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Freedom Debt Relief Review July 2024

As the oldest & most established debt settlement provider, we consider Freedom Debt Relief the gold standard in debt settlement services.
Betsalel CohenJul 1, 2024
Get rid of your debt faster with debt relief

Get rid of your debt faster with debt relief

Take the first step towards a debt-free life with personalized debt reduction strategies.

Choose your debt amount

See if you qualify

Or speak to a debt consultant  844-731-0836

Editor’s Note
Advertising Disclosures

At, we strive to help you make financial decisions with confidence. While many of the products reviewed are from our Service Providers, including those with which we are affiliated and those that compensate us, our evaluations are never influenced by them.

Best for Overall debt reduction

Freedom Debt Relief Logo
Overall rating:
4.65 rating
Go to the provider’s site

Freedom Debt Relief (FDR) is the most veteran and well-known debt settlement provider available. With extensive expertise in debt negotiation, the company can settle private debts like personal loans, medical debt, credit card debt, and certain student loans. The level of experience and number of services provided by Freedom Debt Relief makes it stand out from the competition.

Type of Debt SettledCredit cards, medical bills, unsecured debt
Program LengthCustom to client. Typically 24-48 months
Customer Service HoursPhone support 7 days a week

Available in 41 states.

Not available in NJ, IA, MN, WI, ND, NJ, IA, MN & WI


American Association for Debt Resolution (AADR) International Association of Professional Debt Arbitrators Platinum Member

key featuresKey features
  • Founded in 2002 - 21 years in business.
  • Has settled more debt than any other company.
  • It can help lower monthly payments and lower the total debt owed.
  • Willing to work with people who have been turned away or rejected by most other lenders or debt consolidation companies.
  • User dashboard provides consumers more transparency & control over their debt.
  • Online account info, videos, blog, FAQs, glossary, negotiation alerts, and more

What is Freedom Debt Relief?

FDR is a leader in the debt settlement industry; they have settled over $15 Billion in debt for over 850,000 consumers. To accomplish this, they negotiate with creditors to resolve their clients’ debts for a discount. Clients regularly receive an added benefit of a monthly payment that is smaller than the monthly minimum amounts required by their creditors.

Freedom Debt Relief: Top Features

Negotiate most kinds of unsecured debt:

FDR carries a minimum enrollment of $7,500 and can assist with credit cards, personal loans, store cards, and medical bills. However, they do not offer services for secured debt such as mortgages and auto loans. In some instances, Freedom Debt Relief may also consider private student loans and business loans on a case-by-case basis.

Top accreditation

The American Association for Debt Resolution (AADR) - formerly The American Fair Credit Council (AFCC) - accredits Freedom Debt Relief, and the International Association of Professional Debt Arbitrators certifies them.

Free consultation:

They provide a no-cost debt consultation program to evaluate your financial standing and check if their program is suitable for you.

No upfront fees:

Like other reputable debt settlement companies, Freedom Debt Relief does not charge any upfront fees.

Competitive fees and results:

Freedom Debt Relief has competitive fees of about 15-25% of your enrolled debt, depending on your state of residence. Estimated savings vary depending on the amount you owe, the speed at which you make your deposits, and your creditors. They evaluate that you will pay about 50% of your original debt and possibly save about 25% of your original debt.

As part of the program, the client sets up a dedicated account, in their name, with a financial institution, Crossroads Financial Technologies (CFT). CFT does collect fees for setting up the account and maintaining the account.. Freedom Debt Relief does not share or receive any part of the fees paid to CFT.

Understanding How Freedom Debt Relief Works

FDR is a debt settlement and debt relief company that helps people who are struggling with debt to find a way out. The company negotiates with creditors to lower the amount owed and helps consumers pay off their debts in a fraction of the time.

Debt Settlement Process

The debt settlement process at Freedom Debt Relief begins with a free consultation where the company will review the customer's financial situation and determine if their program is the best option. The company will then negotiate with creditors to reduce the amount owed. Once the debt is settled, the customer will make a single monthly payment to a dedicated account in their name, which will, in turn, distribute the funds to the creditors.

Qualifying Debts and Requirements

Freedom Debt Relief is best for unsecured debts such as credit cards, medical bills, and personal loans. Customers must have at least $7,500 in unsecured debt to qualify for the program.

Fees and Pricing

Freedom Debt Relief charges a fee of 15-25% of the total debt enrolled in the program. This fee is paid during the program, when a settlement is reached, and is based on the amount of debt enrolled and the amount of debt that is settled.

How to Sign Up for Freedom Debt Relief

To sign up for Freedom Debt Relief, customers can visit their website and fill out a short form or contact their customer service team. Once they have been approved, they will need to provide their financial information and sign an agreement. 

Once you enroll in the Freedom Debt Relief program

Upon enrolling, you open a dedicated account in which the funds you deposit are under your control. Your monthly program payment goes into this account, and the funds aren't co-mingled with any other client's deposits.

The amount you pay is customized, based on the total of your enrolled debt, your ability to pay, and the length of the program. This is when you can choose to stop making payments to your creditors to save up enough funds to fund lump sum payments to pay off your debts. When you stop making payments, delinquencies will appear on your credit report and your credit score will take a hit.

As funds accumulate, Freedom Debt Relief negotiates with creditors to accept less than your balance owing. Freedom Debt Relief's size and years of experience allow it to bulk deals together to secure the best settlement percentages possible. This allows them to make things more efficient for the creditors, saving the creditors and the clients money.

