Do you want to learn how I stayed debt-free all these years by selling other peopleās products online? Click here to find out. š
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Coping with debt is never easy.
The good thing, though, is that we donāt have to dig ourselves out of debt alone since many debt settlement companies can help us negotiate a settlement with our creditors.
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Do you want to know more about this?
Please stay tuned as we answer whether Freedom Debt Relief is a scam or a legit debt settlement company that will help you revive your credit standing.
Letās face it. The world would be such a better place without debt, but life is not all about sugar, spice, and everything nice at the end of the day.
With everything thatās happening around the world, some of us have no choice but to turn to companies and seek loans for whatever reason.
Thereās nothing wrong with this since times are hard, and if the pandemic doesnāt come to a stop soon, financial independence will become a Herculean task.
If youāre overwhelmed with debt and want to start clean all over again, you should never borrow more money with the hopes of repaying other debts.Ā
Instead, it would help if you consider signing up with legitimate debt relief firms that will negotiate on your behalf with your creditors to pay less than the full amount.
They help you with your situation by asking you to pay them some fee, start up a savings account with them, and create an agreement on your monthly payment.Ā
This so-called agreement will be based on how much you can pay every month and the amount of debt you owe.
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Please understand that debt relief companies donāt offer magic solutions to your problems that will instantly banish all of your debts, okay?Ā
Some companies can pay off everything within months, while itās still possible that the payment stays uncleared even after a few years.Ā
When the company sees that you are saving enough, they will reach out to your creditors as your representatives and will urge them to accept the lower repayment than nothing at all.
When itās all said and done, you should know that signing up with them does not guarantee that your creditors will accept the lower-priced repayment.Ā
If this does happen, some debt relief companies may urge you to try out alternatives such as filing for bankruptcy, credit card balance transfer schemes, debt consolidation loans, or even train you to handle the negotiations if you want.
Additionally, please note that there are also instances where some fraudulent companies mask themselves as a legitimate ones promising to help you out early.Ā
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But guess what?
Just like the guy inĀ this video, you might find yourself in a sticky situation where they wonāt call you back to inform you about their plans on how to settle your debts.Ā
Is this the case with Freedom Debt Relief, or is it a legit company that will help you with your debt problems? I was hoping you could find out more about this as I present my honest Freedom Debt Relief review to you.
easily the best way to make money online!
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Just as a disclaimer, allow me just to state that I am not connected with the company, nor am I being paid to write this post. What you will see here are my honest opinions and nothing more.
By the end of this post, I will also share how I managed to stay debt-free by making a living online and letting you decide whether you want to give my business line a chance or stick with debt relief companies that limit you to certain types of debts.
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Freedom Debt Relief Review
Iāve been getting a ton of questions from readers lately asking me if itās possible to pay off their debts by signing up with debt relief companies and whether these companies can find some loophole that will help them pay only what they must.
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Today, Iāll be reviewing Freedom Debt Relief.
You can hint from the name itself that this company is built to lend a helping hand, especially to those who find themselves lost, in debt, and in so much trouble because of their current financial standing.Ā
Freedom Debt Relief remains one of the largest and most popular debt settlement solutions providers in the United States. As a word of advice, though, please note that using their service can also impact you negatively since:Ā
- You need to pay the company a certain amount.Ā
- It can destroy your credit.
- You may have trouble getting a job.Ā
- The negotiation on lessening your debts is not guaranteed.
Signing up with a debt relief company may destroy your credit since they will ask you to stop paying your creditors, and this move will undoubtedly reflect on your credit reports forĀ at least seven years.Ā
Since you will be a delinquent payer, you may have trouble landing jobs and will have a reduced ability to borrow even after seven years.
This company has been around since 2002 and was founded based on this real gap in the financial world: there are no consumer-friendly debt-related solutions for people.Ā
With this, Andrew Housser and Brad Stroh decided to create the Freedom Financial Network. This company provides tailored solutions for both personal use and professional companies. Some of these are:
- Financial assessment
- Financial tools and education
- Home equity services
- Personal loans services
- Credit Counseling
- Debt Relief
- Bankruptcy
While itās been operating for so long, BBB does not accredit this company, and to make things even better, it has well over +400 complaints on the site.Ā
This, however, is a far cry to its Trustpilot account, which shows that it has a resoundingĀ 4.6 rating, and about %79 rated it as āexcellent.ā The Best Company also gave it aĀ 9.9 score.Ā
Freedom Debt Relief has a resounding 226k followers on Facebook, 7k on Instagram, and 15.6k on Twitter in terms of social media presence.Ā
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These metrics are surprisingly good for a debt relief company, and all of their social media profiles are also very active. They also haveĀ a YouTube accountĀ where they practically post marketing videos and money management tips.
