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Freedom Debt


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How much money can I enroll? $7,500 - $100,000 unsecured debt.
How long will it take? 24 to 48 months.
What are the upfront fees? No upfront fees.
How much will it cost? 15% - 25% of the debt you enroll (paid after resolution).
How much will I save? Varies
Customer Rating 4.7/5

Freedom Debt is one of the largest, most recognized debt resolution companies in the debt management industry. Since 2002, they’ve worked with over 60,000 people (hablan español) and resolved over $10 billion in debt.

Because they are a large company, they have relationships with many of the most prominent credit card companies and will negotiate with them on your behalf to resolve your debt for less than what you owe. The easiest way for them to do this is to highlight financial hardship (although it is not the only way).

Going through the resolution process with any company will have a negative impact on your credit. However, if the alternative is bankruptcy, debt resolution will have a shorter impact on your credit report. To see exactly how the debt resolution process works, see “What is Debt Management?”.

#1 Debt Resolution Company

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Freedom Debt Cost

Freedom Debt charges an average of 15-25% of the total debt enrolled as a fee for their services, which is reasonably priced when compared to the fees of other companies.

Clients are provided with a 24/7 online debt management dashboard to help them towards the goal of resolving their debt in 24-48 months, which is fairly average within the industry.

Unlike other debt management companies that charge fees before settling any debts, Freedom Debt doesn’t charge a monthly payment or any fees until the debt negotiation is over and they obtain a final payment offer.

For example, if you enroll a total of $100,000 in debt and you receive an offer of 50% of the debt, you only have to pay the debtor $50,000. However, Freedom Debt’s payment will be $15,000 – $25,000 in that case. All told, you can expect to have your $100,000 debt reduced to around $65,000 or $75,000.

Freedom Debt Customer Reviews

Customers agree that Freedom Debt can help those struggling with debt.

Overall, Freedom Debt reviews seem to report satisfaction with the courteous, encouraging, and professional customer service they’ve received from the debt resolution firm and express appreciation that there is no upfront fee charged to settle debts. Freedom Debt is the largest debt resolution company in the country for a reason: customers are happy with the work they do and the money they save.

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Is Freedom Debt a Good Company?

Yes, Freedom Debt is a very good debt resolution company — and customers agree that Freedom Debt is a good company. In fact, from the general consensus of its customers compared to that of every other debt management company, Freedom is the best debt management company around.

Freedom Debt Experience

Freedom Debt was founded in 2002 by Bradford Stroh and Andrew Housser and is currently headquartered in San Mateo, California. The company is currently one of the largest debt resolution companies in the industry, which is important, because to debtors, brand name recognition is important.

The company employs over 2,000 people and started the Freedom Financial Network.


With senior executives sitting on the American Fair Credit Council, it should come as no surprise that the company holds major industry accreditations, including being a founding member of the AFCC as well as accreditation by IAPDA, which means the debt management company abides by industry best practices and ethics.

Freedom Debt has been helping people with debt management since 2002 and is one of the more experienced companies in the debt management industry.

Freedom Debt employs over 2,000 people.

There are only about a dozen debt resolution companies that employ anywhere close to this many people. The fact that Freedom Debt employs over 2,000 people speaks to their resources and effectiveness.


Freedom Debt is a founding member of the AFCC (American Fair Credit Council). The company promotes and regulates legislation designed to ensure strict industry regulations on behalf of the customer. To date, Freedom Debt has settled over $10 billion worth of debt.

Freedom Debt Service Quality

Freedom Debt helps customers with debt of $7,500+ to settle their accounts with debtors in 24 to 48 months. It’s a long, strenuous process to settle your debt, so Freedom Debt makes a point to carry as much of the burden as possible, while still looping the customer into the process.

Money-Back Guarantee

Freedom Debt ensures their services with a money-back guarantee to ease any concerns clients might have about the quality of its services.

Consultation with Tax Debt Agent

Also available is a free consultation and no upfront fees.

Find the Best Solution

The goal of Freedom Debt as stated on their website is to, “Ensure people have all the information they need to make informed choices about solving their debt problems — even if the choice they make isn’t Freedom Debt.” This promise from the company should give consumers confidence as they approach Freedom Debt to either to improve their financial situation and decide on a debt repayment plan.

Customized Plan

Each person who works with Freedom Debt will get a customized debt resolution plan that fits their budget. The company’s goal is to relieve all debt in 24-48 months. This timeframe is standard in the debt management industry.

Freedom Debt Debt Types

There are two types of debt that debt companies can choose to work with: unsecured and secure debt.

The difference between the two is that unsecured debt has no collateral backing, such as an asset that can be sold to recover a loss. This means that secured debt is the type of debt that you put up collateral for in order to obtain.

Unfortunately, Freedom Debt only works with both unsecured debt and secured debt.

Works with: Unsecured Debt

  • Credit card debt
  • Medical debt
  • Household bills
  • Some private student loans

Does Not Work with: Secured Debt

  • Mortgages
  • Auto loans
  • Some personal loans

Our Recommendation

Freedom Debt is the best company in the Debt Management industry.

Though very different from credit counseling, debt resolution may be the answer for some people. The three things that make FDR worth hiring are: 1) price lock guarantee, 2) $0 upfront fee, and 3) the lifetime warranty.

Freedom Debt is a good solution.

The question you should be asking yourself is whether a debt program will be better than bankruptcy in your specific case. Freedom Debt has a reputation for professional conduct and high levels of customer satisfaction.

The company holds all major industry accreditations and has over a decade of experience settling unsecured debts and creditor negotiation. Those in debt need to realize that working with any debt resolution company will have a negative impact on your credit.

