Paying back a percentage of your debt instead of the full amount may seem like a catchy deal, and the truth is, it is. However, calculating the ripple effect of your actions is essential when working with debt settlement companies. It is a significant undertaking requiring you to do your homework and background research before enrolling or signing up in any program. In your search for a debt settlement company to work with, you may have come across a myriad of debt relief companies including Freedom Debt Relief and you might be wondering is Freedom Debt relief Trustworthy?
Understanding how Freedom Debt Relief works
The decision to go through with the company’s program depends on several factors, including its authenticity. A question that tops most clients’ minds is Freedom Debt Relief legit can be a source of many uncertainties. It is a valid concern that might save you from losing money, incurring more debts, and damaging your credit report. Freedom Debt Relief is an accredited business that has offered its services to hundreds of thousands of people in debt. However, it should only be an option after you’ve exhausted all other possibilities. Below is information regarding the program’s prerequisites and operation.
How does Freedom Debt Relief Program work?
The company’s method of operation is similar to that of most debt settlement programs.
Confirming your eligibility: The first step involves discussing with a representative or spokesperson of the FDR to ensure you are suitable for the debt settlement program. As a prerequisite, clients need to have no less than $7,500 in unsecured debts to qualify for the program. Unsecured debts are those that aren’t tied to your asset, including a house and vehicle. They can be medical bills, credit card debts and personal loans.
Making monthly payments: After qualifying for the debt settlement program, you need to send monthly payments to an escrow account before Freedom Debt Relief begins the negotiations. The agreed-upon amount can take up to 36 months, which is more than two years.
You may need to stop making direct payments to your creditors during this time, which puts you at risk of obtaining bad credit records. This is also where some people start wondering is Freedom Debt Relief legit ,because they’re being asked to divert payments for such an extended period of time.
Although this is an extended period, look at it as building leverage. Having a substantial amount of money in a separate account increases your chances of accomplishing debt reduction.
The start of negotiations: The negotiations between FDR and your creditors begin after raising enough money to settle a debt in the savings account. The negotiations may last for several months and sometimes years. The average time frame is between 24 to 48 months, depending on how substantial your debts are and how consistent you are with your payments.
Potential Downsides Include:
- Working with other creditors in the future may be challenging and sometimes impossible since the settled debts are reflected in your credit report for up to seven years.
- Since your creditors are not obliged to agree with FDR representatives, the negotiations can be unsuccessful. As a result, you suffer the consequences of paying all the interest rates and fines for missed or delayed payments.
- You need to pay a fee of 20-25% of the final settlement to Freedom Debt Relief, once the account is settled and paid according to the agreement.
Debt settlement can be an effective solution if you want to avoid declaring bankruptcy. Moreover, Freedom Debt Relief is a trustworthy company with which to work to accomplish this.
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