Freedom Debt Relief Program

Be Debt-Free In 24-48 Months
Freedom Debt Relief is one of the highest-rated debt relief companies in the U.S., with over $10 billion worth of debt resolved since its establishment in 2002.
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24-48 Months
Program Timing
Initial Consultation
15%-25% of Debt
Program Fees


Best For
People with significant unsecured debt who want to pay it off.
Type of Service
Debt settlement and debt relief program.
Program timing
Be debt-free in 24 to 48 months (on average).
Program costs
Free initial consultation, no upfront fees, between 15% and 25% of debt.
Customer support
Dedicated debt expert to guide and help you through the program.
Other perks
Online dashboard to track progress and change payment settings.


Freedom Debt Relief: Is Debt Settlement for You? 

Tired of drowning in debt? Freedom Debt Relief offers debt settlement solutions to help you resolve your outstanding unsecured debts. You can get started with a free consultation, and if you decide to enroll, you can complete the program and get the relief you need in as little as 24 to 48 months*. 

Debt Settlement vs. Debt Consolidation

Debt settlement and debt consolidation are both debt relief options, but they vary slightly. When you settle your debts, you agree to pay each creditor an amount lower than what you owe to satisfy the debt. Doing so may negatively impact your credit as the creditor will update the account to “Settled” on your credit report, and the negative mark may remain for up to seven years. 

But when you consolidate your debt, you merge multiple debts into a single debt and make one monthly payment. Typical forms of debt consolidation include personal loans and balance transfer credit cards. 

Freedom Debt Relief
Freedom Debt Relief Program

Be Debt-Free In 24-48 Months

How the Freedom Debt Relief Program Works

The Freedom Debt Relief (FDR) Program is divided into four phases: enrollment, building, negotiation, and settlement. 

1. Enrollment

Before you can enroll in the debt settlement program, an International Association of Professional Debt Arbitrators (IAPDA)-Certified Debt Consultant will conduct a phone consultation with you to learn more about your financial situation. They will analyze your outstanding debt during the call, determine if you qualify for the program, and communicate options that may work for you. 

2. Building

If you are a good fit for the program and decide to move forward, your dedicated consultant will devise a plan of action that fits your budget. The next step is to deposit a monthly payment into your FDIC-insured account instead of paying creditors. These funds will be used when it’s time to settle with creditors and cover settlement fees.

3. Negotiation

After you voluntarily stop paying creditors and start depositing money into a special purpose account, Freedom Debt Relief will contact your creditors and negotiate with them to accept less than the full amount owed so you can save a bundle in interest and keep more of your hard-earned money in your pocket. 

There’s no guarantee that a creditor will accept a settlement offer. However, the likelihood of success is far greater than it would be if you continue making monthly payments on your debts. For this reason, clients are encouraged to voluntarily stop remitting payments to creditors and instead ensure they have the funds on hand to cover the agreed-upon settlement amount. 

4. Settlement

Each settlement offer accepted by creditors is sent to you for authorization and approval. If you agree to the terms, funds from your FDIC-insured account are used to pay the creditor. You will also pay a negotiation fee to Freedom Debt Relief for services rendered. Once the transaction is processed, you can move on, knowing the debt is behind you. 

Credit Bureau Reporting

When an account is settled, the creditor reports it as a “settled” account. This notation may be negative, and the account can remain on your credit report for up to seven years. However, one of the most common misconceptions about debt settlement is that it has a long-lasting negative impact on a consumer’s FICO® Score. While the median FICO® Score for FDR Graduates dropped substantially three to six months after a consumer’s enrollment in the program, participants experienced a clear and steady recovery in their FICO® Scores throughout the length of the program.

Freedom Debt Relief
Freedom Debt Relief Program

Be Debt-Free In 24-48 Months

Types of Debt the Freedom Program Can Help You With 

The FDR Program focuses on unsecured debt, including:

  • Credit card debt
  • Department store debt
  • Personal loan debt
  • Medical debt 

Unfortunately, the program can’t help you with the following types of debt: 

  • Auto loans
  • Mortgages
  • Federal student loan debt 
  • Lawsuits
  • Taxes 
  • Utility bills 

Once you’ve completed the program, you can use the funds you formerly used to make unsecured debt payments to focus on secured debts. 

