Question: How Does Freedom Debt Relief Affect Your Credit?

How long does freedom debt relief affect your credit?

Depending on the condition of your credit report at the time of enrollment, any debt settlement or debt negotiation program, including ours, could negatively affect your credit.

Negative information could remain on your credit report for up to seven years..

Is it a good idea to use Freedom Debt Relief?

BOTTOM LINE. Freedom Debt Relief is a good match for those with $15,000 or more in debt. Although fees can be up to 25% of the settlement amount, it’s usually a good move to eliminate debt through debt settlement.

Can you get your money back from Freedom Debt Relief?

What is the guarantee for their services? As each customer is different and there is no “one size fits all” approach to debt relief, Freedom Debt Relief has no money back guarantee for their services. However, you are never charged until they negotiate a settlement.

How long does it take to improve credit score after debt settlement?

12 to 24 monthsIf you have a poor and/or thin credit history, it could take 12 to 24 months from the time you settled your last debt for your credit score to recover. Either way, you’ll benefit from debt settlement if that means you’re no longer missing payments.

Is Freedom Debt Relief a loan?

Debt relief typically works with unsecured debt. “Unsecured” means the debt isn’t tied to an asset, like a car or house. Freedom Debt Relief does not work with secured debt, which is a loan that is secured by a tangible asset.

Is debt settlement bad for your credit?

Yes, settling a debt instead of paying the full amount can affect your credit scores. … Settling an account instead of paying it in full is considered negative because the creditor agreed to take a loss in accepting less than what it was owed.

How long does debt settlement stay on credit report?

Seven YearsSettled Accounts Remain on Credit Reports for Seven Years If there is a history of late payments, the account will be updated to show that it is settled and will remain in your credit report for seven years from the date the account first became delinquent and was never again current.

What happens if you quit Freedom Debt Relief?

“While Freedom’s Debt Resolution Agreement explained that consumers could withdraw from the program and terminate the agreement, it did not notify consumers that if they withdrew from the program, they would receive all funds in their accounts, minus any fees that Freedom had already earned.”

What is the cost of freedom debt relief?

After settling your debt, Freedom Debt Relief collects a fee based on your enrolled debt amount, state of residence, and other factors. Fees range from 15%-25%, averaging at 21.5%. We clearly explain our fees to clients before they enter our program, and our fees never go up once our clients begin their program.

What to do if you cant pay your credit cards?

If you can’t pay your credit card bill, it’s important that you act right away. Contact your credit card company immediately because many creditors may be willing to work with you to change your payment if you’re facing a financial emergency. Here’s what to do: Add up your income and expenses.

What do you say to creditors to settle debt?

Know What You Can Afford Go over your income and expenses with a fine-tooth comb, figure out what you can afford, and only agree to pay a realistic amount. Generally, you can negotiate the best settlement on a debt if you can come up with a lump sum amount to resolve the debt.