An Introductory Note Aiming to assist people who have taken loans they cannot pay back the necessary money to eliminate their present debt, the Freedom Debt Relief project is a debt relief program.
Freedom Debt Relief is a debt settlement firm that assists people pay off credit card debt, medical expenses, personal loans, and any other kind of debt. Their method is debt consolidation when they interact with the creditors to provide a part of what is owed in exchange for full payment.
That simply brings us to the following natural question: How does Freedom Debt Relief work
Upon enrolling for Freedom Debt Relief, you are going to have a unique bank account where you will deposit money for 24 to 48 months. This money will go to Freedom and be deposited into an account from which you do not pay your creditors but use the money to pay Freedom.
It depends on the total sum that you have enrolled under the repayment plan of the debt. Freedom will review your debts, earnings, and total properties to devise the best plan for debt settlement as well as establish how much you need to save every month.
Freedom will, on your behalf, suspend the payments to your creditors as you save or build your savings. This will likely mean that your accounts become delinquent or default which again is not something any business wishes for their clientele. However, Freedom will discuss with your creditors to try and agree to pay some of your debts after you have accumulated some money into your account.
Freedom asserts that consumers normally can shave between a quarter to half of their enrolled debt balances. If you have a $20,000 balance across all accounts, then you will be able to pay off this account for 10000-15000$. The program continues until the time when all your debts are paid off or the time that you have reached your dedicated account payments.
Enrollment Requirements
To qualify for Freedom Debt Relief’s debt settlement program, you’ll need to meet several requirements:
- Have more than $7500 balance unsecured line (credit cards, bills, personal loans, and other related accounts).
- Prove that there is adequate earnings to help make the monthly savings account contribution
- In addition to this, a credit counseling session is recommended.
- Pay zero dollars to creditors upon enrolling (to be considered delinquent)
- Sustained feedback and attention are required to establish the habit of regular giving for 2-4 years each month.
- Pay program fees based on the amount of debts cleared (range is 15 to 25% of the total amount saved)
Key Professionals of Debt Settlement
Debt payoff through a firm such as Freedom means that you will be able to clear your balance at a cheaper price. However, there are some downsides to understand with this approach: However, there are some downsides to understand with this approach:
Pros:
- Buys debts for a smaller amount than the balance outstanding
- Avoids all forms of communication from collectors
- Helps avoid bankruptcy
- Assists and guides users with debt-related issues
- Cons:
- Fees may go up to 25 percent of the total amount that has been saved
- Effect on tax on the accrued amounts when the debts are settled
- Endangers credit by paying the loans after several days
- It is equally important because there is no assurance that creditors will agree to the settlements.
- Creditors still can take legal actions A licensed attorney still can sue
In instances, debt settlement helps to remove the debts, but one must consider the effects of this on his/her credit rating and financial situation. This is important to avoid being caught in a situation where you do not understand all the risks that are associated with the decision you are making.
Alternatives to Debt Settlement
Some options, if you have debt but aren't convinced of debt settlement, is appropriate for you to include:
Debt management plans, or DMPs, coordinate payments via a credit counseling organization wherein scheduled payments to creditors are made. At lower interest rates, you get to pay off your loan more often than most usual.
Debt consolidation loans help to combine high-interest debt into a single personal loan thereby enabling faster repayment with reduced interest rates.
See approved credit counselors for guidance on behavior modification, payment allocation, and expenditure reduction.
Finally, via a Chapter 7 or Chapter 13 bankruptcy, you may be able to get court authorization to wipe eligible debt. This relieves but seriously damages credit.
Take any strategy; look at how it is done and consider the possible results. Find out what plan costs more, which has more advantages, what dangers utilizing this or that strategy involves, and how long it will take.
Is Freedom Debt Relief Worth It: A Comprehensive Overview
Overall, Freedom Debt Relief is best for those who: Overall, Freedom Debt Relief is best for those who:
- Credit card balances of $75 or more which is an unsecured debt amount of $7,500 or more
- Being experiencing relatively serious financial difficulties
- Unable to pay at least the minimum amount
- Want to avoid a situation where they have to declare that they are broke.
- Many people are willing to harm their credit report for some time
- May take a long time before the payments can be made within a given period of between 2-4 years.
If so, Freedom Debt Relief has the right process of helping debt sufferers pay off their debts at lower prices. However, ensure that you are aware of the potential risks such as free services being charged a certain fee or your credit score being affected negatively once you proceed. Consider all your debt relief plans that are available to you and see which one is best for you.
Call now for expert credit repair services: (888) 803-7889
Read More:
Do derogatory marks go away once paid?
How can I get out of debt with bad credit and no money?
What is a trick people use to pay off debt?
Can I borrow money with a 500-credit score?
