Question: Is Using Freedom Debt Relief A Good Idea?

BOTTOM LINE.

Freedom Debt Relief is a good match for those with $15,000 or more in debt.

Although fees can be up to 25% of the settlement amount, it’s usually a good move to eliminate debt through debt settlement.

Does using Freedom Debt Relief affect your credit?

If you’re unable to get rid of your debts by adhering to an aggressive payment schedule, getting a debt consolidation loan or using a credit counseling service, you’ll have two principal debt-relief options: debt settlement and bankruptcy. Both of these methods of debt relief will affect your credit score.

Can you get out of Freedom Debt Relief?

Canceling the debt negotiation process can be difficult, since Freedom Debt Relief may be in the midst of working with your creditors to pay off your debt. If you would like to cancel, please call the Client toll-free number at 1-800-655-6303 to determine the best option for ending your service.

What happens when you use Freedom Debt Relief?

If a creditor accepts the lower payoff amount, you pay the creditor, either a lump sum or in installments, from your savings account. You also then pay a fee to Freedom Debt Relief for its service. Cost: By law, Freedom cannot charge upfront fees; rather, it collects a fee after each debt has been settled.

Which is better freedom debt relief or national debt relief?

When you compare the two debt relief companies, National Debt Relief appears to have lower fees and serves more states, but Freedom Debt Relief has higher customer satisfaction and much more debt settlement experience. Both companies use debt settlement to negotiate a lower total debt for their customers.

How long does debt consolidation stay on your credit report?

seven years

How long does debt settlement stay on your credit report?

seven years

Can I buy a house after debt settlement?

Debt settlement may compromise your ability to buy a house but that does not mean it is not a good idea. If you cannot pay off your debts for now, you really cannot buy a house just yet. The other thing that will be evident after debt settlement is that fact that your credit score is now lower than before.

Can I get a credit card while on a debt management plan?

The goal of the program is simple: no more debt. Using a credit card while you’re on a DMP makes it harder to accomplish that goal. While you’re on a DMP, cash is king. That said, depending on the circumstances you may be allowed to keep an emergency credit card (not included on your DMP) open in case of emergencies.

Is debt settlement a bad idea?

Is debt settlement a good idea? The short answer: reviews are mixed. Debt settlement can help some people get out of debt at a cost that is less than what they owe. Here’s how debt settlement works: you stop making payments to your creditors for a period of time, often six months or more.

What is the catch with debt relief program?

Debt relief programs are meant for larger amounts of debt because creditors are unlikely to settle on debts that are smaller and easily paid off in a short amount of time. Debt relief programs usually only deal with unsecured loans, which are loans that do not involve collateral.

What percentage will creditors settle for?

Aim for 50% or less.

It might take some time to get there, but most unsecured creditors will settle for around 30 to 50% of the debt. Therefore, you should start with a lower offer—around 15%—and negotiate from there.

Does Credit Counseling ruin your credit?

Credit counseling won’t hurt your credit score. And while the actions you ultimately take as a result of that counseling might bring your score down a bit, taking control of your finances and paying off your debt will far outweigh any temporary dings to your credit.

How can I get out of debt without damaging my credit?

To help make things easier, here are some tips that you need to remember.

  • Identify the root cause. Consolidating debt will only restructure your payments so you will find it easier to completely pay off what you owe.
  • Do not give in to a false sense of complacency.
  • Stop borrowing money.
  • Create a new budget plan.

Should I use a debt relief company?

Before agreeing to work with a debt settlement company, there are risks that you should consider: Debt settlement companies often charge expensive fees. Debt settlement companies typically encourage you to stop paying your credit card bills. You may be charged fees for using this account.