Are you struggling with debt and looking for a way out? If so, you may have heard about Freedom Debt Relief – a company that claims to help people get out of debt. But is it worth the hype? In this article, we’ll take a closer look at Freedom Debt Relief and its reviews to help you make an informed decision.
What is Freedom Debt Relief?
Freedom Debt Relief is a debt settlement company founded in 2002. It claims to help people reduce their unsecured debt, such as credit cards, medical bills, and personal loans. The company negotiates with creditors on behalf of its clients, aiming to settle debts for less than what is owed.
How Does Freedom Debt Relief Work?
When you sign up for Freedom Debt Relief, the company asks you to stop making payments to your creditors and instead, start making payments to an FDIC-insured account. The money in this account will be used to pay off your debts once a settlement is reached.
Freedom Debt Relief then negotiates with your creditors to settle your debts for less than what you owe. The company charges a fee for its services, typically a percentage of the total debt enrolled.
Pros of Freedom Debt Relief
- Reduced Debt: Freedom Debt Relief has helped many people reduce their unsecured debt. The company negotiates with creditors to settle debts for less than what is owed, which can be a huge relief for those struggling with debt.
- One Monthly Payment: With Freedom Debt Relief, you make one monthly payment to an FDIC-insured account instead of having to make multiple payments to various creditors. This can make managing your debt much easier.
- No Up-Front Fees: Freedom Debt Relief does not charge any up-front fees. You only pay a fee when a settlement is reached, so you don’t have to worry about paying for a service that may not work for you.
Cons of Freedom Debt Relief
- Damage to Credit Score: When you stop making payments to your creditors and instead start making payments to an FDIC-insured account, it can have a negative impact on your credit score. This is because creditors may report your missed payments to credit bureaus, which can stay on your credit report for up to seven years.
- Fees Can Be High: Freedom Debt Relief charges a fee for its services, which can be as much as 25% of the total debt enrolled. This can be a significant amount of money, especially for those who are already struggling with debt.
- Not Guaranteed: Freedom Debt Relief cannot guarantee that it will be able to settle all of your debts. This means that you may still be left with some debt even after using the company’s services.
Freedom Debt Relief Reviews
So, what do people think of Freedom Debt Relief? Reviews are mixed. On Trustpilot, a website that collects customer reviews, Freedom Debt Relief has a rating of 4.5 out of 5 stars, with many customers praising the company’s customer service and its ability to reduce debt.
However, there are also negative reviews, with some customers complaining about the high fees and damage to their credit scores. Some customers also reported that Freedom Debt Relief was not able to settle all of their debts, leaving them with unresolved debt.
Is Freedom Debt Relief worth the hype? It depends on your individual situation. If you are struggling with unsecured debt and are willing to accept the potential negative impact on your credit score, Freedom Debt Relief may be worth considering. However, be aware of the potential high fees and the fact that the company cannot guarantee that it will be able to settle all of your debts. As with any financial decision, make sure to do your own research and consider all of your options before making a decision.