Freedom Debt Relief Review — a Financial Solution for You?
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Fast Facts
Minimum debt amount:
$7,500
Cost:
15%-25% of the debt enrolled
Availability:
Not available in all states
Online dashboard:
Yes
You may feel like debt settlement is your only option when you are saddled with thousands in debt. While it’s true it is possible to go this route, you should only do so after exploring all other available avenues. If you decide using debt settlement services is the right financial move, then Freedom Debt Relief may be a company worth considering.
Choosing debt settlement is a big deal. Not only is it costly for you, but there’s no guarantee of success, and it wreaks havoc on your credit. When you do choose it, you should do so with your eyes wide open. Our Freedom Debt Relief review explores this popular debt settlement company so you can decide if it’s your best option and if it’s worth the risk to your finances.
Related: Best Debt Relief Companies
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What is Freedom Debt Relief?
Freedom Debt Relief is a debt settlement company with offices in San Mateo, California, and Phoenix. The company negotiates on behalf of consumers to reduce the amount of unsecured debt someone owes. The company is paid a settlement fee based on the negotiated settlement amount in return for this work.
The company has been involved in controversy in the past and settled a lawsuit with the Consumer Financial Protection Bureau in 2020. It is now a founding member of the American Fair Credit Council (AFCC) and a Platinum member of the International Association of Professional Debt Arbitrators. Since 2002, Freedom Debt Relief has settled over $18 billion in debt for over 1 million clients.
Millions struggle with debt. We help them move on with their lives.
- End your debt stress with a proven, affordable debt relief program. Our consultants will guide you through every step.
- Everyone’s financial situation is different. That’s why we start by giving you a free debt analysis and create a custom solution based on your unique needs and goals.
- Let us help you solve your debt problems and move forward with improving your overall financial health.
Not available in CO, HI, ND, OR, RI, VT, WA, WV, WY, MN, DE, IA.
How does Freedom Debt Relief work?
Debt settlement is a lengthy process with no guarantees of success. However, Freedom Debt Relief was founded in 2002, which means the company does have years of experience in this area.
The company advertises that anyone with at least $1,000 in unsecured debt could benefit from the services, but $7,500 is the recommended minimum. The first step in the process (after the initial consultation) is to enroll and set up your client dashboard. This allows you to track your progress in real time throughout the entire process. Then, you must set up a savings account you own and control. When you stop paying the creditors, you will later have the company negotiate with them.
Each month, you will deposit into the savings account. When your savings account reaches a certain amount, it will be time for debt settlement negotiations. Remember that you’ve not made payments this entire time, so you’re accruing additional interest and late payment fees. Freedom Debt Relief will then negotiate a settlement amount with the creditor on your behalf. If the company is successful, you pay a fee based on the settlement amount.
It’s also important to understand the type of debt Freedom Debt Relief can’t help you negotiate or settle. Any collateral loan, including mortgages, auto, and federal student loans, does not qualify.
Select the amount of debt you'd like to consolidate and your state, and Freedom Debt Relief counselors will contact you about your options.
How much does Freedom Debt Relief cost to use?
There is no upfront fee for using the debt settlement program. If the company successfully negotiates a settlement with your creditors, you will be charged a 15% to 25% settlement fee. The exact amount depends on your location and the debt settled.
Features
Works with unsecured debt
Works on your behalf to negotiate a wide range of unsecured (no collateral) debt. This includes credit card debt, personal loans, medical bills, private student loans, and peer-to-peer lending.
Streamlines the debt repayment process
Once enrolled, you make one monthly payment into your savings account to accumulate the settlement dollars. This is often easier than making several different payments to each of your creditors.
You could owe less
Because Freedom Debt Relief has experience working with all unsecured debt companies, it may be able to negotiate a lower settlement amount versus what you would pay without a settlement plan.
Less expensive than bankruptcy
Freedom Debt Relief is transparent about the fee process, so you will know what to expect financially before enrolling. Often, the settlement fee and the re-negotiated amounts to creditors are less expensive than filing for Chapter 13 bankruptcy.
Reputable company with years of experience
Freedom Debt Relief is a member of the AFCC, which requires members to follow strict codes and regulations. Only companies that follow the Federal Trade Commission's rules and regulations are granted acceptance into the AFCC.
Millions struggle with debt. We help them move on with their lives.
- End your debt stress with a proven, affordable debt relief program. Our consultants will guide you through every step.
- Everyone’s financial situation is different. That’s why we start by giving you a free debt analysis and create a custom solution based on your unique needs and goals.
- Let us help you solve your debt problems and move forward with improving your overall financial health.