Unlike other companies where you will need to pay for their service right away, the Freedom Debt Relief offers a free consultation process where you will only pay them once the job is done.Ā
In this sense, the only time when youāll need to pay them is when they negotiate with your creditor and settle your debts.Ā
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Basically,Ā this is the process. š
Once you are on board with them, you can also track your progress in real-time using their unique dashboard. This dashboard contains the money you are saving up and the debts. (both SETTLED and NOT to motivate you).Ā
But before you go and sign up, please let me just warn you that they donāt show you how much exactly the fees are for the settled debt. According toĀ Investopediaās report, the performance-based fees can go as high as 15%- 25%!Ā
Again, the fees depend on the debt and the amount saved. So, when you think about it, are you really settling your debts in the best possible way?
I mean, if youāre well trained and have the proper attitude, you can even negotiate by yourself just by simply applying the techniques from the Ramsey Show.Ā Ā
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Iām not praising the Ramsey Show, okay?Ā
Instead, Iām trying to point out that the show is practically telling you that you can do this on your own without having to pay some āmiddle manā who promises they will help you out but may not be able to do so.Ā
For me, it just depends on your goal.Ā
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Would you rather sign up with a pro-profit or non-profit company?
Based on my research, Freedom Debt Relief is a profit debt relief company which means a massive chunk of the payment goes to the company than to your creditors!Ā
More importantly,Ā WellsFargoĀ states that such companies do more harm because they advise you to stop paying everything and just provide you with *promises.*
In addition, debt relief companies are more focused on taking their piece of the cake than actually giving counsel on debt management. So for these reasons alone, I find it hard to believe that people are willing to sign up with them.
In terms of their performance-based fees, I have to say that it is the same with other companies, so whether you sign up with them or look for other companies under the same category, you will still have to pay around 15-25%.
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Is Freedom Debt Relief Legitimate?
Freedom Debt Relief helps clients, but they only focus on debts secured by collateral. Basically, the company is willing to take on credit card debts, medical-hospital-related debts, and private student loans.Ā
Also, they filter their clients too, so if you plan to work with them, you must have proof of genuine financial hardship on paying the debts. To start with Freedom Debt Relief, you must take note of the following:
- A minimum of $7,500 in debt to begin debt settlement
- You must pay a %15-25 fee of the total unsecured debt.Ā
- Stay with the company for at least 24 months.
- Commit to paying for your monthly savings regularly
Besides that, you must also agree that the negotiation still depends on the creditors, so itās possible that they wonāt even talk to these companies at all.Ā
Once youāre ready, your can quickly go toĀ their website and choose your debt amount using the slider. Once thatās done, just click continue and answer the payment status, asking how behind you are on your payments.Ā
They will also ask you where youāre from and your contact addresses so that you can get a mock result showing your Freedom Debt Relief plan.
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You can also talk directly to a certified debt consultant by dialling +1 888-332-8180. Once youāre good to go, you instantly be given access to your client dashboard, where youāll be able to track everything from there:Ā
- The savings.Ā
- The status of the negotiations.Ā
- Customer service.Ā
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However, the real question is, should you be signing up with them? š¤
You see, although Freedom Debt Relief is legit and has real accreditations, thereās still something that caught my eye.Ā
I found out that they have had a lawsuit not too long ago and that theĀ Consumer Financial Protection BureauĀ had sued this company since they were promising to settle all of the clientsā debts when in reality, nothing happened.Ā
Even worse, they charged these clients for their clearly non-existent service. Finally, in 2019, theyĀ settled the lawsuitĀ by paying off $20 million in restitution and a $5 million civil penalty.
While I know that history is not a clear indicator of the future, I also believe that if thereās smoke, thereās fire!Ā
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With this in mind, I donāt recommend signing up with Freedom Debt Relief. ā
I know there are a lot of people saying you should join this company, but most of them are either affiliates of actual representatives of the company.Ā
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Is Freedom Debt Relief a Scam?
Freedom Debt Relief is not a scam, and it boasts accreditation with the American Fair Credit Council and the International Association of Professional Debt Arbitrators.
It also provides good onboarding services like free consultations, an online dashboard, and customer service available 24/7.
More importantly, the average program time for settlement is at least 24 to 48 months which is not bad and similar to its rival company, the National Debt Relief.
