Is debt settlement and Debt Relief the same?
Debt settlement is a form of debt relief where people try to renegotiate the amount of debt they owe, and ask their creditors to accept a lower repayment. This can be done by the individual creditor or by using the services of a debt settlement company.
Is Freedom Debt Relief a legitimate company?
Yes, Freedom Debt Relief is a legitimate company registered back in 2002. It is accredited by the American Fair Credit Council (AFCC) and the Better Business Bureau (BBB).
What is the Freedom Debt Relief Program?
Freedom Debt Relief is a debt relief company that offers a free, no-risk consultation before you commit to the program. They assist consumers by helping settle debt for less than what is owed and they have resolved more than $10 billion in debt since their founding in 2002.
What happens if I stop paying Freedom Debt Relief?
If you do not make the minimum periodic payments on your debts, your delinquencies will likely be reported to consumer reporting agencies as late, delinquent, charged-off, or past due balances. Your creditor may also raise the interest rate on your debt and impose other penalties, such as late fees and over-limit fees.
Who owns Freedom Debt Relief?
Freedom Financial Network, LLCFreedom Debt Relief / Parent organizationAndrew Housser co-founded Freedom Financial Network in 2002 and Bills.com in 2005. Andrew sits on the board of directors of several startup companies as well as two independent school boards. Andrew Housser co-founded Freedom Financial Network in 2002 and Bills.com in 2005.
Does debt settlement hurt your credit?
While settling an account won't damage your credit as much as not paying at all, a status of "settled" on your credit report is still considered negative. Settling a debt means you have negotiated with the lender and they have agreed to accept less than the full amount owed as final payment on the account.
How long does Debt Relief stay on your credit report?
seven yearsMost negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit scores may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.
What percentage of a debt is typically accepted in a settlement?
Typically, a creditor will agree to accept 40% to 50% of the debt you owe, although it could be as much as 80%, depending on whether you're dealing with a debt collector or the original creditor. In either case, your first lump-sum offer should be well below the 40% to 50% range to provide some room for negotiation.
How much do debt collectors settle for?
Some want 75%–80% of what you owe. Others will take 50%, while others might settle for one-third or less. Proposing a lump-sum settlement is generally the best option—and the one most collectors will readily agree to—if you can afford it.
How can I get out of debt collectors without paying?
There are 3 ways to remove collections without paying: 1) Write and mail a Goodwill letter asking for forgiveness, 2) study the FCRA and FDCPA and craft dispute letters to challenge the collection, and 3) Have a collections removal expert delete it for you.
What are the pros and cons of Freedom Debt Relief?
Pros and consProsConsTheir debt consultants can negotiate lower debt for youSettlement fees can be highNo upfront settlement feesThey can't guarantee that your debts will be loweredGraduates of their program will be free of their unsecured debtsYour credit may be negatively affectedMar 15, 2022
How long does Debt Relief stay on your credit report?
seven yearsMost negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit scores may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.
Where is freedom debt relief located?
San Mateo, CaliforniaFreedom Debt Relief is located in San Mateo, California, United States .
What is the best way to get rid of credit card debt?
5 Simple Ways to Get Out of Credit Card Debt FasterLearn your interest rates and pay off highest-rate cards first. ... Double your minimum payment. ... Apply any extra money in your budget to your payment. ... Split your payment in half and pay twice. ... Transfer your balance to a 0% credit card.