Advertorial or Sponsorship User published Content does not represent the views of the Company or any individual associated with the Company, and we do not control this Content. In no event shall you represent or suggest, directly or indirectly, the Company's endorsement of user published Content.
The company does not vouch for the accuracy or credibility of any user published Content on our Website and does not take any responsibility or assume any liability for any actions you may take as a result of reading user published Content on our Website.
Through your use of the Website and Services, you may be exposed to Content that you may find offensive, objectionable, harmful, inaccurate, or deceptive.
By using our Website, you assume all associated risks.This Website contains hyperlinks to other websites controlled by third parties. These links are provided solely as a convenience to you and do not imply endorsement by the Company of, or any affiliation with, or endorsement by, the owner of the linked website.
Company is not responsible for the contents or use of any linked website, or any consequence of making the link.
Freedom Debt Relief Reviews and Ratings
Freedom Debt Relief company logo.
TL;DR: Summary
- Freedom Debt Relief is a debt settlement company that was founded in 2002 and has resolved more than $20 billion in unsecured debt.
- It is for people with at least $7,500 in unsecured debt who cannot keep up with their bills.
- Clients who enroll stop paying their creditors directly.
- Debt balances can be lowered, but it might take time and lower borrowers’ credit scores
- Reviews say it imposed structure and progress, while others complain of delays, credit damage, or confusion over communication.
By the third quarter of 2025, combined household debt in the United States reached $18.59 trillion, and credit card balances alone increased by $24 billion.
With debt on the rise, many are turning to companies like Freedom Debt Relief for help. Before making that decision, it’s always a good idea to review Freedom Debt Relief reviews and hear what real users have to say.
What is Freedom Debt Relief?
Freedom Debt Relief homepage
Freedom Debt Relief is a debt settlement company. The company is not a lender.
Company overview
- Founded in 2002
- Headquartered in San Mateo, California
- Operates as a Limited Liability Company (LLC)
- Also known as FDR
- Over 23 years in business
- Has served more than 1 million clients
- Resolved over $20 billion in enrolled debt
- Staff includes 500+ certified debt consultants
- Supported by 200+ debt negotiators
- One of the largest debt relief companies in the U.S.
Key services or programs
- Primary service: Debt settlement through the Freedom Debt Relief program
- Minimum debt required: $7,500 in unsecured debt
- Program length: Typically 24 to 48 months
Pricing and fees
- Settlement fee: 15 to 20 percent of the enrolled debt, due only after a settlement is reached.
- Monthly fee: $9.95 to maintain the dedicated account.
- No advance fees: Customers are not charged upfront until a settlement is reached with a creditor.
Example:
- $30,000 of credit card debt signed up for the program.
- Debt is settled for $18,000.
- Freedom takes 20 percent of enrolled debt: $6,000.
- Total cost: $24,000 – that’s $6,000 less than what is owed in the first place.
Eligibility and requirements
-
- Minimum $7,500 in unsecured debt required
- Be affected by financial hardship (e.g., lost a job, decreased income, separation due to divorce, health issues or death in the family)
- Reside in a state where Freedom Debt Relief operates or has an affiliated network
- Eligible debts:
-
-
- Credit card debt and retail store cards
- Medical debt
- Most personal loans
- Accounts in collections or repossessions
- Lines of credit
- Some payday loans
- Some private student loans
-
- Ineligible debts:
-
- Taxes
- Utility bills
- Lawsuits
- Secured debt (including auto loans and HELOCs)
- Federal student loans
How to apply
- Call Freedom Debt Relief and set up a free consultation.
- Talk to a licensed debt professional to discuss your options for debt resolution.
- Decide if you want to proceed with the Freedom Debt Relief program.
- Create monthly payments into a dedicated FDIC-insured account.
- When enough money has accumulated, FDR starts negotiating the debt.
- You pay for the service only after you accept a negotiated settlement.
Your Best Lending Partner: We match you with top lenders for the best deals. Fast, Easy Process: Quick approvals with expert support. Tailored Solutions: Flexible terms that fit your needs.
Lawsuits involving Freedom Debt Relief
In 2019, the Consumer Financial Protection Bureau (CFPB) fined Freedom Debt Relief $25 million after it found that some fees were imposed before debts had been settled and that certain customers were confused about which creditors the service could negotiate with.
The lawsuit was settled, and FDR now functions with revised, FTC-compliant principles.
Freedom Debt Relief pros and cons
Here’s what Freedom Debt Relief gets right and where it falls short.
Pros
- May reduce total debt by 30 to 50 percent before fees
- Negotiators manage all creditor communication
- Settlements happen within two to four years
- Can be an alternative to bankruptcy with less long-term impact
Cons
- Can severely lower clients’ credit scores due to missed payments
- No guarantee that creditors will accept settlement offers
- Fees can take a significant portion of monthly deposits
- Settled debt may be taxed as forgiven income
- Creditors may still choose to file lawsuits instead of settling
Freedom Debt Relief reviews, ratings & complaints
Here’s how Freedom Debt Relief is rated, along with common praise and complaints from customers.