However, if you ask me, I still do not advise you to sign up with them or any debt relief company for that matter.
At the end of the day, whether you like it or not, you must pay off your debt, and thatās still very possible if you commit to saving a certain amount every month. More importantly, joining a company that is only promising you things is just not a wise move at all.
This type of platform should only be considered as a last resort because it can ultimately hurt your credit score (for at least seven years), get higher interest due to delinquency, and forgiven debt is also taxable.
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How I Managed to Stay Debt-Free.
Just like you, I presume, Iāve always believed that thereās so much more to life than being stuck and afraid of spending.Ā
Before you go, I would like to take this chance to introduce you to the business model to whom I owe my success and let you know that with the right amount of dedication and effort, you, too, can live a debt-free life and enjoy life to its fullest.Ā
I want to share the exact step-by-step process of creating a full-blown source of passive income online and even show you a quick and easy way on how you can do the same, all without a large investment.Ā
By doing what I do, I managed to escape the tedious, underpaying 9-5 rat race, and I no longer worry about never getting out of debt.Ā
So, I suggest you look atĀ my money guideĀ to understand better what Iām dealing with on a day-to-day basis and how I bring home the bacon.Ā š„
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Iāve made thousands of dollars doing this throughout the years, but it took some time, so please donāt expect to become an overnight millionaire success story.Ā
Iāll be teaching you how to build a real, profitable, long-lasting, scalable online business, and I just want to make sure youāre aware and okay with that.Ā
Itās about time I end this Freedom Debt Relief review, so hopefully, I was able to provide you with a clear answer to whether this debt relief company is a scam or not.Ā
If you have any questions, comment down below. š
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Your post truly resonates with me.
About three years ago, I enlisted the help of another debt relief company to get me out of a hole. I had maxed out three credit cards.
On top of that, I allowed myself to get caught in an investment scam and borrowed money to finance that program. The bottom line was I was on a fixed retirement income and couldnāt make the payments.
I saw a TV commercial for this company and checked them out. They were legit and had good reviews and BBB rating.
I called and enlisted their help.
They had many similarities with Freedom Debt Relief but offered advantages missing from your review. For example, they told me upfront that their fees would be a fixed 21% of unsecured debt on record.
And that negotiations with any creditor would commence once I had 25% saved in my escrow account. They estimated that I would end up paying about 50% of the balances owed.
Since I would have to stop making monthly payments, there was a chance that I could be sued. Part of the benefit included legal services like FDR.
I also had access to my dashboard, where I could see the status of my account and debts. One of the questions they had to ask often was my current financial hardship.
The worse my situation, the more leverage they had over the creditors.
I discovered there was another hidden benefit.
When I was strapped for paying my bills, I could take money out of my escrow account for that purpose. Of course, they informed me that they could delay my debt settlement but were OK with it. I used several timers, which saved me in tight spots.
Fast forward to today. My final creditor was paid in January 2022. After I make my last fee payment in February, I will be truly debt-free.
As you said, These companies donāt charge their fee until they have negotiated a settlement that their customer accepts.
All of my debts were settled with monthly payments. But this last one, I directed them to settle using a single payment since I had the funds.
They agreed to do that and collect the fee after the debt was paid.
There is a silver lining.
This company has an affiliate program through Share-A-Sale that I joined, so I am earning money from them by sending customers to their website using my affiliate phone number.
I get paid $25 for every phone call, regardless of whether a sale is made.
You asked for us to share experiences, and I did.
Cheers.
Edwin
Exactly what this review needed.
Thanks, Edwin. I appreciate it.
Btw, $25 for a call seems like a good deal. Keep it up!
Your critique on Freedom Debt Relief is very well-said and thorough.
Thank you for all the information it contains. As you have said, if I go this route, it will destroy my credit rating for seven years. This is exactly how long bankruptcy will also take to resolve, so they seem very similar.
Both will require saving money for fees that must be paid.
Either way, if you decide on going either route, you will lose your credit rating. Some of the concerns you brought up about the company are major concerns.
Lack of BBB accreditation, high fees, and a recent settled legal suit is enough to reconsider this route. You suggest starting an online business but doesnāt that cost much to get it to generate income?
Most business models require significant upfront capital, but on the other hand, the one Iām recommending is absolutely free to start with.Ā
Understandably, you can progress faster if you invest some money, but even then, it will still be a minor investment, usually $300.Ā
Feel free to readĀ my guideĀ to learn more about it.Ā