If you’re considering a debt settlement program, you may be wondering if Freedom Debt Relief is right for you. Despite the company’s good reputation, it may still affect your credit score and charge standard fees. To answer these questions, read on. This article provides information on the company’s benefits and potential drawbacks. Don’t sign up until you’ve read this article.
Freedom Debt Relief is a debt settlement company
If you’re looking for a debt settlement company, Freedom can help. This firm does not charge upfront fees for its services, and instead charges a percentage of your settled debt. Freedom Debt Relief typically charges between fifteen and twenty-five percent of the total amount settled. The fee range varies depending on the company’s expertise, the client’s situation, and the state where you reside. Typically, these fees are added to your monthly payments and deducted from the dedicated account.
Another major benefit of Freedom Debt Relief is their reputation in the industry. They are members of the International Association of Professional Debt Arbitrators and the American Fair Credit Council, and have been targeted by the New York State Attorney General’s office and Consumer Financial Protection Bureau multiple times. While their service has received a lot of praise from consumers and creditors alike, it is also under scrutiny from the regulatory agencies. So how do you decide which debt settlement company is right for you? Here are some important facts to consider:
Firstly, the process is fairly simple. Freedom Debt Relief will stop sending payments to your creditors in exchange for a reduced settlement. You will need to open a separate savings account and make regular deposits there each month. Freedom Debt Relief will then determine the amount to settle your debt based on your ability to pay and the total balance enrolled. This process can take from twenty-four to forty-eight months, though individual time frames will vary.
You must have at least $7,500 in unsecured debt to qualify for a settlement with Freedom Debt Relief. The company will contact your creditors on your behalf and negotiate on your behalf. As the settlement process can take some time, you will be contacted by the company several times before it is settled. After a settlement is made, Freedom Debt Relief will pay off the settlement, which can help you get back on track financially and rebuild your credit.
It has a good reputation
Despite the good reputation of Freedom Debt Relief, it is important to understand the risks involved. While debt settlement is a good option for many people, it can lower your credit score. This can make it difficult for you to get credit in the future. Whether you choose debt settlement or bankruptcy depends on your spending habits and financial situation. However, if you make reckless spending decisions, you could end up even worse off than you started out.
One reason to choose a company with a good reputation is that the firm is legit. Freedom Debt Relief is an industry heavyweight with 18 years of experience and more than $10 billion in settled credit. It is a founding member of the American Fair Credit Council, an organization dedicated to ethical credit negotiation. Customers can take advantage of free evaluations to see if a debt settlement or credit card consolidation is right for them. Freedom’s experts will analyze your credit and options and estimate how much you could save through credit negotiation.
Another reason that Freedom Debt Relief has a good reputation is that they offer free consultations and evaluations. A debt settlement or payment plan requires the debtor to have at least $7,500 in unsecured debt. It may also negatively impact your credit score, so be sure to consider this before you decide to go through with it. Regardless of the benefits, it’s important to keep in mind that Freedom Debt Relief is only suitable for people who have real financial hardship.
Another benefit of utilizing a debt settlement company is that they are not responsible for the damages done to your credit score. Freedom Debt Relief has negotiated more than $10 billion in debt for its clients, and it is one of the few companies that has such a great reputation. But make sure to do your research and choose a company that is reputable. If you’re serious about obtaining debt relief, you should take the time to read the reviews online and consider all your options.
It can affect your credit score
It’s true that Freedom Debt Relief will lower your credit score, but this is not because of the program’s failure. In fact, the program’s participants’ median credit scores improved over 100 points over the course of the four-year study. During this time, nearly 80% of Freedom Debt Relief participants enrolled five or more unsecured accounts, with an average of 11 accounts. Those with a few stubborn accounts might not be candidates for the program. However, if a consumer can’t get the debt under control without using a professional, they might not be a good fit for the program. In addition to Freedom Debt Relief, consumers can also try to negotiate with creditors on their own, but this process is often time-consuming and uncomfortable.
One of the main benefits of Freedom Debt Relief is that it doesn’t require lengthy approval. Customers are given a custom plan for debt relief and a dedicated bank account for the program. Depending on the amount of debt and monthly payments, this process could take between four to six months or up to 48 months. If you decide to quit Freedom Debt Relief, make sure to check your credit score first, as it will be affected negatively if you do.
It’s also important to understand that canceling your debt relief program can cause more problems than it’s worth. Not only will interest rates and waived fees return once you leave the program, but the late payments can also affect your credit history. This is why it is important to keep a good track record. It’s better to get debt relief than to risk damaging your credit score with a bankruptcy.
It charges standard fees
Freedom Debt Relief works with consumers who have unsecured debt of $7,500 or more. This includes credit card debt and medical bills. This company works with customers who are suffering from legitimate financial hardship and have been unable to make their monthly payments. The best time to use this service is when you have fallen behind on your payments. Creditors are unlikely to negotiate with you if you consistently pay your bills.
However, you should know that it may take several years for the process to work. If you choose to go with debt settlement, you should consider saving up your money every month until the service has enough to make a “reasonable” offer to your creditors. While debt settlement is an effective option for many consumers, it is important to remember that it can leave a mark on your credit report. You won’t be making payments for 24 months, so you may not be able to get credit during that time. Unlike other debt settlement services, Freedom Debt Relief does not charge you an upfront fee. If you decide to cancel your service, you’ll be charged only after the service has settled your debt.
Besides paying their fees, Freedom Debt Relief is also very transparent. They will not take more than 18-25% of the amount you owe. Instead, they will negotiate on your behalf with your creditors to get a lower payoff amount. The fees are based on their estimate of the amount you’ll owe during the entire negotiation process. In the meantime, you will be able to pay back accumulated interest and late fees.
It can stay on your credit report for 7 years
The biggest downside of Freedom Debt Relief is that it may not work for you. You may lose your credit score because you stop making payments on your outstanding debts. The reason for this is that the creditors continue to accumulate interest and tack on late fees if you stop making payments. This negative information can stay on your credit report for seven years. Not to mention that the IRS may consider the forgiven debt as taxable income.
While many people think that a company that charges fees is a scam, the truth is that there are several ways to avoid Freedom Debt Relief. The fees range between 18% and 25% of the total enrolled debt. After signing up for an account, you will receive contact from a representative to authorize settlement. Eventually, the company will contact you to settle each debt and add the fee to your regular payments. While this may sound like a good deal, it is important to realize that if you quit the program, the charge could stay on your credit report for 7 years.
While debt settlement may save you money in the short term, it can negatively affect your credit report for up to 10 years. You should compare all credit relief options before signing up for Freedom Debt Relief. It’s possible that your debt settlement will work better for you and your credit score, but if you don’t have a lot of money, working with an accredited credit counseling agency might be a better option.
In the past, Freedom Debt Relief was sued by the Consumer Financial Protection Bureau for allegedly charging people without settling their debts as promised. Moreover, consumers complained that the company made customers negotiate settlements themselves, despite having no experience in this field. However, Freedom Debt Relief claims to not do this. They have a better BBB rating, but both have double the number of customer complaints.