Are you interested in settling unsecured debts? Do you have severe outstanding debt? Are you looking for debt settlement services? If yes, then go to Freedom Debt Relief. This company is one of the most reliable debt settlement firms in the whole United States. They can convince your creditor through negotiation to lower your debt.
Before deciding on debt settlement, it is important to know that spoils your credit history and sometimes, your debt will not be settled. Also, this process can be expensive. You will need a lot of money. When some creditors see you trying to settle your debt through this means, they bombard you the more to pay them. In some cases, you end up in more debt than you were before considering the option. It is necessary to consider all other options before thinking of debt settlement.
Freedom Debt Relief
Freedom Debt Relief settles unsecured debts like medical bills, credit card balances, private and personal loans. Before you qualify for a Freedom debt settlement, you must have up to $7,500 outstanding unsecured debt. Freedom Debt Relief does not settle secured debts like car or mortgage loan. Freedom is a very reliable company that can help you with your debt settlement plan. Since there are many scams out there, it is only right to partner with a reputable firm.
Even though Freedom Debt Relief is reputable, they also have their shortcomings. In 2017, the Consumer Financial Bureau filed a lawsuit against them for the following allegations:
- Failing to inform clients about the rights to the money deposited in their account with the company
- Misinforming clients about the fee structure
- Charging clients without actually settling their debts.
On the other hand, they don’t give a lot of options apart from simple debt management.
How Freedom Debt Relief Works
This firm has trained debt professionals who negotiate with creditors about your debt. To enroll for their services, call a certified Freedom Debt Relief consultant on the phone. The person will review your debt and the company will guide you to create a debt repayment plan.
When you start the process, you will stop paying for your debt, you will be making payment to an account under your control with the company. When there is enough money in the account, the company will start the debt negotiation with your creditor to accept a lower payment for your debt. This period that you are stopping payment for your existing debt can affect your credit score negatively. Again, you are not even sure that your creditor will accept to settle your debt.
Once an agreement is reached with your creditor, you will need to approve the settlement amount. Funds from the dedicated account will be transferred to your creditor as debt payment. This will keep going on until the balance is completely paid. If you can pay all the balances at once, it’s also good. But if you cannot, Freedom Debt Relief gives you 24 to 48 months to clear all. But Freedom Debt Relief will charge you between 15 to 25% of the total settled debt.
This is also risky since IRS considers all forgiven debt as taxable income, except if you are insolvent. To be insolvent means that your total debt exceeds your total assets. It is best to seek the services of a tax professional to know if you are in this category to avoid more problems.
Benefits of Freedom Debt Relief
- Standard debt settlement fees
- The largest debt settlement firm in the US and very reputable.
- Lowers debt.
- It is the best last resort option.
Disadvantages Freedom Debt Relief
- No credit counseling
- There is no assurance that the debt will be settled
- They have gotten into problems with regulators in the past.
If you need additional services like credit counseling and more, go to GreenPath Financial Wellness, National Debt Relief or National Foundation for Credit Counseling.