Is Freedom Debt Relief worth it? (2024)

Is Freedom Debt Relief worth it?

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.

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How reliable is Freedom Debt Relief?

Freedom Debt Relief is accredited by the American Fair Credit Council and the International Association of Professional Debt Arbitrators. The Consumer Financial Protection Bureau received 120 complaints in 2022 about Freedom Debt Relief. The company gave a timely response to all but two complaints.

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Is it a good idea to use a debt relief program?

If you're one of the millions of Americans struggling to repay high-interest debt, a debt relief plan may be an option to help you get your finances on track. But it's not a quick fix. It's a long-term solution designed to help you get out of debt over a period of time — typically several years.

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What happens to my credit if I use Freedom Debt Relief?

According to data from Freedom Debt Relief, your credit score is likely to drop substantially during the first few months of your debt relief program. But after that first six months, credit scores trend higher.

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What is the disadvantage of debt relief program?

Cons of debt settlement

Creditors are not legally required to settle for less than you owe. Stopping payments on your bills (as most debt relief companies suggest) will damage your credit score. Debt settlement companies can charge fees. If over $600 is settled, the IRS will view this debt as a taxable income.

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How long does Freedom Debt Relief ruin your credit?

Type of Debt Relief – Debt Settlement. Eligibility & Requirements – Minimum amount of $7,500 in unsecured debt. Fees – 18%-25% of enrolled debt, plus $9.95 monthly service fee. Credit score impact – Stains credit report for 7 years.

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Are there any legit debt relief programs?

Generally, experts recommend other debt help options first. But if you decide that debt settlement is right for you, consider National Debt Relief, New Era Debt Solutions, and Freedom Debt Relief first since these companies have the highest customer satisfaction scores.

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Which debt relief program is the best?

The 8 best debt relief companies of April 2024
Debt Relief CompaniesBest for
Featured partner National Debt ReliefBest for credit card debt
Money Management InternationalBest overall
Accredited Debt ReliefBest for customized options
Americor Debt ReliefBest for all unsecured debt types
4 more rows

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Can I apply for a credit card while in a debt relief program?

You can't make any new charges on your existing accounts or get new credit cards until you complete the program. But you can get out of debt faster with total payments that are up to 50 percent less. It's also important to note that your credit counselors will help you set up a new budget when you enroll.

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(I.A. Financial Solutions)
Is it better to settle or pay in full?

Summary: Ultimately, it's better to pay off a debt in full than settle. This will look better on your credit report and help you avoid a lawsuit. If you can't afford to pay off your debt fully, debt settlement is still a good option.

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What kind of debt does Freedom Debt Relief cover?

Only unsecured debt can qualify for the Freedom Debt Relief Program. This means debt like credit cards, unsecured personal loans and medical bills. Debt that is secured such as a mortgage or an auto loan is not eligible. To qualify for the program, you should have at least $7,500 of unsecured debt.

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(Freedom Debt Relief)
What's the difference between Freedom Debt Relief and national Debt Relief?

Minimum Debt Required: $7,500

FDR and NDR charge a similar range of fees, with an important difference—if you reach a settlement for a particular debt, Freedom Debt Relief charges its fee based on the initial amount of that debt, whereas National Debt Relief charges based on the amount of settled debt.

Is Freedom Debt Relief worth it? (2024)
Is it wise to consolidate debt?

Consolidating debt can be a good idea if you have good credit and can qualify for better terms than what you have now and you can afford the new monthly payments. However, you might think twice about it if your credit needs some work, your debt burden is small or your debt situation is dire.

Is debt settlement better than not paying?

Despite the potential downside, settling a debt by making partial repayment is better for your credit (and peace of mind) than neglecting it and leaving it unpaid. If you ignore a debt, the creditor will typically turn it over to a collection department or third-party collection agency.

Does debt forgiveness hurt your credit?

Credit card debt forgiveness could hurt your credit

You stop making payments to your creditors as you save for your settlement. Creditors typically report the debt as "settled" rather than "paid as agreed" on your credit report once it's paid off. This shows that the creditor wasn't able to collect on the full debt.

How long after debt settlement can I buy a house?

How Long After a Debt Settlement Can You Buy a House? There's no set timeline for how long it takes to get a mortgage after debt settlement. Your ability to qualify for a mortgage will depend on how well you meet the lender's requirements on the issues raised above (credit score, DTI, employment and down payment).

Is credit card forgiveness real?

While it's highly unlikely that any credit card company will forgive 100% of your debt without it being part of a bankruptcy, you may be able to negotiate a settlement with your lenders in which they forgive a percentage of the balance you owe.

Will my credit score go up if I settle a debt?

Yes, your scores are likely to drop after you settle the debt, but you can start working to increase your credit scores right away. If you're not sure where to start, a nonprofit credit counselor can help you explore options, including a debt management plan.

Can you skip a payment with Freedom Debt Relief?

Forbearance is a practice that allows you to skip your debt payments for a set period. It's not just for credit cards. Other loans might also have forbearance programs. Student loans, mortgages, personal loans, and auto loans can be deferred through forbearance programs.

What is the best debt relief company to work with?

Summary: Best Debt Relief Companies of April 2024
CompanyForbes Advisor RatingBBB Rating
Money Management International4.0A+
New Era Debt Solutions3.8A+
Freedom Debt Relief3.7A+
3 more rows
Apr 1, 2024

How do I get out of debt with no money and bad credit?

How to get out of debt when you have no money
  1. Step 1: Stop taking on new debt. ...
  2. Step 2: Determine how much you owe. ...
  3. Step 3: Create a budget. ...
  4. Step 4: Pay off the smallest debts first. ...
  5. Step 5: Start tackling larger debts. ...
  6. Step 6: Look for ways to earn extra money. ...
  7. Step 7: Boost your credit scores.
Dec 5, 2023

How long does it take to recover from a debt relief program?

If payments are missed during a DMP, and your accounts become delinquent, those negative marks will remain for seven years (as any would missed credit or loan payment). Fortunately, the impact of missed payments lessens over time and your credit should recover quickly, presuming you resume making on time payments.

Does credit card hardship hurt your credit?

Disadvantages of a credit card hardship program

On the other hand, being in a credit card hardship program may have a temporary negative impact on your credit scores, as participation in these types of programs — as well as any missed payments —can still be reported to the three credit bureaus.

What happens when a debt is paid in full?

When you pay a debt in full, you've basically fulfilled the terms of your loan or credit account and paid back the lender the full amount promised. With a loan, this usually happens once you've made your final payment and reached a zero balance.

What is a reasonable amount to settle a debt?

Typically, a creditor will agree to accept 40% to 50% of the debt you owe, although it could be as much as 80%, depending on whether you're dealing with a debt collector or the original creditor. In either case, your first lump-sum offer should be well below the 40% to 50% range to provide some room for negotiation.

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