Is Freedom Debt Relief Legitimate? How Does it Work?

Are you struggling to repay your debts and looking for a way out? Well, you’re in the right place! In this article, we will provide a detailed overview of Freedom Debt Relief, including how it works and whether it is a legitimate solution for you. So, let’s dive in!

About Freedom Debt Relief

Freedom Debt Relief is a debt reduction company based in Arizona that was established in 2002. Their goal is to help individuals pay off their debts by negotiating agreements with creditors to settle the debts for less than the amount owed. Over the past two decades, Freedom Debt Relief has assisted over 850,000 clients in repaying more than $15 billion in debt.

Is Freedom Debt Relief Legitimate? How Does it Work?

It’s important to note that Freedom Debt Relief specializes in settling unsecured debts such as credit card debt, store card debt, unsecured personal loans, and medical bills. However, they do not offer services for secured debts like mortgages or auto loans, as these types of debts require collateral.

How Does Freedom Debt Relief Work?

Getting started with Freedom Debt Relief is simple. You can fill out an online form or give them a call to learn more about the program and see if you qualify for debt settlement. Once enrolled, you will deposit a specified amount of money each month into a dedicated savings account insured by the FDIC.

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Freedom Debt Relief will then negotiate with your creditors on your behalf to reach settlement agreements. Once an agreement is reached and approved by you, the money accrued in your savings account will be used to pay off the settled debts.

Pros and Cons of Freedom Debt Relief


  • Lower minimum debt requirement compared to some competitors, with additional legal counsel available.
  • Access to an online dashboard to track account progress and authorize settlements.
  • Potential for quicker debt repayment with lower monthly payments compared to what you currently pay your creditors.
  • If the total fees exceed your debt amount, Freedom Debt Relief will reimburse you up to 100% of the difference.
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  • Debt settlement may negatively impact your credit record for seven years.
  • Written cancellation notice is required to terminate the program at any time.
  • Fees ranging from 15% to 25% of the settled debt, with an average fee of 21.5%, which can potentially worsen your financial situation if the program is not completed.
  • Accrual of additional interest during the program, and creditors are not obligated to approve the settlement plan.

Considering both the pros and cons of Freedom Debt Relief is important in making an informed decision regarding whether their services are right for you.

Is Freedom Debt Relief Legit?

Freedom Debt Relief is one of the largest debt settlement companies in the US and can provide assistance to those facing financial difficulties. As a founding member of the American Fair Credit Council and affiliated with the International Association of Professional Debt Arbitrators, Freedom Debt Relief is a reputable company in the industry.

However, it’s worth noting that the company has received hundreds of complaints regarding issues such as dishonesty, mishandling of consumer payments, and inadequate debt reduction advice. Consumer Affairs rates them at 4.5 out of 5 stars, while their BBB profile has received 4.46 out of 5 stars.

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We recommend carefully evaluating your options and considering the potential benefits and drawbacks of working with Freedom Debt Relief before committing to their services.


If you find yourself overwhelmed with debt and searching for a solution, Freedom Debt Relief could be a viable option for you. Their debt settlement program has helped numerous individuals reduce their debt and regain financial freedom. However, it’s crucial to weigh the pros and cons, as well as understand the potential impact on your credit, before making a decision.

Remember to conduct thorough research, seek advice from financial professionals, and consider alternative debt relief options to find the best solution that aligns with your unique situation. Good luck on your journey to becoming debt-free!