Many clients have their first debt settled within six months, though it depends on the amount of debt, the number of accounts enrolled, and the monthly payment that is agreed upon.

Importantly, Freedom Debt Relief only collects a fee for settling a debt after each debt has been settled.

Is Freedom Debt Relief Available in Your State?

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

Is Freedom Debt Relief legit?

Yes, Freedom Debt Relief is a legitimate company that helps households experiencing financial hardship.

Debt is a huge problem many Americans are struggling with; as of 2023, US consumers had over $17 trillion in outstanding debt. Many companies offer programs for getting out of debt, and some of them are scams.

The best way to avoid a scam is to be an educated consumer. Take the time to research your options before deciding. Make sure to check out different strategies and programs before deciding which one is right for you and your situation. You can find out what the Federal Trade Commission (FTC) suggests about dealing with debt.

We feel confident recommending Freedom Debt Relief because of its track record of over 18 years of helping consumers. We also value their accreditation, which includes helping found the American Fair Credit Council, an organization established in 2011 to set ethical standards for debt negotiation. They also worked with the FTC to establish rules that ban abusive debt settlement practices. Find out more about Freedom Debt Relief accreditation.

When researching debt relief companies, we always suggest looking at reputable, independent review sites that feature reviews from verified customers. You can find independent reviews at the Better Business Bureau and Trustpilot.

Overall, Freedom Debt Relief’s transparency, integrity, and years of experience set it apart from the rest of the debt relief industry.

Freedom Debt Relief: Qualifying for a debt relief program

Freedom Debt Relief offers a debt settlement program to help consumers who are struggling with their bills. Similar to other debt relief companies, here are their major requirements:

Financial hardship: Debt settlement helps households who cannot make required minimum payments and are looking for an aggressive debt reduction program. If the creditor believes that you have the means to pay them back, they will have less incentive to negotiate a settlement. Freedom Debt Relief looks at your ongoing financial situation. Some of the common reasons for needing a debt settlement are a recent job loss or reduction in hours, medical bills, divorce, or a death in the family.

Behind in payments: You must be at least several months behind in your payments to qualify for a debt settlement program. 

Ability to make a monthly payment: You need to make a monthly payment to the program. In general, the monthly payment will be less than your current minimum payments. Freedom Debt Relief builds its program around a 24-48 month period. If, for example, you owe $10,000 in credit card debt, expect to pay about $156 per month for a four-year program versus minimum payments of about $250.

Sufficient debt to warrant the program: Due to large overhead expenses, Freedom Debt Relief requires you to enroll at least $7,500 in debt.

Benefits of Freedom Debt Relief - Pros and Cons

Freedom Debt Relief offers several key benefits to those struggling with debt. It provides a customized repayment plan tailored to the individual's financial situation, allowing them to pay off debt in a shorter amount of time. It also eliminates the need for debtors to deal with creditors directly, reducing stress and making the process much easier. Additionally, Freedom Debt Relief can help individuals get rid of debt faster and with less money owed. Lastly, the company offers a free initial consultation to discuss options and help individuals make an informed decision about their debt relief solution.

  • Can reduce overall debt
  • Offers personalized debt solutions
  • Allows consumers to reduce debt faster than minimum payments money
  • Provides a free initial consultation
  • Transparent process

  • Potential negative impact on credit score
  • Fees associated with services
  • May take a long time to receive results
  • Not all creditors accept debt settlement
  • Potential tax implications

Program Downsides

It is important to evaluate any program on its merits and downsides. To their credit, Freedom Debt Relief makes clear that the benefits of getting out of debt faster and at a lower cost come with the cost of a hit to your credit score in the short and mid-term. Their clients are more concerned with getting out of debt than with a short-term impact on their credit history. They know it is far easier to rebuild credit than to dig out of a big debt hole. Clients struggling to pay large debts understand that their credit won’t be strong until their debt is paid off.

Additionally, Freedom Debt Relief discloses that settling a debt can have potential tax implications. You may have to pay taxes on the amount of debt you have forgiven, but it is far better to pay taxes on $20,000, for example, than to pay back $20,000.

Freedom Debt Relief - Customer service and customer satisfaction

FDR offers a free consultation via the phone. They also provide phone service to existing customers 7 days a week.

FDR offers a robust dashboard and online portal. You can track your account and progress. They offer online account info, videos, a blog, FAQs, glossaries, negotiation alerts, and more.

Freedom Debt Relief is BBB-accredited with an A+ rating. They also have high ratings (4.6/5.0) with TrustPilot and (4.8/5.0) with Consumer Affairs, two popular review sites.

Compare to leading providers

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Half Star rating

Good for: Variety Of Unsecured Debt

Debt Settled
Unsecured debts including credit cards, retail cards, medical bills.
Program Length
24 - 48 months
Customer Support
Monday – Friday: 10:00am – 8:00pm EST
American Fair Credit Council Accredited Member International Association of Professional Debt Arbitrators Platinum Member
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Empty Star rating

Good for: Business Debt

Debt Settled
Unsecured debt including credit cards, medical/hospital bills, and business debt.
Program Length
24 - 36 months
Customer Support
Monday – Friday: 8:00am – 8:00pm Saturday: 9:30 AM - 3:00 PM
American Fair Credit Council Accredited Member
Get rid of your debt faster with debt relief

Get rid of your debt faster with debt relief

Take the first step towards a debt-free life with personalized debt reduction strategies.

Choose your debt amount

See if you qualify

Or speak to a debt consultant  844-731-0836