Freedom Debt Relief Review: Everything You Need to Know in 2024
Freedom Debt Relief is one of the oldest debt settlement companies in the United States. It was founded in 2002, which gives it over two decades of experience negotiating with creditors. If you are dealing with credit card debt or personal loans you cannot pay, this review covers whether Freedom Debt Relief is a good fit for you.
We looked at fees, accreditations, customer reviews, and how the program works in practice. Here is what the research shows.
[AFFILIATE-LINK: Freedom Debt Relief – free consultation]
Freedom Debt Relief at a Glance
| Detail | Info |
|---|---|
| Founded | 2002 |
| BBB Rating | A+ |
| Accreditation | AFCC |
| Minimum Debt | $7,500 |
| Fees | 18% to 25% of enrolled debt |
| Program Length | 24 to 48 months |
| Debt Settled | Over $15 billion (reported) |
| Clients Served | Over 1 million (reported) |
What Is Freedom Debt Relief?
Freedom Debt Relief is a debt settlement company headquartered in San Mateo, California. It is one of the largest settlement companies in the country by volume. The company has reportedly settled over $15 billion in debt for more than one million clients since it was founded.
Like other settlement companies, Freedom Debt Relief works by having you stop paying creditors and instead deposit money into a dedicated savings account each month. Once enough funds build up, their negotiators contact creditors and try to settle the accounts for less than the full balance owed.
Freedom Debt Relief is accredited by the American Fair Credit Council (AFCC). AFCC members must follow ethical guidelines including no upfront fees, clear written agreements, and transparent communication.
How Freedom Debt Relief Works
Step 1: Free Consultation
You start with a free phone call. A debt consultant reviews your financial situation. They look at total debt, account types, and monthly cash flow to see if you qualify.
Step 2: Enrollment
You enroll eligible accounts. The minimum is $7,500 in unsecured debt. Credit cards, medical bills, and personal loans are eligible. Secured debts (mortgages, auto loans) are not.
Step 3: Monthly Savings Deposits
Each month, you deposit an agreed-upon amount into a dedicated savings account. You stop paying the enrolled creditors. Creditors will contact you during this period, and your credit score will drop.
Step 4: Negotiation
When enough funds accumulate, Freedom Debt Relief starts negotiating with creditors. Research shows that creditors are more willing to settle once accounts are significantly past due.
Step 5: Settlement and Payment of Fees
When a creditor agrees to settle, you approve the deal. The funds are transferred to pay the creditor. Freedom Debt Relief then collects its fee — 18% to 25% of the enrolled balance for that account.
Step 6: Program Completion
Once all enrolled accounts are settled, the program ends. Credit rebuilding can begin. The entire process typically takes 24 to 48 months.
For more detail on how this works generally, read How Debt Settlement Works.
Know your options before you decide: GoodCreditLoans.com matches you with personal loan offers from multiple lenders — no hard inquiry required to see what you qualify for.
Who Freedom Debt Relief Is For
Freedom Debt Relief works well for people who:
- Have at least $7,500 in credit card debt, medical bills, or personal loans
- Are behind on payments or close to defaulting
- Cannot make meaningful progress paying down balances
- Want an alternative to bankruptcy
- Can set aside a consistent monthly amount into savings
It is not a good fit for people with secured debt, those who are current on all payments and want to stay that way, or those looking for a quick fix. If you are unsure between settlement and bankruptcy, read Debt Settlement vs. Bankruptcy.
Freedom Debt Relief Pros and Cons
| Pros | Cons |
|---|---|
| Founded in 2002 — over 20 years in business | Fees of 18-25% reduce overall savings |
| A+ BBB rating | Credit score drops significantly during program |
| Over $15 billion in settled debt | Creditors may still call and could sue |
| No upfront fees | Not available in all states |
| AFCC accredited | Program takes 24-48 months |
| Client dashboard for tracking progress | Forgiven debt may be taxable |
| Handles multiple debt types | Does not handle tax debt |
[AFFILIATE-LINK: National Debt Relief – free consultation]
Freedom Debt Relief Fees
Fees are 18% to 25% of enrolled debt. They are charged per account after each settlement is completed. Here is a simple example:
- You enroll $25,000 in debt
- Freedom Debt Relief settles it for $12,500 (50% reduction)
- Fee of 20% on $25,000 = $5,000
- Total you pay: $17,500
- Savings vs. original balance: $7,500
Results vary. Some creditors settle for more than 50%. Others for less. Taxes on forgiven amounts can also reduce net savings. Ask your consultant for an estimate based on your specific debt.
