Freedom Debt Relief Customer Review - The Bills.com Blog

I have a question regarding Freedom Debt Relief. I am considering using Freedom Debt Relief and they've helpful through the process, but I want to do the right thing with my debt problem. Is freedom debt relief the best debt relief option for me if I cannot pay my bills currently?

We did a little research on Freedom Debt Relief, but you should also do your own homework. We think that they are one of the best, and endorse them as a debt settlement and debt negotiation provider. #1. There are no upfront fees. #2. They appear to be one of the only companies that has a service fee money back guarantee. #3. That doesn't mean that everything is a walk in the park... with any debt settlement program, not paying your creditors will hurt your credit rating and can result in collection calls and other collection efforts (but Freedom Debt Relief is one of the companies that try to help hold the creditors at bay with creditor notifications and Cease Communications forms). #4. The only debt resolution tactic that has no impact on your credit is to pay your bills. If you can afford to pay off your debts, then you really should do that. Debt settlement is for people who are struggling with financial hardship, and that is who freedom debt relief normally works with. #5. Freedom Debt Relief's agents are all certified by the IAPDA (and Freedom is one of the few Platinum IAPDA certified organizations) and Freedom is an Accredited industry member. #6. Freedom has audited financials and they are a bonded organization. #7. Review the review on Bills.com for Freedom Debt Relief. They do appear to be one of the best. Here is their website to check them out on your own too: ( Freedom Debt Relief) I hope this helps you.

This information has helped me alot.I just today, have joined. My husband is working, but the jobs he gets are all short jobs, and temporary, with no stability. I guess we joined the rest of the world, HUH? thanks again.

How long after i pay my debt off with freedom debt relief will my credit rating get better? Will I beable to purchase a house as soon as it is paid off?

Credit rating and credit scores (in particular FICO scoring) is complicated, so no one can tell you how quickly a score will change. Since you will have delinquencies on your credit report, it will likely take several reporting cycles to really come up. BUT - most lenders only use credit scores as a proxy for credit worthiness, and things like loan to value (do you have equity to put down) and debt to income (DTI - or what amount of your income goes to debt) could be a lot better if you get your debts paid off fast. You should really just apply and see what kind of loans you will qualify for after you graduate from your Freedom Debt Relief debt settlement program... but there is a chance that you will have improved your odds of getting a home (depending on your credit score and payment history when you enter the FDR program and on how much debt you have).

You mentioned that the best way is to pay off your bills. However, many of us are trying unsuccessfully to do that. When we try to take advantage of low interest balance transfers to get a more favorable position, we always get turned down. Again, please...any other options to consider (excluding home equity, bankruptcy, borrowing from a relative, etc.) before employing a debt relief service? Thanks for the insight. John

Really, if you cannot refinance your home or get a debt consoliation loan - then the logical next step is to try to juggle balances with zero interest balance transfers (but you're right, that they are hard to get approved for). Beyond that, you could try to get an unsecured loan (but that will get you more high interest rate debt and just compound the problem). You should probably at least speak to a debt counselor about options and see if you can just get out of those debts. Best, Bill

Just wondering about how the FDR works. I am confused about how they eliminate so much of the debt owed and doesn't that negatively effect your credit report? Also, if their reduce payment to them is still going to leave me on a very tight budget is it still a good idea?

In a debt settlement program, no payments are made to the creditor until the creditor reaches a settlement agreement on your account; this means that your credit will take a downturn in the initial time of the program. Now, if your income increases after you have started the program, making direct payments to your creditors is not going to help get your credit back but will minimize the damage going forward. My suggestion is to talk to your settlement company to see where you stand as far as the negotiations go. Remember that you might have already paid for the fees for the service, so you might as well use what you have paid for. The good thing is that given your capability to save more (if your income has increased), you should be able to finish the program even faster.

In a negotiated debt settlement program, the company you are working with negotiates a lower, one time settlement payment to the creditors based on the hardship you are going through. Yes, debt settlement effects your credit negatively because, during the life of the program, no monthly payments are made to the creditors, only one time settlement payments are made based on your savings into the program. If you cannot afford to keep up with the monthly payments on even a settlement program, then I'm afraid bankruptcy would be the only other way out.

I am strongly considering using Freedom Debt Relief to get out of my debt "creator" I have dug myself into. My biggest concern is the poor credit rating during the negotiations That I hear so much about. However... I already have poor credit because of may high balances and low income to debt ratio. So...I shouldn't worry about the short term poor credit if in the long term it will improve my finacial status...right? PS. Great info on this site! Thanks!

Tommy - You are correct, that Freedom Debt Relief is a good company. They employ a debt resolution solution that uses negotiated debt settlement. The upside is that you can get debt free faster and for a lower cost than your best alternatives (typically with a low payment) - but one of the downsides is that you will not have good credit while in the program. If you already have bad credit, then that really removes one of the negatives of the program, so it makes the decision easier. Still, make sure that this is the right solution for you (low payment, cut debts, debt free fast... but hurts credit and may involve collection process from creditors). If it is the best solution, then Freedom Debt Relief is probably the best company to go with. Thank you for the nice comments too.

I've had a very good experience with Freedom Debt Relief. They call me to make sure everything is fine, i've had nothing but good people talking to me, and now I am getting my debts resolved. Thank you very much for referring me to Freedom Debt.

What are the pros of going with debt relief vs. bankruptcy? They both ding your credit for a long time. Why would I choose one over the other?

Debt Relief is a short term hit to your credit, and ultimately results in a resolution to your debts. Bankruptcy (assuming that you can even qualify for a Chapter 7 bankruptcy, in the post-bankruptcy reform era) is a public record document that stays on your credit report for 10 years and can be seen by employers, landlords, government agencies, etc. It should really be used as a last result (the lifetime costs of bankruptcy are sometimes higher than any other debt resolution option) - but BK can be the right solution in some instances. If you really are considering bankruptcy, you should get advice from local counsel or a bankruptcy attorney. Good Luck!

I have good credit perfect payment history but awful DTI and will be in debt for years to come paying only the minimum payments on my card does debt relief sound like a realistic option for someone like me, since I will never make late payments?

I think that you need to think about what that good credit rating is getting you and then debate what that high DTI and high debt balances are getting you. I would posit that if you really do have terrible debt loads and a high DTI, then your credit 'score' is meaningless since no lender would extend credit to you since your credit 'profile' looks bad. I think that you should focus on financial health from a cashflow and wealth building standpoint (you can't buy groceries or retire on a credit score but cash is what matters) and get debt free as fast as you can. If you paid off your debts in 3-5 years with debt relief instead of 15-20 years, just think that you could rehabilitate your credit rating and all of those savings would compound over 10+ years and you would have a down payment (lower LTV) and a lower DTI and more cashflow! Get debt free first is my advice.

Sounds like Freedom Debt Relief is just what America needs to get off of it's debt problems. Did you see this New York Times article: http://www.nytimes.com/2008/07/20/business/20debt.html?em&ex=1216785600&en=b1d6623c5fbc4ded&ei=5087%0A# Debt is hurting American families and we all need debt relief.

Thanks, I chose to join with Freedom Debt Relief and the experience has been good.

I am seriously considered Freedom Debt Relief, but have a question about how it would benefit me in my particular situation. I have 7 creditors that I stopped making payments to 4 years ago and over about $30,000. I have heard that "bad credit" disappears from your Credit Report after 7 years after it appears. Is this correct? If so, should I hold out for another 3 years and let it drop off, or I am really benefiting by paying the debt off in the next three years, because if I do, will it show on my credit report as "slow" or "bad" credit for another extended period of time after Freedom Debt settles my accounts? All the info on this site is awesome. Thanks!

Bryan, you are actually a prime candidate for debt settlement, which is what Freedom Debt Relief specializes in. I think you have a slight misconception about the debt falling off of your credit report. In actuality, what you are referring to is quite possibly the Statute of Limitations. What that means is that, if the Statute of Limitations has expired (7 years) on your debts then, the collectors cannot collect on that debt anymore. Although true, this does not mean that everything automatically disappears, it just means that if the creditor ever decides to sue you in court, the court will dismiss the case based upon the Statute of Limitations having expired, which you will have to prove to them. I think that if you go through a settlement company such as Freedom Debt Relief, they will be able to negotiate really low payments for you and it will help you credit to recover in the long run.

I have about $50k in credit card debt, plus I owe doctors, state/federal taxes, plus other items here and there. All debts are current, but my credit rating is low due to the credit card companies changing my credit amount to match my balance which maxed me out. I work a temporary job that might become permanent, but would probably be for less money. Every month I get so stressed trying to figure out how to pay the bills and worry about upcoming car taxes and other bills - is debt relief the best way to get out of this mess? I have never not paid my debts, but this time I am over my head due to the real estate market plunging and being a casualty of it. Thanks for the advice.

I suggest that you read through the debt consolidation resources page available at http://www.bills.com/debt-consolidation/. There are many forms of debt relief, and it really depends on your individual situation to see which one fits your needs, the best. I also suggest that you call teh folks at Freedom Debt Relief, for a free consultation so that you can explore your options in detail, you can reach them at 1-800-544-7211 or at http://www.freedomdebtrelief.com.

I am wondering what I should do. I am about to join the freedom debt relief program, but do not know if this is the right thing to do. Should I continue to fight tooth and nail and pay off every penny I can come up with towards my two bills, about $25,000, which could take years, or bite the bullet and pay significantly less, for less time, but with negative credit with this program? Also, would you say they are the most reupttable out there? Thanks.

Mark, I cannot take the decision on your behalf. You need to make the call depending on what your current situation dictates. The impact on your credit is going to be way shorter that the time it will take you to pay this debt back. Also, ask yourself this; what are you going to do with that pristine credit rating, if you are struggling to pay the debts as it is? The advantage here is that you will be able to get this debt paid off in a reasonably short amount of time at the cost of negative credit in the interim. You can rebuild your credit once you finish the program. As far as Freedom Debt Relief is concerned, they are the leaders in this field, you can check out a review that we have done here: http://www.bills.com/freedomdebtrelief/.

I am about to join FDR (16K of credit card debt).My plan is to pay it off within 1.5 years.I also have a house in a another state which is about to get re-possessed... I got transfered with my company to CA 19 months ago. The house has not sold yet and I just can't afford two homes any longer. My question is how long (approximately)can I anticipate my credit score to be low and what can I do to get back on track as soon as possible? Thank you,

Adraina, you have to realize that while you are in the program, you will not be making any payments to these creditors, therefore you payment history is going to look bad on your credit report. But once you finish, you should start the process of re-building your credit. You can look into http://www.bills.com/credit/ for tips on how to improve your credit. You will need to give it atleast a year or two, for you credit to completely get back to the level that will be good enough to get you a low rate on your mortgage. If you want to accelerate the process, you can look at employing the services of a credit repair firm such as Lexingtonlaw.com.

