Freedom Debt Relief: 2022 Review

If you have large debts that are difficult to pay off, you may consider hiring a debt relief firm. A debt relief company is a company that tries to help you negotiate with your creditors to bring your debt down. They are sometimes called Debt settlement Corporation or debt settlement company.

Freedom Debt Relief is one of the largest debt relief companies in the country. By September 2020, they had helped 750,000 customers pay off more than $ 12 billion in debt. Like any debt settlement firm, they cannot guarantee that all of your debts will be reduced and paid through their program, but they promise to try to negotiate lower fees on any unsecured debt.

According to customer reviews on the Better Business Bureau (BBB) ​​website, working with Freedom Debt Relief has been helpful for many indebted consumers. However, the company has billed other unwanted fees and has even faced a lawsuit from the Consumer Financial Protection Bureau.

Use of the Freedom Debt Relief program may be right for you when you are unable to pay off your debts and are faced with an extenuating financial situation. Read on to learn more about the company and its program.

Freedom Debt Relief Review


Typically 15 to 25%, fees may vary depending on your country of residence.

Minimum debt required

$ 7,500


Usually 24-48 months, but the total time varies from person to person

Savings estimate

Up to 50% of your current debt

Best for

Individuals with high unsecured debt and pre-existing bad credit ratings

Not recommended for

Individuals with good creditworthiness and individuals who can work to negotiate their own debts

BBB rating


Freedom Debt Relief Debt Settlement Pros and Cons



Your debt counselor can negotiate lower debt for you

Billing fees can be high

No upfront transfer fees

You cannot guarantee that your debt will be reduced

Graduates of their program will be freed from their unsecured debts

Your creditworthiness can be affected

Freedom Debt Relief Review

Freedom Debt Relief is not for everyone. They have had significant results in helping their customers settle debts and have an A rating from the Better Business Bureau (BBB). However, they were sued by the Consumer Finance Protection Bureau in 2018 for charging their clients without paying their debts as promised.

If you are looking to partner with Freedom Debt Relief, make sure you know the terms that you are signing up for. You should also consider all of your options before deciding to work with them, as there may be better options for your situation.


When you’ve decided to partner with Freedom Debt Relief, they have a five step process to help clients with their debt relief program:

  1. Evaluation: During this step, one of the company’s debt counselors will help you complete a financial assessment and determine whether you are eligible for the program. This step is free and is intended to determine if you are eligible for the program.
  2. Down payment: When you qualify and choose the Freedom Debt Relief program, you will begin making monthly deposits into an FDIC insured account that you are responsible for. This step also instructs you to stop making payments to your creditors. Once you have saved a significant amount in your account, the negotiation process begins.
  3. Negotiation: Throughout the negotiation process, the Freedom Debt Relief team will work to bring your debt down. The length of time this process takes depends on how much debt you have to pay off and how long the creditors are trying to negotiate.
  4. Settlement: When settlement is reached, payments are made to your creditor. Your payment to Freedom Debt Relief will also be processed at this point.
  5. Graduate: Once all debts are paid off, you are considered a graduate of the debt relief program. It is important to note that not all program members reach this step as debt settlement cannot be guaranteed.

Qualifications required

Only unsecured debts qualify for the Freedom Debt Relief Program. This means debts like credit cards, unsecured personal loans, and medical bills. Secured debts like a mortgage or a car loan do not qualify. To qualify for the program, you should have at least $ 7,500 in unsecured debt.


The estimated time frame for the Freedom Debt Relief Program is 24-48 months. However, everyone is different and the process can be shorter or longer than this time frame. Freedom Debt Relief works with each client to create a schedule that suits their budget and financial goals, so the schedule can be flexible based on what you need.

Who is Freedom Debt Relief for

Many companies offer debt settlement services. How Do You Know If Freedom Debt Relief Is Right For You? Consider all of your options before signing up for a debt relief program, but Freedom Debt Relief might be an option for you if you have the following circumstances:

  • You have over $ 7,500 in unsecured debt
  • You have extenuating circumstances that make it difficult or impossible to pay off your debt
  • Your credit score is already low

Freedom Debt Relief Probably Not For You If You:

  • You cannot save enough money to pay partial amounts of your direct debit
  • Have less than $ 7,500 in unsecured debt
  • Have a good credit score that you want to maintain
  • Able to pay off debts through other alternatives

What is to be considered

As with any company you work with, you should understand all of the factors before signing up for a Freedom Debt Relief Program. Just like any other debt settlement company, Freedom Debt Relief cannot guarantee that your debt will be reduced.

The company has an average of 4.6 out of 5 stars from customer reviews by the BBB. Many of the negative comments cite high processing fees as a disappointment. However, many other reviews mention that the company really helped with the debt settlement and is happy with the company.

Prospective customers should also be aware that the company was sued by the Consumer Financial Protection Bureau in 2018. The lawsuit alleged that Freedom Debt Relief charged customers before their debts were paid and misled consumers about their fees. The lawsuit was settled in June 2019 and the company had to repay the affected consumers $ 20 million.

Freedom Debt Relief Fees and Terms

Under federal law, no deleveraging company can charge upfront fees. Freedom Debt Relief follows this law in its terms. Once collected, their fees can vary by state, but are generally between 15 and 25 percent.

Enrollment in the program can also have a short-term negative impact on your creditworthiness. Your debt settlement program will ask you to stop payments during the negotiation phase, so missed payments can cause credit damage.

Participating in the Freedom Debt Relief program also means that you could potentially be sued by a lender. While Freedom Debt Relief is working with a team of lawyers to help you with this case, it is still possible to be sued.

Freedom Debt Relief should explain all of its terms and fees to you before signing up for the program. If you are considering enrolling, be sure to read through all the details so you know what you are getting yourself into.

Other debt relief

If you are considering Freedom Debt Relief as an option, know that it is not your only choice. There are other ways to find debt relief so consider these as well when making your decision.

  • Working with other debt settlement companies. Freedom Debt Relief isn’t the only debt relief company. While considering them, you should also do your research on other debt settlement companies to make sure you are getting the best service.
  • Negotiate the debt yourself. It is possible to negotiate down your debt yourself. While it takes time and persistence, if you are willing to do the job yourself, you can save yourself the fees of a debt settlement firm.
  • Register for bankruptcy. Filing a Chapter 7 bankruptcy filing removes your liability for paid debts. To see if you are eligible, you can consult an attorney.
  • Budgeting. If you are able, you should revise your budget to pay off your debt. Could you trade in your car for something cheaper? Do you have unnecessary monthly expenses? It might be worth while penning off temporarily when you can settle the debt yourself and avoid additional fees and the possibility of bad credit.


Freedom Debt Relief is reputable company that has served many clients. Maybe they can help you too. However, using their service is not without its costs and risks. Before signing up for the debt relief program, find out about all of the terms and conditions. You should also consider all of the options before signing up for any debt relief program.

This is how Bankrate rates Freedom Debt Relief

Bankrate Score



Services were rated based on minimum creditworthiness, types of eligible debts, and whether the company offers free credit counseling.


Affordability was assessed based on the fees involved and whether or not the company put in place money-back guarantee terms.

Customer experience

Customer experience was rated based on the usability and features of the website, as well as app availability. Customer satisfaction and the company’s reputation were assessed based on the Better Business Bureau’s accreditation and ratings, as well as TrustPilot ratings.


Stability was assessed based on how long the company has been in business and whether or not it is a member of a professional association.

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