Who qualifies for Freedom Debt Relief? (2024)

Who qualifies for Freedom Debt Relief?

People with financial hardships that make it difficult to repay their debts are generally eligible for Freedom Debt Relief. You may be eligible if you owe unsecured credit cards, personal loans or medical bills.

What is the downside of Freedom Debt Relief?

Cons of Freedom Debt Relief

If you fail to complete the debt settlement program or if FDR is unable to reach an agreement with your creditors, you will be stuck with all the accumulated fees from defaulting on your credit card debts, not to mention making a mess of your credit report.

How do you qualify for debt relief?

How do I know if I am eligible for debt relief? To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households). If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief.

Who is eligible for freedom financial?

Only unsecured debt can qualify for the Freedom Debt Relief Program. This means debt like credit cards, unsecured personal loans and medical bills. Debt that is secured such as a mortgage or an auto loan is not eligible. To qualify for the program, you should have at least $7,500 of unsecured debt.

How does the Freedom Debt Relief Program work?

At Freedom Debt Relief, we determine our client's monthly deposit at the start of the program, customizing their debt relief plan based on their goals, total debt amount, and budget. These savings will eventually be used to pay the settlements we reach with their creditors.

Is Freedom Debt Relief a rip off?

Summary: Freedom Debt Relief is not a scam, and the company could help you resolve your outstanding debts with real results. But if you don't qualify for Freedom Debt Relief, SoloSettle might be your best bet at reaching a settlement that works for you.

Is Freedom Debt Relief a good idea?

Freedom Debt Relief stands out from other companies due to its excellent customer reviews, but its fees can be as high as 25% of your initial debt. It's a good idea to explore other options—and other costs—before selecting a debt settlement company.

Can I still use my credit card after debt settlement?

Paying off your credit card, whether it's with a debt consolidation loan or not, does not actually cancel the card. While it does bring your balance down to zero, the card will still be open and active.

Will debt relief hurt my credit?

Debt relief services may have a negative impact on your credit score, but that impact may not be as big as you think — and in some cases, it can help your credit. How these services impact your credit depends on the debt relief option you choose.

Does debt forgiveness hurt your credit?

Credit card debt forgiveness could hurt your credit

You stop making payments to your creditors as you save for your settlement. Creditors typically report the debt as "settled" rather than "paid as agreed" on your credit report once it's paid off. This shows that the creditor wasn't able to collect on the full debt.

What is the minimum credit score for Freedom financial?

Minimum 600 credit score applies for debt consolidation requests, minimum 670 applies to cash out requests. Other conditions apply. Fixed rate APRs range from 10.25% - 16.00% and are assigned based on underwriting requirements and automatic payment enrollment (autopay enrollment is not a condition of loan approval).

What credit score do you need for freedom financial?

We often require a minimum credit score of 620 to buy a house with a conventional loan. We often require a minimum credit score of 550 to buy a house with a VA loan. We often require a credit score of 550 to buy a house with an FHA loan. We often require a minimum credit score of 620 to buy a house with a USDA loan.

What salary is needed for financial freedom?

Americans say they'd need to earn about $94,000 a year on average to feel financially independent. That's about $20,000 more than the median household income of $74,580.

How long does Freedom Debt Relief ruin your credit?

Paying off your debt in this way might seem more important, but the damage to your credit score can last for years. Settled debts also stay on your credit report for up to seven years and impact your future access to credit.

Is there such a thing as a government debt relief program?

Unfortunately, there is no such thing as a government-sponsored program for credit card debt relief.

What is the best debt relief program?

How much does freedom debt cost?

There is a one-time fee of $9.95 to set up the dedicated account, and a monthly fee of $9.95 that covers account servicing. Freedom Debt Relief does not share or receive any part of the fees paid to CFT.

How do I rebuild my credit after a debt settlement?

How many points will my credit score drop if I settle a debt?

Debt Settlement Will Most Likely Hurt Your Credit Score

Debt settlement is likely to lower your credit score by as much as 100 points or more.

What happens to unpaid credit card debt after 7 years?

After seven years, unpaid credit card debt falls off your credit report. The debt doesn't vanish completely, but it'll no longer impact your credit score. MoneyLion offers a service to help you find personal loan offers based on the info you provide, you can get matched with offers for up to $50,000 from top providers.

Can I buy a house after debt settlement?

Yes, you can buy a home after debt settlement. You'll just have to meet the lender's requirements to qualify for a mortgage. Unfortunately, that could be harder after you settle debt.

Is credit card forgiveness real?

Credit card forgiveness from credit card companies is unlikely. You may be able to negotiate with credit card companies for other debt relief, like creating a debt management plan. A debt consolidation loan can help you pay down credit card debt faster.

Can debt relief take your house?

Are debt consolidation loans a good idea? Some of these loans require you to put up your home as collateral. If you can't make the payments — or if your payments are late — you could lose your home.

Is it true that after 7 years your credit is clear?

Most negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit score may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.

What are the dangers of debt forgiveness?

Downsides of debt forgiveness

Forgiven debt of more than $600 may be considered taxable income, potentially resulting in a hefty tax bill. Engaging with debt relief companies could lead to additional fees, exacerbating financial difficulties.