“Don’t put it off any longer, call Freedom Debt Relief because they can help you.”
Gary G., FDR Client

Frequently Asked Questions

If you don’t see the answer you’re looking for, please call us at 800-544-7211.

Frequently Asked Questions

If you don’t see the answer you’re looking for, please call us at 800-544-7211

No. Freedom Debt Relief is a legitimate company that has helped tens of thousands of clients since we started in 2002. We are a founding member of the American Fair Credit Council (AFCC), a platinum member of the International Association of Professional Debt Arbitrators, and proud of our A+ rating from the Better Business Bureau. Every day, our dedicated employees carry out our mission to help people solve their debt problems — even if the solution they choose isn’t Freedom Debt Relief.

Our program is focused on dealing with unsecured debts (credit cards, medical bills, unsecured personal loans, etc.). We can’t help with debt that is secured by collateral (such as mortgages or auto loans). However, after completing the program, the money you had been paying towards your unsecured creditors can be used to pay down secured debts and start saving for your financial future. Not everyone completes our program, so remember that sticking to your monthly savings plan is the most important factor in determining your success.

No, our debt reduction program is not a new loan. Some of our clients use a consolidation loan in conjunction with the Freedom Debt Relief program, but most fund their settlements with a monthly deposit into their Dedicated Account. That being said, we do have a relationship with a lending company. And some clients, who demonstrate a consistent pattern of saving their monthly draft amount on time, may be eligible for a loan from this lender to pay off one or more of their settlements. But this is not something that is required of any Freedom Debt Relief client.

Absolutely not. In our program, clients pay no fees whatsoever until a debt is resolved. Once we settle a debt, only the fee associated with that debt is due. All fees associated with the program are included in the monthly savings quoted to you by a debt consultant. Keep in mind that the amount of the fee may vary depending on the state you reside in.

If you have one card with a low balance that you can quickly pay down to zero, then you may hold on to it for emergencies. The program will generally not work, however, unless you enroll all of your high balance (greater than $500) credit card accounts. Open credit cards make it difficult for us to negotiate with your creditors if they see you are settling on some accounts but not others.

There are federal and state laws designed to protect you from collections harassment, but the fact is most of our clients will experience some collections calls. Our goal is to get your creditors to call Freedom Debt Relief, not you.

You do. The bank account is set up in your name, and the money in the account is yours. We recommend keeping your funds in a new account, separate from your existing bank accounts because experience has shown this separation to dramatically increase the probability that you will succeed in the program. Freedom Debt Relief fees are deducted from this account on a debt-by-debt basis and only after each debt is settled, as indicated in the agreement you signed with us. But you still own the accumulated savings in the account.

If you do not make the required minimum payments to your creditors, you may be breaking the terms of your agreement with them. Your actions will probably be reported to consumer reporting agencies as late, delinquent, charged-off, or past due whether or not you enroll in a debt settlement plan. Depending upon the condition of your credit report at the time of enrollment, a debt settlement plan may have a negative effect on your credit report and credit score. Our goal is to resolve your debt for the lowest cost, in the shortest period of time, without declaring bankruptcy.

The IRS considers a forgiven debt as taxable income, so at the end of the year they will expect taxes to be paid on the settlement. The IRS has a form (Form 982) available for certain hardship situations that may exempt you from this tax. Please contact a tax advisor to discuss this issue further.

If you let your accounts become delinquent, your creditors will continue to add interest and late fees onto your balances. Typically, your balance will increase until a settlement is reached. Keep in mind that the interest is going to accrue regardless of whether you make minimum payments or not. Our goal is to negotiate substantial reductions to the balances on your accounts, even after the interest and late fees have accrued.

Yes you can. You can also do your own taxes and repair your own car, but most people would rather leave these tasks to experienced professionals. The Freedom Debt Relief team of negotiation specialists resolve approximately $100 million in debt each month. Our knowledge and experience puts us in a strong position to stand up to your creditors and fight for the best settlement possible.

Negotiation activity is typically very limited until you have saved up enough in your settlement account to make reasonable offers to your creditors. Most (but not all) creditors do not want to spend time negotiating an account unless they know there are funds available. The first settlement typically happens between months two and four of a client’s program, but this varies greatly depending on your monthly deposit amount, the number of creditors you have enrolled in the program, and the balance of each individual account. In some instances, it may take more than six months before the first settlement is reached.

Creditors do have the right to send debts to collection agencies and/or law firms to collect a debt. In our experience, lawsuits are actually only filed on a small percentage of enrolled debts. If this happens to you, we established a relationship with a third party service from a law firm that can negotiate with the goal of resolving the debt. Note that the settlement percentages associated with settlement of debts in litigation are often higher than typical non-legal settlements. Please note that we are not a law firm and cannot provide legal advice or legal representation.

No. Every case is a negotiation, and there is no guarantee as to how those negotiations will go. Furthermore, the success of our negotiations is highly dependent on your ability to save a specified amount each month you are in the program.

No, we are not a credit repair company. Our goal is to negotiate settlements at less than face value on your unsecured debts.

We recommend you view the Federal Trade Commission’s advice. Click here to go to their website.

Get started now and see how much you can save!   Get Your Free Evaluation