You’ve decided on debt settlement to get you out from under onerous debt that is keeping you from completely enjoying life. The good news is that the financial strategy has served as a lifeline for people like you. The not-so-good news is that the industry has its share of scam artists. What you need is an established, credible company. But, what about the trustworthiness of Freedom Debt Relief? Is that a good company? Well, let’s look.
What Is Debt Settlement?
Let’s first define terms. Also known as debt relief, debt settlement is when a company such as Freedom Debt Relief negotiates with each of your creditors on your behalf to get them to slash the amount you owe in exchange for a one-time payment in full to “settle” your debt. You have a great shot because creditors understand that if they turn you down, you’ll likely file bankruptcy, which could result in a fat goose egg for them.
How Does Debt Settlement Work?
You’ll have an initial consultation with Freedom Debt’s trained reps during which your financial situation will be assessed, and a personalized payment plan will be established. In lieu of paying creditors directly, you’ll then open a dedicated escrow-like account into which you’ll make monthly deposits. After each settlement is reached and approved by you, the creditor will be paid from your account.
Does Debt Settlement Damage My Credit?
The process of debt settlement will temporarily cause your scores to tumble because you’re paying your creditors in a roundabout way — and at length. However, you can be assured that once you’re done with the program your scores will go back up, and then some. It’s also good to keep in mind that your scores aren’t great right now anyway. Right?
What Kind of Debt Does Freedom Debt Relief Accept?
It accepts several kinds of unsecured debt – obligations that aren’t tied to collateral like a house or car – including credit cards, medical bills, or personal loans. Whatever kind you have, you’ll need at least $7,500 worth and you must be delinquent.
How Much Does Freedom Debt Relief Charge?
If you wonder whether Freedom Debt Relif is legit, note that it will never charge you upfront, let’s say that right away. In fact, that’s usually a tell-tale sign that someone wants to rip you off: they ask for payment before they’ve lifted a finger to help you or sized up your situation.
That said, Freedom charges between 15% and 25% of enrolled debt – 21.5% on average. What you’ll pay depends on the state in which you live and your debt load.
How Much Can I Save with Freedom Debt Relief?
After settlement, you can expect to save about half of what you owe – sometimes even less.
Is Freedom Debt Relief a Reputable Company?
Sure. For one thing, Freedom is accredited by the American Fair Credit Council and the International Association of Professional Debt Arbitrators. That’s significant since most scam companies either will be rejected for accreditation or won’t apply for it.
Licensed in 41 states, Freedom also has an A- rating with the Better Business Bureau – a great score, considering all the competition.
To date, the company has helped more than 900,000 customers and resolved more than $12 billion – that’s “billion” with a “b” – in past due obligations.
Is Freedom Debt Relief trustworthy? It certainly is. The 19-year-old company is accredited and has grown to become the nation’s largest debt settlement company – for good reason. You’d be in good hands letting Freedom handle your settlements.