I have two credit cards (among many others) with Chase with total balances of about $35,000 (total credit card debt is about $80,000. My mortgage is also with chase, would going into debt relief with FDR cause me any problems with my mortgage? It is a fixed rate mortgage. Also would creditors or collectors potentially call me at work and "air my laundry" to my coworkers & bosses?

You would need to look at your contract, but very rarely does Chase cross collateralize mortgage debt against credit card debt. This should not be a problem, but ask your debt consultant when you get your consultation. What you should be concerned about is that in some states where Chase has legal operations, they can be an aggressive creditor (meaning that they might sue you). You should be aware that you can always send a Cease & Desist form and a work harassment form upfront (which Freedom Debt does for you, I believe) to minimize the chancne of getting any calls at work. Depening on your state of residence, the original creditor may be bound by FDCPA. Being in debt stinks, but at least you are on a path to getting out.

I have around $25,000 in credit card debt. I filed bankruptcy once before about 12 years ago (yeah I know I should have learned). My credit rating is around 718 last time I checked. I have an opportunity to get a loan through my bank to pay off the debt. I'm debating if I should get the loan to pay off the credit card debt (but I'd still be in debt the $25,000 plus interest) or just go with something like FDR. I used to own a home but due to a divorce we sold the place and am currently renting. I'd like to buy a home again in the next couple years. Any idea what the best option would be in my situation? Thanks for your help!

You have a tough decision, since you have a high credit score (you are a 'prime' borrower at 718). Your trade-off is essentially the lower payment and savings with a program like Freedom Debt versus the credit impact and the consequences of not paying your bills. In reality, a debt settlement type of program is for people who have financial hardship and cannot afford their debts -- and if you get a loan and then make those payments you should consider that. Also, a typical program through Freedom Debt Relief or another type of debt relief program will certainly last about 2-3 years, so if your goal is to buy a home within that time period, this type of program would negatively impact your ability to get a mortgage and buy a home. Do what is best for you, but it sounds like your best option may be to get the loan and just pay the debts off in full.

Is Freedom Debt Relief the biggest in debt settlement? ANyone else that I should consider?

Freedom Debt Relief is certainly one of the largest and most estabilished in debt resolution, however, few places publish verifiable statistics on client base. I think that they are one of the best. In pure size, debt consolidation refinance mortgage companies and some credit counseling firms are much larger than any debt settlement firms, but those are very different solutions.

I actually work for Freedom Debt Relief and I think we are a great company helping thousands of people. I don't know who mostly posts on these chats, but here is one perspective. We are one of the largest, and the owners of the Company preach constantly about ethics and about taking care of our clients. Our average customer service hold times are less than 10 seconds, our service levels average 95% and we settle about $15 million in debt per month. As an employee, I'm proud of this Company and we won a spot as a Best Places to Work in Phoenix and San Francisco (I don't think a place that cares that much about its employees and clients can be bad). I know that a lot of people take shots at anybody, but if I had debts and needed help I would call Freedom Debt Relief way before I contacted anyone else. That's the truth.

Look, I've been with Freedom for a few years and they have been great to me. They call me. They return my calls. They've saved me more than I expected. It's not a walk in the park, but I owe the debt and I take responsibility for being a part of the solution. I can also say that I will never get into this debt problem again in my lifetime, but I am very glad that Freedom is on my side so that I can get out of debt.

Thank you for your perspectives.

Thanks Bill! You are doing great enlightening job for folks like myself. My Q may sound too weird, but I'll ask anyway. I have $20K credit card debt and also paying off another debt to my 401K plan. What if I'll pay-off the 401K with a lump sum borroved from credit company (kind of a debt consolidation), and then immediately turn to FDR's help? Thanks

Keep in mind that you cannot enroll a new account into a debt settlement program. An account has to be at least 6 months old and have at least 6 good faith payments on that account before you can enroll it into a debt settlement program. If you want a complete assessment of your situation, you should get a free consultation from the counselors at Freedom Debt Relief.

I am seriously considering FDR. My car is pretty old and I can't even think of buying another one in the credit card debt I am in right now. While on the program will I be able to buy another car since I might have a little extra money each month?

It is very unlikely that in today's current credit environment that anyone without excellent credit will get approved for a reasonable auto loan. Certainly while in the midst of a Freedom debt settlement program your ability to get a traditional auto loan would be very limited, so you should take this into consideration. The reality is, however, that if you have substantial credit card debt your debt to income might currently impair your ability to get a loan. Debt settlement is primarily for people whose number one objective is to get debt free fast with a low cost, and are willing to accept that their credit rating will be impaired through the program.

Hello Bill, I thank you very much for this information. Thank you, Karen Th.

First of all in regards to the BBB and everything. Number one on the list of complaints with the BBB is anything Financial. So lets do some math. Everybody is complaining about something they probably were disclosed about when signing up. Meaning its possible that a company can sue. Well guess what. YOur trying to settle on things you have already bought. ITS A TOTAL RISK ON YOUR PART. There are no guarantees and if a company tells you there is then thats when you run. So back to the mathon Freedom debt relief. I called for fun and they told me that they have roughly 50,000 clients enrolled. They have about 450 employees. Someone said above that they had 68 complaints. Ok so 68/50,000= .00136. Move the decimal point over 2 places and you get .1% complaints for possibly 50000 clients. Does that really seem like a big number? I dont work for them but it doesnt look to bad. But i just did a search on the BBB for Bank of America and found that they had 5538 complaints. So should we not bank there? I mean you have to know the risks. There is no get out of jail free card. Use a company that does not charge up front fees so you can save quicker in your account if you dont want to do it yourself. Just my thoughts......

Just graduated, woooo-hoooo! I will never get back into debt again, thank god this is behind me. I'm celebrating by opening up a savings and investment account! God it feels good to be debt free.

Freedom is was upfront and honest to me on the telephone consultation, they compared credit counseling, debt loans, and freedom debt relief programs. I can't afford anything and have to file bankruptcy, but they helped me understand my options and why I didn't qualify.

Thanks for your input Cathy.

I'm about to embark on a 42 month program to settle roughly 32000 in credit debt. My question is with regards to the collection calls that will almost certainly come, would it be a good idea to change my home phone or change the contact number on all of my accounts to say a cell phone? Would collectors eventually find their way to me anyhow? This is the most worrisome piece for me even more then the credit rating hit. I currently have about a 640 to 650 FICO depending on the credit report and current on everything. Other question is, what if this gets sent to a lawyer, how would a company such as Freedom Debt Relief help with the situation? Thanks in advance for any advice.

Jeremy - it is likely that you will get calls, and there are a few things that you could do. First, you could have Freedom send cease & desist forms. These are not perfect solutions, but should help mitigate calls over time. Secondly, you can use a script or talk off telling anyone who harasses you that you know your rights under the FDCPA (fair debt collections practices act) and that you will document any violations. Lastly, you can change your contact info. It will certainly help, but through what is called 'skip tracing' some smart collectors will still find their way to you. The best thing that you can do is get your debts resolved as quickly as you can afford to do! Good luck. As stated, while not a perfect program we think that for folks with big debt balances who are struggling that Freedom Debt Relief is a good option, and I'm glad that you are doing your homework and going in with your eyes wide open to the benefits and the cons of a debt resolution program.

Thanks Bill. My last question would be, what if one of the creditors decides to go the legal route? Can anything be done to mitigate that? THanks again Jeremy

Jeremy, Freedom should be better suited to answer for you -- but they have a team that will help resolve your debts and your issues even if accounts go the legal route. Good luck.

I just finished my 5th settlement out of my 6 credit card accounts that I enrolled. I got sued on one of my cards, but Freedom still settled it but that one was for a higher amount (maybe like 65%) than what they quoted me. Stil, I'm close to being done and I think that I will be on track for what they quoted me. Also, you are right. The collectors are a pain in the butt in the first 3 months or so. At least this whole thing will be over soon.

That is great Ms. P. Congrats on getting almost debt free and stay that way when you do graduate!

Is Freedom Debt Relief better than CareOne Credit Counseling? I have talked to both, and I want an opinion. Do they do the same thing for me? Thank you Bill.

No, they are two different types of programs, but they both help you with debt. Freedom Debt Relief deals in debt settlement (http://www.bills.com/debt-settlement/). Care one Credit deals with credit couseling type of a solution (http://www.bills.com/credit-counseling/).

I'm considering using Freedom Debt, but I don't quite understand how it works. For example, why would I not be making payments for months and having collectors calling? Is the not making of payments some kind of "leverage" to get to creditors to accept the terms? How do the creditors receive their negotiated payoffs? I do apologize for being so ignorant, but this is all new to me.

You should get straight answers from Freedom Debt Relief (and if you are not, then that is a problem)... but basically you cannot settle an account for a discount that you are current on. When your accounts are past due, your creditors will try to collect on the account (including sending them to collection agencies) and through that process are willing to accept less than face value for the debt payment - but creditors are not set up to receive partial payments for a reduced balance over a long period of payments. That is why you must save money in a bank account that will be used for those lump sum payments. In a nutshell, that is how it works. If you can afford to just payoff your debts, though, a debt settlement program might not be suited for you. I hope that helps. Good luck.

If I am current on my credit cards but I am really struggling to pay them every month, is this something that I should consider.One other question will the credit card people still call me even if I am current on my payments while the program is trying to settle my debt ?

If you are current on your payments, can afford to make your payments easily and want to continue making your monthly payments - then Freedom Debt Relief and or a debt settlement program is probably not the right solution. When you enroll in a debt resolution program like Freedom Debt's program, then you will not be making your minimum monthly payments. Instead, you make contributions into a savings account which is used by your debt negotiators to settle accounts for a discount to the face value of the principal (usually around 40-50% of what you owe, at the time of settlement). It will hurt your credit and you will certainly get some collection calls. But, it will also help you if you cannot afford payments and if you need to get debt free fast. That is the tradeoff. Good luck & happy holidays!

Freedom Debt Relief is not a good option they take money out of people that are already in a bad situation

Thanks for the opinion Eddie... any color on this one? I forwarded your name and email to Freedom Debt Relief's customer service department and you do not appear to be a client, or have never applied for help in their system. We'd be happy to forward your information on to them to make sure that they take care of you if there is something legitimate that you need help with.

