You’ve decided that debt settlement would be a good way to solve your mounting credit card debt woes as well as to avoid bankruptcy. But in this industry, it’s vital to choose an established, reputable firm to help you navigate debt settlement. Is Freedom Debt Relief a good company? Let’s look.
What is Debt Relief?
Let’s start there. Also called debt settlement, debt relief is when you hire a company such as Freedom Debt Relief (FDR) to go to your creditors on your behalf and get them to let you pay a portion of what you owe to satisfy your unsecured debt. Should you file bankruptcy, which is your other option, your creditors get nothing. That’s why they’ll likely work with you.
What is Freedom Debt Relief?
It’s the nation’s largest debt settlement provider. Since its establishment in 2002, the company has served more than 650,000 clients and resolved more than $10 billion in debt.
Freedom is also accredited, which is very important in a field in which there are some bad actors. The company is a founding member of the American Fair Credit Council and belongs to the International Association of Professional Debt Arbitrators as well.
To read what other folks have to say about the company, check out Freedom Debt Relief reviews.
What Kind of Debt Does Freedom Debt Relief Accept?
The company accepts unsecured debts – those not moored to collateral – such as from credit cards, personal loans, and medical bills. You’ll need at least $7,500 in debt for FDR to accept you.
How Does Freedom Debt Relief Work?
After an initial consultation, during which trained FDR professionals will assess your financial situation, you’ll enroll in the program that’s customized for you. In lieu of paying creditors directly, you’ll deposit funds monthly into an escrow-type account from which each of your settlements will be paid.
How Much Does Freedom Debt Relief Cost?
FDR charges no upfront fees, which is in accordance with the law, which some unscrupulous firms don’t follow. Depending on your state of residence, Freedom’s fees come out to between 15% and 25% of your total settled debt. For instance, if FDR settles $4,000 of your $7,500 debt load, your bill will be between $600 and $1,000.
Remember, too, that you’ll be asked to authorize each settlement before the payment goes out.
How Long Does Debt Relief Take?
While it takes some programs longer, Freedom Debt Relief’s program will take you between 24 and 48 months, much less than it would if you were to continue making minimum payments.
Note that if you have multiple creditors, your settlement could come within months.
Will Freedom Debt Relief Hurt My Credit?
No. However, the process of debt relief will knock your score down – temporarily. Once you’ve completed the program your scores will rebound. In fact, Freedom Debt Relief says that roughly a quarter of its clients have a median credit score of more than 680 two years after completing the program.
And keep in mind that your credit report hasn’t looked the greatest in a while now anyway. Going through debt relief will also save you from bankruptcy, which, depending on whether you choose Chapter 7 or 13, can live on your credit report for up to 10 years.
Is Freedom Debt Relief a good company? Hey, tens of thousands of customers can’t be wrong. If you’re looking for an established, credible, and reputable firm to handle your debt relief needs, you can do much worse than FDR.