Is Freedom Debt Relief legit? (2024)

Is Freedom Debt Relief legit?

Freedom Debt Relief is accredited by the Better Business Bureau and has an A+ rating. according to the organization. Based on customer reviews, the company earns 4.3 out of 5 stars. There were 359 total customer complaints lodged in the past three years, with 105 complaints closed in the last 12 months.

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Is Freedom Debt Relief Program legit?

Freedom Debt Relief is a legitimate company. It is BBB-accredited and is rated A+. It is also a founding member of the American Fair Credit Counsel (AFCC) and a member of the International Association of Professional Debt Arbitrators.

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Will Freedom Debt Relief hurt my credit?

Will likely hurt your credit score: Like with any debt settlement company, working with Freedom Debt Relief will typically make your credit score drop at first. Depending on your situation, it could be a significant tumble.

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Is it worth doing a debt relief program?

Debt relief will also often give you a fixed payment plan and a set payoff date, which can also make it worth considering — as streamlining your payments can make it easier to manage while helping you save money on interest. "One of the biggest advantages of going through a debt relief program is the savings.

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Is the debt relief program for real?

Some debt relief companies are scams, and even the legit ones are risky and expensive. Some creditors refuse to work with debt relief companies, and even when it's successful, debt relief can do major harm to your credit and raise your income tax bill.

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What is the disadvantage of debt relief program?

Cons of debt settlement

Creditors are not legally required to settle for less than you owe. Stopping payments on your bills (as most debt relief companies suggest) will damage your credit score. Debt settlement companies can charge fees. If over $600 is settled, the IRS will view this debt as a taxable income.

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How much debt do you need for freedom debt relief?

Freedom works with customers who have debt from credit cards, medical bills, personal loans, private student loans and other types of unsecured debt. Generally, you must have a minimum total debt balance of $7,500 to qualify, but some states have laws setting higher minimums.

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Can I use my credit card after debt settlement?

Creditors don't want you to use the cards when you're having a benefit from a debt management program. But if there's a card that you can keep out of the program, you can do that. You can keep the card out and use it for emergencies.

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Can I still use my credit card after debt consolidation?

Yes, but this will depend on your unique situation. If your account is still open and in good standing, you should still be able to use your credit card after consolidation. But it's important to maintain good spending habits and to continue making your payments on time.

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Can I buy a house after debt settlement?

Yes, you can buy a home after debt settlement. You'll just have to meet the lender's requirements to qualify for a mortgage. Unfortunately, that could be harder after you settle debt.

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How long does it take to rebuild credit after debt settlement?

However, a debt settlement does not mean that your life needs to stop. You can begin rebuilding your credit score little by little. Your credit score will usually take between 6-24 months to improve. It depends on how poor your credit score is after debt settlement.

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What happens to your credit after debt relief?

Whether it's missed payments or charge-offs, they'll stay on your credit reports for seven years. Fortunately, settling debt does not mean your credit will be in the gutter during those seven years. Negative information has less impact on your credit score over time.

Is Freedom Debt Relief legit? (2024)
What is the best program to get out of debt?

Compare debt relief options from Bankrate's top picks
LENDERBEST FORPROGRAM DURATION
National Debt ReliefBest for debt settlement24-48 months
Accredited Debt ReliefQuick results24-48 months
Freedom Debt ReliefBest for those with over $15,000 in debt24-48 months
JG WentworthStore card debt24-48 months
1 more row

How to pay off $10 000 credit card debt?

To pay off credit card debt without a loan, you could consider enrolling in a debt management plan, or utilize a repayment strategy like the debt snowball or avalanche methods. You could also try negotiating with your creditors to try and land a lower monthly payment or more favorable terms.

How to pay 15k in credit card debt?

Here are four ways you can pay off $15,000 in credit card debt quickly.
  1. Take advantage of debt relief programs.
  2. Use a home equity loan to cut the cost of interest.
  3. Use a 401k loan.
  4. Take advantage of balance transfer credit cards with promotional interest rates.
Nov 1, 2023

Can I get my credit card debt forgiven?

Most credit card issuers won't forgive all your outstanding debt, but they will work with you on repaying with a different payment plan. They may also negotiate with you on the total amount you owe if you are severely delinquent.

Can I withdraw money from my freedom debt relief account?

Can I withdraw money from my dedicated account with Freedom Debt Relief? Yes, you may withdraw from your Dedicated Account, which you control, at any time. This is an FDIC-insured account, and you control it, not Freedom Debt Relief, meaning you can withdraw from it at any time.

Which is better debt relief or debt consolidation?

While consolidating debt can temporarily impact your credit score due to a credit inquiry and the new account, it generally has a less severe and shorter-lived impact than debt settlement. Your credit history remains intact, and as you make on-time payments on the consolidated loan, your score will improve over time.

Is debt settlement better than not paying?

Is it better to settle debt or pay in full? Paying debt in full is almost always the better option when possible. Research debt payment strategies — debt consolidation could be a good option — and consider getting financial counseling.

How long does Debt Relief stay on your record?

Similar to Chapter 7 bankruptcy, debt settlement can stay on your credit report for up to seven years. While this may seem like a long time, the impact of this event on your credit report will lessen over time.

Is debt settlement bad?

Undergoing the debt settlement process can help you avoid future financial headaches but is not the best choice for every person. There are many drawbacks to debt settlement including high fees, potential for legal issues and a negative impact on your credit report.

Can I get loan after debt settlement?

How Long to Wait Before Buying a House. There's no magic timeline for when you can buy a house after debt settlement. It depends on your unique financial situation. However, most experts recommend waiting at least 2 years after finishing debt settlement before applying for a mortgage.

Who is the best debt consolidation company?

Best Debt Consolidation Loans of February 2024
  • Upgrade: Best overall.
  • SoFi: Best for no fees.
  • Happy Money: Best for paying off credit card debt.
  • LightStream: Best for low rates.
  • Universal Credit: Best for bad credit.
  • Best Egg: Best for secured loan option.
  • Discover: Best for fast funding.

How do I put all my debt into one payment?

A secured debt consolidation loan is consolidating your debts into one loan and securing it against an asset, like your property. This means your home might be repossessed if you don't keep up with your repayments. You could get a better interest rate if you secure your loan against an asset like your home.

Will Debt Relief affect my mortgage?

Debt management plans are designed to help people pay off unsecured debt — that is, debt not secured by collateral. Since a mortgage is considered secured debt, it won't be included in the DMP. Additionally, being on a DMP will not affect the terms and conditions of your current mortgage.

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