I spoke with Freedom Debt Relief today to inquire about help with my debt. Last month, one of my credit card companies agreed to lower my interest rate is I allowed them to take out automatic payments every month for a certain amount of money for a year. I agreed thinking this might be easier and less expensive. However, when I received my statement the payment due is actually less than the amount they want to take out of my account. Two questions -- First, would it be better for me to go back to my original interest rate and try to pay the amount on the statement? Secondly, if I do go with FDR, would this be a problem since I have tried to work out some kind of solution with this company? My husband and I have always tried to pay out bills on time, but with today's economy our money is not going as far. We would like to be out of debt and start fresh. Any help would be appreciated.

The agreement with your creditor is typically called being put on a "hardship program" where they will lower your interest rate and monthly payment. This program will not impede your ability to enroll with Freedom Debt Relief, assuming that you are still struggling with your debts. Be aware, however, that your "hardship program" is very different from Freedom's debt settlement program. With Freedom, you will be lowering the actual principal amount that you repay, but to achieve this you will not be making monthly payments and will go delinquent with your creditors. Freedom's program is a good one for people who are in financial hardship and need a way to get debt free for the lowest cost, and for a lower monthly payment, while avoiding bankruptcy... but it is not a completely painless process. Good luck getting out of debt and starting fresh! Bill

Due to depression and anxiety, I have not been paying my creditors for several months. I owe 4 back mortgage payments. I owe around $42000 in credit card debt and $22000 to the IRS. I make decent money, but now have relatives living with me that I am trying to support as well. I called Chase and got set up on a payment plan to catch up my mortgage, but haven't called my other creditors yet. Besides helping with credit card debt, can Freedom help with my IRS debt?

Yes, definitely. Freedom Debt Relief is part of Freedom Financial Network, which also operates Freedom Tax Relief (www.freedomtaxrelief.com), which deals purely in IRS tax resolution. Please give them a call at 1-800-455-6829 for a free consultation.

Hi- great info here...cah using a compnay like FDR impact any licenses you may have for work, such as a Series 63 for finance or a law license for a lawyer??

Does FDR ever make arrangements for cresitors to take a fixed amount immediately- say I am going to borrow money from a relative to pay off debt but they can only lend me 60% of my total debt- so would they speak to creditors & get the amount lowered in order to become debt free. I can't see borrowing that amount of money & still having balances...

That really depends on whether any of those licenses take your credit profile into consideration. You have to keep in mind that the biggest negative with a debt settlement program is that your credit history (specifically your payment history) will be negatively impacted.

FDR's program works based on the amount of money you can save on a monthly basis, the faster you save the faster you can finish the program. For example, let's say you have $30000 in total debt and FDR estimates that it will need $17000 to settle the debt, then it really depends on how soon you can save that $17000 to finish the program. So, if you were to borrow the $17000 from a relative, you can definitely finish the program faster.

Freedom Financial Aided us in the recovery of our financial situation.  We had gotten behind in Credit Card Debt to the tune of $40k. We had no where to go and in desperation were looking at all of our options, including default.  We found Freedom Financial and they took care of us.  There service is impeccable, someone is always there to take your call who is both friendly and very knowledgeable. They made sure that we had the support and comfort of a professional in times of doubt and fear.   They shielded us from the threats and the scare tactics of the Credit Card Companies. They were  here for us every step of the way.  They educated us is the ways of the financial institutions. When one of the institutions contacted us directly with a settlement, Freedom Financial was all to happy in helping us to deal with them on our own.  They were always working on our behalf.  When a new program came into existence that would strongly benefit us, they called us to make sure that we participated.  We did not have the extra income to pay high settlements, so they found a way for us to make the payments in an amount that we could afford.  With the aid of Freedom Financial we settled one account for 20% of what we owed to them!!!  And all the rest for less then Half!!! and paid it off quickly.  They continue to be on our side.  Thank you Freedom Financial.

What happens to your credit rating once the program is finished? How is it reported?

Your credit rating will be bad during the course of the program, but when you graduate all of your accounts will be recorded as "settled" or "settled in full" or "closed". You will have no more debt, your debt to income should be better and you can then re-establish your payment history with a mortgage, installment loan, gas card, or other types of trade lines.

When making a payment on a credit card, I miss the due date by, say a week; does that reflect negativily on my credit score, or does it only trigger the late fee? Thanks for your help...

unless you call your lender / credit card company and ask them to remove the late mark (which they will almost always do if it is only one week late), then it will show up on your credit report as an "R1" and will hurt your credit.

Do you have any info on credit solutions debt settlements corp? which company is better credit solutions or freedom debt relief, or are they equal? Please help

Freedom Debt Relief and Credit Solutions of America are both two of the largest debt settlement companies. First, decide if debt settlement is right for you. After deciding that debt settlement is right for you (cut your debts, low monthly cost, short time frame... but you will get some collection calls and your credit rating is impacted) then pick the best company for you. We did a review of Freedom Debt Relief here: http://www.bills.com/freedomdebtrelief/ Generally, Freedom Debt Relief has a much lower bbb complaint ratio and we believe that they have a much higher success and graduation rate, but decide what company is right and feels best for you. Good luck in your decision and let us know how it goes!

I am thinking of starting the program, how does FDR charge for their services?

I think the fees are split up into installments and are included as a part of your monthly payment itself.

You can contact FDR directly and they can explain how their fees work.

I'm in the settlement group at Freedom and just wanted to share some GREAT results that we are proud of on behalf of our clients: Negotiations settled 4,118 accounts in January breaking our previous record set last October by 12%. Here are some of the highlights from the month: Settled over $21mm in balances Non-Stipulation average settlement rate was the lowest ever at 42.6% FDR Clients saved millions because of our efforts Over 220 Clients had their last account settled and will now graduate our program Over 1,100 Clients saw their first settlement Settlement Team averaged 74.1 settlements per negotiator LARU resolved over 1,000 accounts 9 People broke the 100 Settlement level Bulk Settlement team set a record. Please don’t hesitate to send a note to the Negotiators congratulating them on their achievement.

That is great news Matt L, thank you for sharing and congratulations on saving your clients millions of dollars. Especially when the economy is so tough for many American families it is good to hear positive stories of people getting debt free.

I have read through all of these posts...I must be that one percent that is NOT having a good feeling about FDR. I have been a client since Nov. 2006. I seem to be right back where I started---I have higher payments to 2 attorneys with less income as my employment went to part time with the current economy.

Khris, your situation does not appear to be typical, but we will have someone from Freedom Debt Relief contact you to address your concerns ASAP.

Does freedom debit relief really work?I am thinking about enrolling with them becasue of finance hardship.

Freedom Debt Relief really does work for many people struggling with debts. They shared publicly that they resolved $22 million in debt and saved their clients millions just last month. Make sure that debt settlement is the right solution, and then test their responsiveness by calling their customer service line and confirming that their average hold time is under 10 seconds and that they will work hard for you. Good luck Mike.

Our credit scores are over 800 but we are buried in debt from a failed business, nearly homeless, and the RV we've had for sale all year has rapidly dropped to being $20K upside down. I have enough in an unsecured credit line to pay the outstanding balance if we sell... Is it a better to do that route and then do FDR, or ask for a short sale, or just keep living in it and hide from the repo man?

The decision is up to you, all you will be doing is borrowing form one place to pay the other. It might be good to look at your overall situation and actually assess your ability to make your payments and what the total time and cost to get free from your detbs will be in a couple of scenarios: 1. Minimum payments (what you are doing now); 2. Freedom Debt Relief or a debt settlement program; 3. Credit counseling; 4. Bankruptcy. You can get a free savings quote from freedom debt relief. They will look at your debt situation and advise the best course of action for you. You can call them up at 1-800-544-7211 or visit www.freedomdebtrelief.com.

I just got a call from Zwicker and Associates telling me that they are going to take me to court on behalf of American Express - I told them that I am working with Freedom Debt Relieft - he was very rude and told me unless I can come up with a huge dollar amount per month I will lose everything and they can hold this against me for 20 years etc. I am worried about losing everything and being taken to court - can they do that while I am in the program. FBR is closed for Presidents Day and no one is available. Any info would be greatly appreciated.

We have notified FDR to contact you today. The quick answer is "no" they cannot take everything and you have several options on resolving this debt in a way that protects you. I am sure that Freedom will work with you to understand this legal account and what this means for you, they have a large and very solid team to help you in these situations. Good luck Anne.

Thank you Bill. In fact they did call me and then a supervisor contacted me to confirm that I had been helped. They confirmed that I am ok and have even settled the account for me. I appreciate your advice and want to let you know that they were great to me and helped out.

Great news Anne and glad that Freedom Debt Relief helped you.

How do you avoid a garnishment? I don't mind a few phone calls, but I would not want to have my wages garnished.

If you are in a debt settlement program, you cannot guarantee that you would never get collections from a law firm or a lawsuit, since you are not paying your bills on time. What you can do is to tell your debt resolution firm that under no circumstances can you ever get garnished and make sure that they settle any legal accounts or that they set up payment plans with you before anything reaches the point of a judgment. I do know that a firm like Freedom Debt Relief has a large and solid group of teammembers who take this responsibility of getting you out of debt and of meeting your needs very seriously and can help you manage the process. Good luck.

Thank you for your information. This helped me decide that debt settlement was the right choice, since I cannot afford to get another loan and cannot stand the collection calls I am getting. I just need someone to help me get on the right path.

I have been working with Freedom Debt Relief since November and most of the creditors have slowed down their constant calling but Chase has been pretty harrassing and have threatened that the account has been given to their attornies and that a Sherif would be delivering paperwork to me for a judgement that they were going to file against me. I called Freedom right away and they assured me that until I actually receive something to not be alarmed as it is usually a scare tactic. So far nothing more has come from Chase and I no longer answer their calls but I still feel uncomfortable that one day they will have this judgement put against me and I wonder is there anything more that can be done to assure this does not happen? Chase is the highest debt I had/around 11,000.

That is good that the Freedom program is helping with slowing the collection calls, and regarding Chase and legal accounts - the Freedom advice seems accurate. Many creditors threaten scare tactics, and if they did move forward with a lawsuit you would have to be formally served and would have plenty of time to settle the account or set up a payment plan in advance of getting a judgment (a creditor cannot just slap a judgment on without your knowledge). Good luck Linda and hang in there.

I have been with FDR since Late December 2008 and their customer service is excellent. They answer phone calls right away and treat people with respect. I am just uneasy right now because I was served a summons and complaint from an attorney representing citifinancial and FDR is working the negotiation process. Of course I do not have enough funds in my account to settle at this time and informed FDR that I really cannot afford to pay more than what I am paying to FDR each month. I am really fearful of a judgment being placed on my wages. I am losing sleep and really stressing over this. What is FDR's success rate as far as settling these issues so a judgment does not take place? I guess I need reassurance that I did the right thing. Thank you.

