Just like every other debt management company, Freedom Relief Debt management company comes with the claim to reduce, manage, and lastly help you get out of debt. So, the question now is, do they really live up to their words? We’ll find out.
In this article, we’ll X-ray Freedom Debt Relief as a system, highlighting its functional components and its authenticity.
Chris Cataldo has this to say about FDR, “It was a big surprise to me in the beginning,” Cataldo told The Post. “Between me and ex-wife, we had made a pretty good salary together, so I could not understand why there wasn’t enough money to cover the credit-card bills.” After some research and counseling from Freedom Debt Relief, Cataldo could ultimately negotiate a settlement for $8,000 with creditors.
Though the ability to live without constraints in our world today might look unrealistic, the goal of Freedom Debt Relief in its entirety is a means to an end. Let’s get to know Freedom!
About Freedom Debt Relief
Freedom Debt Relief is an accredited debt settlement company based in California.
Established in 2002 by Andrew Housser and Brad Stroh, Stanford Business School graduates, Freedom Debt Relief company provides freedom to debtors through proffering friendly options to clients struggling with their debt.
As a company, Freedom aims to provide financial solutions, services, and education that enable people to reduce debt, build wealth, and achieve sunny financial freedom.
To help achieve the company’s mission and goal, FDR has over 2,000 trained professionals and over 600,000 clients.
Unlike some companies that charge fees before debts are settled, Freedom Debt Relief never charges a fee until we’ve done our work and negotiated a settlement.
With knowledge of how FDR works, it is much easier to decipher if Freedom Debt Relief is a decision in the right direction. To help you pick a debt settlement service, our team of experts has this to say…
How Freedom Debt Relief Works
Debt relief isn’t bankruptcy or a loan. It is a common business practice that helps clients resolve unsecured debts that don’t require collateral.
Freedom helps clients; reduce what they owe, be debt-free, and pay less each year. Now, how do they achieve these aims?
Freedom Debt Relief’s program reduces the outstanding principal amount you owe to your creditors and does not decrease interest rates or change the length of a loan term.
During debt relief, FDR negotiates directly with creditors on behalf of their clients to accept less than the full amount owed. This allows the creditor to get paid sooner and the client to resolve the debt in two to five years, which is much speedier than by making minimum payments.
In some cases, Freedom Debt Relief program could also enable someone to be debt-free sooner than they would be with a debt consolidation loan. Plus, the client saves money by not having to pay interest for all the years they would have been making minimum payments or repaying a debt consolidation loan. To know more about debts, You can read more details on Is it better to Save or Pay off debt?
What Types of Debts Qualify For Debt Relief?
Freedom Debt Relief assists clients with settling unsecured debts, including:
- Credit card debt
- Medical bills
- Department store card debt
- Unsecured personal loan debt
- Vehicle loan debt
- Mortgage debt
- Federal student loan debt
- Some private student loan debt
- Some types of business debt
The company may offer debt settlement relief for private student loans and some business debts on a case-by-case basis. As stated earlier on, Freedom Debt Relief does not assist with secured debts, such as auto loans or mortgages, or federal student loans. After foreclosure or repossession, Freedom Debt Relief can add your loan balances to the program.
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How Do I Qualify for Debt Settlement With FDR?
To qualify for debt settlement with Freedom Debt Relief, you must have at least $7,500 in debt and be behind on their payments to qualify for a debt settlement plan.
Freedom Debt Relief works with people who face financial hardship that hinders them from making full monthly payments on their debts.
How Does Freedom Debt Relief Settle Debts?
The process at Freedom is indifferent to most debt settlement companies. Once you enroll, you stop making payments to your creditors. Alternatively, you open a separate savings account, which you’ll own and control, and deposit monthly payments into this account.
Freedom works with clients to find out the amount to be deposited each month into the dedicated savings account. It bases the amount on your capacity to pay and the amount of total enrolled debt, according to the company.
After the account gains enough money, the company negotiates with individual creditors on your behalf to get them to accept less than the amount you owe. The idea is that after months of nonpayment, it will move the creditor to take the lower sum rather than gamble getting nothing at all.
If a creditor accepts the lower payoff amount, you pay the creditor, either outright or in installments, from your savings account. You also then pay a fee to Freedom Debt Relief for its service.
SEE ALSO: How Much Of Your Paycheck Should You Save Immediately?
How Does Freedom Debt Relief Make Money?
Freedom Debt Relief charges a fee typically ranging from 15% to 25% of the total debt in the program. Your fee depends on the amount of debt and your state of residence.
How Long Does A Debt Settlement Stay On Your Credit Report?
When you settle one of your debts, your creditor will indicate settled in the status of your account, or some variation thereof. This status could stay on your credit report for up to seven years.
Having an account settled has less of a credit impact than having an account with the status of unpaid. However, both are considered negative marks to your credit. Nevertheless, by engaging in positive credit behaviour over time, you may improve your credit standing.
Freedom Debt Relief Terms and Fees
Freedom Debt Relief does not charge an upfront fee for debt settlement. However, they charge between 15 – 25% of the total settled debt. According to the company, the amount differs according to your state of residence.
For example, if you had $7,500 of outstanding debt and Freedom Debt Relief could settle $4,000 of debt, you would owe between $600 and $1,000 for this service.
See the table below.
| Feature | Details |
|---|---|
| Debt amount | Minimum of $7,500 |
| Fees | 15 – 25% of total settled debt |
| Time frame | 24 – 48 months |
Is Freedom Debt Relief Legit or Scam?
Freedom Debt Relief offers debt settlement services, which affords an avenue to eliminate your debt by reducing what you owe. Freedom can have a negative impact on your credit, but the goal is to improve your situation over time.
Remember, nobody makes progression on poorly managed debts. Therefore, this company offers alternatives to keep your heads above the water. I’m sure you hate the sound of bankruptcy.
Here is more about this firm and its services:
- Freedom Debt Relief is accredited by the American Fair Credit Council and the International Association of Professional Debt Arbitrators.
- Debts are typically resolved in two to four years.
- At least $7,500 in debt is required to enroll.
- Only unsecured debts are eligible.
- Settlement fees typically range from 15% to 25% with an average fee of 21.5%.
Nonetheless, if If you’re considering debt relief, understanding the debt relief process before committing to it is the way to go.
How To Contact Freedom Debt Relief
You can contact Freedom by phone or send an email.
You can send an email to:
PO Box 2330
Phoenix, AZ 85002-2330
Or Call the following Freedom Debt Relief phone numbers;
Clients:800-655-6303
Non-Clients:800-230-1553
Final Words
If you have $15,000 or more in unsecured debt, Freedom Debt Relief may help. While all debt relief services will probably cause a negative mark on your credit report, Freedom Debt Relief professionals can assist you in negotiating with creditors in a way that you may not do yourself. Although fees may be high — as much as 25% of what you save on your debt — it may still be less than paying the debt in full.
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