You’ve explored your options and have decided to go the debt settlement route. That’s a solid strategy, particularly if you have a ton of credit card debt. Now, you need someone to help you execute your plan. Quite naturally, you’ve been hearing about Freedom Debt Relief, the nation’s largest debt settlement company. But now, you want more information. Here’s what to expect from Freedom Debt Relief.
What is Debt Settlement?
Also called debt relief, debt settlement is an approach in which you hire a company such as Freedom Debt Relief to negotiate a “settlement” with each of your creditors wherein you shell out just a portion of what you owe in a one-time payment in full. Did you read that right? Yes, you did. The reason it usually works is that companies you owe realize that your next move otherwise will likely be bankruptcy, a filing that would yield them zero.
How Does Debt Settlement Work?
After an initial conversation in which your finances are assessed and a payment plan is crafted, you’ll be asked to deposit cash monthly into a dedicated savings-type account that you manage. Once you’ve saved an amount you and Freedom agreed upon -- based on your debt load and income – the company’s trained and experienced negotiators will begin “talks” in earnest, using your savings account as leverage.
Once each settlement is reached and agreed to by you, the creditor will be paid from your account. The process repeats until all your enrolled debt is cleared. For more valuable info and insight, check out Freedom Debt Relief Reviews – How Does it Work.
Won’t Debt Settlement Hurt My Credit?
The process will depress you scores – temporarily. Once your debts are cleared and you’ve begun rebuilding your credit, your scores will bounce back nicely. You should also keep in mind that your scores aren’t so hot now anyway. Right?
How Long Does the Process Take?
With Freedom Debt Relief, you can expect to finish the program in two to five years, although your initial settlement will likely come within a few months. And remember, this is much faster than it would be if you were to attempt to erase your debts by making minimum payments.
It’s also worth noting that, unlike some companies, which only offer set program lengths from which to choose, Freedom does tailor your program length.
What Kind of Debt Does Freedom Accept?
Many types of unsecured debt, including personal loans, credit cards, medical bills, and some kinds of private student loan and business debt. For Freedom, you’ll need at least $7,500 of it.
What the company does not accept is secured debt – obligations that are tied to collateral such as a house or vehicle.
How Much Does Freedom Debt Relief Charge?
The fee depends on the state in which you live as well as the amount of enrolled debt. But in general, Freedom charges between 15% to 25%.
As federal law dictates, Freedom charges no up-front fees; it only bills you upon settlement. That doesn’t stop some unscrupulous companies, and underscores why you should stick with established, reputable companies for your settlement needs.
Is Freedom Debt Relief Accredited?
This is a good question because accreditation can separate the credible companies from the fly-by-night scammers out there. The answer is, yes, Freedom Debt Relief is a founding member, in fact, of the American Fair Credit Council, and is a Platinum member of the International Association of Professional Debt Arbitrators.
Now that you know what to expect from Freedom Debt Relief, you can entrust your financial situation to the 19-year-old company, assured that it has your best interest at heart.
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