Freedom Debt Relief Review April 2025

What is Freedom Debt Relief?

Freedom Debt Relief (FDR) is a top debt settlement firm. Since 2002, it has settled over $19 billion in debt for over 1.16 million consumers. To achieve these results, FDR negotiates directly with creditors. It resolves clients' debts for less than the full amount owed. Clients often benefit from a smaller monthly payment. It is usually less than the minimum payments required by creditors. This helps them gain more financial control.

Freedom Debt Relief: Top Features

Negotiate most kinds of unsecured debt:

Freedom Debt Relief negotiates on most types of unsecured debt, including credit card debt, personal loans, store cards, and medical bills, with a minimum enrollment requirement of $7,500. While FDR does not handle secured debts such as mortgages or auto loans, they may consider private student loans and certain business loans on a case-by-case basis, offering flexible options for qualifying debts

Top accreditation: 

Freedom Debt Relief is accredited by the American Association for Debt Resolution (AADR)—previously known as the American Fair Credit Council (AFCC)—and certified by the International Association of Professional Debt Arbitrators (IAPDA). These accreditations affirm FDR's commitment to ethical standards and professional practices in debt resolution

Free consultation:

Freedom Debt Relief offers a free debt consultation. It's a chance to explore options. It will help you find the best debt relief option for you. It could be debt settlement or another solution. The debt consultant can explain the debt settlement process. But, it may not be the best option for everyone. Ask about all options. Come prepared with questions to understand the process. They’re there to answer your questions and help guide you. 

Read more: Debt relief counseling top questions | Bills.com

No upfront fees and competitive rates:

Like other reputable debt settlement firms, Freedom Debt Relief doesn't charge upfront fees. This means that you won’t pay until they reach a settlement. Freedom Debt Relief's fees are competitive. They range from 15-25% of the enrolled debt, depending on your state.

Expected savings and dedicated account:

Freedom Debt Relief estimates that clients may save about 25%. They may pay 50% of their original debt. Savings can vary based on a few factors. These include the amount owed, your deposit speed, and creditor terms.

As part of the program, clients must set up a dedicated account in their name with a separate financial institution, Crossroads Financial Technologies (CFT). CFT charges a one-time setup fee of $9.95 and a monthly maintenance fee of $9.95 for the account. Freedom Debt Relief does not share or receive any portion of these fees.

Understanding How Freedom Debt Relief Works

Freedom Debt Relief (FDR) is a debt settlement company. It negotiates with creditors to reduce clients' debts, helping them achieve debt freedom faster.

Debt Settlement Process

• Consultation: It starts with a free consult to see if the FDR debt settlement program is right for you.
• Negotiation: FDR negotiates with creditors to reduce debts, aiming to settle for less than the full amount owed.
• Payment Setup: Clients deposit funds monthly into a dedicated account. This builds savings for future settlements.

Stopping Payments and Saving for Settlements

• Building Savings: Once enrolled, clients may choose to stop direct payments to creditors. And instead contribute regularly to their dedicated account.
• Impact on Credit: Clients may see delinquencies on their credit report and a drop in their credit score from stopping direct payments. But, this is a step to save for lump-sum settlements.

Enrollment Steps - How to Sign Up for Freedom Debt Relief

1. Apply via the website or contact customer service.
2. Provide financial details and sign an agreement.
3. Open a dedicated account for your monthly deposits. This gives you control over the savings.

After Enrolling - Once you enroll in the Freedom Debt Relief program

• Savings Accumulation: Funds grow in the dedicated account, enabling lump-sum offers.
• Negotiations and Results: FDR negotiates settlements as funds grow. Many clients settle their first debt within six months. It depends on the debt size, number of accounts, and monthly deposits.
• FDR charges fees (15-25% of enrolled debt) only after reaching each settlement.

Freedom Debt Relief: Latest Program Achievements and Client Support

Which states is Freedom Debt Relief Available?

Freedom Debt Relief is currently available to residents of Alabama, Alaska, Arkansas, Arizona, California, Delaware, Florida, Idaho, Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, Nevada, New Mexico, New York, Oklahoma, Pennsylvania, South Dakota, Tennessee, Texas, Utah, and Wisconsin.

Freedom Debt Relief works with legal partners to provide debt settlement services in Connecticut, Georgia, New Hampshire, New Jersey, Illinois, Kansas, Maine, Ohio, South Carolina, and Virginia.

Is Freedom Debt Relief Legit?

Yes, Freedom Debt Relief is a legitimate company with a strong record of over 20 years of service, assisting households facing financial hardship. Freedom Debt Relief is accredited by the American Association for Debt Resolution (AADR) (formerly the American Fair Credit Council) and holds favorable ratings on Better Business Bureau (BBB) and Trustpilot, reflecting high customer satisfaction.