Freedom Debt Relief vs. National Debt Relief
These are the two most well-known names in debt settlement. Here is how they compare:
| Factor | Freedom Debt Relief | National Debt Relief |
|---|---|---|
| Founded | 2002 | 2009 |
| BBB Rating | A+ | A+ |
| Fees | 18-25% | 18-25% |
| Min. Debt | $7,500 | $7,500 |
| Accreditation | AFCC | AFCC, IAPDA |
| Debt Settled | $15B+ | Not publicly disclosed |
| Tax Debt? | No | No |
| Client Dashboard | Yes | Yes |
Both companies are strong choices. Freedom Debt Relief has a longer history and higher reported volume. National Debt Relief holds an additional IAPDA accreditation. For most people, the choice comes down to which company gives you a better initial consultation.
Read the full National Debt Relief Review to compare directly. Also see the full Best Debt Settlement Companies list.
Still weighing your options? A personal loan comparison takes five minutes and does not affect your score. BorrowMoney.us works with lenders who accept fair and damaged credit.
Does Freedom Debt Relief Work?
Based on user reviews and reported statistics, Freedom Debt Relief does produce results for many clients. The company has settled billions in debt over more than two decades. However, the outcome is never guaranteed.
Not all creditors will settle. Some may sue before the program completes. The credit damage is real and can last years. And the fees reduce total savings. But for people who truly cannot keep up with payments, settlement can be a viable path forward.
What Customers Say About Freedom Debt Relief
Based on user reviews across major platforms, customers commonly praise:
- The online client dashboard that shows progress in real time
- Clear explanation of the process before enrollment
- Consistent communication from account managers
Common complaints include:
- Ongoing creditor calls during the program (this is expected)
- Fees feel high relative to savings on some accounts
- The credit impact is more severe than some expected
The credit impact and creditor calls are not problems with Freedom Debt Relief specifically. They are standard parts of how debt settlement works. Understanding this upfront leads to better outcomes.
Is Freedom Debt Relief Legitimate?
Yes. Freedom Debt Relief is a legitimate company. It is accredited by the AFCC, which requires ethical standards and prohibits upfront fees. It has an A+ BBB rating. And it has over 20 years of operating history with more than $15 billion in settled debt.
The company is not a scam. The product may not be right for everyone, but it is a real service that delivers real results for clients who are a good fit.
For comparison, also read the CuraDebt Review and Alternatives to Bankruptcy.
[AFFILIATE-LINK: CuraDebt – free debt analysis]
Frequently Asked Questions
What is the minimum debt to use Freedom Debt Relief?
Freedom Debt Relief requires a minimum of $7,500 in unsecured debt to enroll in the program.
How much does Freedom Debt Relief charge?
Fees are 18% to 25% of the enrolled debt amount. They are charged only after a settlement is completed — there are no upfront fees.
Will Freedom Debt Relief hurt my credit score?
Yes. Your credit score will drop because you stop making payments during the program. The impact can be significant but is temporary. Most clients see improvement after completing the program. Learn more at Does Debt Settlement Hurt Your Credit.
How long does the Freedom Debt Relief program take?
Most programs take 24 to 48 months depending on the amount of debt enrolled and how quickly you can save.
Does Freedom Debt Relief handle tax debt?
No. Freedom Debt Relief handles consumer debt such as credit cards, medical bills, and personal loans. It does not handle IRS or state tax debt. If you have tax debt, consider CuraDebt, which handles both.