Freedom Debt Relief is a debt resolution firm with headquarters in San Mateo, CA, and an additional office in Phoenix, AZ. The company was established in 2002 by Stanford Business School Graduates, Andrew Housser and Bard Stroh. Since it was founded, Freedom Debt Relief has helped more than 250,000 clients resolve over $4 billion in debt. On average FDR settles $40 million a month.

Freedom Debt Relief is a subsidiary of Freedom Financial Network, an umbrella group that includes Freedom Tax Relief and Bills.com. FDR is a member of the American Fair Credit Council, AFCC, has an A+ rating with the BBB, and it’s certified by BSi Management Systems. All its debt arbitrators are members of the Association of Professional Debt Arbitrators, IAPDA. FDR is a Dun & Bradstreet member.

What Type Of Debt Relief Services Does Freedom Debt Relief Offer?

Freedom Debt Relief offers a debt settlement program that reduces the total amount of debt clients owe. FDR’s debt arbitrators work with most types of unsecured loans, such as credit card debt, business loans, personal loans, medical bills, and collection accounts.

How Does Freedom Debt Relief Work?

Freedom Debt Relief’s program requires borrowers to stop making payments to creditors and instead make monthly deposits into a debt settlement account. The account is under the control of the clients who grant power of attorney to Federal Tax Relief so it can access the money and negotiate directly with creditors. Debt settlement is one of the most efficient methods to reduce debt, but it’s not without its consequences. Arranging a debt settlement with a creditor can damage your credit and it doesn’t guarantee lenders won’t continue their collection efforts during the negotiations.

On average, Freedom Debt Relief clients pay 50% less than the initial debt, or 25%  to 32% if you include fees. That is an average. Some accounts are reduced by 65% or more.

Clients must be ready to make monthly payments into the settlement account. Consistency is key. The settlement process takes 24 to 48 months, but it all depends on how fast the client can build up funds in the settlement account.

How Much Do Freedom Debt Relief's Services Cost?

Freedom Debt Relief fees vary by case. On average, FDR charges 18% to 25% of the initial debt as compensation for its services. However, no fees are charged until a debt account has been settled. Usually, negotiating an account takes two to four years, which out as an annual fee of 4.5% to 12.5% a year.

For example, if you owe $100,000, and Freedom Debt Relief reduces your debt by 50%, you will pay your creditors $50,000 and Freedom Debt Relief will receive $18,000 to $25,000 in fees.  That represents up to  $32,000 in savings, 32% of the initial balance.

What Is the Minimum Debt Freedom Debt Relief Will Consider?

Freedom Debt Relief works with debt amounts as low as $5,000, and it provides assistance with consolidation loans for smaller amounts.

How Is Freedom Debt Relief Better Than Other Debt Settlement Companies?

Freedom Debt Relief provides the following advantages:

- It is accredited by the American Fair Credit Council (AFCC)

- D&B listed

- All debt consultants are certified by the International Association of Professional Debt Arbitrators, IAPDA.

- It is accredited by the BBB and has an A+ Rating

- Has helped over 250,000 clients resolve more than $4 billion in debt since it was founded in 2002.

- Resolves, on average, $40 million a month.

- It offers debt negotiation and resolution services for debt amounts as low as $5k.

- Free consultation for new clients.

- Quality customer service. On average, 80% of call are answered within 30 seconds.

- No upfront fees

On the other hand:

- Freedom Debt Relief does not work on certain unsecured loans, such as car repair bills, insufficient fund checks, insurance policies, check cashing businesses, bail bonds, and recent cash advances.

- Fees can be as high as 25% of the initial debt

- Does not provide legal protection from creditors


  • Minimum Debt Owed
  • Debt Type
    • Unsecured Debt
    • Business Debt
    • Student Loan Debt
  • % of Debt Fee
    18% - 25%
  • No Monthly Consultancy Fee
  • Pricing Model
    • Contingency Fee (% of enrolled debt)
    • Contingency Fee (% of savings)
  • AFCC Member
  • Contingency Model
  • Free Consultation
  • IAPDA Member
  • In-House Servicing
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0 votes

I actually like when companies contact me often to see if I have any questions. I've gotten regular calls from Freedom, which shows me they care. The investment is definitely worth it because you're working with a company that appreciates you.

0 votes

These guys take advantage of people who don't know any better. I had no idea where to start with my debt or who to even contact. They saw that weakness and took my money. They didn't do anything to help me. When I unenrolled, they didn't even care since they already had their fees from me.

0 votes

When it comes to debt settlement, Freedom Debt Relief are the big guys on the block. They have settled over a billion dollars in consumer debt. Many of the smaller firms out there are actually just affiliates of Freedom. So if you value experience, you'll get it with Freedom.

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