Originally founded in 2002, Freedom Debt Relief is among the largest and most well-known debt settlement companies around. Found in San Mateo, California, they employ more than 2000 people to help American customers. But who is Freedom Debt Relief, and what offerings of goods and services are provided to customers having trouble paying back their debts?
A Simple and Quick Guide to Freedom Debt Relief Using debt settlement, Freedom Debt Relief aims to help clients control and finally eradicate unsecured debt. They approach this differently than debt consolidation or bankruptcy. Freedom Debt Relief gets to negotiate for the customer and the creditor settles the debt for an agreed-upon amount less than the original amount owing in the debt settlement procedure. This helps customers lower their risks of finding themselves in a position for bankruptcy declaration and quick debt discharge.
For instance, throughout its operations, Freedom Debt Relief has helped over 1 million debtors resolve more than $15 billion. They credit their success to the effectiveness of lowering customers’ debts to some extent because they are large enough to negotiate deals despite the harsh financial conditions.
A crucial aspect of Freedom Debt Relief’s debt settlement program is that when a customer enrolls for the program, they provide money to be held to meet the required lump-sum offers. Freedom Debt Relief will then help the customer negotiate with the creditors to agree to the debt disposal, which is normally between forty to sixty percent below the total amount owed by the customer.
Customers pay a monthly amount to be deposited in the specific account opened with an FDIC-insured financial institution that Freedom chooses. Once savings reach a sensible amount that will enable the company to make a satisfying offer to the creditors, Freedom Debt Relief then acts as the middleman and attempts to negotiate and then settle the debts with the creditors on behalf of the customer.
Key Services Offered
Freedom Debt Relief offers two primary services:
- Debt Settlement Program: Actually, Freedom Debt Relief is in the business of debt settlement which involves getting credit card and unsecured debt reduced through negotiation and payment. This includes credit cards, medical bills, personal loans, and other forms of credit balances Customers accumulate cash to make settlements.
- Consolidation Plus Program: For customers who cannot afford to pay high monthly installments, the company provides debt consolidation services that allow customers to combine debts into one. Such services as the settlement may also be employed to can then lower the overall amount owed to the creditors.
- In total, Freedom Debt Relief operates primarily to enroll customers who have at least $7,500 of unsecured debt in multiple accounts. Some of the fields are not likely to give good customers, especially if they are involved in student loans, recent bankruptcy, or collateralized debts.
What Does It Cost? While registering for Freedom Debt Relief services, there is no need for customers to pay any money upfront. It is noted that during enrollment customers will be required to pay an initial consultation fee ranging from $99- $195.
It is named according to fees that are directly linked to a percentage of enrolled debt. In the case where Freedom Debt Relief helps negotiate the elimination of debt at 60% less than owed, the highest amount they could charge would be 25% of the 40% that was saved. Thus if they negotiate a $10,000 debt for $6,000 then the fee is 0. 25 times the $4,000 saved. Charges are collected from the customer only when they are in the unique settlement account created for him.
The total cost ranges from $2000 to 5000 dollars, including all negotiation and legal fees, and this is paid in installments ranging from 24 to 48 months according to state laws for enrolled debt. There are no settlement fees in case of failed negotiations.
Why you should use Freedom Debt Relief
If you’re struggling with high amounts of unsecured debt, here are some key benefits to working with a company like Freedom Debt Relief: If you’re struggling with high amounts of unsecured debt, here are some key benefits to working with a company like Freedom Debt Relief:
- Settlement of Debt: The first and most obvious advantage for the debtor is that they can pay their creditors less than the full value of the outstanding balance. This has a significant effect of decreasing amounts owed and assisting consumers in making progress towards the successful repayment of debts.
- Avoid Bankruptcy: Thus, by paying off debt, many customers do not have to file for bankruptcy. This helps them to avert serious consequences as per the financial and credit aspects.
- One Easy Payment: Freedom Debt Relief settles debt so that customers are only required to manage one monthly program payment on a debt account.
- No Risk: Contracts with consumers: The company has to give flexibility in that the customers can cancel their subscriptions at any given time without having to pay hefty penalties. And that includes no settlement fees until the negotiations minimize a customer’s debt load as a success.
The Cons & Considerations
While debt settlement helps many, some key downsides exist with this approach: While debt settlement helps many, some key downsides exist with this approach:
- Credit Score Impacts: It will be also important to know that your credit score will be affected when the accounts get close to or go into default. The amount you pay also influences the settlements and it is also possible to get marked as settled for less than what you owe thus affecting your score.
- Tax Implications: If a debt is paid for, then he or she gets a deduction of at least $600 from the actual amount owed, the forgiven debt may be considered as taxable income. Customers should discuss this.
- Lawsuit Risks: Creditors may resort to suing to ensure that they receive full payment of the due amounts. Still, Freedom Debt Relief assists in preventing and managing any lawsuit-related occurrences.
- Long Process: The payment of all debts can sometimes run for several months, or it may even span years. Loans might also carry an interest until they are paid off and other dues might also attract interest for some time.
Is Freedom Debt Relief for me? It is crucial to note that Freedom Debt Relief debt settlement programs differ depending on the debtor, but these can be the best options for those who want to pay off unsecured debts without declaring bankruptcy. This should be appropriate for those with reasonable income levels who have high levels of credit card or similar obligations.
But before they proceed to sign up for enrollment, they must also evaluate the credit risk, the length of time, and the amount of money to pay off the debts they have. In conclusion, the experience of Freedom Debt Relief can be indeed helpful in the provision of real debt relief so long as the customers maintain proper discipline towards the proper functioning of the settlement programs.
Call now for expert credit repair services: (888) 803-7889
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