Struggling with overwhelming credit card debt can leave you feeling trapped, and turning to debt relief companies like Freedom Debt Relief might seem like the perfect solution. But what happens when the promises of debt resolution don’t live up to your expectations? If you’re wondering whether you can cancel Freedom Debt Relief or if there’s a better option out there, you’re not alone.
Before you commit to a debt relief program, it’s crucial to understand how these services work—and whether filing for bankruptcy might offer a more reliable path to financial freedom. To schedule a free consultation about your situation, please call our office at 215-545-0008 today.
What Is Freedom Debt Relief?
Freedom Debt Relief is a debt settlement company. The Freedom Debt Relief program focuses on debt settlement as a means of resolving unsecured debts. Through this program, clients work with the company to negotiate lower amounts owed to creditors, aiming for a more manageable resolution of their debts.
Unlike secured debt, which is tied to collateral, Freedom Debt Relief deals primarily with unsecured debt such as credit cards and medical bills, helping individuals achieve debt resolution and financial relief.
Freedom Debt Relief vs National Debt Relief
Freedom Debt Relief and National Debt Relief are both prominent debt settlement companies, but they have some differences in their approaches. While both offer debt settlement services to help reduce unsecured debts, such as credit cards and medical bills, their processes and fees can vary. Freedom Debt Relief focuses on negotiating with creditors to lower the total amount owed, often emphasizing their extensive network of negotiators.
National Debt Relief, on the other hand, may offer different negotiation strategies and potentially varied fee structures. Both companies aim to provide debt relief, but their specific methods and costs can influence the overall effectiveness and client experience.
What Does Freedom Debt Relief Do?
Freedom Debt Relief is a debt settlement company that helps individuals manage and reduce their unsecured debts through negotiated settlements. Clients enroll in the Freedom Debt Relief program by depositing funds into a dedicated account. The company then uses these funds to negotiate with creditors on the client’s behalf, aiming to secure lower total payments and settle debts for less than the full amount owed.
As a debt settlement company, Freedom Debt Relief focuses on unsecured debts such as credit card balances and medical bills. They work to reach agreements with creditors that can provide financial relief and simplify debt management for clients. However, it’s important to remember that the process can heavily impact credit scores and will likely involve fees for their services.
Is Freedom Debt Relief Legitimate?
Yes, Freedom Debt Relief is a legitimate company that was established in 2002. It is a debt settlement program that offers services to help individuals reduce their unsecured debts through negotiated settlements. They are a well-known player in the debt settlement industry and have helped many clients reach agreements with creditors.
However, while Freedom Debt Relief is legitimate, it’s important to carefully consider the potential downsides of using a debt settlement program. The process can negatively impact credit scores and may involve significant fees. Additionally, there is no guarantee that all debts will be settled successfully, and some clients may face tax implications from forgiven debt. As with any financial decision, it’s crucial to weigh all options and consult with a legal professional.
Is Freedom Debt Relief a Scam?
Freedom Debt Relief is not technically a scam. It is a legitimate debt settlement company that operates within the framework of debt management plans. They work to negotiate with creditors to reduce the amount they owe on unsecured debts.
While they are a legitimate option for debt relief, it’s important to understand that these debt management plans have drawbacks. Credit scores are often negatively impacted, and clients often incur significant fees during the debt settlement process.
Freedom Debt Relief Reviews
Sometimes, Freedom Debt Relief’s program may offer an option for those struggling with debt, but it’s important to consider all of your options before committing to any debt relief company.
Freedom Debt Relief Pros and Cons
As a debt relief company, consumers should understand the pros and cons of Freedom Debt Relief before committing to their program. We outline the basic pros and cons of Freedom Debt Relief below.
Freedom Debt Relief Positives
- A+ Better Business Bureau rating
- Can settle debts in as little as 24-48 months
- Provides debt relief options for:
- Credit card debts
- Medical debts
- Personal loans
- Other unsecured debts
- Sometimes, private student loans
Freedom Debt Relief Complaints
- High fees ranging from 15% to 25% of the enrolled debt. These fees vary depending on the state the client is in, as well as the amount of debt enrolled.
- Setup fees of $9.95 plus monthly account maintenance fees of $9.95
- Freedom Debt Relief’s fees often result in paying more than you originally owed
- Cannot guarantee cooperation from creditors
- Cannot help with the following forms of debt:
- Federal student loans
- Other federal loans
- Auto loans
- Mortgage loans
Can I Cancel Freedom Debt Relief?
