Freedom Debt Relief Review
- Minimum debt
- $7,500
- Typical turnaround
- 24 to 48 months
- Fees
- 15% to 25% of enrolled debt
Our verdict
This well-established provider can help you get out of debt faster, but it could be pricey.
Freedom Debt Relief (FDR) aims to help consumers get out of debt within 24 to 48 months and lower their overall debt payments in the meantime. It has a low minimum debt requirement of only $7,500, whereas most debt relief providers require at least $10,000 to qualify. And rates start as low as 15% of your enrolled debt. However, depending on how much you owe and other factors, you could pay as much as 25%. Plus, the company can’t guarantee how much you could save, and there’s a small monthly account maintenance fee.
Best for: Customers facing financial hardship seeking an alternative to bankruptcy.
Pros
-
Low minimum debt to qualify
-
Rates start at 15%
-
Debt-free possibility in as little as 24 months
Cons
-
Rates as high as 25%
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No guarantee on how much you can save
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Charges monthly maintenance fees
Is Freedom Debt Relief legit?
Freedom Debt Relief is a legit company responsible for settling more than 5 million accounts totaling over $20 billion for its clients. The company started in 2002 and now has more than 1,600 employees nationwide.
Freedom Debt Relief is a founding member of the American Association for Debt Resolution (AADR), which promotes ethical business practices in the debt settlement industry. It’s also accredited by the Better Business Bureau (BBB) and the International Association of Professional Debt Arbitrators (IAPDA).
What makes Freedom Debt Relief shine?
FDR stands out from much of the competition by only requiring you to have $7,500 in debt. By contrast, most providers require at least $10,000.
It also has a proven track record in debt settlement. The company reports that nearly 60% of its clients get their first debt resolved within the first three months of enrolling. And, while the company charges fees, they start as low as 15% and you won’t pay until you’ve authorized a settlement and made your first settlement payment.
Where Freedom Debt Relief falls short
Despite low starting rates, FDR may charge as much as 25%, which can take a big bite out of your potential savings. Still, that’s within normal range for similar debt settlement providers. Plus, like other providers, there’s no guarantee of how much you can save.
It also charges a monthly account maintenance fee of $9.95. That may not seem like much at first, but if it takes a few years to resolve your debts, it can really add up.
How much can I save?
The company doesn’t disclose how much its clients save on average. However, industry standards suggest you could save as much as 50% off your enrolled debt, not including fees.
After fees, you could expect to save around 25% to 35%. What you actually save depends on how much you owe, your overall financial situation and what your creditors accept in terms of negotiations.
How much does it cost?
The exact cost depends on how much debt you owe. The company states it charges a fee between 15% to 25% of this amount. For example, if you have $20,000 in enrolled debt, your fees are between $3,000 and $5,000.
Also, as part of the program, you’ll set up a dedicated FDIC-insured account with Crossroads Financial Technologies (CFT) to hold your settlement funds. CFT collects a $9.95 setup fee and a monthly $9.95 account servicing fee. It may also charge fees to make payments from the account, but it doesn’t specify how much.
Will Freedom Debt Relief hurt my credit?
Yes, working with Freedom Debt Relief, like any other debt settlement company, can hurt your credit score. But the extent to which you can expect your credit score to drop is based on your credit behavior before enrolling.
If you had a high score and are now missing payments, according to FDR, you’ll see a larger dip. On the flip side, if your score was already low and you’re missing payments, the loss won’t be as dramatic.
Freedom Debt Relief product details
| Free quote or consultation | Yes |
| Services | Debt settlement service, credit counseling, debt consolidation, bankruptcy evaluation |
| Minimum Debt | $7,500 |
| Average turnaround | 24 to 48 months |
| Fees | 15% to 25% of enrolled debt |
| Types of debt | Credit cards, personal loans, medical debts, collections, private student loans, some business debts |
| Accreditations | American Association for Debt Resolution |
| Direct or third-party negotiations | Both, it depends on where you live |
| State availability | Not available in: Colorado, Hawaii, Iowa, North Dakota, Oregon, Rhode Island, Vermont, Washington, West Virginia, Wyoming |
Before you sign up with a debt relief company
Debt relief companies typically charge a percentage of a customer’s debt or a monthly program fee for their services. And not all companies are transparent about these costs or drawbacks that can negatively affect your credit score. Depending on the company you work with, you might pay other fees for third-party settlement services or setting up new accounts, which can leave you in a worse situation than when you signed up.
Consider alternatives before signing up with a debt relief company:
- Payment extensions. Companies you owe may be willing to extend your payment due date or put you on a longer payment plan if you ask.
- Nonprofit credit counseling. Look for free debt-management help from nonprofit organizations like the National Foundation for Credit Counseling.
- Debt settlement. If you can manage to pay a portion of the bill, offer the collection agency a one-time payment as a settlement. Collection agencies are often willing to accept a lower payment on your debt to close the account.
Freedom Debt Relief contact info
| Phone number | 800-910-0065 |
| Customer service hours | Weekdays: 8 a.m. to 11 p.m. ET Weekends: 9 a.m. to 9 p.m. ET |
| info@freedomdebtrelief.com | |
| X, formerly Twitter | @FreedomDebt |
| Freedom Debt Relief |
How to qualify for Freedom Debt Relief
These are the basic minimum requirements to qualify for Freedom Debt Relief.
- At least $7,500 in unsecured debts
- Experienced some type of financial hardship (such as job loss, reduced income, divorce, death in the family or medical issues)
- Live in a state that FDR services
How the debt settlement process works
Follow these steps to resolve your debts using Freedom Debt Relief.
- Call to set up a free, no obligation consultation.
- Review your debt resolution options with a debt specialist.
- Decide whether to enroll. If so, begin making monthly payments into a dedicated FDIC-insured bank account.
- Wait while the provider negotiates with creditors on your behalf. FDR only takes its fee after you authorize a settlement.
How Freedom Debt Relief compares to other lenders
What is the Finder Score?
The Finder Score crunches 6+ types of personal loans across 50+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
Freedom Debt Relief reviews and complaints
| BBB accredited | Yes |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 4.43 out of 5 stars, based on 1750 customer reviews |
| Trustpilot Score | 4.6 out of 5 stars, based on 46,630 customer reviews. |
| Customer reviews verified as of | 13 October 2025 |
Freedom Debt Relief is highly rated on both the BBB and Trustpilot, with the majority of customers awarding it five out of five stars. Positive comments report helpful and professional customer service and that the company is transparent about the debt settlement process.
But some customers complain of high rates and slower-than-expected progress. Others also mention damage to their credit scores, and a few people suggest you can do the same negotiations with creditors yourself without paying someone to do it for you.
What do people on Reddit say?
But others say that while you could do the work on your own, Freedom has a team of experts to support people who feel overwhelmed by their debt and prefer professional help over DIY.
Risks of debt settlement
Before you consider debt settlement, review these key risks.
- Damage to your credit. Debt settlement can damage your credit scores since you’ll be missing scheduled payments.
- Increased costs. During your debt settlement process, you’ll have to pay fees to your negotiation company and most creditors also charge you additional interest and late fees.
- Tax implications. The IRS considers your settled debt savings as taxable income.
- Negotiation problem. There is a chance that your creditors may reject the debt settlement company’s offer.
- Creditor lawsuits. A creditor may not always forgive your debt and can file a collection lawsuit instead.
Frequently asked questions
Your reviews
Lacey Finder
Writer
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