Better Business Bureau (BBB) reviews
Freedom Debt Relief Better Business Bureau profile
Freedom Debt Relief is accredited and holds an A+ rating with 4.43 stars based on over 1,700 reviews on the Better Business Bureau (BBB).
The process was faster than most people thought, and the staff were clear and responsive. Complaints center on delays, fees, damage to credit scores, and struggles to get through to support.
Trustpilot reviews
Freedom Debt Relief Trustpilot profile
Freedom Debt Relief has a TrustScore of 4.6 and more than 47,000 reviews. A lot of the reviewers noted that the staff were helpful, they understood the process, and that the program made their debt feel more manageable.
A small percentage of negative comments reference credit scores dropping, persistent calls from creditors, and confusion around the application of payments.
Reddit reviews
Reddit users say Freedom Debt Relief helps with unsecured debt, mostly credit cards, by pausing payments, saving monthly, and settling once funds build up.
Many report it takes about three years. Some felt relief and structure, while others warned about credit score drops, delays, and tax on forgiven debt.
Alternatives often suggested include DIY negotiation, nonprofit debt management, or bankruptcy if the situation is severe.
Outcomes and success rates
A 2019 study found that graduates of Freedom Debt Relief’s program were 21 percent less stressed and 24 percent more financially confident than those who did not enroll in the program.
In April 2025, Freedom Debt Relief settled $20 billion in debt.
It was the only debt settlement company selected among national leaders in customer service for USA Today’s 2025 America’s Best Customer Service list.
Who is Freedom Debt Relief for?
Here’s who Freedom Debt Relief might work for and who it likely won’t.
Best for
- Those with $7,500 or more in unsecured debt
- People facing financial hardship and falling behind on bills
- Clients who accept credit score impact in exchange for relief
- Anyone needing structured help with debt settlement or legal support
Not recommended for
- Borrowers with low balances or secured loans
- Those who qualify for debt consolidation or credit union options
- People concerned about tax on forgiven debt or long-term credit damage
Freedom Debt Relief alternatives to consider
Here are other debt relief options to consider besides Freedom Debt Relief.
National Debt Relief
- May save up to 50 percent of enrolled debt before fees
- Requires at least $10,000 in unsecured debt
- Charges a 15 to 25 percent settlement fee
Accredited Debt Relief
- Also offers up to 50 percent savings
- Requires a $10,000 minimum balance
- Charges a 25 percent settlement fee
ClearOne Advantage
- Minimum $10,000 in unsecured debt
- Settlement timeline: 24 to 60 months
- Fee details not listed publicly
Note: Negotiation with credit card companies is an option as well. But this takes time, patience, and a degree of comfort in talking about the resolution of debt.
Final verdict
Freedom Debt Relief is a reputable company that has helped customers reduce unsecured debt.
But there are better choices for anyone trying to preserve a good credit score or minimize fees. Those who want to consider debt settlement should compare Freedom with other debt relief companies to see how their programs work.
Frequently asked questions
Is Freedom Debt Relief legit?
Yes. Freedom Debt Relief has been in business since 2002 and is a well-known debt settlement company in the U.S.
How long does Freedom Debt Relief ruin your credit?
The impact isn’t permanent. Debt settlement can stay on your credit report for up to seven years, but its effect fades over time, especially if you rebuild positive credit habits.
Can you quit Freedom Debt Relief?
Yes. You can stop at any time and withdraw money from your dedicated account, which is FDIC-insured and fully under your control.
Is Freedom Debt Relief available in all states?
No. Freedom Debt Relief provides direct service in Alabama, Alaska, Arkansas, Arizona, California, Delaware, Florida, Iowa, Idaho, Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Mexico, Nevada, New York, Oklahoma, Pennsylvania, South Dakota, Tennessee, Texas, Utah and Wisconsin.
It works through legal partners in Connecticut, Georgia, New Hampshire, New Jersey, Illinois, Kansas, Maine, Ohio, South Carolina and Virginia.
It is not available in Colorado, Washington, D.C., Hawaii, North Dakota, Oregon, Rhode Island, Vermont, Washington, West Virginia and Wyoming.
Sponsored Advertising Content:
Advertorial or Sponsorship User published Content does not represent the views of the Company or any individual associated with the Company, and we do not control this Content. In no event shall you represent or suggest, directly or indirectly, the Company's endorsement of user published Content.
The company does not vouch for the accuracy or credibility of any user published Content on our Website and does not take any responsibility or assume any liability for any actions you may take as a result of reading user published Content on our Website.
Through your use of the Website and Services, you may be exposed to Content that you may find offensive, objectionable, harmful, inaccurate, or deceptive.
By using our Website, you assume all associated risks.This Website contains hyperlinks to other websites controlled by third parties. These links are provided solely as a convenience to you and do not imply endorsement by the Company of, or any affiliation with, or endorsement by, the owner of the linked website.
Company is not responsible for the contents or use of any linked website, or any consequence of making the link.
This content is provided by New Start Advantage LLC through a licensed media partnership with Inquirer.net. Inquirer.net does not endorse or verify partner content. All information is for educational purposes only and does not constitute financial advice. Offers and terms may change without notice.
