Freedom Debt Relief is a debt settlement company and very reputable in the United States. Individuals with lots of unsecured debt balances go there for debt settlement programs. Freedom Debt Relief helps your creditors to lower your debt and easily make the payments. It does not give credit counseling.
Before considering debt relief or settlement, know that it can negatively impact your credit. There may also be no guarantee of settling the debt. Review this option carefully; it should be your last resort.
Freedom debt relief gives
relief services for unsecured debts like medical bills, personal loans, credit card balances, and some other private loans. To qualify for this service, your debts must be at least $7,500. Freedom Debt does not give services for secured debts like mortgages and auto loans.
If you really need the services of a debt settlement company, go for Freedom Debt Relief. It is one of the most reputable firms in the United States. But, note that partnering with a debt relief company is risky because of the fact that the debt may not be settled in the long run. By then, you will be in more debt than before. Also, it has a very negative impact on your credit for some time. They are also costly sometimes.
- Failure to inform clients about their rights to the money deposited in their accounts with the company.
- Misinforming clients about the fee structure.
- Charging clients without actually settling the debt.
How Freedom Debt Relief Works
It has well-trained debt professionals who work on your behalf to negotiate your debt with creditors. To start with, call one of Freedom Debt Relief’s certified agents. This person will review your finances and access possible solutions. When you decide to partner with them, they will help you make an arrangement on how to pay your debt.
Freedom will tell you to stop making payments to your creditors and make payments to a special account with Freedom under your control. When your payment is now big, they will start a debt negotiation process with your creditors. Note that stopping payment for your debts for this period can damage your credit score.
Further, when an agreement is finally reached with your creditors, they will demand that you approve the settlement amount. The funds you have raised will be given to your creditor for paying your debt. This will go on until you completely pay the agreed amount. This process takes 24 to 48 months depending on individuals. Freedom charges 15 to 25% of the total settled debt. This can as well vary based on your state of residence.
It is important to note that the IRS sees forgiven debt as taxable income unless you are insolvent. Being insolvent means that your total debt is more than your total assets. It is only a tax professional that can advise you on this. Consider this carefully and ask the services of a tax professional before taking the step.
Moreover, Freedom debt relief is good in the followings:
- Lowering debt
- Useful for a last resort
- Very reputable
On the other hand, it does not provide credit counseling services. There is also no guarantee that your debt will be settled. In the past, it has failed some regulations. Other companies offer credit counseling, bankruptcy counseling, and debt consolidation. These companies include GreenPath Financial Wellness, National Debt relief, and so on.