When you receive a settlement, the discharged amount counts as taxable income for the year, so talk to a tax expert to fully understand the implications. Some clients achieve the first settlement in as little as six months. Freedom Debt Relief uses your account as proof of funds for making a lump sum payment - often an attractive offer in the eyes of a creditor. Once your account has reached an appropriate amount, they actively begin the negotiation process. However, Freedom Debt Relief works to negotiate with your creditors to reduce the amount you owe so that you ideally still save money after the settlement. Still, you may already be having these issues because of your high burden of credit card debt.ĭuring the process, you’ll also likely accrue interest and late fees on your unpaid accounts. ![]() Depending on your current credit history, this could substantially lower your credit score and make future access to credit more difficult. Impact on Your Credit ScoreĪnother consequence is that each of your late payments and delinquent accounts will be reported to the credit bureaus and listed on your credit report. You’ll likely start to receive calls from debt collectors attempting to get you to start making payments again. While this is a standard part of the process, it does come with some risks. Like other debt relief companies, Freedom Debt Relief then recommends that you stop paying on the enrolled accounts and instead contribute to your settlement fund. This helps in the negotiation process because creditors see that you’re trying to settle all of your accounts, not just theirs. When working with Freedom Debt Relief, you enroll all of your credit cards with a $500 or more balance. If they are, you can agree upon a monthly deposit amount and get enrolled in the program. To schedule one, you can visit their website and fill out the form.Īt that point, you’ll find out if Freedom’s debt settlement services are appropriate for your financial situation. The application process starts with a free debt consultation. You can certainly attempt debt settlement on your own, but their clients prefer using a professional debt settlement company with years of experience to work on their behalf. You should be willing and able to make small deposits each month and commit yourself to take anywhere between two and four years to complete the program. They do not help with secured debt like federal student loans. In addition, only unsecured debts are eligible for debt settlement with Freedom Debt Relief, such as credit cards and personal loans. For example, clients usually have $15,000 or more in credit card debt and are having difficulty meeting their minimum payments each month. Customer Profileįreedom Debt Relief doesn’t typically focus on small debts. If you stick to the plan, you can have your unsecured debts settled in as little as two to four years. Each of these has a different impact on your credit so pay attention to these phrases throughout the negotiation process.įreedom Debt Relief claims to hold each creditor accountable to ensure that they accurately report your settlement to the credit bureaus. Once finalized, each debt is reported to the credit bureaus as settled in full, settled, paid, paid by settlement, or settled for less than the full amount. But, of course, no settlement is executed without your direct approval. Then, once your account has reached its target amount, the negotiations team gets to work in reaching settlements. In the meantime, Freedom Debt Relief’s team begins to craft a negotiation strategy, including leveraging deals with multiple creditors. ![]() It’s FDIC-insured, and you can track your progress 24/7 with your online Client Dashboard. ![]() The account is in your control but separate from your other accounts so that the money is reserved solely for your debt relief program. This replaces your monthly payments to creditors. You’ll contribute funds to a monthly deposit program, but only an amount you’re comfortable with. The goal is to save you money over time compared to making minimum monthly payments on your balances by eliminating unsecured debt in a much shorter time frame. Then, once you enroll, you’ll jointly design a payment program. During this phone call, you and a Certified Debt Consultant review your debt situation and discuss potential solutions to make sure their program is the best option for you. On Freedom Debt Relief’s secure website Freedom Debt Relief Processīefore you enroll with Freedom Debt Relief, you’ll participate in a free debt evaluation.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |