What to Expect from freedomdebtrelief.com

Engaging with freedomdebtrelief.com means stepping into a structured program primarily focused on debt settlement.

While the website promises significant relief and a clear path to becoming debt-free from enrolled accounts, it’s crucial for prospective clients to set realistic expectations, understanding both the advertised benefits and the often-downplayed risks.

Initial Consultation and Qualification

The journey typically begins with a free debt evaluation.

This is where a “Certified Debt Consultant” assesses your financial situation to determine if you qualify for their program.

• Personalized Assessment: Expect to provide details about your unsecured debt (credit cards, medical bills, personal loans, etc.), income, and expenses. The consultant will use this information to determine eligibility and estimate potential savings and a timeline.
• Option Comparison: The website states they will “look at all your available options.” While they may briefly mention credit counseling or bankruptcy, their primary focus will naturally be on their debt settlement program.
• No Upfront Fees to Enroll: This is a consistent promise. You won’t pay anything to sign up or begin the program, but fees will be incurred later upon successful settlement.
• No Good Credit Needed: A key expectation is that you don’t need good credit to qualify, making it an option for those who are already struggling financially and cannot access traditional loans.

The Debt Settlement Process

Once enrolled, you’ll embark on the multi-phase program.

This is where the practical mechanics of debt settlement come into play.

• Dedicated Account Deposits: You will be instructed to make regular monthly deposits into an FDIC-insured dedicated account. This account will serve as the reservoir for funds used to settle your debts. Expect these deposits to be a fixed amount, tailored to your budget and the overall debt you need to settle.
• Cessation of Direct Payments: A critical and often challenging expectation is that you will cease making direct payments to your creditors for the enrolled debts. This is done to accumulate funds in your dedicated account, but it will lead to late fees, collection calls, and negative marks on your credit report.
• Collection Calls: Be prepared for an increase in collection calls from your creditors once you stop making payments. Freedom Debt Relief may provide guidance on handling these calls, but the influx can be stressful.
• Negotiation Period: The negotiation phase can take time. Creditors typically don’t negotiate until accounts are significantly delinquent, as it pressures them to settle for less. Expect periods where you are depositing funds without immediate settlements being finalized.
• Settlement Offers and Approval: You will receive proposed settlement offers from Freedom Debt Relief. You retain the right to approve or reject these offers. Each settlement will require your explicit authorization before funds are disbursed.
• Program Fees: Once a settlement is approved and the first payment made, Freedom Debt Relief will process its program fee. Expect this fee to be a percentage of the enrolled debt amount, typically ranging from 15% to 25%. For example, if you enroll $30,000 in debt and they charge a 20% fee, you would owe $6,000 in fees across the settlements.

Potential Outcomes and Long-Term Effects

The “Freedom” phase implies a clear end to your debt burden, but the long-term impacts extend beyond just the debt being paid off. Ecomauthority.co Review

• Reduced Debt Principal (but not total cost): You can realistically expect to pay less than the full principal amount of your enrolled unsecured debts. However, the total cost will include the settled principal plus the program fees.
• Significant Credit Score Damage: This is a near-certain outcome. Settled accounts, missed payments, and delinquent marks will negatively affect your credit score, potentially for up to seven years. This can make it difficult to secure new loans, mortgages, or even rent apartments. A study by FICO found that consumers who use debt settlement often see a significant drop in their credit scores, often exceeding 100 points.
• Potential for Lawsuits: While Freedom Debt Relief aims to settle, creditors are not obligated to negotiate. Expect the possibility of one or more creditors filing lawsuits against you for unpaid debts. Freedom Debt Relief offers access to a “Legal Partner Network” as support in such cases, but the potential for legal action is real. According to some consumer advocacy groups, a notable percentage of debt settlement clients face lawsuits.
• Tax Implications: Expect that any forgiven debt amount (the difference between what you owed and what you settled for) over $600 might be considered taxable income by the IRS. You may receive a 1099-C form from creditors, requiring you to report this on your tax return.
• No Guarantee of Full Program Completion: Not all clients complete debt settlement programs. Circumstances can change, or the process can become too challenging, leading to dropout, often with worse financial standing than before. Data from the National Association of Consumer Advocates (NACA) suggests completion rates can be as low as 10-15%.
• Ongoing Support: Freedom Debt Relief promises “friendly customer service representatives” and a “24/7 online Client Dashboard” for tracking progress. Expect these resources to be available for support and updates throughout the program.

In summary, expect a professional, guided process for debt settlement from freedomdebtrelief.com, potentially leading to a reduction in principal debt and a defined timeline for resolution.

However, also expect significant negative impacts on your credit, the possibility of creditor lawsuits, and potential tax liabilities on forgiven debt, which are critical considerations for anyone exploring this path.