Debt Elimination Companies

Has Anyone used Freedom Debt Solutions? How was your experience?

We got this company from my brother and they are in the process with this company as well as my husband and I are. I am still unsure if we made the right decision to go with this company. Any info or feedback on this company would be helpful!

Public Comments

1. STAY AWAY from any "debt consolidation" company that promises to cut your debt in half through debt settlement....This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator....this entire fee goes towards building a settlement account and to the consolidator's fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. Debt settlement is like a roll off the dice with your finances...You can never predict how your creditors will respond to the deliberate defaulting of your accounts...they might settle at 50%...or they might serve you a summons, take you to court...and if they win, you could be looking at wage garnishment. None of these “debt consolidation” firms have the power to force your creditors to accept settlements. Your creditors have the right to refuse settlements from any firm you hire. If you end up being sued they won't provide legal assistance to you and you'll be on your own. Consider this: If you loaned someone $20K and the person stopped making payments to you after 6 months and informed you that he won't pay you back unless you offer a one-half settlement of $10K....then you'd probably be steaming mad...correct? This is exactly how debt settlement firms work with your creditors. You are taking a gamble by using any debt settlement firm....Everything could go alright and all your creditors might settle....on the other hand, you could end up being sued and end up having your wages garnished at up to 25%. Even if the process does work perfectly, you will have a ruined credit rating. See this posting as example of what happens when the debt settlement process fails: http://www.ripoffreport.com/reports/0/420/RipOff0420861.htm
2. Do not use a company that charges you, to do something that you can do yourself free of charge. I do not know what your financial situation is, but most of these companies will have you to quit paying your unsecured bills, just so they can force the CC companies to negotiate. This will also negatively reflect on your credit. If you are unable to make your payments, then contact your lenders, explain the situation and ask them for available options. On credit cards most will send you a settlement offer if you are 90-120 days past due anyway, and you do not have to pay someone for them. Either way if you are past due, your credit will be affected, so might as well save yourself some money.