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Based in San Mateo, California, Freedom Debt Relief was founded in 2002 with a mission to help Americans who have become . Launched during a time of rising consumer debt, the company pioneered debt settlement services that would later become industry standards. Since that time, Freedom Debt Relief has grown to become one of the largest debt settlement companies in the nation.

Freedom Debt Relief claims to have resolved for more than 1 million clients across the country since its inception. Over the last two decades, Freedom Debt Relief has expanded its footprint and established itself as an industry leader in debt negotiation. 

Understanding this background can provide important context for evaluating whether their services might be appropriate for your situation. But what else should you know about Freedom Debt Relief before deciding whether what this company offers makes sense for your needs? Below, we'll detail everything to know now.

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Freedom Debt Relief operates on a straightforward premise: They to try and reduce your total debt amount in exchange for lump-sum settlement payments. This process typically involves the following steps:

The enrollment process begins with a free consultation, which is typically conducted over the phone. During this initial conversation, a Freedom Debt Relief representative evaluates your financial situation, explains how the program works and determines whether you're . They will also help you determine an affordable monthly deposit amount based on your debt load and financial situation. 

If you decide to proceed, you'll sign a service agreement and establish a dedicated FDIC-insured account with a third-party financial institution. This account, while opened in your name and under your control, is specifically designated for accumulating funds that will eventually be used for settlement payments. 

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Freedom Debt Relief generally works with specific types of debt and financial situations. To qualify for their program, you typically need:

Once you've accumulated sufficient funds in your dedicated account, Freedom Debt Relief begins approaching your creditors with settlement offers. When a creditor accepts a settlement offer, Freedom Debt Relief presents the proposal to you for approval before finalizing any agreement. Upon your approval, funds are disbursed from your dedicated account to satisfy the agreement. This process repeats for each enrolled debt until all accounts are resolved. 

Freedom Debt Relief's fee structure is performance-based, meaning you only pay when debts are successfully settled. However, these fees are significant, of the total debt enrolled in the program.

For example, if you enroll $20,000 in debt and Freedom Debt Relief negotiates settlements totaling $10,000 (a 50% reduction), you would still pay between $3,000 and $5,000 in service fees based on your original debt amount. These fees are not collected upfront but are incorporated into your monthly program deposits and deducted as each debt is settled.

There is also a one-time fee of $9.95 to set up the dedicated savings account and a monthly fee of $9.95 that covers account servicing. 

The Freedom Debt Relief program , with the exact duration depending on several factors, including:

Most clients see their first settlement within four to six months after enrollment, and the company generally aims to settle all enrolled debts within 36 months. However, some programs may conclude sooner or extend longer.

There are a few potential upsides and possible downsides to consider before enrolling in a debt settlement program with Freedom Debt Relief.

Freedom Debt Relief receives positive reviews overall across consumer platforms. 

Freedom Debt Relief offers a potential solution for those who are struggling with their unsecured debt and want to avoid bankruptcy. The company has an established track record of successful negotiations and has helped hundreds of thousands of clients reduce their debt burdens over the past two decades. However, debt settlement through Freedom Debt Relief comes with significant trade-offs, so before enrolling, carefully consider whether this company and its programs fit your needs. 

If you decide Freedom Debt Relief is right for your situation, thoroughly read all agreements, understand exactly how fees are calculated and maintain realistic expectations about the timeline and outcomes. And, remember that debt settlement should be viewed as a serious financial intervention, not a quick fix, to help regain control when other options have been exhausted.