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Freedom Debt Relief Review: Testimonials & Reviews in 2022

Freedom Debt Relief, Your lender may consider forgiving a percentage of your loan in place of a single payment if you have a considerable amount of outstanding debt that you are unable to repay. This is referred to as debt settlement. If you’d prefer to delegate the bargaining to someone else, you might seek the assistance of a debt settlement firm, with Freedom Debt Relief being the largest in the business.

While these businesses can sometimes assist individuals with debt relief, they also charge hefty fees. They are frequently examined by regulatory bodies like the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).

Debt settlement might impact your credit report and take between 24 and 48 months to complete. Any sum forgiven is normally taxed as income by the IRS. If you’re having trouble paying your bills and need assistance, you should first contact an established credit counseling firm.

What Services Does Freedom Debt Relief Offer?


You’ll be deemed a debt reduction program graduate after you’ve paid off all of your bills. Because you cannot guarantee debt settlement, not all program participants will reach this stage.


Payments are provided to your creditor if a settlement is reached. At this time, your payment to Freedom Debt Relief will also be processed.


The professionals at Freedom Debt Relief will attempt to reduce your debts throughout the negotiation process. The time of this process depends on the number of debts you have to settle and how long the creditors try to negotiate.


If you meet the eligibility requirements and want to participate in the Freedom Debt Relief program, you will begin making monthly payments into an FDIC-insured account that you control. You will also be told to stop making payments to your creditors during this stage.

The bargaining procedure will begin once you have saved a large sum of money in your account.


One of the company’s debt consultants will assist you in completing a financial assessment and determining your eligibility for the program during this step. This phase is completely free and is used to see if you are a good fit for their program.

What Types of Debt Does Freedom Debt Relief Address?

Private student loans

Freedom Debt Relief also claims to be able to assist in the negotiation and settlement of private student loan debt in some circumstances. They do not, however, assist with federal student loans.

Medical Expenses

Medical debt has become a massive problem in the United States, especially for health insurance. Freedom Debt Relief negotiates medical debt for less than the entire bill with hospitals and medical providers.

Debt on a Credit Card

The majority of Freedom Debt Relief’s efforts are devoted to assisting clients in negotiating and paying off credit card debt. Given the current average interest rate of 17.13 percent, it’s easy to understand how clients could get into trouble and want assistance in settling their debts (principal and interest payments) for less than they owe.

What are the risks associated with debt settlement?

Taxation on a forgiven debt is possible:

Because forgiven debt is considered taxable income by the IRS, you may owe taxes on the debt you no longer owe after settling. Some creditors will send a Cancellation of Debt form 1099-C. If you are insolvent (have more liabilities than assets) and settle your debts with your creditors, there is an exemption. For more information, you should see a tax specialist or a lawyer.

Debt collectors may still contact you:

You may face aggressive collection tactics or even litigation from your creditors if you stop paying your bills. All creditor interactions should be sent to Freedom, according to the company.

Interest and fees mount up:

You’ll accrue additional interest and late fees on your debt during the time you’re engaged in a debt settlement program. Negotiations don’t usually start until you’ve saved enough money to make a decent offer to creditors, taking months. If you don’t continue on the program long enough to finish it, or if Freedom doesn’t negotiate a settlement, you’ll be left with a greater balance.

You aren’t guaranteed success:

Partially beyond your control is successfully addressing all of your debt. Some creditors refuse to negotiate with debt settlement companies, opting instead to sell the debt to a collection agency or debt buyer. According to Freedom, it works with a third party and may advise clients to deal directly with creditors.

It harms your credit:

Because entering a debt settlement program requires you to stop making payments on outstanding obligations, late payments will appear on your credit reports, and your credit scores will suffer, potentially hurting future credit applications and even employment. Delinquent accounts and accounts charged off by lenders remain on your credit reports for seven years.

Alternatives to Freedom Debt Relief


Consider rearranging your budget to pay off your debts if you are able. Is it possible to swap your car for something less expensive? Do you have any monthly costs that you don’t need? If you can pay off the debt on your own and avoid extra costs and the risk of a negative credit score, pinching pennies may be worth it.

Making a bankruptcy declaration.

Your liability for discharged debts will be removed if you file a chapter 7 bankruptcy. You should visit a lawyer to discover if you qualify for this.

Self-negotiation of the debt

It is possible to bargain down your obligations on your own. While it takes time and perseverance, you can save money on debt settlement expenses if you are ready to do the work yourself.

Collaboration with other debt settlement firms

Freedom Debt Relief isn’t the only company that can help you with your debt. It would help to compare them to other debt settlement companies to ensure you are getting the best service possible.

Jason Rathman
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