About Freedom Debt Relief
2002 was the year when Freedom Debt Relief first appeared on the market. The idea behind this concept pertains to Stanford Business School graduates Andrew Housser and Bradford Stroh.
Their aim is to provide people with help and solutions to their unsecured debts in 24 to 48 hours. This is their alternative to declaring bankruptcy.
A quick search on the Internet helps you see how they’ve already dealt with more than $8 million in debt for more than 500,000 clients. Considering the fact that all was done starting the program’s launch, it’s safe to say that Freedom Debt Relief achieved more than any other such company throughout the nation.
Before choosing to deal with your financials under their guidance, it’s best advisable to talk to a Certified Debt Consultant. This is how you’ll get a better picture of whether Freedom Debt Relief can help you or not.
Also, you can understand if there any chances for you to partner with them and save some money. Only after clearing out these details you can choose to give them a try.
Being debt-free is something that everybody wants and if it can be done fast, that’s even better. With all the options available out there, could you trust Freedom Debt Relief to properly manage your financials? Keep on reading to learn more about them.
How does Freedom Debt Relief works?
Anyone who wishes to qualify for their program will need to owe an amount of at least $7,500 in unsecured debt. This means any money you owe with credit cards, medical bills, and so on. Also, you’d have to be part of that group struggling to earn the minimum monthly money that can pay your expenses.
In other words, you’d have to deal with any financial breakdown, due to either the loss of your job, a divorce, much too expensive medical bills, or even the passing of a loved one. This is what would qualify you for the Freedom Debt Relief program.
Keep note that credit scores don’t count too much, as they’re not an eligibility factor. However, remember that there are only certain residents that have access to their features, such as those living in the following 34 states: AL, AK, AZ, AR, CA, CO, DE, FL, ID, IN, IA, KY, LA, MD, MA, MI, MN, MO, MT, NE, NV, NM, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, WI, Guam, Puerto Rico, and American Samoa.
Once you checked all these criteria off the list, you can consider yourself qualified for the Freedom Debt Relief program.
Next, there are five steps you’ll have to go through, as follows:
- Talking with a Certified Debt Consultant– such people are appropriately trained and qualified to meet the conditions of the International Association of Professional Debt Arbitrators, known as IAPDA. In this step your debt will be evaluated and all the options matching your case will be shown. This is how both you and the company will know for sure if any partnership between you two can give good results. If it’s not the case, you’ll de directed towards another company that might meet your needs.
- Next, you’ll be given a customized program, including all the information about your available options, in strong relation to your needs. The amount of money you’ll be able to save is highly dependent on how much your monthly payment is. This will also give you an idea about how much your program will last.
- Having set up your program, you are now ready go further. Now it’s time to monthly fund your FDIC insured account, which will actually repay for your debts. Any time you’ll have complete access to it, and you’ll have to stop using your credit cards. This is how Freedom Debt Relief will be able to faster resolve your debts.
- As soon as significant amounts of money will accumulate in your account, FDR’s representatives will start to make arrangements and negotiations around your settlements with your creditors. Judging by what their website claims, they’ve earned a lot of experience in negotiating for over a decade, solving an average of 43,891 account on a monthly basis.
- Once all your debts have been resolved, you can call yourself the proud successful graduate of the Freedom Debt Relief program.
Is this program worth the money?
What caught our attention is that this program will not charge you until they’ve shown you some results. This means that Freedom Debt Relief will not require any money until after at least one debt has successfully dealt with. Moreover, there are no monthly fees applied.
But don’t get too exited. Remember that special bank account you have to open? Well, that’s where a monthly small fee will go, but you are warned from the very beginning. The company actually emphasizes this, as it is common with most other financial accounts.
If this is your case, the client’s monthly program deposit amount will keep this fee. Keep in mind that this is something they’ll have control over at all times.
Whether your program will finish sooner or later, it all depends on each particular case. Your place of residence and the amount of debt will set up the final fee. Once a settlement’s negotiation is reached, the final fee may range between 18 and 25%.
Let’s think of an example. If one of your accounts have accumulated a debt of $10,000 and Freedom Debt Relief reached a settlements for $6,000, your fee will range somewhere between $1,800 and $2,500. This will sum up a total of $7,800 and $8,500.
Regarding how much you’d save, this example shows an overall saving of a sum between $1,500 and $2,300 off your original debt.
More detailed information you can get from a Certified Debt Consultant. You can contact them by phone at 800-230-1553. Also, you can undergo a consultation to get a better view on what Freedom Debt Relief can actually offer you.
What do former FDR clients think?
Online sources show an average rating of 3.7 stars as a result of the feedback this program received.
On the one hand, the positive opinions focus on how effective the debt reduction is, along with how well settlements are going. Also, people have praised their consultants as being really helpful.
On the other hand, most complaints point out those settlements that did not end well, not meeting initial expectations. Also, some clients had a lot to say about the steep fees they had to pay.
However, other online sources show higher ratings, like 4.7 stars. The rate between compliment sand complaints is the same we mentioned earlier.
We were happy to see that on some online platforms approximately 89% of review were positive. For those negative ones, even though few details were available, a company representative responded with a solution to each one.
What to choose- Debt Relief or Credit Counseling?
The Federal Trade Commission points out that those known certified counseling organizations, along with their counselors, can do a good job on helping better manage your debts. They can help you create that budget that will help you pay what you owe and even save some money. Moreover, you’re offered free financial education with materials and workshops.
It’s true that they don’t always provide you with settlement services with your creditors, but creating a financial plan with them can ease up things. You can pay your debts in a decent time frame so that you can get back to a balanced life.
A big plus goes for them, as they’re usually functioning as non-profit organizations, so that you won’t have to pay to much and even nothing at all.
Still, you can have access to these same services and even a potential reduction on what you have to pay for your debts with Freedom Debt Relief. Of course, a minus with them is the fee you’ll be charged for the services they’ll provide you with.
There are several suggestions the Federal Trade Commission has for you:
- Make sure that you have the money to put into that savings account. This is precisely what the company needs in order to negotiate with your creditors on your behalf.
- Understand that not all accounts are settled. There are chances that you might end up owing as much as you initially did. However, you would indeed save on interest and late payments.
- Always being aware that if you stop paying on your debts, your credit scores could be negatively impacted.
Something that many people might not be aware of is that you can make negotiations with creditors on your own. It won’t cost one dime, but it will sure cost you time and energy, as you don’t have the necessary experience to do it effectively and successfully.
Moreover, you won’t have the same impact and influence that a company like Freedom Debt Relief has. No matter if you have prepared your savings account, things might still turn out not like you want them to.
However, it’s an option, depending on your context.
It is up to each of us to choose the best option for dealing with our debts. Nowadays we have numerous alternatives and guided correctly, we can make the best choice for our situation.
Freedom Debt Relief has been resolving debts for more than 15 years and the positive online feedback clearly show this. Therefore, if you qualify for their program and you fully understand the pluses and the minuses that come along, you can definitely give them a try.
Making your own research, talking to former clients can help a lot in making the best decision for you. In fact, as you reach out to a Certified Debt Consultant, you are more than ready to know for sure whether you’re a good match for Freedom Debt Relief program or not.