In 2019, Freedom Debt Relief reached a settlement with the Consumer Financial Protection Bureau (CFPB) following concerns about its transparency in communicating terms and program costs to consumers. The settlement required Freedom Debt Relief to modify several practices to improve clarity and consumer protections. These changes included:

• Providing a free debt evaluation to ensure consumers understand and can compare their options before committing.
• Offering more straightforward, transparent language about fees and terms.
• Implementing a program guarantee: if the total cost of settling debts (including fees) exceeds the original amount owed, Freedom Debt Relief will refund up to the full fees paid.

These adjustments aimed to enhance transparency and reinforce Freedom Debt Relief’s commitment to consumer-centered practices.

While debt relief may not be the best solution for everyone’s unique situation and financial goals, Freedom Debt Relief’s transparency, integrity, and extensive experience make it a standout in the industry.

Freedom Debt Relief: Qualifying for a Debt Relief Program

Freedom Debt Relief has a debt settlement program for consumers with overwhelming debt. Debt settlement, unlike a loan, is not credit-based. It seeks to negotiate with creditors to reduce the total owed. Here are the main requirements to qualify for their debt relief program:

• Financial Hardship: Debt settlement is for households that can't make their minimum payments. It is for those seeking a quick way to reduce debt. Freedom Debt Relief assesses your ongoing financial situation to determine eligibility. Common hardships include job loss, reduced income, medical bills, divorce, or a death in the family. Creditors are more likely to negotiate if they see genuine financial difficulty.
• Behind in Payments: In general, to qualify, you must be several months behind on your payments. Debt settlement requires demonstrated financial difficulty, which is often reflected in missed payments.
• Ability to Make a Monthly Payment: To join, you must make a monthly deposit into a program account. Generally, this deposit is lower than your current minimums. For example, if you have $25,000 in credit card debt, a four-year program could let you pay about $390 per month. The minimum payment is about $625. Freedom Debt Relief's program runs for 24 to 48 months, depending on your debt and financial goals.
• Sufficient Debt to Warrant the Program: Freedom Debt Relief requires $7,500 in unsecured debt to enroll. This minimum is in place to ensure the program is cost-effective for both parties.

Benefits of Freedom Debt Relief - Pros and Cons

Freedom Debt Relief offers several advantages to individuals struggling with debt. Freedom Debt Relief offers a customized repayment plan. It tailors solutions to each client's finances. This helps clients pay off their debts faster. Also, Freedom Debt Relief handles creditor negotiations. This spares clients the stress of dealing with creditors. This approach can help people reduce their debt. It may lead to financial freedom with less owed. They offer a free consultation to discuss options. This helps clients make informed choices.

Program Downsides

When considering a debt relief program, weigh the benefits against the risks. Freedom Debt Relief is clear about the short-term impact on credit scores. Debt settlement often leads to missed payments, which can hurt credit history. Many clients prioritize becoming debt-free over their credit score. They know it's easier to rebuild credit once their debt is gone.

Also, Freedom Debt Relief warns clients of tax risks: forgiven debt may be taxable income. Taxes might apply. But, it's often easier to pay taxes on forgiven debt than to pay the full amount. For example, paying taxes on $20,000 in forgiven debt may be preferable to repaying $20,000.

Freedom Debt Relief - Customer Service and Customer Satisfaction

Freedom Debt Relief offers a free initial consultation over the phone to help individuals explore their debt relief options. For existing customers, FDR provides support 7 days a week through their customer service phone line. Clients can reach them at 1-800-655-6303 for general inquiries or 1-800-230-1553 for existing client support.

In addition to phone support, Freedom Debt Relief provides a robust online dashboard and client portal, where clients can track account activity and progress. The portal includes helpful resources such as account updates, videos, a blog, FAQs, glossaries, negotiation alerts, and more to support clients throughout the debt relief process.

As of November 11, 2024, Freedom Debt Relief holds the following ratings:

These ratings underscore Freedom Debt Relief's commitment to customer satisfaction and ethical business practices.

Reddit User Review

One user shared their experience on Reddit, saying:

“Yep, Freedom Debt Relief is legit—the real thing. They’ve been in business for over 20 years, have an A+ rating with the BBB, and excellent Trustpilot reviews. I’m glad you’re doing the research, though, because, in my opinion, debt relief isn’t for anyone looking for an easy way out. Let’s be honest, there’s no ‘easy road’ to getting out of debt… unless you count winning the Powerball, and, well, that’s probably not happening! I can’t say if Freedom Debt Relief is the right program for you, and honestly, nobody can without a thorough review of your finances. That’s why a legitimate company will offer a free consultation to go over your situation and discuss your options.”

For more insights from the community, visit this Reddit post about Freedom Debt Relief.