Monday, April 26, 2021

Is Freedom Debt Relief a Reputable Company?

If you have a veritable boatload of outstanding debt, you may want to consider Freedom Debt Relief (FDR), which offers strategies for shedding your unsecured obligations. But is FDR a reputable company?

The short answer is yes, let’s take a look.

FDR At A Glance

Basically, the company requires a minimum debt of $7,500, and its typical customer has $25,000 in obligations. Fees range between 15% and 25% of the enrolled debt, although the amount varies depending on your state. 

The time it takes to eliminate debt is between two to four years, with the average debt resolved in three years, 10 months. Post-fees savings to consumers are between 15% and 35%.

How Does FDR Work?

Freedom Debt Relief has trained debt professionals who will work with you to put in place its debt relief and settlement programs.

Initially, a certified debt consultant will discuss your situation with you and evaluate potential remedies. If you sign on, the consultant will help you create a personalized repayment plan.

You then will usually cease paying your debts directly and instead deposit those monies into a dedicated account controlled by you. Once there are sufficient funds in that account, Freedom Debt Relief will open debt negotiations with your card issuers. 

This means that your creditors will be asked to accept a one-time payment in full for less than you owe. It’s important to know, however, that stopping payments on your current debt will, at least for the near term, damage your credit score.

If an agreement is reached with your card issuers, and you approve the amount, funds will be transferred to your creditors as debt payment.

Is FDR a Scam?

Hardly, although there are many unscrupulous agencies out there that are more interested in helping themselves than helping you. 

These firms often; charge fees before they settle your debt, “guarantee” to make your debt woes disappear, tell you to stop talking to your creditors, pledge that you’ll clear your debts for pennies on the dollar, say they can stop debt collection calls or lawsuits, offer a one-size-fits-all remedy that may not be right for you or use scare tactics to pressure you to enroll in their program.

Be leery of companies that do any of these things.

In contrast, Freedom Debt Relief is accredited by both the American Fair Credit Council and the International Association of Professional Debt Arbitrators. Since 2002, more than 650,000 clients have been served by FDR, which has resolved more than $10 billion in debt. So, you can sign on knowing you’re getting legitimate credit relief.

Here’s what Freedom Debt Relief does, which sets it apart from bogus or unsavory agencies:

  • It never charges you until it negotiates a settlement
  • It helps you deal with creditors but doesn’t tell you to cease communications with them
  • It offers a subscription to the National Litigation Law Group service that provides certain legal representation if you need it
  • It provides you with a realistic estimate of when you can expect to become debt-free
  • It develops a bespoke relief plan for you that suits your needs and financial goals
  • It spends time understanding your unique needs to make sure it’s the best solution for you

Is Freedom Debt Relief a reputable company? Well, it didn’t become the largest debt settlement company in the nation by ripping folks off. While no debt relief company can guarantee that it can reduce a customer’s debt with a creditor, FDR’s long history of negotiations with so many top creditors is real and gives it a leg up over the competition.

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