Table of Contents
- 1 Is Freedom Debt Relief a reliable company?
- 2 Should I accept the debt settlement collections is offering?
- 3 How long does it take to negotiate a debt settlement?
- 4 Will Freedom Debt Relief hurt my credit?
- 5 Are settlement offers good?
- 6 How much should I offer for debt settlement?
- 7 Can you negotiate a debt settlement?
- 8 What do you need to know about debt settlement?
- 9 What is the difference between debt settlement and debt consolidation?
Is Freedom Debt Relief a reliable company?
Freedom Debt Relief is a reputable company with a proven track record. The company is a member of the American Fair Credit Council and a Platinum member of the International Association of Professional Debt Arbitrators. If you have $15,000 or more in unsecured debt, Freedom Debt Relief may be able to help you.
Should I accept the debt settlement collections is offering?
“If you’re happy with their offer, and you should be because it’s less than what you actually owe them, then you should at least consider it,” he says. The alternative, according to Ulzheimer, is the creditor either outsourcing the debt to a collector or even suing you.
How long does it take to negotiate a debt settlement?
The process typically takes 36-48 months for the consumer to put enough money into an escrow account for the debt settlement company to make a competitive offer. During that time, interest and late fees will make the total grow, sometimes in alarming amounts. Brace yourself for that.
What happens if you quit Freedom Debt Relief?
What Happens If I Stop Paying My Debt Management Plan? If you stop making monthly payments to your debt management plan, you will be removed from the program and your rates will shoot back up to their previous levels.
Is debt settlement a bad idea?
It’s a service that’s typically offered by third-party companies that claim to reduce your debt by negotiating a settlement with your creditor. Paying off a debt for less than you owe may sound great at first, but debt settlement can be risky, potentially impacting your credit scores or even costing you more money.
Will Freedom Debt Relief hurt my credit?
Does the Freedom Debt Relief program permanently harm my credit score? No. The negative impact to Freedom Debt Relief clients (who complete the program) is usually temporary.
Are settlement offers good?
It is always better to pay off your debt in full if possible. While settling an account won’t damage your credit as much as not paying at all, a status of “settled” on your credit report is still considered negative.
How much should I offer for debt settlement?
Offer a specific dollar amount that is roughly 30% of your outstanding account balance. The lender will probably counter with a higher percentage or dollar amount. If anything above 50% is suggested, consider trying to settle with a different creditor or simply put the money in savings to help pay future monthly bills.
What percentage of debt will collectors settle for?
Typically, a creditor will agree to accept 40% to 50% of the debt you owe, although it could be as much as 80%, depending on whether you’re dealing with a debt collector or the original creditor. In either case, your first lump-sum offer should be well below the 40% to 50% range to provide some room for negotiation.
Can a lawyer help with debt settlement?
A debt settlement attorney should be able to lower the amount of unsecured debt that you have to pay back. However, hiring an attorney gives you a much better chance than if you handle your creditors on your own or with a debt settlement service.
Can you negotiate a debt settlement?
Negotiating a debt settlement on your own is not easy, but it can save you time and money compared with hiring a debt settlement company. With do-it-yourself debt settlement, you negotiate directly with your creditors in an effort to settle your debt for less than you originally owed.
What do you need to know about debt settlement?
The Basics of Debt Settlement. Debt settlement is the process of offering a large, one-time payment toward an existing balance in return for the forgiveness of the remaining debt. For example, someone who owes $10,000 on a single credit card may approach the credit card company and offer to pay $6,000.
What is the difference between debt settlement and debt consolidation?
Debt settlement companies instruct you to stop making payments on your bills. Instead, you make one monthly payments to the debt settlement company. That sounds like a debt consolidation loan, but there’s a big difference. In debt consolidation, you combine all your bills, get a loan and pay off all your debt.
How can I get my credit card debt settled?
Start by calling the main phone number for your credit card’s customer service department and asking to speak to someone, preferably a manager, in the “debt settlements department.” Explain how dire your situation is.
Can you negotiate around the seven-year penalty for settling debt?
In certain situations, there are ways to negotiate around the seven-year penalty you typically face for settling a debt. In normal circumstances, settling debt will create a negative item in your credit report that sticks around for seven years. When the clock starts depends on the status of the debt at the time of the settlement.