Is the Freedom Debt Relief Act real?

Freedom Debt Relief is an accredited debt settlement company based in Arizona that offers consumers a way to eliminate their debt by reducing what they owe. Debt settlement is not an ideal solution to eliminating debt, but it can be a last resort for those who have exhausted alternatives and want to avoid bankruptcy.

How do I get out of my contract with Freedom Debt Relief?

If you would like to cancel, please call the Client toll-free number at 1-800-655-6303 to determine the best option for ending your service. Please note that Freedom Debt Relief does not offer a money back guarantee.

Is debt settlement a bad idea?

It’s a service that’s typically offered by third-party companies that claim to reduce your debt by negotiating a settlement with your creditor. Paying off a debt for less than you owe may sound great at first, but debt settlement can be risky, potentially impacting your credit scores or even costing you more money.

What percentage will creditors settle for?

Typically, a creditor will agree to accept 40% to 50% of the debt you owe, although it could be as much as 80%, depending on whether you’re dealing with a debt collector or the original creditor. In either case, your first lump-sum offer should be well below the 40% to 50% range to provide some room for negotiation.

Will Freedom Debt Relief hurt my credit?

It hurts your credit: Since you’re required to stop making payments on outstanding debts to enter into a debt settlement program, late payments will show up on your credit reports and your credit scores will take a significant hit, potentially affecting future applications for credit and even employment.

What percentage does freedom debt relief charge?

After settling your debt, Freedom Debt Relief collects a fee based on your enrolled debt amount, state of residence, and other factors. Fees range from 15%-25%, averaging at 21.5%. We clearly explain our fees to clients before they enter our program, and our fees never go up once our clients begin their program.

Is paid in full better than settled?

It is always better to pay off your debt in full if possible. While settling an account won’t damage your credit as much as not paying at all, a status of “settled” on your credit report is still considered negative.