“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 800-230-1553.

Frequently Asked Questions

If you don’t see the answer you’re looking for, please call us at 800-230-1553

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) and a platinum member of the International Association of Professional Debt Arbitrators. 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. Learn more about our commitment to integrity and our accreditations.

Our goal is to help you get out of debt as fast as possible by negotiating with your creditors to get them to accept significantly less than face value on your unsecured debts. Depending on the condition of your credit report at the time of enrollment, any debt settlement or debt negotiation program, including ours, could negatively affect your credit. Negative information could remain on your credit report for up to seven years. By engaging in good credit behavior, anyone’s credit score could recover over time. Results vary depending on your payment history, credit utilization, length of credit history, and credit mix.

If getting out of debt is more important to you than the likelihood that your score will be negatively impacted, our program could help you resolve your debt faster and for less—without declaring bankruptcy.

Yes! Freedom Debt Relief is committed to providing excellent service to our clients while we help them resolve their debt. Over 500,000 people have enrolled in our debt settlement program, so we must be doing something right. You can find reviews and success stories from clients we’ve helped overcome debt. But don’t just take our word for it: thousands of our clients have left glowing reviews of us on websites like TrustPilot and the Better Business Bureau.

The type of debt relief Freedom Debt Relief offers is known by several names: debt resolution, debt negotiation, and debt settlement. In fact, Freedom Debt Relief is the largest debt negotiator in the U.S. We offer our debt relief program to Americans with $7,500 or more in unsecured debt—including credit card debt, personal loan debt, and medical debt—who are experiencing a legitimate financial hardship.

The Freedom Debt Relief program is designed to resolve your debt for significantly less than you owe as quickly as possible. First, we provide a debt evaluation to help you decide if our program is right for you. If you decide that it is, we work with you to design a program that fits your monthly budget (keep in mind that it could be less than your monthly minimum payments). Once you enroll, our expert negotiators create a negotiation strategy designed to get you the results you want. Our company has used this method to settle over $8 billion in debt since 2002. That’s much more than any other debt relief company in the industry.

Freedom Debt Relief could help you with debt from credit cards, medical bills, department store cards, and many other types of unsecured debt. Our program cannot help with a debt that involves collateral (like auto loans and mortgages). Also, we cannot resolve federal student loans. We do help with private student loans on a case-by-case basis.

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.

We approach everything we do with integrity, but sadly not all debt relief services have the same commitment to ethics we have. That’s why we encourage you to research every company you are considering before you commit to any debt relief program. As a founder of the American Fair Credit Council, Freedom Debt Relief has been involved in establishing industry standards that protect consumers from abusive debt settlement practices. We are a legitimate debt relief service that has helped tens of thousands of people resolve debt. You can learn how to identify illegitimate debt settlement companies.

We recommend looking for companies that are transparent about the types of debt they accept, give a realistic timeline, and a realistic estimate of your potential savings. Additionally, debt relief companies are legally not allowed to charge fees until after a debt has been settled. We recommend you view the Federal Trade Commission’s advice.

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.

In our program, clients pay no fees whatsoever until a debt is negotiated. You will know when fees are charged because you will approve every deal. Once we reach a settlement with a creditor, we immediately contact you for authorization. After you authorize the settlement, the fee associated with the debt is processed. All fees associated with the program are included in the monthly savings quoted to you by a debt consultant. Our fees usually range from 18% to 25%, but your rate may vary depending on your state of residency.

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. Find out more about laws that regulate debt collector behavior and what your rights are.

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.

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. IRS Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, may exempt you from this tax. Please contact a tax adviser 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.

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.

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