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Freedom Debt Relief Review: Expert Analysis & User Insights for 2022

Freedom Debt Relief was founded in 2002 and has resolved over $15 billion in debt for more than 800,000 people since then. The company uses trained debt professionals to negotiate on your behalf. They also don’t charge any fees until a settlement is authorized so this lowers the risk of working with the company to resolve your debt.

Freedom Debt Relief Review
Freedom Debt Relief
4.4
Please Vote!
Diverse service offering
Diverse service offering
Free tax relief consultation
Free tax relief consultation
Low minimum debt requirement
Low minimum debt requirement
Trustworthiness and stability
Trustworthiness and stability
Choncé Maddox
Written by:Choncé Maddox
Certified Financial Education Instructor (CFEI)

Freedom Debt Relief provides free consultations to help borrowers settle their debt. If you need help negotiating lower monthly payments or receiving a lump sum debt settlement, Freedom Debt Relief offers programs and no upfront pricing to help you get debt relief.

Debt settlement is an option for anyone who is struggling to make payments on their accounts and it’s unlikely that they’ll be able to pay back the debt in full. Paying back a smaller or settlement amount might be more realistic and it’s also appealing to creditors so they get some of the loan repaid instead of none.

In this Freedom Debt Relief review, we’ll go over the programs the company offers, pros and cons, as well as how Freedom Debt Relief stacks up against other debt relief services.

Editor’s Note (Warning)

Debt relief and debt settlement companies can be risky in that they might charge high fees upfront or ask you to temporarily stop paying your debt. This could lead to additional fees from creditors which will negatively impact your credit.

If the debt settlement company can’t settle all your debts, you could be out of additional money due to the service fees, late payment fees, and so on. Not to mention, collections agents will still call regularly and your creditor could choose to take legal action against you.

While debt settlement can work, it’s essential to make sure you’re considering a credible company with a proven track record. Also, continue making at least the minimum payment on your debt if you can and make sure you fully understand the benefits and drawbacks of the program you’re on.

You can also consider alternatives to debt settlement such as setting up a debt management plan, consolidating credit cards, or looking into bankruptcy.

Summarized Rating

This parameter considers service offering breadth, geographic reach, and minimum debt level requirements. Each of these features was evaluated using the five-point scoring system. Then, the various scores were aggregated and averaged to establish an overall services and solutions score.

Freedom gets an above average 4.0 for Services and Solutions. This reflects its diverse service offering, extensive geographic footprint, and standard minimum debt requirement.

Freedom Debt Relief Pros and Cons

Freedom Debt Relief Pros
Free consultation
No charges until you have a debt settlement agreement
Work with certified debt consultants
Freedom Debt Relief Cons
Doesn’t help with secured debts (mortgages or auto loans)
Fees range from 15% to 25% of the settled debt amount
Debt settlement could lower your credit score

Types of Debt Covered By Freedom Debt Relief

Freedom Debt Relief only works with unsecured debt. This means loans and accounts that you didn’t have to use collateral to obtain. You must also have at least $7,500 of unsecured debt to use Freedom Debt Relief. Here’s a summary of what they can help you with:

  • Credit cards: Credit card debt is one of the most common types of debt that can be hard to manage due to high interest rates. If you have maxed out credit cards or are juggling multiple bills, Freedom Debt Relief may be able to help you settle this debt.
  • Medical bills: If you are unable to pay your medical bills, they can quickly go to collections and hurt your credit. If you’re getting calls every day from debt collectors, debt settlement can help you negotiate these bills and get them paid off.
  • Department store cards: Freedom Debt Relief can also help negotiate with retailers where you have a department store credit card and outstanding debt.
  • Personal loans: If you’re struggling to pay off unsecured personal loans, your creditor may be willing to negotiate for debt settlement.
  • Private student loans: Private student loan debt is another area that Freedom Debt Relief can help with if the burden to repay your student loans becomes too great.
  • Business debt: In some cases, Freedom Debt Relief can assist with business debt settlement. This is done on a case-by-case basis so you’ll need to inquire about your specific situation.

