There are typically 4 ways to go about eliminating your debt. At Freedom Debt, we believe our solution is the best option for most people.  We want to educate each and every applicant on the alternatives so they can make an intelligent decision for themselves. If you would like to learn more about Freedom Debt Relief, or any of your options, feel free to contact one of our friendly debt consultants for a free consultation at (888) 710 - DEBT.

• Credit Counseling
• Debt Consolidation
• Bankruptcy
• Credit Card Monthly Payment

Credit Counseling

The main problem with Consumer Credit Counseling organizations is that they are really working for and paid by the creditors!  You end up paying back ALL of your debt, plus interest at a sometimes-reduced rate, plus their fees on top of that. In fact, you will probably spend about three times more money to pay off your debts in Credit Counseling than in Freedom Debt Relief's "Debt Reduction Program." Most Consumer Credit Counseling firm's claim non-profit status and pretend to be independent.  Many are getting their non-profit status revoked by the IRS, which has made national news. Consumer Credit Counseling companies do not negotiate your debts down. They merely try to come up with a plan to make sure you keep paying your credit card bills every single month. They want to force consumers to pay as much money as possible to your creditors- the more you pay, the more they make!  At the most, they may help lower your interest rate a few percent, or eliminate a late fee or two, but the credit card companies are happy to do this when they know you are going to keep making payments that Freedom Debt Relief could have negotiated for a fraction of what you owe.

Additionally, since you are repaying 100% of your debt balance plus interest charges (even after they are reduced by Consumer Credit Counseling) and their fees, you will probably be in a Consumer Credit Counseling program for 5-9 years paying higher monthly payments!  Credit Counselors very often use a “bait and switch” approach whereas they quote that someone will be debt free in 4 or 5 years where in reality it can take years longer, but they feel that if you are already in the program, you’ll make the extra payments even when it takes years longer.  Compare that to 2-3 years in our program with lower monthly payments

In Freedom’s '”Debt Reduction Program" you can be out of debt twice as fast and for about 1/3rd of what you'd be paying in a Credit Counseling Debt Management Program. Why not become debt free as soon as possible, as opposed to being stuck in a consumer credit counseling program for several more years.  Also many creditors view Consumer Credit Counseling programs to be as bad as a bankruptcy when reviewing your credit.  Once you learn the facts about the alternatives, the decision becomes easy for our clients to choose Freedom Debt's Debt Reduction Program.

Furthermore, most Consumer Credit Counseling companies require you to make all of your payments to them and then they pay off your creditors. Recently, a State Attorney General sued one of the largest Consumer Credit Counseling firms, because they were not actually passing on all the money they get to the credit card companies, they were keeping it themselves! In fact, the IRS has recently stopped granting non-profit status to credit counseling firms as well as revoking the status from many current Consumer Credit Counselors.

Freedom Debt Relief receives no payments from creditors. We represent our clients.  We make money saving you money, and our guarantee is that we don’t make money unless we save you money!

Debt Consolidation

Unfortunately, a Debt Consolidation Loan is one of the most common solutions people think of when they fall into financial difficulties. This is a major problem because most people who get a debt consolidation loan find themselves in much deeper financial trouble than they were originally.  We get so many calls from clients who have gotten a consolidation loan and are looking for help, but unfortunately at that point it is to late since they have usually secured their debt with real estate and loans secured through real estate cannot be negotiated. 

Debt consolidation loans transfer debt from one place to another and can sometimes lower your monthly payment, however a debt consolidation loan will not reduce what you owe at all. We have yet to find someone who has solved his or her debt problems by borrowing more money through debt consolidation.

You will still pay back 100% of the debt consolidation loan, plus interest. The interest rate is sometimes lower than before, but this is because debt consolidation loans are usually secured loans that cannot be lowered or negotiated. Once you sign up for a debt consolidation loan, you have just gone from an unsecured debt to a secured debt and have put your personal assets (e.g. your car or home) at risk. At that point if you can't pay your bills your creditors can come and take your personal property - thus creating a much bigger problem than you had to begin with.