We are glad to hear that Freedom Debt Relief is helping you and that you feel their service is good. The great news is that when the going gets tough (like a potential lawsuit) they are one of the best to handle it. I would expect that they will either settle if (if you have some funds) or will put the account on a payment plan (frequently called a stipulated judgment payment) and then settle it at the end of the program. There is likely a possibility that they can lower your payment for your savings account so that you make the payments for the lawsuit account plan too. Most importantly, make certain that they respond to you and keep you in the loop on the process. Hang in there and good luck Carol.

I am just am not sure if this will work,what if it don't then what? I will need to read up some more before I would feel comfortable with this!!

I'm not quite sure what your a referencing, but assuming you are wondering what will happen if a Freedom Debt Relief debt resolution program is not successful I have a bit of re-assuring info for you. First, the money you save towards settlements is yours and if you opt to save funds in Rocky Mountain Bank & Trust through GCS then the funds are FDIC insured as well. So you would have your saved money in the event you want to drop out of the program before graduation. Secondly, the most typical reason for program termination is a consumer who cannot even make the savings payments for the Freedom program and those consumers still have the opportunity to file bankruptcy as a last resort. I hope that helped and good luck.

The debt i have is due to my own mistakes. I owe the money and want to pay it off. What i would like is for someone to consolitate this debt into one loan, that i can make one payment to. I don't want anyone to settle for less that i owe. Does FDR do this kind of loan. Again this debt is mine and i want to pay all of it back.

Stephina, you probably need to talk to a loan officer about a mortgage refinance. To qualify, you will certainly need to own a home with equity (typically more than 20% of the value of the home in equity, or an LTV of less than 80%) and ideally, in this market environment, you could potentially qualify for a conforming or FHA mortgage loan. Freedom Debt Relief, and other debt resolution companies, do not typically offer these loans and the concept of an unsecured consolidation loan has not existed in this credit crunch for quite some time. Good luck.

This is pretty helpful feedback on Freedom Debt Relief, my question is are their cusomtomer service people as honest and nice to deal with as their debt consultants at enrollment?

We think so, but here's what I'd do: call on your own and see if they really do have a 95% service level and if they really do answer customer service calls in under 5 seconds on average. Good luck Mark and let us know how your experience with ( Freedom Debt Relief) goes.

After reading through all the above posts I have completely understood the pros and cons of debt relief. After analyzing all the different options, I have decided to go for freedom debt relief's debt reduction program.

Thanks William, we are glad we could help.

Yes debt settlement does help you in getting out of debt. Even I recommend everyone to go for freedom debt relief as one of my cousins has enrolled into their debt reduction program and he is pretty satisfied with their service. I am seeing the smile back on his face after years of hardship.

Thanks David, we appreciate your input and feedback, however, do not take 3rd party HRefs. Please stay in touch and keep blogging!

Me and my husband owe out about 43,000.00 and I want to sign up with Freedom Dedt Relief, what should I do... Please help me

One of the questions that I have is, that upon "graduation" from the program, are all of the "credit accounts" that I am encumbered with closed? Or is this a negotiable condition with each creditor, perhaps with a lower credit limit? It is awfully difficult to exist in the current environment with out some type of true credit card. In some instances a "checking / debit" card will not suffice. Unfortunately there are always situations in life that require an "emergency spend", family illness, transportation failures, or housing repair. Thank You in advance for your very informative and rapid response. John

That's a good question Shari. If you determine that debt settlement is the best solution for you then Freedom Debt Relief really is one of the best companies out there to help you. They are large, have very good customer service, are settling over $20mm in debt a month and will work hard for you.

John, that is a good question. I did some research on it. It so happens that even while you are in the program, you are allowed to retain just one credit card for emergency purposes, but the card cannot have a rolling balance and you have to limit your transactions just for emergencies. So this would be the account that you would have even after graduation. Now, once you graduate, being that you do not have most of your unsecured accounts, you can apply for more credit and I have heard of instances where clients have received offers as little as 6 months after graduation. What you have to keep in mind is that you have to get out of the habit of relying heavily on credit cards. If you are able to have that control, I am sure you can get approved for one or two accounts even after graduation.

By answering Gracie's question with such detail you have made it clear whether one should go for debt settlement or not. As per my experience I feel debt settlement is one of the best option to go for when you have large debt. I recommend everyone to go with Freedom Debt Relief.

I am glad that it was helpful Richard.

is debt settlement with someone like freedom debt always the best path to go with if one has many debts? i owe slightly more than $42,000 in credit cards and medical bills.

Not always Willa. If you can easily afford your bills and do not have a hardship, then you should try to pay down your debts as quickly as you can self-manage, and possibly even try to get a debt consolidation loan with a mortgage refinance or other options. If you cannot get a loan and struggle with making your payments, then settlement may be the right course of action, but you can also evaluate bankruptcy or even credit counseling. I would need to know more about your situation to give you more specific information. Good luck. Bill

I see so many websites promising a lot and then eventually transferring my account to another company for the actual negotiations. Does Freedom Debt Relief provide all the services in-house?

What you are doing at Freedom Debt Relief to impact and change people's lives is just incredible. It makes you feel that you are not alone.

Freedom Debt Relief does indeed do all of the servicing and settlements for its clients on its own. You are correct that many firms just do the front-end consultation process and then hand clients over to a third-party firm, but Freedom services its own clients and is very good at it. Good luck Nate.

I was in a complex situation and had researched a lot of options that could help me. Initially I didn't know whether Freedom Debt Relief was my solution but now I know I have made the right choice. I am living in peace now and it wouldn't have happened if it weren't for a great team at freedom debt relief.

I’m not completely out of debt yet, but getting there. Your advise have been invaluable, thank you guys. After joining freedom debt relief now the calls from my creditors have also reduced.

Thanks for the note Jonathan, however we do not take Hrefs. bill

I have been with Freedom Debt Relief since October 2008.I am so pleased with the staff support, the results of the negotiations and the professional approach to each situation. I feel that bricks have been lifted from my shoulders.All the credit card statements go to their address. I keep my phone ringer OFF~ can see name of creditor on Caller ID and hear messages.I do not call anyone back!Just document for FDR. In essence~ I feel facing my credit card debt of $51,000 has been a team effort with FDR. They have been wonderful. I will probably complete te program in 2 years~much less time and money than projected.

Glad to hear Sandy. Please report back when you graduate with your savings numbers and the final experience. Hang in there and congrats on getting on the path to debt freedom! Bill

I tried to keep my failing business going by using my personal credit cards and by the time I pulled the plug, I had about $40,000 in credit card bills to pay. Freedom Debt Relief was able to reduce the balance to about $20,000 and I was able to pay it off in about 19 months. Thanks again for the great work!

I have a few questions. I have been "approved" with freedom debt to begin. Is it standard procedure to "set up" a bank account and sign power of attorney for that account? Also, if they have offices in Arizona, why is my rep in Florida?

Jennifer, your consultation is free of charge and there is no cost or difference depending on which rep you use. Freedom Debt has over 550 employees and offices around the country, so you will get good advice no matter where you live. In response to your second question, it is standard and highly advised by many industry experts for you to set up a dedicated savings account. This helps with the savings discipline and increases your chance of success in the program. I know that Freedom Debt Relief uses this model to help you save, but if you want to use your own home checking account you can elect that option (although I would advise against it!) It is important to note that your account should be in your name and with a FDIC insured bank, so that you always control those funds. Good luck!

When I was thinking bankruptcy was my only choice, Freedom Debt Relief's debt reduction program was like a boon to me. I appreciate the effort freedom debt relief put forth in negotiating with my creditors on my behalf.

Bill, are you referring to a savings account for FDR drafts or the special one set up for the fees and funds for negotiations? You mentioned not to use your personal account. Wasn't sure what you were referring to in the previous post. Thanks~

I think that the model where you have a dedicated savings account forces the discipline to save funds monthly and really does increase the probability of success in a debt negotiation program like Freedom's or any similar model. You can set up a bank account in your own name at a bank that is FDIC insured and will hold your funds for settlement. This way if you terminate from the program, you have access and control over the saved funds and it forces discipline on you saving for funds for successful settlement. Good luck Sandy.

My experience with Freedom Debt Relief has been good so far, and I will be debt free within the estimated time they had given me while enrolling into their debt reduction program.

Thanks for sharing your experience Mia!

I have 5 credit cards 4 in my name only. Can I enroll just the ones in my name and not the joint account. Trying to save my husbands decent credit. I'm the one who screwed everything up.

One of my creditors seeked legal action, and the only negotiation they would consider was 80%, payable in 2 months. Of course I don't have anything close to that in my FDR account, not to mention that 80% is a far cry from the negotiations they advertise (40 - 60%). When I entered this program I was paying the creditor $40 / month... now I'll be paying $100 / month for 6 months, and then $300 until the debt is paid in full, with 24% interest rate, in order to keep them from garnishing my wages. At this point should I start reconsidering bankruptcy??? There's no way I'll be able to continue the payment when it reaches $300.

Once you analyze your financial status, your income and your debt levels you need to make sure if debt settlement is the right choice for you. I thank Freedom Debt Relief as they first analyzed my financial condition, told me the different options I had and I found their debt reduction solution was right for me.

Cheryl, you will not be able to leave out accounts. What you will need to do is either pay off the joint account or remove yourself as the joint user on that account (if you are only an authorized user). You have to understand that the success of a debt settlement program depends on convincing the credit card companies that you have are having extreme difficulties in paying back your debts, if you were to leave an account open, other creditors would see this and would refuse to settle on their accounts as they would see that you are still making payments on the one remaining account.

Hello Julie -- I'm sorry to hear about the difficulty that you are having with this creditor. From my experience with FDR, there is only one reason that they negotiate the type of payment arrangement that you describe--in the unlikely event that a creditor decides to pursue legal action to collect a debt. Basically, FDR is trying to prevent this creditor from taking even more extreme action, such as wage garnishment and bank levy. Although the payments are higher each month, you will also have the account paid off much, much faster than had you continued paying $40/mo; this means that you will pay much less interest over the life of the debt. Also, remember that FDR does offer its clients a money-back guarantee related to the amount of money you save while in the program, so if FDR is not able to counter-balance the high amount you are paying on this account with lower settlements on any other accounts you have, then you may be due a refund of part of the fees you paid to FDR. As for the interest rate being charged on the account, I encourage you to contact your FDR negotiator about it, as interest rates are often negotiable. Finally, keep in mind that even when a payment plan like this one is set up, you may still be able to settle the account if you are able to raise a lump sum or to save enough money to make a reasonable offer--there is almost always room for further negotiation down the road. If you are truly struggling with your monthly savings plan you agreed to with FDR, then bankruptcy may be something you should consider, in which case you need to talk to a bankruptcy lawyer in your area. If you can afford the savings and are worried instead about how much money you will save in the end, I would encourage you to try to move past this hurdle and allow FDR to continue negotiations with your other creditors. Remember, there is a money-back guarantee, which means that FDR has a strong incentive to save you money. If you have any questions, you should contact them and make sure that they fully address all of your concerns. I wish you the best of luck!

