment to transparency are commendable. However, potential clients must be aware of the high settlement fees and the lack of guaranteed settlements.
As with any financial decision, thorough research and comparison with other debt relief providers are essential to determine the most suitable option for individual needs. While Freedom Debt Relief offers a viable solution for those with high unsecured debt and low credit scores, exploring other reputable debt settlement companies can help ensure that clients make informed choices regarding their financial future.
Remember to consider reviews, ratings, and costs before finalizing a decision and regaining control of your financial situation with confidence.
Frequently Asked Questions
Here are 10 frequently asked questions about Freedom Debt Relief.
What is Freedom Debt Relief, and how does it work?
Freedom is a reputable debt settlement company that assists individuals struggling with unsecured debts, such as credit cards, medical bills, and personal loans. The company negotiates with creditors on behalf of clients to secure lower debt settlements.
Clients make monthly deposits into an FDIC-insured account, which will be used for settling debts once enough funds accumulate. Freedom’s skilled negotiators work to reach agreements with creditors, and successful settlements are paid directly to the creditors.
Can Freedom Debt Relief guarantee that all my debts will be settled?
No, Freedom cannot guarantee that all debts will be settled. Debt settlement outcomes depend on various factors, including the creditor’s willingness to negotiate and the client’s specific financial situation. While the company has a track record of assisting numerous clients, it is crucial to be aware that debt settlement is not guaranteed, and results may vary.
How long does the debt settlement process typically take with Freedom Debt Relief?
The debt settlement process with Freedom typically lasts for 24 to 48 months. However, the total time can vary based on the individual’s unique circumstances, the number of debts to settle, and the duration of negotiations with creditors. The company’s experienced team works diligently to reach favorable settlements as efficiently as possible.
What types of debt does Freedom Debt Relief settle?
Freedom specializes in settling various types of unsecured debts, including credit cards, medical debt, personal loan debt, department store credit cards, collections, and lines of credit. While they may also assist with payday loans, repossessions, and private student loan debt, these cases require additional verification and may involve a more extended process.
Will enrolling in Freedom negatively impact my credit score?
Enrolling in the debt relief program could have a negative impact on your credit score in the short term. During the negotiation phase, clients are advised to stop making payments, which may result in missed payments and a temporary dip in credit scores. However, as debts begin to resolve after approximately six months, many clients see their credit scores start to improve.
Are there any debts that Freedom cannot help with?
Yes, there are specific types of debt that Freedom cannot assist with. These include taxes, certain utility bills, lawsuits, secured loans (such as HELOC, mortgage, and auto loans), and federal student loans. Clients should carefully review their debt portfolio to determine eligibility for the program.
Is Freedom Debt Relief a trustworthy company?
Freedom is an accredited company and has an A+ rating with the Better Business Bureau (BBB). It is a legitimate debt settlement company that has helped numerous clients settle their debts.
However, prospective clients should conduct thorough research, check with state Attorney General and local consumer protection agencies, and review customer testimonials to make an informed decision.
Are there any alternatives to Freedom Debt Relief for debt settlement?
Yes, there are other reputable debt settlement companies in the industry. National Debt Relief is one of the prominent alternatives to consider.
Both companies offer free consultations, similar fees (between 15% and 25% of the settled debt), and average program durations of 24 to 48 months. It is essential to research and compare various debt settlement providers to find the one that best aligns with individual financial needs and preferences.
Can I trust Freedom Debt Relief to handle my finances and negotiate with my creditors?
Yes, you can trust Freedom Debt Relief to handle your finances responsibly. The company employs over 550 certified debt consultants and a team of experienced negotiators to represent your interests during debt settlement negotiations. Their professionals have assisted hundreds of thousands of clients, settling over $15 billion in debt as of September 2020.
Does Freedom Debt Relief offer a guarantee for successful debt settlements?
While Freedom Debt Relief has an impressive track record, it cannot guarantee that all debts will be settled. Debt settlement outcomes depend on several factors, including creditors’ cooperation and the client’s unique financial situation. The company’s skilled negotiators, however, work diligently to secure favorable settlements.