Freedom Debt Relief, Behind The Hype. The spokesman says you can "reduce your debt by up to 50 percent and make one low monthly payment," in a TV ad for Freedom Debt Relief. The company says it can help you eliminate debt in as little as 24 to 48 months without credit counseling or declaring bankruptcy.
4. Does the Freedom Debt Relief program permanently harm my credit score? No. The negative impact to Freedom Debt Relief clients (who complete the program) is usually temporary.
Freedom Debt Relief, the largest debt settlement services provider in the country, negotiates with creditors to reduce the amount of unsecured debt you owe. NerdWallet cautions that debt settlement should be a last resort for most people struggling with debt: The service is costly. It can destroy your credit.
In general, a program of debt settlement will cause your credit score to drop by about half as many points as a bankruptcy. Since the post-settlement drop is typically less, it's measurably easier to begin rebuilding your credit after debt settlement than after bankruptcy.
What is the guarantee for their services? As each customer is different and there is no "one size fits all" approach to debt relief, Freedom Debt Relief has no money back guarantee for their services. However, you are never charged until they negotiate a settlement.
If you have a poor and/or thin credit history, it could take 12 to 24 months from the time you settled your last debt for your credit score to recover. Either way, you'll benefit from debt settlement if that means you're no longer missing payments.
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. For others, debt settlement proves to be a costly mistake. Here's how debt settlement works: you stop making payments to your creditors for a period of time, often six months or more.
If you stop making monthly payments to your debt management plan, you will be removed from the program and your rates will shoot back up to their previous levels. Some plans will drop you after missing a single payment, while others may be generous enough to allow up to three missed payments.
Freedom Debt Relief is an accredited debt settlement company based in California. The business has served more than 650,000 consumers and resolved over $10 billion in debt since 2002.
Credit card companies sue for non-payment in about 15% of collection cases. Usually debt holders only have to worry about lawsuits if their accounts become 180-days past due and charge off, or default. ... However, the creditor is less likely to do so if the balance owed is under $1,000, or if the debt is settled.
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