Thank you bill. You put my mind at ease about, and you are right that everyone at Freedom Debt has been pleasant to work with and they are helping me. I just wish this credit card debt was behind me.

You people at Freedom Debt relief have exceeded my expectations by bringing down my debt levels to a great extent. Couldn't be happier than this.

I posted on here a few months back and finally started up with Freedom. To this point they have been very helpful and friendly but what has been and still is my biggest concern is the chances of getting calls at work from creditors. By the time I finally signed up with Freedom I was already about 4 months late on my credit card bills. I've only had 1 month worth of money put into the account and all but 250 of it goes to the retainer fee. Is it very common to get called at work? I might be freaking out for no reason as it has not actually occurred but in reading online in various places it has made me actually start to consider a chapter 13 to avoid the situation. Any recommendations or suggestions? Thanks

Jeremy, you should try to avoid bankruptcy if at all possible. It is not legal for the creditors to call you at work, but it might need a written notice from you, for them to stop the calls. There is no need to panic, you have to give it some time as you will need to accumulate funds for the settlements. Freedom Debt Relief has a great customer service team; they should be able to help you in sending a notice to the creditor who is calling you at work. You can call them at 1-800-655-6303. Hang in there; it is too early in the program for you. As far as the fees are concerned, you should know that Freedom Debt Relief spreads the fees over a 19 month period, so you are not paying it all up front, but a portion of it at a time. The fee portion of the payment will be more in the beginning for about 3-4 months, but will be lower thereafter. Again, if you have any concerns at all, you should contact customer service.

Being in debt is not only stressful, it's also a major headache. It does take some time to get rid of debts, but due to you guys at Freedom Debt Relief I am completely debt free now. Thanks for your support.

Thanks for visiting our blog Andrew, we will make sure to pass your message to the good folks at Freedom debt Relief.

Thanks Bill. Appreciate the response. The thing is I'm about 4 to 5 months past due now on most bills and actually have not heard anything at my workplace. Hopefully that keeps up but I have a feeling once these reach third party collections they might get sneaky that way. I have not put this current job on any credit card apps or even my mortgage company so I'm hoping that will slow them down. Although even the current collectors for the actual creditors have somehow managed to get ahold of my unlisted Tmobile line. I'll stick with it for the time being and go with the flow. Thanks again for the reply.

You are welcome!

I just got the most wonderful birthday card from Freedom Debt Relief. They have been so nice and just made my day.

We were in a BAD financial situation, which was only getting worse and with the help of Freedom Debt Relief we are back on the road to financial freedom.

I have several credit cards and have been making payments on time but I do have one credit card that I haven't made any payments on because I have a daughter that used my credit card to the limit before I even knew it. IT was intended to be a small amount but she promised to make all the payments. She did for the first few months but now I am left with the whole card. Paying this one extra card I cannot afford so I am thinking about Freedomdebt. Is Freedom Debt Relief the same as Freedomdebt.com?

By explaining Gracie the pros and cons of debt settlement you have helped a lot of people in making the right decision whether one needs to go for debt settlement or not. I would recommend my friends also Freedom Debt Relief if they ever want to go for debt settlement

Thank you for your comments. Stay involved in our blog and report back on your experience with Freedom Debt.

I was working two full time jobs, and still going to lose everything I had. The people at Freedom Debt Relief turned the light back and I have hope again.

I love bills.com and the customer service that they have to offer. There is always a professional that I can talk to about my financial issues and they all seem to truly care.

We have over $70K in unsecured debt - mostly current, but so many lates that our credit rating is really bad now, especially since most of our accounts continue to lower our limits down to our balance, so we appear maxed out all the time. Morally speaking, we feel we should pay for the purchases we ourselves made on the cards, but not including all the ridiculous overlimit fees and late fees, at the interest rates that we originally had when the accounts were opened. They've all been increased to 27-30% now, which will make them impossible to pay off. Is FDR a good course of action for us?

Thanks for the nice note Greg. Bill

Connie, you sound like a perfect candidate for Freedom Debt Relief's services. Debt resolution through negotiated debt settlement is really designed for people who cannot afford to pay off their debts and don't want to (or cannot qualify for) file for bankruptcy. It will hurt your credit rating, but it sure sounds like you already have less than perfect credit score, so that should be less of a primary concern. Typically a good firm (like a Freedom Debt Relief) will help you come up with a budget that sets aside savings which will be used for future settlements. This usually about half of what minimum credit card payments are, and then they use those funds to settle your debts for around half of what you owe getting you debt free in around 2 to 3 years. It's not a walk in the park, but like getting fit or sticking to a budget if you stick to it and are committed then you can find yourself debt free relatively quickly. Good luck Connie. Bills.com

I joined Freedom 3 months ago, that is only 3 months that I stopped paying my credit card bills. I was making minimum payments and new I would never get out of debt. Freedom contacted me and I joined. The counselors are very supportive but I guess I was unprepared for the consequences this has had on my other credit cards. Credit cards that I have had in my possession for years with 0 balances have been cancelled by the creditors with the reason that they checked my credit rating. Freedom says they can't do this without my permission but the credit card companies say they can. Like I said it has only been 3 months, how can this happen so fast and why is it affecting credit cards that have been payed on or off with never a late payment? Do the collectors notify them?

Karen, we are pleased to hear that the Freedom Debt Relief team is helping you get out of debts that you think that you would have never gotten out of on your own. Also happy to hear that they are nice and supportive. I'm not quite sure what your question regarding other creditors relates to, since if you have a zero balance on those accounts and they are cancelled the only really adverse impact is on your credit rating, which will take a hit during your debt program anyway. If your goal is to get (and to remain) debt free then I don't see a big problem, but let me know if I am missing something here.

After I was laid off, i joined a low paying job and was not able to pay back my credit card debts. After a lot of research I enrolled into the debt reduction program from Freedom Debt Relief. Its been a great experience working with them and I am on my way to becoming debt free.

That's great Martin. Hang in there and good luck getting debt free with Freedom Debt.

I am confused. I am checking into FDR right now. You explained to someone on the board that the creditors are not being paid for many months. What is the large payment per month that I was quoted going to pay for exactly? It's not all fees as the fees were explained to me. Please explain who is receiving my large payement if its not the creditors.

Your monthly amount is split into two portions, the majority goes to a savings account that you own which is used to build funds which will ultimately be used for you to fund lump sum settlement payments. These are typically for around 50% of the balance owed. Then your debt provider (freedom debt relief, in this instance) will have a service fee that they charge you for the first half of the program (on average). The fees go to the debt relief company. The rest goes into your settlement savings account. It is important to be aware that in a debt settlement program you are NOT paying your creditors, and the debt provider is not paying them monthly. Instead you are holding your creditors at bay until settlements can be finalized. This is why these programs are suited for people with financial hardship or who struggle to pay their bills. I hope this information helps you. Bill

It is very nice to do business with a company which lives up to its promise. Being in debt is scary and difficult, I recommend everyone to go for Freedom Debt Relief who is facing debt challenges.

Iam enrolled in the fdrprogram since Feb.2009. Recently one of the creidtors on this program took us to court around first of June for payment, we went to court and the judge ask if we owed this debt and we confessed and he said he hope that fdr got us on the right road. The lady representing the creditor told us after court that she didn't realize that we were going through this program and that if she knew that it won't have went that far. I took all my paperwork from Fdr and showed her and she said she was mixed up and sorry, and she had papers from fdr and I showed her where they had sent them on Feb 26, 2009. I also was in touch with Fdr customer service and they helped me and i will call afer the hearing. I have called our representative at Fdr and told him about the summons of garnishmentand have talked to legalcustomer action dept. againleft message for negatitor to call me back. So now whathappens? THis collector is getting to me bad. Fdr customer serivce has been wonderful nice and very helpful and you do what Fdr tell you and these creditors just won't listen to you when you tell them what you are going through and what they need to do they are very annoying and says we don't do that. Does it ever end with creditors? I just don't answer anymore, unless it is FDR.

Karen, it sounds like your creditor sued you, and is attempting to obtain a judgment (proving that you owe the debt). This does happen, although infrequently in our understanding. If you have settlement funds available, I am sure that FDR can settle the account quickly. If you don't then ask them about your options about setting up a payment plan. Good luck and while creditors can really get under your skin, rest assured that you are in the best hands we know of. Bill

The first thing that Freedom Debt Relief did was provide effective remedies so that I could manage my finances and start my program to settle my debts. Even the calls from creditors reduced after some time.

Bill thanks for the info and Fdr did call me today and i called back and the gentleman was very very helpful. They are one of the best! i feelalot better after talking to them. Thanks alot

Why is it that the BBB has given Freedom Debt Relief an "F" and why does it state this on the report: "It has come to the BBB's attention that Freedom Debt Relief has continued to operate despite a desist and refrain order issued through the Department of Corporation on May 29, 2008." Why is the contact info listed as Andrew@bills.com.

I guess Freedom Debt Relief is an excellent option if you are want to go for debt settlement. My aunt took help of Freedom Debt Relief and she always tells how helpful they were.

I am grateful to Freedom Debt Relief as you people helped save my marriage. My husband and I always used to have fights regarding the debt issue, now we are back to our romantic stress free days.

Thanks for the question Beth. As is clearly stated in the article: "In the spirit of full disclosure, we do consider Freedom Financial Network and it's related entities as sister companies and think very highly of the teams at Freedom." Freedom is indeed a sister company, which you can learn more about at www.freedomfinancialnetwork.com The "F" rating is something that the BBB has unfortunately employed against the entire debt negotiation industry, and we would advise consumers to make sure to select a company that is good as measured by TASC Accredidation, or industry membership in TASC or USOBA and also a firm that is licensed and bonded. Good luck.

excellent article you have written here. thanks for the informative and entertaining read. quotations are a great way to inspire you to perform at your best and to remember sage advice from the smartest minds in the world.