How the Debt Freedom Program Debt Relief Program Affects Your Credit

study of Freedom Debt Relief Graduates shows that even though the median FICO score declines in the first 6 months of enrollment, it begins a steady recovery process soon thereafter. On average, Freedom Debt Relief Graduates observe higher FICO scores in the two years after graduation when compared to their FICO score at enrollment.

Freedom Debt Relief Program Study Median

Freedom Debt Relief Program Study Time

*These findings have been validated by a credit reporting agency and confirm the impact and changes on consumers’ FICO scores during and after the debt settlement program.

The Freedom Debt Relief Program Costs and Fees 

You can get started with a free consultation to enroll in the FDR Program. However, a 15% to 25% fee is assessed each time you settle a debt. The negotiation fee depends on your state of residence.

How to Enroll in the Freedom Debt Relief Program 

You can learn more about the Freedom Debt Relief Program by submitting an online inquiry or calling 1-800-611-6061. A Certified Debt Consultant will conduct a free phone consultation to review your debts, determine if you’re a good fit for the program, and discuss your options.

FAQs About Freedom Debt Relief Program (5)

  • What is Freedom Debt Relief?

    Freedom Debt Relief is the largest debt negotiation and settlement firm in the nation, offering debt settlement services. As a debt relief company, they’ve helped resolve over $10 billion in debt for over 800,000 consumers. They continue to provide financial education and debt reduction solutions to help their clients on their journey to financial freedom and build wealth long-term. The firm is also a member of IAPDA and the American Fair Credit Council (AFCC).

  • How Does Debt Settlement Work?

    When you settle a debt, a creditor agrees to accept a payment that’s less than what you owe to cover the outstanding obligation. The first part of the process is the negotiation phase. Professional debt settlement companies have trained professionals that know how to negotiate with creditors to get favorable results for their clients.
    They devise a plan of action and communicate how much you need to save to pay off creditors. They work diligently to negotiate settlement deals with creditors. The funds you save are used to pay the creditors, but only if you agree to the terms to settle the debts. Some creditors require lump-sum payments – others will accept payments over time until the agreed-upon settlement balance is paid in full.

  • Who Qualifies for the Freedom Debt Relief Program?

    Freedom Debt Relief’s services are available to residents of Alabama, Alaska, American Samoa, Arizona, Arkansas, California, Colorado, Delaware, Florida, Guam, Idaho, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, Oklahoma, Pennsylvania, Puerto Rico, South Dakota, Tennessee, Texas, Utah, Virginia, Washington DC, and Wisconsin.
    There is no minimum credit score requirement, so you could be eligible for the program even if you have less than perfect credit.

  • Is Freedom Debt Relief Worth It?

    There are benefits and drawbacks to the Freedom Debt Relief Program you should consider before deciding if it’s right for you. A major perk is the ability to complete the program and reduce those stubborn unsecured debts in a fraction of the time it would take to pay them off under the original terms. This allows you to potentially save a bundle in interest.
    Unfortunately, your credit score could take an initial hit after enrollment. However, many clients see their score improve as they progress and graduate from the program. Furthermore, there are tax implications in some instances when a portion of your outstanding debt is forgiven. You will also pay a settlement fee to Freedom Debt Relief for their efforts.
    Ultimately, deciding if Freedom Debt Relief is worth it is a personal decision driven by your financial situation. If you’re saddled down by debts and don’t see a way out, this established company’s debt settlement solutions could be a good fit. But if you’re able to stay on top of your monthly debt payments and devise a plan of action to pay off your balances within a short period of time, there may be other options to consider.

  • ​How Much Does the Freedom Debt Relief Program Cost?

    There are no upfront fees to enroll in the program. But a flat fee, between 15 and 25% of the settlement amount, applies when you settle a debt.

Freedom Debt Relief
Freedom Debt Relief Program

Be Debt-Free In 24-48 Months

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*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. Freedom Debt Relief does not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. They do not assume your debts, make monthly payments to creditors, or provide tax, bankruptcy, accounting or legal advice, or credit repair services. Their services are not available in all states, including New Jersey, 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 before 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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