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Freedom Debt Relief review

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While customers have mostly good things to say, it's faced a few alarming lawsuits in the past.

  • Best for people with a large amount of unsecured debt.
  • Pick something else if you want to avoid a history of major lawsuits.

$15,000 in unsecured debt (average debt is $24,000).

Minimum debt

24 to 48 months, but it can take longer.

Typical turnaround



Freedom Debt Relief details

ServicesDebt settlement with direct negotiation.
Minimum debt$15,000 in unsecured debt (average debt is $24,000).
Typical turnaround24 to 48 months, but it can take longer.
Types of debt Unsecured debt, including credit card debt, personal loans and medical bills.
AccreditationsAmerican Fair Credit Council; platinum International Association of Professional Debt Arbitrators member.
RatingsA- BBB rating, 9.0 Trustpilot rating.
Free resources or toolsEstimated savings calculator, options beyond debt settlement, customer dashboard.
Customer servicePhone, email.
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Expert review

Anna Serio

Review by

Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 950 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.

Expert review

Freedom Debt Relief could be a last-ditch effort to avoid filing for bankruptcy. Customers have mostly positive things to say about its customer service team, but it’s faced several alarming lawsuits in the past. And many clients have complained that it look longer than expected — if it even worked at all.

Before signing up, compare more debt relief companies.

How does Freedom Debt Relief work?

Like other debt settlement companies, Freedom Debt Relief negotiates with your lenders to reduce how much you owe. It asks you to pay a percentage of the debt you want settled — known as enrolled debt — in exchange for its services.

How much does Freedom Debt Relief cost?

Customers make monthly payments into an account to save up for the cost of settlement and fees. Freedom Debt Relief doesn’t ask for payment up front.

You’ll pay a monthly deposit over the course of the program that depends on how much you can afford and your total debt. A typical program runs between two and four years.

Compare more debt relief companies

Data indicated here is updated regularly
Name Product Costs Requirements
National Debt Relief
18–25% of total enrolled debt
Must have a legitimate financial hardship which is preventing the ability to pay creditors and a minimum of $7,500 in debt.
Get back on your feet with a top-rated debt relief company that works with multiple types of debt.
Freedom Debt Relief
Monthly payment based on enrolled debt, no upfront fees
Must have at least $7,500 in unsecured debt and live in a serviced state.
Freedom Debt Relief is a debt settlement company that works to help people with unmanageable, unsecured debt get back on their feet.
Accredited Debt Relief
Charges and fees vary by the company you're ultimately connected with
Must be at least 18 years old and a legal US resident; additional terms may apply based on services and products used.
This A+ BBB-rated service offers free consultations to lower your monthly payments help you get out of debt faster.
Pacific Debt
15%–25% of total debt enrolled. Fees vary by state of residence.
Reside in a state where PDI’s services are available and have $10,000+ of debt to enroll
Consolidated Credit
Fees regulated by client's state of residence, can range from$0 to $69 with an average monthly fee of $35. No upfront or contingency fees.
Debt must not be payday loans or secured loans.
This debt settlement alternative can help you find a path to financial freedom.
American Credit Card Solutions
No upfront costs — settlement fees range from 15% to 25%, depending on your state of residence and amount of debt.
Must live in a state that American Credit Card Solutions serves, $10,000+ in unsecured debt, legitimate financial hardship which is preventing the ability to pay creditors
Overall positive customer ratings — but it's only available in 25 states.

Compare up to 4 providers

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 they aren’t always transparent about these costs or drawbacks that can negatively affect your credit score. 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.

How much could I save with Freedom Debt Relief?

Customers typically see a substantial reduction of their enrolled debt after paying fees. But how much you’ll save depends on your unique financial situation and where you live, among other factors. Any potential savings are also dependent on how much your creditors are willing to negotiate down your debt — some creditors might be more accommodating than others, though.

Is Freedom Debt Relief legit?

Yes — by debt settlement standards. Freedom Debt Relief is a founding member of the American Fair Credit Council, a trade association that sets industry standards that govern business transparency practices. You can also opt out of having your personal financial information shared with affiliates, which can help prevent unwanted marketing calls.

Freedom Debt Relief lawsuits

Freedom Debt Relief has made some unsettling headlines over the past decade. In 2009, it settled a suit brought on by a California district attorney accusing the company of failing to contact its customers’ creditors despite charging them to do so.

