2024 Freedom Debt Relief Review

Freedom Debt Relief is a debt settlement service offered by Freedom Financial Network. The company specializes in resolving unsecured debts, such as personal loans, lines of credit, medical debt, and private student loans. However, Freedom Debt Relief does not handle secured debt, like auto loans, and cannot assist with debt from taxes, utility bills, lawsuits, or federal student loans.

CNBC Select provides a comprehensive guide on its service and how to begin using it.

Compare offers for debt relief

How does Freedom Debt Relief work?

To qualify for Freedom Debt Relief's services, you must have a minimum debt balance of $7,500. The process most debt settlement companies follow is standardized. After a company accepts you as a client, you must cease making all payments to any creditors.

If you temporarily stop making your usual payments, you may face late fees, penalties, a decrease in your credit score, and even legal action from your creditors.

Instead of making your usual debt payments, you will be instructed to start depositing money into a dedicated bank account, usually at a partner bank or credit union, which will actually be used to pay your new, negotiated balance.

Freedom Debt Relief's service fee can be deducted from the escrow account, but clients won't pay the fee until three conditions are met: a settlement offer is reached, the client approves the offer, and the client makes the first payment toward the new, negotiated balance, according to the company's website.

How much does Freedom Debt Relief cost?

The fee for the company's debt negotiation service is between 15% and 25% of your enrolled debt balance. The fee may be added to the amount you'll repay after your balance has been negotiated.

You will be charged a one-time setup fee of $9.95 and a monthly fee of $9.95 to use the dedicated bank account provided by Crossroads Financial Technologies (CFT), which sets up the account for you. Freedom Debt Relief does not receive these fees.

Freedom Debt Relief: Pros and cons

Before making a decision on any financial service, it's crucial to evaluate the advantages and disadvantages of each option.

Pros

A+ BBB rating
You pay a fee only after accepting an offer, approving it, and making the initial payment.
While some competitors charge higher fees, the company's fee is relatively lower.

Cons

Crossroads Financial Technologies offers a dedicated bank account with a setup fee of $9.95 and a monthly fee.
Service is not available in all US states
Fee can vary by state

How does Freedom Debt Relief compare?

Freedom Debt Relief vs. Americor

Freedom Debt Relief is a well-established company in the debt settlement industry, and Americor is another reputable company in the same space.

Types of debt

Both companies service unsecured debt only. Neither handles federal student loan debt.

Minimum/maximum debt

Freedom Debt Relief: $7,500

Americor: $7,500 and no maximum limit

Fees

Americor: 14% to 29% of the total enrolled debt

Freedom Debt Relief: 15% to 25% of the total enrolled debt

Freedom Debt Relief vs. Pacific Debt Relief

Pacific Debt Relief provides a debt relief process similar to Freedom Debt Relief, but with unique distinctions.

Types of debt

Both Freedom Debt Relief and Pacific Debt Relief service unsecured debt.

Minimum/maximum debt

Freedom Debt Relief: $7,500

Pacific Debt Relief: $10,000 and no maximum limit

Fees

Freedom Debt Relief: 15% to 25% of the total enrolled debt

Pacific Debt Relief: 15% to 25% of the total enrolled debt

Is Freedom Debt Relief legit?

Freedom Debt Relief is a member of the International Association of Professional Debt Arbitrators and has an A+ rating from the Better Business Bureau.

How to sign up with Freedom Debt Relief

To begin with Freedom Debt Relief, visit their website or call 800-910-0065.

Frequently Asked Questions (FAQs)

Why trust CNBC Select?

Our goal at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make informed decisions with their money. Each article is the result of thorough reporting by our team of expert writers and editors who possess extensive knowledge of debt settlement products. Although CNBC Select receives a commission from affiliate partners on many offers and links, our content is created independently by our team without any input from our commercial team or external third parties. We uphold the highest journalistic standards and ethics.

Stay up to date with CNBC Select's comprehensive coverage of credit cards, banking, and money by following us on TikTok, Facebook, Instagram, and Twitter.