Freedom Debt Relief Review [2023]: Is it Legit and Can it Help You?

If you feel like you’re drowning in debt, you’re not alone. Americans carried a collective $4.51 trillion in non-housing debt as of the third quarter of 2022. Although there are strategies you can use to get out of debt on your own, there’s no shame in asking for help if you’re in over your head and missing monthly payments.

Before you resort to bankruptcy, consider getting help from Freedom Debt Relief so that you can finally achieve financial freedom. To find out what you should expect from the nation’s largest debt relief services, continue reading our Freedom Debt Relief review.

Freedom Debt Relief basics

Minimum debt	$7,500 (typical debt is $25,000)
Types of debt	Credit card debt Medical bills Personal loan debt Department store credit debt Certain types of private student loan debt
Program length	24-48 months
Fees	15%-25% of your enrolled debt amount
Availability	Approximately 38 states
Accreditation	AFCC, IAPDA
Best for...	Clients with hefty debt balances looking for affordable debt relief
	Visit Freedom Debt Relief

What is Freedom Debt Relief?

Freedom Debt Relief (FDR) was founded by Stanford Business School graduates Brad Stroh and Andrew Housser in 2002. The company is now based in Arizona and aims to provide a consumer-friendly approach to debt relief. Since its inception, it has become a leader in the debt settlement industry, helping more than 650,000 people resolve their debts. Freedom Debt Relief is also committed to giving back to local community organizations through employee volunteering and donations.

Most debt settlement companies charge upfront fees that can be costly for consumers, and for that reason, the Federal Trade Commission and Consumer Financial Protection Bureau (CFPB) caution consumers against using these services. But Freedom Debt Relief is not a scam and it doesn't charge upfront fees.

You don't have to pay a cent to Freedom Debt Relief until the company has negotiated a debt settlement for you. In fact, Freedom Debt Relief had a hand in developing FTC rules that prohibit abusive debt settlement practices. The company is also a founding member of the American Fair Credit Council and has a score of 4.34 out of 5 stars, according to the Better Business Bureau (BBB).

How does Freedom Debt Relief work?

The Freedom Debt Relief program starts with a free debt evaluation. During this free consultation, you’ll answer some questions by phone and work with a debt consultant to determine whether you qualify before setting up a customized plan. The following types of debt qualify for debt settlement through Freedom Debt Relief:

• Credit card debt
• Medical debt
• Personal loan debt
• Department store credit debt
• Certain types of private student loan debt
  

While Freedom Debt Relief offers assistance with several types of unsecured debts, it can’t help you with secured loans, such as your mortgage or auto loan, or federal student loan debt.

Once you’ve enrolled in the program, you stop paying your bills and instead make monthly deposits into an FDIC-insured savings account. When you’ve been in default long enough to save sufficient funds in that dedicated account, Freedom Debt Relief will negotiate your first settlement with your creditors. Once they’ve agreed to consider your debt paid for less than you owe, Freedom Debt Relief will use the money in your account to pay your creditors and settle your debts.

You should also know that Freedom Debt Relief charges 15% to 25% of your enrolled debt amount as a fee, depending on the state in which you live. This could still be less expensive than bankruptcy, which can cost $2,000 or more. And bankruptcy will also tank your credit, so it's typically viewed as a last resort.

What we like about Freedom Debt Relief

• No upfront costs: Although many other debt settlement companies charge you a fee right off the bat, you won’t pay a cent until Freedom Debt Relief finishes negotiating your debt settlement.
• Track your progress with the Client Dashboard: As a Freedom Debt Relief customer, you can easily view the progress of your debt settlement in your online account. You’ll also be able to access educational content to help you stay out of debt and improve your financial future.
• Excellent customer service: You can reach a certified debt consultant or customer service representative any day of the week by phone or email. Furthermore, Freedom Debt Relief has excellent customer reviews on the Better Business Bureau.

What Freedom Debt Relief could improve

• No guarantees: Freedom Debt Relief doesn’t offer a money-back guarantee, nor does it promise to forgive a certain percentage of your debt. Each settlement is a negotiation, and the results can vary.
• High fees. Freedom Debt Relief takes 15% to 25% of your enrolled debt amount as a settlement fee. They have the experience to settle your debts for 50% of what you owe, but there’s no guarantee. If they’re only able to settle your debts for 75% of what you owe, there’s a chance you won’t save money and may damage your credit in the process.

What Freedom Debt Relief customers are saying

More than 1,300 customer reviewers rated Freedom Debt Relief an average of 4.34 out of 5 stars through the Better Business Bureau. Many customers cited the ease of the process. One customer mentioned that Freedom Debt Relief helped her handle civil cases brought against her. And many reviewers said the customer service is friendly and helpful. Freedom Debt Relief also has a 4.5 out of 5-star rating with Trustpilot and a 4.4 out of 5 with Consumer Affairs.

Additionally, a recent survey of Freedom Debt Relief program graduates offers some insight into how working with the service impacted their overall debt burden and credit. According to the survey, the median debt burden of Freedom Debt Relief graduates decreased from $28,000 at the time of program enrollment to $3,800 45 months after enrollment. Surveyed customers' median FICO scores also continued to improve more than two years after using the company's services. 

Freedom Debt Relief customer service

You can contact Freedom Debt Relief via phone call or email.

• Non-clients: 800-230-1553 or info@freedomdebtrelief.com
• Current clients: 800-655-6303 or support@freedomdebtrelief.com

Certified debt consultants are available:

• Monday through Friday, 8 a.m. to 11 p.m. ET
• Saturday and Sunday, 9 a.m. to 9 p.m. ET

Customer service representatives are available:

• Monday through Thursday, 8 a.m. to 9 p.m. ET
• Friday, 8 a.m. to 8 p.m. ET
• Saturday and Sunday, 10 a.m. to 8 p.m. ET

FAQs about Freedom Debt Relief

The bottom line

Generally speaking, if you're experiencing financial hardship and struggling to get out of debt, you should consider the debt settlement process only if other strategies won’t work for you. Before you decide to work with a debt settlement company, you might try these other debt solutions:

• Working with a nonprofit credit counseling agency on a debt management plan
• Negotiating with creditors on your own
• Applying for one of the best balance transfer cards to reduce your interest rate
• Using a personal loan to consolidate your debt
• Trying a debt-repayment strategy
• Using a debt-repayment app

If the amount is too high or these options prove ineffective, debt settlement can sometimes be a better option than bankruptcy, though it depends on your financial situation. You should calculate the cost of both choices, along with the effort required, when making your decision. 

If you do decide to go the route of debt negotiation, we think Freedom Debt Relief is one of the safest debt relief companies around, evidenced by thousands of happy customers. If you're still undecided, you can learn more by comparing National Debt Relief vs. Freedom Debt Relief.