You have finally decided that debt settlement is the best solution for the mounting and overwhelming debt that has consumed your life. Now you need to hire a company, and you’re leaning toward FDR, what with its vast experience, track record, and accreditation. But just how does Freedom Debt Relief work? Let’s look at that – and more.
Explain Debt Settlement
Debt settlement is a financial strategy in which you get a company to go to your creditors to see whether they’d agree to allow you to pay less than the amount due to satisfy your debt. Negotiations are usually successful since the creditors know that if you file bankruptcy – your other recourse — they may get nothing.
Freedom Debt Relief (FDR)
Established in 2002, Freedom Debt Relief is a leading debt settlement company that has served more than 650,000 clients and resolved north of a whopping $10 billion in debt.
Freedom Debt Relief belongs to the International Association of Professional Debt Arbitrators and is a founding member of the American Fair Credit Council. Such accreditation is increasingly critical in a debt settlement space that has more than its share of fly-by-night posers. So, is Freedom Debt Relief legit? It one thousand percent is.
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What Types of Debt Does Freedom Debt Relief Accept?
If the debts are unsecured – not tied to collateral such as a vehicle, house, or other assets – the company will likely be able to help you get back on sound financial ground. You will need at least $15,000 in debt, however. Common debt types at Freedom Debt Relief include medical bills, personal loans, and credit cards. To help you determine whether you qualify, the company provides an online evaluation tool.
How Does Freedom Debt Relief Work?
If you’re eligible, you’ll then discuss your situation with a Freedom Debt Relief consultant, who will craft a plan that suits you. Rather than pay your creditors directly, you’ll deposit funds each month into an escrow-like account that you control. In the meantime, your Freedom Debt Relief negotiators are busy working with your creditors on your behalf. Once you have saved enough, settlements can be reached, and creditors are paid from your savings. Most programs last between two and four years – much faster than if you were to try to clear your debts on your own — and progress can be tracked via an online dashboard that’s available 24/7.
What About Freedom Debt Relief Fees?
Depending on your state of residence, Freedom Debt Relief charges between 15 percent and 25 percent of the total settled debt. Note that, in accordance with federal law, FDR will not bill you before your debts are settled (although some scammers will try it). And there will be no surprise fees or new ones once you’ve signed up with the program.
Will FDR Damage My Credit?
No, Freedom Debt Relief will not damage your credit. However, it’s the process of debt settlement that will depress your scores. That is until all your debts are settled, and you can begin rebuilding your credit. It’s also worth reminding you that your scores have been down for some time now, anyway.
Now that you know how Freedom Debt Relief works and are aware of what it can do for you, you can sign on with confidence knowing that this company has been at it for two decades — a lifetime in an industry that’s rife with flash-in-the-pan companies, some of which are fraudulent. It also has a long, successful track record and simply knows what it’s doing.