Freedom Debt Relief Services

If you’re considering working with Freedom Debt Relief, it’s important to know how the service works and what you can expect. Here’s a summary of the service offerings, requirements and other terms for this debt settlement company.

  • Breadth of services offering: Freedom Debt Relief offers a free, no-risk debt relief consultation so you can discuss your situation and options with an expert. From there, you can choose to enroll in a debt relief program where debt experts will negotiate with your creditors to get them to agree to settle your debt for less than the full amount you owe. Freedom Debt Relief will ask you to make a deposit into an FDIC-insured account that you control. As the account grows, your certified debt experts will create a customized plan to get you out of debt.
  • Extent of Geographic Presence: Freedom Debt Relief has offices in San Mateo, CA and Phoenix, AZ but they service customers in most U.S. states.
  • Minimum Debt: You need a minimum of $7,500 in unsecured debt to qualify for a debt settlement program.
  • Average Time for Relief: The first settlement usually happens between 4 to 6 months. However, the company says it can help you become debt free within 24 to 48 months.
  • Average Relief Amount: While Freedom Debt Relief has been able to resolve billions of dollars of debt, everyone’s situation is different so they don’t share an average relief amount.
Breadth of services offering Debt negotiation and settlement
Extent of Geographic Presence Serves about 75% of U.S. states
Minimum Debt Required $7,500
Average Time for Relief 4-6 months
Average Relief Amount Not disclosed

Freedom Debt Relief Costs and Fees

Debt relief programs typically come with fees attached even if they aren’t upfront. In this Freedom Debt Relief review, we want to be transparent about what you can expect to pay if you start a program.

  • Fees: Freedom Debt Relief has no upfront fees but if you accept a debt settlement agreement, you could be expected to pay anywhere from 15% to 25%. You do have to pay one monthly program deposit which will go to an FDIC-insured savings account to be used to help pay your settlement.
  • Cancellation Policy: If you cancel your agreement with Freedom Debt Relief, you will receive the remaining funds in your dedicated account minus any fees that were collected.
  • Moneyback Guarantee Policy: If your total program cost settlement costs more than the total debt you have when you enroll in the program, they will refund you the difference up to 100% of the collected fees.
Upfront Fees None
Settlement/Performance Fees 15% to 25%
Other Fees Monthly deposit payment
Cancellation Policy Cancel any time
Moneyback Guarantee Policy Up to 100%

Freedom Debt Relief Customer Experience

  • Website Extensiveness & Usability: The website is very easy to navigate and includes a customer service phone number for clients and non-clients.
  • Expanded Call Center Support: Customer service agents are available by phone during flexible hours from 8 am to 9 pm ET from Monday to Friday and 10 am to 8 pm ET on Saturday and Sunday.
  • Multi-channel Support: Unfortunately, it doesn’t look like Freedom Debt Relief has customer service available via chat or email.
  • Supplemental Support (Information & Tools): There is a client dashboard track your progress and see how negotiations are going 24/7.
  • Mobile Technology: Freedom Debt Relief does not have a mobile app so you’ll need to access your account from the mobile browser if you wish to use your phone.

Freedom Debt Relief Trustworthiness and Stability

When working with a debt settlement company, you want to make sure the company is legit and serious about getting you positive results. Freedom Debt Relief has earned a reputation as being one of the most credible and successful debt settlement companies around.

These facts give greater detail on how we’d rank the company in terms of trustworthiness and stability.

