Freedom Debt Relief Review: A Comprehensive Assessment
Introduction:
Freedom Debt Relief (FDR) is a well-known and highly regarded debt settlement company that has helped thousands of consumers reduce their unsecured debts. With over 17 years in the industry, FDR has settled more than $10 billion in debt for their clients. This review will objectively evaluate the company’s services, fees, processes, and reputation to help potential clients make an informed decision.
1. Services Offered:
Freedom Debt Relief specializes in debt settlement, a process in which they negotiate with creditors to reduce the total amount of unsecured debt owed. Unsecured debts include credit cards, medical bills, personal loans, and some student loans. FDR does not work with secured debts such as mortgages and car loans.
2. Fees and Pricing:
FDR charges fees based on a percentage of the total amount of debt enrolled, typically ranging from 18% to 25%. These fees are only charged after a successful settlement is reached, meaning you do not pay unless your debt is reduced.
3. The Process:
Freedom Debt Relief employs a four-step process to settle debts:
i. Free Consultation: A certified debt consultant evaluates your financial situation and helps you determine if you qualify for their services.
ii. Customized Program: If you’re accepted as a client, FDR will design a personalized program based on your specific needs and goals.
iii. Monthly Savings: You’ll save money each month by depositing funds into an FDIC-insured dedicated account controlled by you.
iv. Negotiations and Settlements: Once enough funds are accumulated, FDR negotiates with creditors on your behalf and seeks settlements at reduced balances.
4. Accreditation and Reputation:
FDR holds accreditations from the American Fair Credit Council (AFCC) and the International Association of Professional Debt Arbitrators (IAPDA). They also maintain an A+ rating with the Better Business Bureau (BBB). These accreditations and ratings ensure that FDR adheres to industry best practices and provides a high level of service to its clients.
5. Customer Support:
Freedom Debt Relief offers comprehensive customer support, including phone, email, and live chat options. Additionally, they offer a user-friendly online client dashboard that allows you to track your progress throughout the debt settlement process.
6. Potential Drawbacks:
While FDR has a strong track record of success, there are potential drawbacks to consider. Debt settlement can negatively impact your credit score during the process and may also result in tax consequences for forgiven debt amounts. Additionally, not all creditors may be willing to negotiate, which could limit the extent of settlement options.
Conclusion:
Freedom Debt Relief offers a viable option for those struggling with unsecured debt, providing professional guidance and resources in the debt settlement process. While there are potential drawbacks, their considerable experience, accreditations, and customer service make them a strong choice for individuals seeking assistance in regaining control over their finances.