Thank you for your kind post Maria. Bill

Quick Question: My wife and I have about $60000 in debt on Credit Cards. About about 25000 is on a card that I just have in my name. We own our house but my name is NOT on the Mortgage at all. I want to do the program but the other 2 cards that we have are in both of our names and 1 just in hers. I want to avoid having her credit rating messed up. Is there anyway? is there a way to just have everything transfered into a CC in my name so it doesn't effect her work / credit? Help!!!!

Your question may be quick but the answer is not. Look carefully at the contracts on the cards that contain both of your names. If you are joint holders of the accounts, then you are probably both responsible for the amount due. However, if you are the account holder and she is an authorized user, then she will probably have no liability. The answer may also depend on the type of program you are considering. Discuss the details of the two accounts in question with the debt consultation agent, who will give you an answer specific to your facts.

Freedom Debt relief is a good service, the staff was very helpful all the time. Now I can open my mails and answer my phone without any worry. If you don't believe me, check out the positive feedback at Freedom Debt Relief Reviews.

I never believed that within 2 years of time all my debt burdens would be lifted off my shoulders. Freedom Debt Relief helped me find my way through this debt settlement process.

I have to say I've only been in the program going on 3 months but just yesterday I was already informed of a settlement on one of my mid size creditors. I'm very impressed. Actually had thought it would be 6 months or more but they truly are good. Due to the lack of funds in my account the settlement will be over a 2 month period but I still must say I'm very happy and impressed with Freedom to this point.

That is good to hear Jeremy. Most likely there will be tougher and easier times, so be sure to work closely with your debt provider and hang in there until they are all paid off and you are debt free. Glad to hear another success story.

Are you affiliated with Freedom Financial in any way?

Yes we are. We are a separate and independent company, but as stated in the blog article: "In the spirit of full disclosure, we do consider Freedom Financial Network and it's related entities as sister companies and think very highly of the teams at Freedom." Good luck HB.

Freedom Debt Relief has not only helped me in reducing and getting rid of my debts but also has taught me on how not to get into trouble again. Your advice has been really helpful.

I was struggling after a bad car accident and a divorce, Freedom Debt Relief helped me in reducing my debt substantially. Initially I had thought bankruptcy was my only option but due to freedom debt relief I was able to become debt free without filing for bankruptcy.

Here's my update~ I have been in the FDR program for 9 months. Half of my credit card debt (the total was $51,000) has been settled. I am truly amazed and relieved~ the negotiators were able to get very good settlements. One bank settled a large debt at 10%. Thanks for the support and help from Freedom Debt Relief.

Debt reduction program from Freedom Debt Relief has given me peace of mind, one of my debt got settled at 20%. Thank you guys for your support.

Thank you for your feedback on Freedom and your Debt Relief program Steve. Bill

Freedom has now settled 2 of my accounts in just 4 months. One for 50% and the other for about 25%. They arranged payment plans for each so it is nice to know that the creditors will accept the settlement over a period of a few months if you do not have the funds completely available. They have been great and as advertised to this point.

Thank You Thank You Thank You!: I wanted to let say to all the people at Freedom Debt Relief that we are truely grateful for all that you did for us.I finally stopped worrying and our stress level has decreased tremendously now that we out of debt.I know that things happen for a reason and I believe that your company name coming up on our computer when we were looking for help was because FDR was the one that could really do what needed to be done.God bless you all for the valuable service that you do for people like us and others who work really hard but still need a helping hand. – Kim & Edward S.

Thank you. This information does indeed consistent with my experience with freedom debt's services.

Freedom Debt Relief has been helping me since May 2007 to resolve $70k in unsecured debt. I can say they are a great company. Have about a year to go. I recommend FDR;I talked to other debt resolution companies and found only FDR professional and straight forward.

Freedom Debt Relief helped me in organizing my debts and sorting out my problems. I would recommend you to anyone who is in debt.

I've been with them for 8 months now. Have to pay an attorney $200 each month for Citifinancial so they won't garnish my wages and just sitting on pins and needles waiting for something to happen with my credit card debts. This is not an easy road to take and what really gets me is that all you hear on the radio anymore is "Settle Your Debt" Lower your payments and so on and so forth. This seems to be the route to take anymore. These credit card companies are raking us under the coals.

Carol, I would highly recommend reaching out to the team at Freedom Debt and seeing if they can answer your questions and even get any debts resolved asap. You are right that Credit Card Debt can become a huge burden and that many consumers are turning to aggressive methods to just get debt free as quickly as they can... as you are doing with the FDR program. Please be sure to check back in with us and report on your status and progress, so that we can see how they do in answering your specific issues. Good luck. Bill

I have about $60k in credit card debt and am considering this program. However I own a business and have it under a C-corp. Will doing this program ruin my business credit?

If you are a stockholder in a C-corporation, then unless you personally guaranteed the debts, any debt associated with the corporation should not have personal conseuquences (including credit report impacts). Confirm this by pulling your personal credit report and make sure that the corporate debt is not on your own report. Your stock is considered your asset. Assuming the directors set up the corporation according to the rules and formalities of your state, that the corporation was adequately funded, and that neither the directors nor the stockholders funds were co-mingled with the corporation's (nor was there fraud), then the corporation will be considered a separate entity from the stockholders and directors for liability purposes. I recommend you consult with the attorney who set up your corporation.

I understand the liability portion, however the question I have pertains to credit. Specifically business credit. Will banks, lenders, leasing companies look unfavorably at my requests for credit for my business if I do this program?

What I tried to convey in my earlier answer is that you personally and the corporation are separate legal entities, assuming that the corporation is set up and funded properly. If you are acting as a corporate officer searching for lines of credit for the corporation, then your personal credit history is irrelevant. However, if you are mixing the two, then that's a separate issue. By mixing the two, I mean that you personally are a guarantor of a corporate line of credit or loan. If you are a guarantor, then whatever appears in your personal credit history will affect your loan application.

Thanks Raineys. I think that this was addressed, but to re-iterate, the company was a member of the BBB until the state of California contested their licensing under the prorating statute. You will notice that all court dates have been removed, which certainly appears to be a positive sign. Expect more from the company on this front. I do highly recommend that everyone do their homework, however, and find the best company and best solution for themselves. bill

I am a customer and just got my first settlement. Freedom is wonderful and nice, and they just sent me a really cool card that EVERYONE at Freedom Debt Relief signed for just me, whcih made me feel like they really care. Anyway, thank you guys and gals at Freedom.

Thank you for the feedback on Freedom and your review. Keep checking in and let us know how it goes all the way to graduation, and expect at least a few bumps in the road... but hang in there.

Thanks to the fine people that worked hard for me at Freedom Relief I am much better off. That is my review, thank you. Gabe.

What happens if I die before the program is finished or before negotiations are complete? Can the creditor go after our car which is in both names or the house?

Patriot, you might want to talk to an attorney - but I suspect that it depends on two things: 1. if you live in a community property state; or, 2. if the debt is jointly held. If either case applies, then the creditors could sue you and your spouse to try to win a judgment and then apply that judgment with a garnishment, lien, or levy. Be sure to check out this page to see your state limits and check with a local attorney for your specifics: http://www.bills.com/collection-laws/ Good luck and let us know how your Freedom Debt Program goes for you. Bills

I am thnking about using Freedom. I'm behind on my credit payments for about 2 months and cannot afford what my predatory credit cards want to charge me. Should I go with Freedom Debt, since I don't want to file bankruptcy at all.

I cannot answer that question for you, a lot will depend on your financial situation. I do suggest that before you decide on anything, you should do your home work and evaluate all your solutions. The folks at Freedom Debt Relief will be happy to do that for you for free. Once you have an idea about your options and the pros and cons of the same, you will be in a better position to decide. You can call 1-800-544-7211 today for a free consultation.

Is Freedom Debt Relief a good option for debt relief? Can you please do a review of freedom debt relief for me to determine if they are the BEST debt relief option for me? nice question and thanks for the answers!

I have about $47k in unsecured debt and $220k mortgage debt. I was doing ok until the economy dived and all my credit cards lowered my available balance and raised my rates. I have tried to get a consolidation loan but have a much too high debt to earnings ratio. I do not want to go the bankruptcy route, so I am thinking this is my best bet. I have two questions. 1. My daughter is graduating from HS in June 2010 and is applying to colleges. The only way she can go is if the schools give her financial aid. If I join Freedom, will the savings account be used against me when the schools are looking at my finances? 2. My state/local taxes ($1,450.00)are due in 8 days. As I cannot pay them in full, I just paid $200.00 using the last few $ on my credit card to give them some money. They charge a 6% late fee then 1% each month going forward. As this is much less than my cc interest rates, I thought I would just pay a small amount each month. If they are getting some money every month, do you think I will have to worry about them putting a lien on my house? Thanks very much.

1) The special purpose account is in your name and is your asset. I do not know how Sallie Mae or private loan providers treat the special purpose account. 2) I cannot answer how your local government will react to your payment plan. My suggestion is to contact them and ask if they have a program for people in this situation, and what the ramifications are.

I am looking into Freedom Debt Relief as a means to settle with our unsecured debts, most of which are in my name. My husband and I have a home, car etc in both our names but most others are in mine only or he is just listed as authorized. Do I sign up as an individual? Also how is a timeshare considered?

You should ask Freedom. I do know that if you are a joint account holder, then both of you will be subject to collection activity and so you should both sign up for unsecured accounts that are going to be enrolled. Secured debts won't qualify for a debt resolution program and wouldn't be really relevant. Let us all know how it goes.

I am currently enrolled with FDR's program since may '09. I have a friend who is also enrolled with them but she recently got sued, now she's considering BK Should I consider BK or continue my enrollment with FDR?

I am considering using Freedom Debt Relief to help me negotiate a settlement to my credit card debts. Since the debts will be reported as delinquent during the negotiation period with the creditors, won't the delinquincy or late payments remain on my credit report for 7 years?

While it is possible to be sued while in a debt negotiation program like those offered by FDR, as your friend experienced, the large majority or people are not sued during their enrollemnt in a settlement program. Also, I know that FDR has a team dedicated to resolving the accounts of those of its clients who are sued, so there is a good chance that your program could still succeed even if one of your creditors decides to pursue litigation. I cannot tell you whether or not bankruptcy is a better option for you; I do not know enough about your situation and am not qualified to make such a determination. However, choosing to end your settlement program simply becuase you are worried about the potential of being sued is probably premature; if you are sued and FDR is unable to resolve the legal action, then you may have a good reason to consider bankruptcy. Until then, I would encourage you to continue with the settlement program, unless it has become unaffordable or you know that you will not be able to see it through to the end. If you find that you need to file bankruptcy later, you can always do so, but it is more likely that you will not need to go to that route. If you are considering bankruptcy, I strongly encourage you to consult with a qualified bankruptcy attorney in your area to discuss the options available to you. I wish you the best of luck!