Many trusting customers stopped making repayments on their debt after signing on with Freedom Debt Relief, only to find their accounts sent to collection agencies. Some were even being sued by their creditors.

The company made headlines again in November 2017, when the Consumer Financial Protection Bureau filed a suit accusing Freedom of “coaching” consumers instead of dealing with the creditors directly. In some cases, the company still charged its fee when consumers had to negotiate themselves or even when a creditor simply stopped collections without a settlement. And lastly, Freedom did not clearly tell their consumers that they had the right to their own account funds after they withdrew from Freedom’s program.

These are all red flags of a potential scam, so stay up to date on your state’s laws and investigate anything that sounds off to you. Read your contract carefully to make sure you’re aware of all disclosures.

What are the pros and cons of Freedom Debt Relief?

  • Positive reviews of customer service
  • Easy-to-use online dashboard
  • Founding member of the American Fair Credit Council
  • May take longer than expected
  • Debt settlement not guaranteed
  • Only available in 38 states
  • History of misconduct

Freedom Debt Relief reviews and complaints

Though it’s not accredited with the Better Business Bureau (BBB), many customers report helpful service. However, a top complaint is that the program took longer than expected — or may not have worked at all. However, the high volume of recent 4- and 5-star reviews isn’t necessarily a good sign. Be sure to consider how debt relief could impact your long-term finances before you sign up.

What is Freedom Debt Relief?

Freedom Debt Relief is a debt settlement company that helps people with unmanageable unsecured debt get back on their feet. It was founded in 2002 by two Stanford Business School alumni to offer better options for consumers struggling with debt.

Today, it’s an industry heavyweight with a hand in setting the standards for the debt settlement industry.

How do I get started?

You can schedule a consultation by following these steps:

  1. Click the Check my rate button on this page to visit Freedom Debt Relief’s website.
  2. Select Find debt relief options.
  3. Choose your unsecured debt amount and click Continue.
  4. Select whether you’re behind on your payments.
  5. Select what state you live in.
  6. Enter your contact information and click Click to see your results.

A Freedom Debt Relief consultant will get in touch to discuss your situation and what options you have.

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I’ve signed up. What happens next?

A certified debt consultant will help you design a payment program that’s affordable but also allows you to settle your debt as soon as possible. Here’s what you can typically expect to happen:

  • Save up for your settlement with monthly deposits. To cover the cost of the settlement and Freedom Debt Relief’s fees, your deposits go into an FDIC-insured account that you can easily monitor online. At this point, some people stop making payments to their creditors.
  • Freedom Debt Relief negotiates with your creditors. Once you have enough funds in your account, Freedom Debt Relief contacts your creditors to discuss a settlement arrangement. This process is delicate, tricky and can take longer than expected. It’s not uncommon for it to take several attempts before your debt is settled.
  • Pay your debt settlement. Freedom Debt Relief contacts you each time they reach an agreement with a creditor, asking you to authorize them to pay the settlement through your account.
  • Start rebuilding your credit. Debt settlement can cause your credit score to tank temporarily, though your score starts to rebuild after settlements are made.

3 tips to make debt settlement a smart financial move

Follow these pointers to make the most of Freedom Debt Relief while you’re in the program:

  • Stick to a budget. A budget not only ensures that you complete the program on time, but it also helps you develop healthier spending habits.
  • Don’t take on additional debt. If you’re in a debt settlement program, it’s likely your only options are subprime loans, which are particularly difficult to repay. Settlement isn’t much use if you get sucked into another vicious debt cycle.
  • Make all of your monthly deposits. The longer it takes for you to make your deposits, the more your debt balloons, thanks to interest. This is especially important if you stop making repayments to your creditors.

Read our guide on getting out of debt

Freedom Debt Relief’s history of lawsuits means you may want to consider other debt relief companies. You should also learn about your other options with our guide to debt consolidation.

Frequently asked questions

Freedom Debt Relief Disclaimer
Our estimates are based on prior results, which will vary depending on your specific enrolled creditors and your individual program terms. Not all clients are able to complete their program for various reasons, including their ability to save sufficient funds. We do not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Our service is not available in all states and our fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. Read and understand all program materials prior to enrollment. The use of debt settlement services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements we obtain on your behalf resolve the entire account, including all accrued fees and interest. C.P.D. Reg. No. T.S.12-03825.

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