Freedom Debt Relief negotiates with creditors to settle your debts for less than you owe. The process of dealing with creditors to pay back less money may seem simple enough, but there are some essential considerations to ponder if you’re going to go this route.
With this in mind, let’s take a look at some of Freedom Debt Relief’s FAQs.
1. What is Freedom Debt Relief?
Freedom Debt Relief (FDR), which is a division of Freedom Financial Network, is an organization whose credit card relief programs help consumers get out of debt by getting creditors to agree to settle for less than the amount owed. They do not provide any loans from their capital, and they do not charge up-front fees for services.
2. What types of credit does FDR work on?
Credit card debt, medical debt, personal loans, and department store credit accounts are all eligible for the Freedom Debt Relief program. Federal student loans, mortgages, car loans, utility bills, taxes, and debts resulting from lawsuits are immune from the settlement.
3. Are there any fees for using FDR?
FDR does not take any money from consumers until they have successfully helped settle an account with a creditor. Instead, Freedom Debt Relief works on a contingency fee basis where they receive up to 25% of whatever is settled with creditors in exchange for their services. And as mentioned above, those services are free, without any obligation to continue working with them if you don’t like what you encounter with them. They only make money if and when your debt gets resolved.
4. Will creditors report my debt as settled?
Some will mark an account as “settled” rather than “paid in full.” Because of this inconsistency in how they report, it is vital that you contact each creditor and request them to update your history accordingly after you have settled with them. Always ask the debt be designated paid in full.
5. How long does it take to settle my debt?
It takes anywhere from three months to a year or more for creditors to respond to your settlement offers. This, of course, depends on the amount of time you are willing to dedicate towards this process and how many accounts you have outstanding. The more accounts that are included in the offer, the longer it may take for you to receive word back from creditors.
6. Can I pay off my debt without using Freedom Debt Relief?
Technically speaking, yes, but this does not mean that we would recommend doing so yourself. The fact is most people simply don’t have the time to dedicate to negotiating their own debt relief. Instead, you would be better off hiring a professional company like Freedom Debt Relief than trying to go at it alone. That way, you will not only know that your accounts are being properly represented but also have peace of mind knowing that someone else is working on your behalf with creditors instead of having to do it personally.
7. How long does the process take?
This varies depending on how many creditors there are (one or more), what types of accounts (credit cards, auto loans, etc.), and which type of settlement offer (partial payment vs. lump sum). Some people can get their credit card balances settled in as little as three months, while others may need up to two years or more to resolve all of those accounts. The fact is that each case is different and, as such, will require a unique treatment plan.
These are the most frequently asked questions about Freedom Debt Relief and credit card debt in general for that matter. To get more information about dealing with debt in general, visit the Federal Trade Commission’s consumer information website.
