Freedom Debt Relief Review 2024 (2024)

Freedom Debt Relief offers debt settlement services, which work to settle eligible unsecured debt accounts for less than what you owe. Each month, you deposit money into an FDIC-insured program account that you control. As funds accumulate in your account, Freedom Debt Relief negotiates settlements with each of your eligible creditors.

Once a settlement agreement is made, and you have authorized that settlement, the accumulated funds are used to pay your creditors via Freedom Debt Relief’s payment processing partner, Crossroad Financial Technologies. After your settlement has been completely paid off, the creditors will report the account as settled in full.

Good credit is not required to enroll in the Freedom Debt Relief program, and there are no upfront fees. If you successfully complete the program, you should be able to walk away owing nothing to the creditors you included in your plan.

Freedom Debt Relief works with different types of unsecured debt. You might be able to enroll if you have unpaid:

• Credit card bills
• Medical bills
• Personal loans

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

Getting started with Freedom Debt Relief isn’t that difficult. You can start the debt relief process online or over the phone.

If you opt to sign up online, here’s what you’ll need to do to enroll:

1. Select the “See If You Are Eligible”’ link on the homepage to begin filling out the questionnaire.
2. Enter the estimated amount of debt you’d like to enroll in the program.
3. Enter your name, email address, phone number and state of residence to get your custom results.
4. Schedule a free debt consultation over the phone with a certified debt consultant or via an online application.
5. Decide if the debt settlement program is the best fit for you based on the consultant’s recommendations.

During the debt consultation, you’ll share information about your debt and financial situation. You will receive a personalized financial assessment, looking at how much you owe and your monthly budget to determine if debt settlement makes sense for you. Note that Freedom Debt Relief is designed to help people who are past due on their bills or who are struggling to make their minimum payments. If you continue to pay your enrolled accounts, that may affect Freedom Debt Relief’s ability to settle your debt.

If you decide to move ahead with debt settlement through Freedom Debt Relief, you will receive a custom plan with a program payment that fits your budget. Once your plan is in place, you’ll begin making monthly deposits into your FDIC-insured program account.

From there, you’d just need to make your monthly payment on time while Freedom Debt Relief does the rest. That includes negotiating settlements with your creditors and making sure creditors get paid once an agreement is reached. According to Freedom Debt Relief, it typically takes 24 to 48 months for debt settlement clients to get rid of their enrolled debt.

Debt relief can negatively affect credit scores because creditors typically aren’t willing to negotiate until you’re behind on payments. Payment history carries the most weight for FICO score calculations, so if you’re paying late or not at all, your score can take a hit.

The extent of the impact you’ll feel when enrolling in Freedom Debt Relief can depend on how far you’re already behind and how much debt you have. If you’re already several months behind on payments, signing up for debt settlement with Freedom Debt Relief might not add much to the damage. On the other hand, if you’re current on your bills right now, you can likely expect your score to experience a bigger drop.

The good news is that your credit score can recover eventually. Late payments can remain on your credit report for up to seven years, but their impact fades over time. If you’re practicing good financial habits in the meantime, such as paying all your bills on time, that could help your score rebound faster.

Freedom Debt Relief is a legitimate company that was founded in 2002 and is a founding member of the American Fair Credit Council. It’s also a member of the International Association of Professional Debt Arbitrators.

While debt negotiation is the primary service Freedom Debt Relief offers, the company is committed to helping you find the best solution for your situation. That might include:

• Refining your budget
• Credit counseling
• Debt consolidation
• Bankruptcy

Freedom Debt Relief is transparent in describing how its services work and what you’ll pay. If you have questions, help is available by phone or email.

If you’re interested in what clients are saying, it’s helpful to consider Freedom Debt Relief reviews from reputable sources. On Trustpilot, Freedom Debt Relief has a 4.5-star rating. The majority of reviews are largely positive, though a few people have registered complaints about the fees Freedom Debt Relief charges.

Freedom Debt Relief is accredited by the Better Business Bureau and has an A+ rating. according to the organization. Based on customer reviews, the company earns 4.3 out of 5 stars. There were 359 total customer complaints lodged in the past three years, with 105 complaints closed in the last 12 months. Several negative reviews on the BBB’s website mention a lack of communication and slow response times from Freedom Debt Relief’s support specialists.

Bottom Line

Debt relief services could help you escape a crushing debt burden if you’re having trouble paying what you owe. Freedom Debt Relief is just one company that offers debt settlement services. Before moving ahead with debt settlement, it’s important to consider all the options for managing debt to find the one that best fits your needs.