Can Freedom Debt Relief be trusted? (2024)

Can Freedom Debt Relief be trusted?

Freedom Debt Relief is a legitimate company. It is BBB-accredited and is rated A+. It is also a founding member of the American Fair Credit Counsel (AFCC) and a member of the International Association of Professional Debt Arbitrators.

What is the downside of Freedom Debt Relief?

How Will Freedom Debt Relief Affect My Credit? Debt relief can negatively affect credit scores because creditors typically aren't willing to negotiate until you're behind on payments. Payment history carries the most weight for FICO score calculations, so if you're paying late or not at all, your score can take a hit.

Is Freedom Debt Relief accredited or approved?

Freedom Debt Relief is accredited by the American Fair Credit Council and the International Association of Professional Debt Arbitrators. The Consumer Financial Protection Bureau received 120 complaints in 2022 about Freedom Debt Relief. The company gave a timely response to all but two complaints.

Is it a good idea to get debt relief?

Seeking out debt relief can help you get your financial obligations under control. Debt relief can take different forms, and one may work better than another. While seeking debt relief can offer some advantages, there may be cons to weigh in the balance.

How do I know if a debt relief company is legit?

The two most obvious signs of a potential debt relief scam are:
  1. They Contact You First. If you receive an unsolicited call or contact from someone offering to help you eliminate your debt, be extra cautious. ...
  2. They Ask for Fees Upfront. This is the most obvious sign of a debt relief scam.

Will Freedom Debt Relief ruin my credit?

Since you're required to stop making payments on outstanding debts to enter into a debt settlement program, those accounts will be marked delinquent on your credit reports. Your credit scores will take a significant hit, potentially affecting future applications for credit and even employment.

Why do Republicans want to stop debt relief?

Bob Good (R-Va.), who is sponsoring the House measure, said it was part of “a multipronged attack” that Republicans are pursuing against Biden's student debt policies which they view as too expensive for taxpayers and unfair to Americans who didn't attend college or already paid off their loans.

How long does Freedom Debt Relief ruin your credit?

One thing is certain: negative activities associated with debt settlement — like missing a credit card payment or having a debt charged off — will hurt your credit score and stay on your credit reports for seven years.

What fees does Freedom Debt Relief charge?

Freedom Debt Relief's fee ranges between 15% to 25% of enrolled debt (the amount of debt enrolled to be settled)–your rate may vary depending on your state of residency and amount you enroll.

Which is better freedom or national debt relief?

National Debt Relief: Best for customer satisfaction. New Era Debt Solutions: Best for large debts. Freedom Debt Relief: Best for tracking progress. CuraDebt: Best for smaller debts.

Can I buy a house after debt settlement?

Yes, you can buy a home after debt settlement. You'll just have to meet the lender's requirements to qualify for a mortgage. Unfortunately, that could be harder after you settle debt.

How to get out of $10,000 credit card debt?

7 ways to pay off $10,000 in credit card debt
  1. Opt for debt relief. One powerful approach to managing and reducing your credit card debt is with the help of debt relief companies. ...
  2. Use the snowball or avalanche method. ...
  3. Find ways to increase your income. ...
  4. Cut unnecessary expenses. ...
  5. Seek credit counseling. ...
  6. Use financial windfalls.
Oct 18, 2023

What is the best program to get out of debt?

Best Debt Reduction Software Programs for 2024
  • Best Overall: Quicken.
  • Best for Fast Payoff: ZilchWorks.
  • Best App: Tally.
  • Best Free Option: Unbury.Me.
  • Best for Envelope Budgeting: Qube Money.
  • Best for Debt Snowball: Undebt.it.

Why is debt relief bad?

Warning: There could be tax consequences for debt forgiveness. If a portion of your debt is forgiven by the creditor, it could be counted as taxable income on your federal income taxes. You may want to consult a tax advisor or tax attorney to learn how forgiven debt affects your federal income tax.

What happens if you take debt relief?

In exchange for a fee, debt settlement companies will work to lower your overall debt and may negotiate a lump-sum payment with your creditors on your behalf. They will typically ask you to stop making payments to the creditor while they negotiate your settlement, which can hurt your credit.

Is there a government debt relief program?

Federal government debt relief programs in the form of financial help include long-time programs such as Supplemental Nutrition Assistance Program (SNAP, formerly known as Food Stamps), Temporary Assistance for Needy Families (TANF), Medicaid, Children's Health Insurance Program (CHIP), unemployment benefits and more.

Who is suing Biden for debt relief?

The Cato Institute, a libertarian think tank, sued the Biden administration on Oct. 18, arguing the relief plan could undermine an existing program that allows borrowers to have their debts cleared after a decade of qualifying payments if they become government employees or nonprofit workers.

What is the new Biden save plan?

The SAVE plan builds on broader actions by the Biden-Harris Administration to deliver relief to student loan borrowers, fix problems in the student loan system, and make college more affordable.

Did the House pass a measure to block Biden's student debt relief program?

The House of Representatives voted Wednesday to pass a Republican measure to block President Joe Biden's student debt relief program and end the administration's pause on federal student loan payments. The House voted 218-203, largely along party lines, with two Democrats — Reps.

Can I buy a car after debt settlement?

With your old debts discharged, saving the money you would have paid on those old loans and credit cards might allow you to put together enough money to get a car without borrowing again. Financing a car after bankruptcy will be more difficult, but it's still possible.

Is it better to settle debt or pay in full?

Is it better to settle debt or pay in full? Paying debt in full is almost always the better option when possible. Research debt payment strategies — debt consolidation could be a good option — and consider getting financial counseling.

What debt relief doesn t ruin your credit score?

These methods won't crush your credit score: Consolidation loans from a bank, credit union, or online debt consolidation lender. Balance transfer(s) to a new low- or zero-rate credit card. Borrowing from a qualified retirement account, such as an IRA or 401(k).

Will my credit score go up if I settle a debt?

Debt settlement can eliminate outstanding obligations, but it can negatively impact your credit score. Stronger credit scores may be more significantly impacted by a debt settlement. The best type of debt to settle is a single large obligation that is one to three years past due.

Which is a disadvantage of enrolling in a debt settlement program?

Debt Settlement Program Disadvantages

Debt settlement companies can charge a fee for each credit card debt they settle. If you have 4-5 cards, they may only settle three of them, but get rejected by the others. Thus you will have paid a fee and the problem is still unsolved.

How fast does your credit score go up after paying debt?

How long after paying off debt will my credit scores change? The three nationwide CRAs generally receive new information from your creditors and lenders every 30 to 45 days. If you've recently paid off a debt, it may take more than a month to see any changes in your credit scores.

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