Can I get my money back from Freedom Debt Relief? (2024)

Can I get my money back from Freedom Debt Relief?

Freedom Debt Relief has a program guarantee: If your total settlement cost—the total of your debt payoff amount and fees—exceeds the amount of debt you initially enrolled, the company will refund you the difference, up to 100% of your fees.

What is the downside of Freedom Debt Relief?

How Will Freedom Debt Relief Affect My Credit? Debt relief can negatively affect credit scores because creditors typically aren't willing to negotiate until you're behind on payments. Payment history carries the most weight for FICO score calculations, so if you're paying late or not at all, your score can take a hit.

How do I get out of Freedom Debt Relief program?

How do you cancel Freedom Debt Relief? Should you decide to cancel your FDR program, you can do so at any time without penalty. You may terminate your Agreement by providing us with written notice of termination (which may be electronic).

Can I get out of a debt relief program?

A DMP isn't a legally binding agreement. This means that you can cancel it if you want to. There are a number of reasons why you might want to cancel, including: you're not happy paying a fee each month which means there's less money left to pay your creditors.

What happens to my credit if I use Freedom Debt Relief?

According to data from Freedom Debt Relief, your credit score is likely to drop substantially during the first few months of your debt relief program. But after that first six months, credit scores trend higher.

What are the problems with debt relief?

Using debt settlement options to reduce debt comes with several risks, including late payments on your credit report, potential charge-offs, settlement company fees, tax implications on forgiven balances, possible scams and the overall risk of settlement offers not working.

How long does Freedom Debt Relief ruin your credit?

Paying off your debt in this way might seem more important, but the damage to your credit score can last for years. Settled debts also stay on your credit report for up to seven years and impact your future access to credit.

Will debt relief hurt my credit?

Debt relief services may have a negative impact on your credit score, but that impact may not be as big as you think — and in some cases, it can help your credit. How these services impact your credit depends on the debt relief option you choose.

Is it worth doing a debt relief program?

Debt relief will also often give you a fixed payment plan and a set payoff date, which can also make it worth considering — as streamlining your payments can make it easier to manage while helping you save money on interest. "One of the biggest advantages of going through a debt relief program is the savings.

Does debt settlement hurt your credit?

Debt settlement typically has a negative impact on your credit score. The exact impact depends on factors like the current condition of your credit, the reporting practices of your creditors, the size of the debts being settled, and whether your other debts are in good standing.

Is Freedom Debt Relief legit?

Freedom Debt Relief is accredited by the American Fair Credit Council and the International Association of Professional Debt Arbitrators. The Consumer Financial Protection Bureau received 120 complaints in 2022 about Freedom Debt Relief.

Can I buy a house after debt settlement?

Yes, you can buy a home after debt settlement. You'll just have to meet the lender's requirements to qualify for a mortgage. Unfortunately, that could be harder after you settle debt.

Can I buy a house after debt consolidation?

“If their credit scores are good enough, a home buyer can qualify for a conventional mortgage while still in debt settlement,” says Dan Green, CEO of Homebuyer.com. “There's no designated waiting period like with a bankruptcy or recent short sale.”

Is it better to settle a debt or pay in full?

Summary: Ultimately, it's better to pay off a debt in full than settle. This will look better on your credit report and help you avoid a lawsuit. If you can't afford to pay off your debt fully, debt settlement is still a good option.

How long does it take for credit score to go up after Debt Relief?

There is a high probability that you will be affected for a couple of months or even years after settling your debts. However, a debt settlement does not mean that your life needs to stop. You can begin rebuilding your credit score little by little. Your credit score will usually take between 6-24 months to improve.

Does Debt Relief affect your taxes?

In general, if your debt is canceled, forgiven, or discharged for less than the amount owed, the amount of the canceled debt is taxable. If taxable, you must report the canceled debt on your tax return for the year in which the cancellation occurred.

What is the best debt relief program?

Can I buy a car after debt settlement?

Yes, auto loan lenders don't exclude those who have gone through bankruptcy. However, you'll pay higher interest rates if you finance the vehicle after receiving a bankruptcy discharge.

Can debt relief take your house?

Are debt consolidation loans a good idea? Some of these loans require you to put up your home as collateral. If you can't make the payments — or if your payments are late — you could lose your home.

How much does it cost to get debt relief?

Debt settlement costs vary from one company to another, but it's common to pay 15% to 25% of the debt the company negotiates on your behalf. The right debt relief company might be able to negotiate with your creditors and convince them to accept less than you owe—typically in a lump sum—to satisfy your debt.

How can I pay off 10000 credit card debt?

What's the difference between Freedom Debt Relief and national debt relief?

Minimum Debt Required: $7,500

FDR and NDR charge a similar range of fees, with an important difference—if you reach a settlement for a particular debt, Freedom Debt Relief charges its fee based on the initial amount of that debt, whereas National Debt Relief charges based on the amount of settled debt.

Is debt hardship relief legit?

The email claims to be from a government agency or organization that offers financial assistance to those in need. The email says you have been approved for financial support and to call a phone number to finish enrolling in the program. However, it is all fake.

What happens when you do a debt settlement?

A debt settlement company negotiates with your creditors. Often, it will require you to stop paying your creditors and make payments into a savings account. It will then use your money to pay your debt and collect the fees you owe. You may fall further behind on payments, and your credit score could plummet.

What happens after a credit card settlement?

Once you settle an account, the creditor or collection agency should send an update to the credit bureaus (Experian, Equifax and TransUnion) telling them that the account was paid in full for less than the agreed amount. The remaining balance will also be updated to zero.