We believe the best solution is to deal with debt problems through debt reduction, not debt consolidation. This way you are permanently resolving the problem, not just putting a “band aid” over it.

Bankruptcy

Bankruptcy is a way to potentially get out of debt. Unfortunately, it leaves a long lasting scar, and comes at a high price - financially, emotionally, and socially.  Bankruptcy can be much more difficult to file since the bankruptcy reform of October 2005.  We have seen that most people are forced into a repayment plan for 3 to 5 years in a Chapter 13 Bankruptcy rather than getting their debts discharged in a much harder to file Chapter 7.  Either way, bankruptcy is a long and painful process and the repercussions can last for many years, sometimes even for life.

The financial impact is severe; a bankruptcy can stay on your credit report for 10 years. Every time you apply for credit, whether it is a home, car, lease, or insurance, you will be impacted. The long-term effect of higher rates many times greatly outweighs the shorter-term savings of a successful Chapter 7 Bankruptcy.

Additionally, most people do not realize that bankruptcy can stay on their court records for over 20 years to life which means If you apply for a job, a loan, rent an apartment, or even insurance your bankruptcy filing is easily uncovered, even when no longer on your credit report.

Lastly, we have yet to find someone who is proud of filing bankruptcy. Most people will do anything to avoid filing bankruptcy and should only be considered as an absolute last resort.  For many of our clients, Freedom Debt's Debt Reduction Program is a perfect alternative.

Bankruptcy is not an easy or even quick fix. It is a very serious decision with serious consequences. If you are considering bankruptcy, you should consider contacting a lawyer to discuss this option.  One thing to keep in mind when choosing an attorney is that the lawyer gets paid if he convinces you to file, if you don’t he probably won’t make any money.  We have seen many attorneys convince people to file bankruptcy when it may not have been their best option.  Also there is no guarantee that after paying the attorney that the court will approve your bankruptcy.  There are many honest attorneys out there, and many who are not.
Freedom Debt's "Debt Reduction Program" is a great alternative to bankruptcy. You are protected from bankruptcy and your debts are reduced. Best of all, your creditors accept our settlement amounts as payments in full, making you debt free without having to suffer the longer-term financial, emotional, and social impacts of a bankruptcy. Many of our clients are ecstatic to find an alternative to bankruptcy that still solves their debt problems both quickly and comfortably.

Credit Card Monthly Payment

Unfortunately, millions of Americans who are struggling with their debts continue to just barely make their monthly payments. Most of these people struggle for the rest of their lives in debt, while their debt is stealing their ability to retire. If you are facing a financial hardship, this is a no win situation, especially as credit card companies are raising interest rates and payments.  If you are only meeting your minimum payments, you are paying mostly interest charges; not paying down your debts.

This means that if you owe $10,000 today, it will cost you more than $20,000 over the next 20-30 years before you pay off your debt. If at some point you can’t make their minimum payments, the creditors will begin harassing you, raising rates and fees. If you don’t’ get help, you could end up with judgments and garnished wages as well as liens against your property, depending on the laws in your state.  Many people spiral quickly out of control because if you are late on one credit card, the other credit card companies may see that on your credit report and raise rates as well making payments that are far beyond your budget.  Imagine struggling on your credit cards only while only paying 12% on your credit cards having them all jump to the 25-29% and the payments associated with those rates!  We see it many times every day. Freedom Debt's Debt Reduction Program allows you to minimize creditor calls, avoid bankruptcy, avoid new debt and come to an agreement with creditors on your terms, not theirs.

In Freedom's “Debt Reduction Program “ we find the optimal solution for you, not your creditors. By working through a plan tailored to your specific situations, we can settle your debts over the next 2-3 years, and potentially at a 50% discount to what you currently owe.