Our only concern with Freedom Debt is that consumers may be able to find a company with a debt resolution service that has lower fees.

If you owe over $7,500 in debt and live within their service area, we recommend Freedom Debt. Find out if they can help with your debt in a free consultation.

#1 Debt Resolution Company

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What is Debt Resolution?

There are many types of debt people can sign up for: Debt resolution plan, debt consolidation, debt management, bankruptcy, or trying to lower your debt on your own.

Debt resolution is when you pay a company, like Freedom Debt, to negotiate with your creditors: your credit card companies, private student loan company, medical bill collectors, etc.

This option is for those who are barely keeping up with their minimum payments, or who are falling behind.

Your debt resolution company will settle your account with these creditors at a fraction of what you actually owe – so no more interest and now more trying to keep up with minimum payments.

Here is a very simplified step-by-step outline of the process:

  • Sign up with a debt resolution company. You don’t pay them until a debt is settled.
  • Stop making payments on your credit cards or to other creditors.
  • Start saving as much as you can in a separate savings account in order to pay one lump sum to each creditor.
  • After some time, your debt resolution company negotiates with each creditor to take a lower sum than what is owed. For example, if you owe $10,000 on your AMEX, your debt resolution company may be able to negotiate a resolution of your debt of about $5,000 to $8,000. Visit Freedom Debt’s website and see what they can do for you.
  • Your debt resolution company will repeat this process with each creditor until you are debt-free.

Debt Resolution vs Debt Consolidation

For a full description of debt management, please read, “What is Debt Management?” above.

Debt consolidation is any process where you combine debts from multiple creditors and pay off debt at a reduced interest rate.

Doing so gives you a lower monthly payment, which shortens the time it takes to pay back your debts and reach financial freedom.

This can be done with a debt consolidation company, personal loan, or 0% balance transfer credit card.

With debt consolidation, you pay back the full amount you owe and typically see a positive or neutral effect on your credit.

With debt management, you or a debt company come to an agreement with your creditors to only pay back a fraction of what you owe. The process will hurt your credit.

Debt Resolution vs Personal Loan

First, debt resolution programs are not a loan.

Management companies will reach a debt resolution with your creditors and you will be responsible for paying each creditor back in a lump sum.

A personal or consolidation loan can be taken out to immediately pay back each of creditors and settle your debt.

You would then make payments on to your personal loan company instead of making payments to each creditor.

Usually, the interest rate on a personal loan is lower than the interest rate owed on credit cards.

Debt Resolution vs Bankruptcy

Out of all the debt services offered, bankruptcy provides the most debt reduction and will damage your credit the most – and stay with your credit history for 10 years.

When you file for bankruptcy, you will go to federal court where a judge will determine if you can pay back your creditors or not (and if so, how much).

Debt management can usually be handled outside of court (typically with a lawyer or company). It is a negotiation reached between you and your creditors to pay less than what you owe.

It negatively impacts your credit history for 7 years.

Questions About Freedom Debt

How Much Does Freedom Debt Cost?

Price varies depending on various features. The main features taken into account are the creditor you’re working with, the state you live in and the amount of debt you have. After all is said and done, you can expect to pay 15-25% of your total enrolled debt. Their website states the following:

“If you choose to enroll in a Freedom Debt Resolution Program, Freedom charges a fee that depends on a number of things, including the state you’re in, the amount of debt you’re enrolling, and other factors. But, in general, if you enroll in a standard 36 month program, in most cases your fee works out to approximately 6-8% of your total enrolled debt per year. And the most important thing to remember is that there is absolutely NO FEE RISK to you – we guarantee that you will pay NO FEES for your debt resolution services until we successfully resolve a debt for you.”

The review of program details will include:

  • Average time for debt resolution.
  • How some creditors can be more aggressive
  • How delinquent each debt is
  • How drafting monthly can impact the success of completing the program
  • What options we have for when creditors call our clients too much
  • What options we have for if a client gets sued

Are There Any Up-Front Fees?

No. Any debt resolution company charging up-front fees is not acting in accordance with the law. Under the Federal Trade Commission Act, no company is to practice up-front fees as of 2010.

Can I Get A Consultation?

Yes, they offer a free debt consultation. Calling in and speaking with a debt help specialist will give you the ability to determine the best path to success in your specific situation. While they can give you very helpful information without you divulging too many specific, they can give you the most effective help when you give them more specific information. The consultation in no risk and you won’t be locked into anything by calling.

Does Debt Resolution Hurt My Credit Score?

Yes, signing up for any debt management plan will have a negative effect on your credit score because you will become delinquent on your accounts. However, never being able to pay off thousands in debt will also have a negative impact on your credit score, albeit much less. The goal of debt management is to get rid of your debt and give you a chance to rebuild your credit score and future financial path.

Does Freedom Debt Offer A Money-Back Guarantee?

Yes. Any money deposited into the trust account will go directly back to the client, minus the monthly fees charged. These fees will be determined once the applicant qualifies for the program and total debt is assessed.

What Types of Debt Does Freedom Debt Work With?

Freedom Debt deals with unsecured debt (credit cards, medical bills, household bills, some private student loans, etc). They cannot settle secured debt (mortgages, auto loans, some personal loans, etc).

Does Freedom Debt Have a Mobile App?

Freedom Debt does not have a mobile app. Their desktop site is helpful and easy to navigate, but you won’t be able to navigate as easily on your phone. Freedom Debt offers clients online access where you cannot only check on your debt management account at any time, but you can contact them through it as well. The representative we spoke with indicated that they are available 24 hours a day, 7 days a week.

What is the Minimum Debt They Accept?


Is Freedom Debt Accredited?

Yes, this business is AFCC and IAPDA accredited.

How We Rank


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