  • Years in Business: Freedom Debt Relief has been in business since 2002 and was founded by Stanford Business School graduates named Andrew Housser and Brad Stroh. After noticing that there weren’t any consumer-friendly options to help people who were struggling with debt, they decided to take action and build Freedom Debt Relief.
  • Customers Serviced / Debt Managed: Since 2002, Freedom Debt Relief has served more than 800,000 people and helped them resolve over $15 billion in debt.
  • American Fair Credit Council (AFCC) Membership: Freedom Debt Relief is a founding member of the AFCC which helps encourage legislation to make credit industry regulations more fair and transparent for consumers.
  • International Association of Professional Debt Arbitrators (IAPDA) Membership: The IAPDA is a leading organization in the consumer debt industry that promotes industry training, certification, and professional development opportunities for members.
Years in Business 20 years
Customers Serviced / Debt Managed 800,000+ / $15 billion+
Certifications and Memberships AFCC and IAPDA

Freedom Debt Relief User Reviews

Freedom Debt Relief reviews are important to consider as you narrow down your debt settlement options. With a 4.4 rating on Consumer Affairs and a 4.5 rating on Trustpilot, most people who’ve used this debt settlement service have been pleased with it. Not only do people like the program and the level of service, but some also say the company has helped them change how they look at spending and managing their finances.

If you are considering FDR, consider how much it will impact your whole life and the life of those you love when you trade desperation, harassment, and grief of credit for the kindness, help, and hope of credit resolution.

A friend referred me to FDR and I called them. They asked if I was okay with 348 per month and I agreed. Within a few months, they had the first credit card settled for 53% less than what I owed.

In terms of Freedom Debt Relief complaints, there were a few things customers didn’t like about the experience such as the amount of time it took to settle their debt. Others commented about not liking the fee amount they had to pay to settle their debt.

As with any debt settlement arrangement, it’s important to make sure the numbers make sense for your situation and that you’ll actually save money.

Freedom Debt Relief Compared to Other Companies

This Debt Freedom Relief review would not be complete without comparing the company’s features to other competitors. It’s important to understand where each debt settlement option shines as well as its drawbacks so you can make an informed decision should you decide to have your debt negotiated for a lower payment.

Freedom Debt Relief National Debt Relief Accredited Debt Relief
Minimum debt required $7,500 $7,500 $10,000
Fees 15% - 25% of settled amount 15% - 25% of settled amount 15% - 25% of settled amount
Cancellation Policy Yes Not disclosed Yes
Moneyback Guarantee Policy Yes Yes Not disclosed
Average Relief Amount Varies Varies 55% of enrolled balance

Final Thoughts

Freedom Debt Relief has helped hundreds of thousands of people significantly reduce their debt amounts in anywhere from a few months to a few years. While debt settlement does come with some risks, it’s important to evaluate where you’re at financially to see if this service would help make your payments more manageable and set you on a path to paying off your debt.

If you’re leaning toward debt settlement, however, Freedom Debt Relief is a solid place to start since they don’t charge any upfront fees and offer a money-back guarantee if they can’t save you money.

Frequently Asked Questions(FAQ)

Is the Freedom Debt Relief program legit?

Yes, Freedom Debt Relief has been around for 20 years, helped countless people, and have high ratings on trusted consumer websites. The company is also accredited with the BBB and has an A rating.


Will using Freedom Debt Relief hurt my credit?

Using any debt relief program could negatively impact your credit. If you stop making payments to your creditors during your plan, they could charge you additional fees and report the missing payments to the credit bureaus. Once your debts are settled and paid off however, this could start to improve your credit score. Keep in mind that negative marks can remain on your report for up to 7 years.


How long does it take to rebuild credit after debt settlement?

It depends on your situation and how you’re using your credit. If you successfully settle and pay off your debt during your program, your credit score will likely increase. From there, you can allow time to build new positive credit history wisely so long as it makes financial sense to open another account.

How long has Freedom Debt Relief been around?

Freedom Debt Relief has been around for 20 years.

How does the freedom loan work?

Freedom Debt Relief uses a unique process allowing you to work with trained and certified debt professionals. This means your plan is customized and you have a team that partners with you through the entire Freedom Debt Relief program. There have been many reports from customers finding success with their program and paying off their debt. Freedom Debt Relief offers a customer dashboard to allow you to track your program’s process and ensure you understand your program goals, timeline, and more.

Choncé Maddox

Choncé Maddox

Certified Financial Education Instructor (CFEI)

Choncé Maddox is a Certified Financial Education Instructor (CFEI) and personal finance freelance writer.

More about me