When you have a lot of debt, you might wonder how you will ever get out from under the mountain of costs you have coming at you. Credit card debt is bad enough, but many people are saddled with medical bills and other things that make the debt that much worse.
While you might consider debt consolidation, if your debt is high enough, even that won’t help you as much as you’d like. Instead, you could consider debt settlement, like from Freedom Debt Relief. Before you sign onto anything, you will want to ask, can Freedom Debt Relief be trusted?
About The Company
According to Freedom Debt Relief reviews, the company is one of the largest debt settlement providers in the country. Their job is to work as a go-between with you and the creditors to whom you owe money. They can negotiate on your behalf and reduce the unsecured debt amount that you own. This is called debt settlement and it can be one way to start down the right path without as much debt on your shoulders.
How The Process Works
The experts at Freedom Debt Relief work with customers who have high levels of debt. They might have debt because of student loans, medical bills, credit cards, or any number of other things. In general, the minimum amount of debt necessary for their services is $7,500. One type of debt they cannot work with is any that involves collateral, like a mortgage or car loan.
Once you qualify for their services, the process is typical of many debt settlement organizations. You enroll and they tell you to stop making payments to your creditors. Instead of making those payments, even if you were only paying the bare minimum, you open a separate savings account and start putting that money in there. That savings account will come in handy later in the process and it’s important that you follow their instructions and actually do the work and save what you can. Freedom will work with you to help you figure out how much you can afford to put into savings every month.
When you stop making payments to your creditors, you will be considered delinquent. Late fees will add up and interest charges may rise. Your credit score will likely drop and those accounts can stay on your credit report for up to seven years. However, by paying your savings account instead, you are reaching for a debt relief goal. Once you save enough, the company will negotiate with your creditors on your behalf to try. Even they try to accept less money than what you actually owe.
After months of nonpayment, creditors are sometimes motivated to take a lower sum over getting nothing. If an agreement is reached, you pay the creditor in increments or all at once from the savings you have worked on. You will also have to pay a fee to Freedom Debt Relief for their services.
The Cost of Debt Settlement
Debt settlement with https://www.freedomdebtrelief.com/ is not a free process, but the companies cannot charge fees upfront. That is a law. Instead, they will collect their fees after the debt has been settled. The fee will be based on the amount of debt you have enrolled with them, and it will range from 18-25%. Fees might also vary based on the state you live in.
Someone who has a $5,000 credit card debt that settled for a balance of $3,000 may have to pay between $900-1250 in fees to the company for their negotiation services. There’s also a one-time setup fee of $9.95 for servicing the account. When you do the math, you still end up with less debt overall and a smaller payment than you would have otherwise.
Most customers get their first settlement in about 6 months after they enroll their debts with the company. It can take longer, though, depending on how much you need to save and how much you are able to save each month. These professionals state that if you commit to timely monthly payments to your savings. As committed, you will resolve your debt anywhere from 2-5 years from the time you started the program.
Reasons To Consider Freedom Debt Relief
If you reach a point in your debt that you just can’t pay off the loans, no matter how hard you try or even if you consolidate, debt settlement might be a good option to examine. You may have been laid off, perhaps you had a big medical bill come in. Or there was an emergency expense that threw everything off. Whatever the reason, when debt happens to you, it might seem like the balance never decreases. And you are working hard just to barely keep your head above water.
You are going to want to use debt settlement with caution and ensure that it is the right move for you. There are other avenues you can research and test out that might work as well. But if you find them lacking, this is a good last resort for your situation. It won’t completely solve your financial issues. But it can help you to dig out of the hole enough to get you back on the right track.
Working With Freedom
According to Freedom Debt Relief reviews, this company follows the disclosure requirements necessary to treat their customers right. Moreover, they are supposed to explain their prices and terms upfront while not charging any fees until the settlement process is complete.
They will also let you know how much money you should put into savings every month in order to reach your goals. And the company must tell you what the consequences are of stopping the payments to creditors.
It’s never easy to get out of debt, especially when your debt rises to an alarming level. The professionals at Freedom Debt Relief can help you to figure out what direction you can take with a free consultation, whether that’s debt settlement or not.