Yes, you can cancel Freedom Debt Relief, but it’s important to understand how it might impact the debt relief process. If you decide to cancel, you should contact the company directly to inform them of your decision. Be aware that any fees or charges already incurred may not be refundable, and the cancellation could affect your current debt negotiations.
Additionally, if you cancel before your debts are fully resolved, you may still be responsible for the remaining balances and could face consequences such as continued collection efforts or a negative impact on your credit score. Unlike bankruptcy, debt settlement companies cannot guarantee that your creditors will cooperate with the settlement process. Creditors are not legally obligated to agree to Freedom Debt Relief’s terms.
This is perhaps one of the biggest red flags about working with debt settlement companies like Freedom Debt Relief. They cannot guarantee any legal protections for you. Bankruptcy, however, provides legal protections from all creditor actions under the automatic stay. You can achieve debt relief through bankruptcy without risking a debt lawsuit along the way.
How to Cancel Freedom Debt Relief
Clients can cancel Freedom Debt Relief by contacting the company directly, either through their customer service phone line or written communication. It’s important to inform them of your decision clearly and promptly. The company will guide you through the necessary steps to terminate the agreement, and you should ensure you get written confirmation of the cancellation.
Keep in mind that canceling Freedom Debt Relief may affect the debt settlement process. If you cancel before your debts are fully settled, you may still be liable for the remaining balances and could face continued collection efforts. Additionally, any fees already paid may not be refundable, so you may end up paying them money without actually clearing the debt.
Freedom Debt Relief FAQs
Can I Withdraw Money from My Freedom Debt Relief Account?
Generally, you cannot directly withdraw money from your Freedom Debt Relief account, as it is specifically designed to hold funds for the purpose of settling your debts. It is not like a regular bank account. The account is managed by Freedom Debt Relief to accumulate funds that will be used to negotiate with creditors on your behalf. Withdrawals for personal use are typically not permitted because the funds are intended solely for debt resolution purposes.
If you need to access the money in your account for any reason, you would need to contact Freedom Debt Relief to discuss your situation. They can provide guidance on the process and any potential consequences of withdrawing funds. Be aware that withdrawing money might affect the debt settlement process and could result in additional fees or complications with your debt resolution plan.
Is Freedom Debt Relief a Good Company?
Freedom Debt Relief is one of the more well-known debt settlement companies, and while they have helped many people reduce unsecured debt, it’s important to consider the downsides of using such services. Like many debt settlement companies, Freedom Debt Relief’s program can negatively impact your credit score, involve high fees, and offer no guarantee that all debts will be settled.
Additionally, the process can take several years, during which time your financial situation may worsen due to ongoing creditor actions. For some, bankruptcy may be a more effective and reliable option for achieving financial relief.
Is Freedom Debt Relief Real?
Yes, Freedom Debt Relief is a real company that offers debt settlement services to individuals struggling with unsecured debt. They work to negotiate with creditors to reduce the total amount owed and help clients resolve their financial obligations. However, while the company is legitimate, debt settlement can have drawbacks, including damage to credit scores, high fees, and the risk of not all debts being settled.
Is Freedom Debt Relief Good?
Freedom Debt Relief can be helpful for some individuals, but it’s important to weigh the potential drawbacks. While their debt management approach aims to reduce the total amount owed, the process can significantly impact your credit report. Missed payments during negotiations and settled debts may show up on your credit report for years, potentially lowering your credit score.
Additionally, the fees and length of the process can make it less appealing compared to other options like bankruptcy, which may offer a quicker and more structured path to financial recovery.
Contact a Pennsylvania and New Jersey Bankruptcy Attorney at Sadek Bankruptcy Law Offices
If you’re struggling with unsecured debt and considering using Freedom Debt Relief, it’s important to explore all of your options before making a decision. Debt settlement may not always deliver the results you’re hoping for, and it could end up costing you more in the long run.
At Sadek Bankruptcy Law Offices, our experienced attorneys can help you determine whether bankruptcy is a better option for resolving your financial challenges. We’ll provide you with the guidance you need to make an informed decision and take control of your financial future. Contact us today for a free consultation with a Philadelphia bankruptcy lawyer and learn how we can help you achieve real debt relief.