Peter: Yes, the accounts remain on your credit report for seven years but the entries for each account will change as each account is resolved. Exactly how each will be reported is up to each creditor. However, each account will be reported as some form of paid.

Well I'm now about 5 months into the program and Freedom has settled my third account just today. Granted it is a 9 installment plan but it still comes out to half of the original balance. They are definitely doing what they advertise. The only thing that concerns me is that with the roughly 190 per month coming out in fees ongoing the next 17 months or so they will not have a lot of wiggle room for other creditor settlements. Unless they also make payment plans with those creditors. Anyway, just wanted to report that I'm 100% satisfied to this point.

I have to make a decision soon to take care of my debt. As of now I am using credit cards to pay monthly debt. I am also retired and on a fixed income. Would FDR be able to help me become debt free. I do have a mortgage of $300,000 and my debt is around $45,000. I have never been late on payments but cannot keep this up. Any thoughts?

If, as you say, you can't sustain your debt, then you need to resolve it one way or another. Debt resolution is a great solution if you have enough monthly income to set aside for settlements with your creditors. Call FDR -- you have nothing to lose to learn more about this option. An FDR counselor will ask about your income, expenses, and debt load and tell you if you are a good candidate for a debt resolution program. The alternative I see based on your brief question is Chapter 13 bankruptcy.

I received an obviously misdirected call by a representative of a company calling itself Freedom at my cell phone while I was driving. This representative INSISTED on talking over me while I was trying to tell them they had the wrong number. By the way, the only reason I answered was that I have friends and relatives in the area code the call was coming from and thought that one of those family/friends might be calling me because they might have an emergency situation that they were calling about.

I contacted Freedom Debt Relief and asked about your situation. I learned the company does not cold-call people. The company does, however, return calls from people who have expressed an interest in their services, but that does not seem to match your circumstances. Since you mentioned that the number that came up on your phone had the same area code as your family, perhaps you could share with me the number that called you, so that we can research this mystery further. Thanks, and I look forward to you following up with me.

My husband and I owe about 95k in unsecured debt and currently going through a short sale of our home. Our credit has already tanked due to the short sale. We've been making our credit card payments on time and can still continue to do so. We just have to live paycheck to paycheck. My concern with the debt settlement is that it will make our credit even worse and that it will cause us to not be able to purchase a home in a few years. We figure if the lenders saw that the only thing we had in default was the shortsale and nothing else, that it will still look better on our credit report. With our current payoff plan, we can probably become debt free in 4 years or so using the dominoe strategy. Would you advise for us to settle our debt since our credit is tanked already anyways or would it be better in the long run to just continue making payments?

Bill's note to readers: I had never heard the term domino strategy before, so I asked Marian in an e-mail message for a definition. She replied with the following: "The domino strategy is where once you are done making payments on one card you take what you were paying and add that to the next card. Then when that's paid off you take that amount and apply it all to the next card, and so on." I like that phrase, and plan to use it to describe that strategy in the future.

Marian, your time to debt freedom in a debt resolution program is shorter than using the domino strategy, but at the cost of damaging your credit record. On the other hand, the domino strategy will take longer to achieve debt freedom, after which you will have a high credit score. However, one important thing you did not mention is your down-payment. How will you save for a down payment if you are spending all you can to retire the debt? Which leads us back to debt resolution as viable strategy. Let us assume that debt resolution takes less time than the domino strategy to achieve debt freedom. That's a reasonable assumption given that debt resolution programs settle debts at an average rate of 45-50 cents on the dollar. Once you are debt-free, you can continue to save at the same rate, but instead of your monthly savings being deposited into a special-purpose account, you can put that money into an account you reserve for your down-payment. While saving for your down-payment, you can rebuild your credit score with a secured credit card, and so on.

Debt settlement is not a one-size-fits-all strategy. I think it worthy of your consideration in your case for the reason I outlined above. Read "What Are My Debt Resolution Options?" to learn more.

It's very easy to spend your way into debt but it's incredibly hard to dig your way out. Interesting article on potential ways to become debt free.

I like the company and how they operate. I heard of many success stories, I would recommend them to my family and friends. These are tough times for consumers with high interest rates and loss of employment. It's a positive step in trying to move forward.

Freedom Debt Relief has helped to eliminate over half of my credit card debt so far. The credit card companies increased my interest rates to a point where I just could NOT pay. I called and they helped to walk me through the process. It was a little scary at first, but I am so happy I took a step in faith and came out ahead - and almost debt FREE! Anyone struggling should consider hiring this company.

My mother has been enrolled with Freedom Debt Relief a little over a year now and almost all of her accounts has been settled. Not to mention, one of the accounts was negotiated down to only 20% of the original balance. Words cannot express how grateful I am knowing that my mom will be able to retire in a year…DEBT FREE!!!

Thank you for sharing your story Jessica, we are very happy for your mother and her Freedom story. Good luck and stay debt free! Bill

I am happy about my experience with this company. My rep explained everthing in a clear and concise manner, told me what to expect and she was right. We have settled 4 accounts out of 13 so far. I am more than pleased. I check my credit score each time they settle a debt and watch it go up little by little. To top it off, I will finally be debt free soon.

I just wanted to call in. The person I spoke with made it easy to understand. I know what I need to do. Thanks.

Freedom Debt Relief is a great company. The consultants are knowledgeable and honest. Although debt settlement is not for everyone, in todays economy, many people could benefit using their services. I would recommend them to my family and friends.

Do you people do any research? Some facts about Freedom Debt Relief: Few of the common complaints against Freedom Debt Relief are: •They settle for far more an amount than what they commit to customers. •The BBB has rated them as F •Even after receiving a 'cease and desist' letter they continued with their calls. •They tend to lose information provided by their customers. •They are known to spoil credit scores of individuals. •They are accused of not returning client's money in case they have not been able to settle with a creditor. •The kind of settlement they make is no better General information on Freedom Debt Relief

Thanks for your input Warren. We believe that many of these issues have been addressed throughout, but each consumer does indeed need to do their own research. Bill

Half of my cedit card debt has been paid off in my first year with the help of FDR.The question I have~ does each credit card company immediately report this debt "paid in full" to the credit report companies? Gabrielle mentioned she checks her score each time FDR settles a debt. I wonder how you can check your score without paying each time.I knew that my credit score would be very low~so I have chosen not to know my score until I successfully finish the program. I was glad to see the score goes up each time. I have found that this company stands by their customers and have been extremely professional.I too am very grateful!

The Fair Credit Reporting Act (FCRA) is the set of rules governing the credit reporting agencies. As a practical matter, none of these companies show an immediate status change in an account -- there is always the delay in the reporting period dates, which is usually at least a 30-day lag, and in some cases the lag is 90 days. There is no standard manner in which a creditor will report a resolved account. Some report their accounts as "paid in full," and others will report the account as "settled as agreed" or "settled" or "settled in full." I am not aware of any free service that allows a consumer to check their credit report frequently, but you can check annually for free at annualcreditreport.com Good luck. Bill

I was considering bankruptcy,but have always paid my bills on time and had FICO scores between 714 and 745.My debit is around $125,000.Is FDR's program for me? I'm just trying to make sure that it's a reliable and recognized company and from what I've read above,it is---with a few complaints---which any company can have.Thoughts?

It is impossible for me to say if bankruptcy or a debt resolution program is the best solution for you based on the facts you shared. Answering that question depends on your goals, if you own property, your income, the nature of the debt, if you are considering Chapter 7 or Chapter 13 bankruptcy, and if you even qualify for bankruptcy under the 2005 rules changes, among other considerations. Give FDR a call and listen to the positives and negatives of debt negotiation/consolidation, and weigh each according to your medium- and long-term goals. Do the same with a bankruptcy attorney. The decision will be much easier for you once you understand more about both options.

I recently signed up with FDR so I have stopped paying my 7 credit card payments (4 different creditors), but have had only one payment taken out of my bank account so far which is obviously not enough to settle. Some of the creditors are telling me they don't deal with settlement companies - is this a scare tactic? The customer service rep I have dealt with at FDR said that they deal often with each of my creditors so I shouldn't worry about it. I'm also confused, if the creditors haven't settled yet, how is it that they were able to "settle" on the amount I gave them when I first signed up which was before all of these late fees and higher interest accrued? I'm starting to worry about this, but probably won't be able to catch up now paying minimum payments on my own.

First, remember the creditors' goals: They want you to pay the balances you owe them in full, and not a penny less. With this in mind, it is not surprising the collections people you are speaking to will say things like, "we don't deal with settlement companies." And, there may be a tiny sliver of truth in what the collections people are telling you -- the people in their call centers do not deal with debt settlement companies. However, people in the creditors' other call centers do. Second, as you enter into a debt settlement/negotiation plan, your account balances will grow as the accounts accrue interest. However, keep in mind the goal and track record of debt settlement and negotiation plans -- a successful settlement/negotiation company will resolve your debt for 50 cents on a dollar or less. Therefore, even though your account balances will grow initially, they should be resolved for less than the balances you see. Third, I am concerned by your reference to continuing to make minimum payments. If you are continuing to make minimum payments, then you are working against yourself in resolving the debt. Therefore, I urge you to contact your debt resolution/negotiation company immediately and discuss your concerns and your making minimum payments with a customer service person. Ask the customer service person to work with you to help you understand your plan's features and how your plan operates.

I am considering the debt reduction program through FDR. I have a question, though. On one of my credit cards, my brother signed as co-signor. If I let this account go delinquint while in the program, how is it going to affect his credit?

Co-signers have joint and several liability on unpaid balances. If you default on an account with a co-signer, the creditor will attempt to collect payments from the co-signer. If the co-signer does not pay, his credit score will be damaged. Accordingly, you should consider focusing your resources on paying off the co-signed account or otherwise leave that account out of a debt resolution program.

Is "freedom debt relief" the same company as "freedom now debt relief" who is associated with "rocky mountain bank & trust" thru "global client solutions". FNDR are the people who I can not contact anymore, their phones are all disconnected and no one answers my emails.

No, Freedom Debt Relief is a different company. It sounds like Freedom Now may be out of business. You could contact a local attorney to track them down.