Not available in CO, HI, ND, OR, RI, VT, WA, WV, WY, MN, DE, IA.
Who should use Freedom Debt Relief?
If you have at least $7,500 in unsecured debt and cannot pay off debt with other means — such as a debt consolidation loan or refinancing — you may find the service helpful for getting debt payments under control. The maximum amount of unsecured debt you can settle is up to $25,000, but it may be appropriate for those in extreme financial hardship, such as divorce or job loss.
Who shouldn’t use Freedom Debt Relief?
Debt settlement is a last resort. If you have not yet identified and resolved to correct the behaviors that led to your financial challenges, then using a service like Freedom Debt Relief is not a good idea. Otherwise, you will pay costly fees without learning to change your financial habits.
Location is another limiting factor with Freedom Debt Relief. It is unavailable in Connecticut, Georgia, Hawaii, Illinois, Kansas, Maine, Mississippi, New Hampshire, New Jersey, North Dakota, Oregon, Rhode Island, South Carolina, Vermont, Washington, West Virginia, and Wyoming.
Pros and cons
Pros
- Client dashboard lets you monitor your progress in one simple step.
- You have a Certified Debt Consultant to walk you through the process.
- No upfront settlement fees.
- Offers free consultation so you can estimate costs and understand the process upfront.
Cons
- Fees are costly and as much as 25% for settled debt.
- Not all services are available in all states.
- Still subject to calls from creditors and possible legal action for non-payment.
- Cannot assist with Federal student loan debt, mortgages or auto loan debt
Freedom Debt Relief vs. the competition
There is a multitude of debt settlement companies on the market. How does Freedom Debt Relief compare to others?
Relief Service | Minimum Debt Settlement | Fees Charged | Online Customer Dashboard |
Freedom Debt Relief | $7,500 | 15% to 25% of enrolled debt | Yes |
National Debt Relief | $10,000 | 15% to 25% of enrolled debt | Yes |
Accredited Debt Relief | $10,000 | 15% to 25% of enrolled debt | No |
National Debt Relief
National Debt Relief is similar to Freedom Debt Relief in many ways but has a higher threshold for settlement and similar fees. It also offers a dashboard for clients to keep track of their settlement savings and watch the progress of their debt relief. It is also a member of the AFCC. One big difference, however, is National Debt Relief offers access to multiple programs for debt management, including a debt consolidation loan program, credit counseling, and bankruptcy referrals.
Accredited Debt Relief
Accredited Debt Relief is similar in practice to the Freedom Debt Relief and National Debt Relief companies. It offers debt settlement for unsecured debt and charges similar fees. The biggest difference is that Accredited Debt Relief requires you to have at least $10,000 in unsecured debt for settlement negotiations. It also receives extremely favorable 4.9 out of 5-star reviews with Trustpilot.
Millions struggle with debt. We help them move on with their lives.
- End your debt stress with a proven, affordable debt relief program. Our consultants will guide you through every step.
- Everyone’s financial situation is different. That’s why we start by giving you a free debt analysis and create a custom solution based on your unique needs and goals.
- Let us help you solve your debt problems and move forward with improving your overall financial health.
Not available in CO, HI, ND, OR, RI, VT, WA, WV, WY, MN, DE, IA.
FAQs
Is Freedom Debt Relief a legitimate company?
Freedom Debt Relief is a legitimate debt settlement service provider and is a member of the American Fair Credit Council (AFCC) and Platinum member of the International Association of Professional Debt Arbitrators. The company has helped negotiate over $18 billion in debt settlements to over 1 million clients since 2002. The company earns a 4.6 out of 5 stars with TrustPilot reviews and an A+ rating as an accredited business with the Better Business Bureau (BBB).
Does using Freedom Debt Relief hurt my credit?
Using Freedom Debt Relief — or any debt settlement company — will have a negative impact on your credit score. Before the debt is negotiated and possibly settled, you will discontinue all payments to creditors for unsecured debt. Instead, you will be making monthly payments into a settlement account. Meanwhile, you will incur late fees and interest rate charges for non-payment, ultimately bringing down your credit score.
How long does it take for Freedom Debt Relief to work?
Freedom Debt Relief claims most clients see results from a debt settlement program within weeks if you are willing to take immediate action with your 401(k) account, sell personal items, or take on extra income. Most debt settlement agreements take an average of two to four years from start to finish, which is another reason why it is such a big commitment and decision.
The bottom line
If you have decided to use a debt settlement option, then Freedom Debt Relief is a trusted company worth considering. If you are going to make the very difficult decision to use debt settlement services, choosing a company like this with strong reviews and years of experience could help make it slightly easier as you navigate through the process.
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Writer
Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.
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