Freedom Debt Relief

Overview

Freedom Debt Relief is the largest debt settlement company in the United States, having resolved over $18 billion in debt for more than 1 million clients since 2002. As a bankruptcy alternative, Freedom Debt Relief negotiates directly with creditors to reduce the total amount owed, typically achieving settlements of 40-60% of the original balance. The company works with clients who have $7,500 or more in unsecured debt and creates personalized debt resolution programs lasting 24-48 months. Freedom Debt Relief is accredited by the American Fair Credit Council and the International Association of Professional Debt Arbitrators, and charges fees only after successfully settling each individual debt.

Strengths

• +Largest debt settlement company in the U.S. with $18B+ in resolved debt
• +Performance-based fees — only charges after successfully settling each debt
• +Typically settles debts for 40-60% of the original balance
• +Accredited by AFCC and IAPDA with strong industry reputation
• +Free consultation to evaluate whether debt settlement is viable

Considerations

• -Debt settlement can negatively impact credit scores during the program
• -Not all creditors agree to negotiate — some debts may not be settleable
• -Program typically takes 24-48 months to complete
• -Settled debt may be considered taxable income by the IRS

Best For

• *Person with $20,000+ in credit card debt who wants to avoid bankruptcy but can't keep up with minimum payments
• *Individual whose income is too high to qualify for Chapter 7 but who can't afford Chapter 13 payments
• *Consumer who wants to explore debt settlement as an alternative before committing to a bankruptcy filing