I absolutely LOVE Freedom Debt Relief! I have been with the program for just over 3 years, and they have negotiated and paid off all of my credit cards and my Husband's credit cards at 50% on most, and a bit lower % on some. I still have a rather large outstanding personal loan from CitiFinancial, so it's taking a little while to accumulate enough in my account so they can begin negotiating with them, but I'm almost there! (fingers crossed that CitiFinancial will be nice and also negotiate at around 50%...). After that, I will be finished! One of the biggest helps and 'de-stressors' for me when I first began the program is that I no longer had to 'avoid' all of those calls from 800 #s (collectors) that I would get on my cell & work phones SOOOO many times every day! That was completely awesome, and immediately allowed me to relax in knowing that I had someone else (FDR) who was very competently dealing with my creditors on a 'business to business' level -- without all of the "guilt-giving" (by collection agents) and "guilt-feeling" (by me)! I can't stress how valuable just that aspect was to me and my mental health!! I would ABSOLUTELY recommend Freedom Debt Relief to anyone who is currently having trouble "keeping up" -- they are VERY straightforward, EXTREMELY helpful, and provide OUTSTANDING customer service! I just can't say enough GREAT things about them! Thank you SOOOOO MUCH, FDR! -Jen;-)

Is it true that if creditors do accept a negotiated settlement, the amount forgiven constitutes taxable income ???

The IRS Topic 431 - Canceled Debt – Is it Taxable or Not states in part, "In general, if a debt for which you are personally liable is canceled or forgiven, other than as a gift or bequest, you may have to include the canceled amount in gross income." Many exclusions apply. See the IRS document I cited above, and to see how the details of your situation apply to the exclusions. In general, there is a chance that any canceled debt could be taxable as CODI (cancellation of debt income), but if your debts are more than your assets (technically, you are insolvent) then you may qualify for exemption - but you should contact your tax preparer and ask them to evaluate a form 982 and the insolvency clause. See Cancellation of Debt Income for more information.

Thank you for the Freedom Debt information. CJ

Is Freedom Debt Relief the same as freedom debt management or freedomdebt.com? I want to be sure to go to the right Freedom Debt Relief that was recommended to me by my friend who liked them.

Freedom Debt Relief is a separate company from the other two you mentioned.

I need some advice regarding debt settlement. I filed bankruptcy 16 years ago. I got myself back into debt from school and stupidly took out a personal loan from boa and now am right back into debt again after three years. I have enrolled in a credit counseling class but I need to get some relief. I have made all my payments but am living on 40 dollars a week. I jsut need some suggestions. I have heard of a place cal best debt options and they check out with the bbb. Is there anything else I should be looking at Thanks Kim

Kim, I have two suggestions for you. First, read What Are My Debt Consolidation Options? This resource is a brief overview of the pros and cons of your debt resolution/consolidation options. Second, read Debt Reduction Companies to learn more about what to look for in a debt resolution partner.

if you want to take credit card debt settlement advice from a professional, you should be able to trust the advisor fully. So you need to check the credentials of the credit card debt settlement advisor/company. There are hordes of people and companies that advertise "credit card debt settlement in one day" which will appear incredible.Such credit card offers are generally not genuine.

That is good advice Ruby, each consumer always needs to first decide what debt strategy is best for them (debt consolidation, debt settlement, credit counseling, bankruptcy, or figuring out a way to pay their bills) and then select the best company for their products and also a debt counselor that they can trust. Cheers. Bill

Thanks Bill!!You put my mind at ease about FDR.

I hate to break the bubble on this little party but FDR has some problems. And FYI they do not have a BBB Accreditation, check them out on BBB website.

Would you care to share the problems referenced? As far as BBB, no real debt settlement providers are currently members of the Better Business Bureau (that we are aware of) - and per our recent visit with the General Counsel of the BBB regarding debt options for consumers, this will not be revisited until July of 2010. The BBB's stance is currently to not allow membership to debt settlement companies until a formal review process and screening (including accreditation standards, similar to TASC, and state licenses) is established. To our knowledge Freedom would be one of the few debt settlement companies that is accredited, licensed, bonded and would potentially qualify. Cheers. Bill

I am thinking about to join FDR..but im scare. Is FDR good? i owe over 13k and FDR offer me to pay 228 per month for 40 months. Will it effect my credit score and etc? Will the creditors call me immediately?

Yes, Freedom Debt Relief is a very good company. As discussed above Freedom Debt Relief (FDR)is a reputable company to work with. Their underwriting process is very thorough, and is based on seven years of experience negotiating thousands of accounts with creditors. You can be confident that the plan they offer fits your particular situation. You should keep in mind that a debt settlement program is for someone who is experiencing a financial hardship, and possibly considering bankruptcy. Any third party program to assist you with your debt will have a negative effect on your credit. Debt settlement programs, like the one Freedom Debt Relief offers, negatively impacts your credit because your accounts must be past due before a creditor is willing to negotiate. However, the impact on the credit tends to be less severe than filing bankruptcy.

Did you see this, this is pretty great news for Freedom Debt Relief and the entire industry: CALIFORNIA DEPARTMENT OF CORPORATIONS FINDS FREEDOM DEBT RELIEF IS COMPLIANT WITH ALL OF THEIR REGULATIONS AND LAWS. "We recognize this as validation that our debt settlement business model works in the consumer's best interest," said Andrew Housser, co-CEO of FDR. This is the first known case where a debt settlement company has been acknowledged to be compliant with current California law. Good work Freedom!

We did notice that, and I am sure that this success has reverberated across the industry and I know that Freedom Debt is very pleased with this outcome.

I have currently been with Take Charge for approximately 9 months. I have about $120,000 in credit card debt but I am finding it harder and harder to make the monthly payment and have about four years to go. My job situation is not steady and my wife lost her job. My credit score is already bad because of having to close all these accounts when I went with Take Charge so I'm wondering if FDR would be a better solution for me and if my monthly payment would be less than what I am paying to Take Charge.

The company you mentioned offers consumers debt management plans (DMP). A DMP is a plan where the creditors make a concession on the interest rate while requiring the debtor to repay the entire balance over time. Freedom Debt Relief offers debt negotiation where the company negotiates the balance of the debt so that the consumer pays 40 to 60 cents on the original ballance dollar. See What Are My Debt Resolution Options? for a more complete discussion of the differences between the approaches and your other options.

yes we enrolled with Freedom Debt back in November. To date we have two aggressive creditors, one Citifinancial and the other is a smaller company. The smaller company sent us a Summons to court. what scares me is that this account is only 2 payments behind and now he is already suing us for payment plus court and attorney fees. My question is should we be looking at bankruptcy or ride this out and see what Freedom can actually do for us.

It is rare for a creditor to file a lawsuit at all, and even rarer for one to file so quickly. See Advice if you Received a Subpoena While in Debt Resolution Program to learn how to contact Freedom Debt Relief's legal department.

Great information here with very honest and and valuable discussion. I'd really like to see a good blog or website detail all the popular consolidation companies out their with their requirements for APR eligibility. Some of these companies will not offer their services if you have below 11% overall which I consider to be a fairly high APR by todays standards.

hi my wife and I owe 40k on 7credit cards. We have been unemployed for the past 5 months. We were on a temp employment visa (h1) and moved to Canada a month ago. We will try to look for work here. We have about 1000 left in tv US bank which can be used to pay mi imum balances for about 3 months. I am thinking of defaulting on the payments. I am not sure how much a debt relief agency can helps since I am not in US. We have always paid taxes and CC payments up to now. I k ow that our credit will suffer because of this but what are the other consequences of dilinquency? Can I visit the US again? Can they come after me in another country? Will it affect my credit here? Can they put me in jail? any advise will be appreciated

Thakara: I answered a question similar to yours recently in Canada Credit Report. The answers to your questions are somewhat complicated, and I would do you a disservice to try to summarize them in one or two sentences here. Please see the link I mentioned for a complete discussion of the issues.

THE TELL YOU THEY NEGOTIATE YOUR SETTLEMENTS AND THEY DO IS WAIT THE CREDITORS OUT. WELL GUESS WHAT YOU CAN DO THAT YOURSELF. THEY DON'T APPROACH CREDITORS UNTIL YOU HAVE ENOUGH MONEY IN YOUR ACCOUNT. THERE IS NO NEGOTIATIONS TRUST ME. I'VE BEEN IN THIS PROGRAM FOR 2 YRS AND I STILL, GET CALLS FROM CREDITORS. WHEN YOU COMPLAIN THEY TELL "YOU" WHAT TO SAY TO THEM. SAVE YOUR MONEY.YOUR BETTER OFF WITH A DEBT CONSOLIDATION SERVICE. I COMPLAINED THAT I STILL HAD A CREDITOR WHO HAD NOT BEEN RESOLVED AND THEY TOLD ME IN NOVEMBER AND JANUARY THAT THEY WERE ESCALATING THE "ACTIVE NEGOTIATION". WHEN I TOLD THEM I WAS STOPPING THE PAYMENTS BECAUSE THE MONEY I HAD BANKED WITH THEM WAS THE FULL AMOUNT THE LAST CREDITOR WAS OWED, THEY TOLD ME THEY DIDN'T KNOW WHERE THAT ACCOUNT WAS AND TO CHECK MY CREDIT REPORT AND SEE IF IT WAS STILL OPEN. HOW MUCH NEGOTIATION DOES IT TAKE TO CONVINCE SOMEONE TO TAKE THE AMOUNT OF MONEY THEY ARE ASKING FOR. HOW ARE THEY NEGOTIATING WITH AN ACCOUNT THEY CAN'T FIND? I SWEAR EVERY WORD IS TRUE. 2 YRS FOR 4 ACCOUNTS.

Ginny, it is unfortunate to hear your frustration and as it seems inconsistent with some of the prior feedback we've heard and so we directly called the head of client satisfaction at Freedom to evaluate your program. He stated that: "three of her four accounts are successfully settled and for great savings, her settlements were for: 26.% of balance (saved 74%!), 38.1%, and 41.1%. These are much better than our average savings, but we have worked very hard for her. Her last account is being worked and I will personally call her today to understand where there is miscommunication." Ginny, please report back if you don't get your answers and good luck. Bill

We too are in debt up to our eyeballs. I tried to work with one of the creditors and was flat out rejected. I joined Freedom Debt Relief and have been treated very kindly. It is hard when the calls and letters start but stay in touch with Freedom is the best thing. Each time I call they listen to what is going on and then tell me what they will be do to help. Best thing we ever did was to join. Funny thing but we are finding we can live without credit cards!

That's great to hear that you are on the path to debt freedom, and that Freedom Debt Relief is treating you kindly and helping you get debt free. Good luck and be sure to stick with it, even when it seems tough. Getting debt free is like joining a gym, you cannot sign up but not stick to a plan of fitness and be disciplined... but when you finish you'll be debt free for life! Bill