Sarah Edwards | October 19, 2022
Summary: If you're feeling overwhelmed with debt, Freedom Debt Relief might be an option for you. Or, you can save money and settle the debt on your own by sending a SoloSuit Debt Lawsuit Settlement Letter.
People who are in debt and stuck making monthly minimum payments often wonder if they can seek debt relief through various debt settlement programs. These programs claim to get rid of debt quickly. Oftentimes, they give all of your outstanding credit debt information to a company that claims they can resolve your debts. It might sound like a wonderful opportunity to anyone who is sick of calls from debt collectors.
While seeking debt relief through a standard program can be helpful for those who need assistance, you want to make sure that the company you decide to use is legitimate. Debt relief companies can promise you the world, but the reality doesn't work out so well. A debt relief company can't guarantee that your creditors will accept a reduced payment. Only your creditor has the right to do so.
Freedom Debt Relief is one of the largest debt settlement agencies available to individuals who are struggling with debt in the United States. Those who decide to use the program will undergo an initial free consultation. During the consultation, you'll provide them with a list of debts and creditors you owe. They'll describe how your service works.
Despite earning 4.3 out of 5 stars on its BBB profile, Freedom Debt Relief has received hundreds of complaints for mismanagement of consumer payments programs, dishonesty, and overall misguidance on debt relief. As such, you should seriously consider your options before signing up with Freedom Debt Relief. It isn't the best option for everyone.
Freedom Debt Relief assists clients who have credit card debts, medical debts, and private student loans. To work with Freedom Debt Relief, you'll need a minimum of $7,500 in debt. You will also need to:
You'll also have to recognize that any negotiation will depend on your creditors' agreement.
Understand that when you work with a debt settlement agency, you'll also experience a negative effect on your credit report. Since you won't be making any payments for a minimum of 24 months, your credit score will be severely impacted. You likely won't be able to obtain any credit during this time, should you need it.
Unlike many debt settlement agencies, there are no upfront fees associated with using Freedom Debt Relief's program. You only pay for their services after they have talked to your creditors and settled your debts.
If you agree to work with them, they will provide you with access to an online dashboard that will show you the status of each of your debts. This dashboard contains all of the money you are saving and the debts you have settled for each creditor.
However, you won't know exactly how much you owe them for their services until all of your debts have been settled and repaid. In some cases, you may owe as much as 15% to 25% of the amount you have settled.
Think about that. Suppose Freedom Debt Relief is able to reduce the amount of debt you owe by 40% through debt settlement. Then, they tack on fees of 20% for their services. In the end, you've actually only saved 20% through their debt settlement program. Depending on how much you currently owe, that may not be very much.
For example, if you owe $10,000 in debt, and you're able to settle for $6,000, you've saved $4,000. However, if Freedom Debt Relief charges a 20% fee based on your overall debt for their services, you'll owe them $2,000. Thus, you've only saved $2,000. For this reason, a better option might be to negotiate your own settlement with the creditor or collector and save more.
If you're determined to settle your debt, you don't have to pay for the services of a costly company like Freedom Debt Relief. They can't guarantee that you'll be able to settle your debt for a specific amount of money, and the expense you'll pay for their services can severely cut into the amount you've saved. While it may be attractive to hand your bills over to someone else to handle, you're not likely to save very much, and you can severely damage your credit. Instead, consider trying to settle your debt on your own.
Negotiating a settlement with your creditor can help you resolve the debt, save money, and avoid going to court. If you've been sued by a debt collection agency or other debt buyer, your chances of settling are even better. Most collection agencies purchase debts from creditors (credit card companies, banks, etc.) for as little as 8% of the original debt amount. This means that you could pay 50% of your debt off, and the collection agency would still make a big profit.
In fact, debt buyers and collection agencies will likely settle for anywhere from 1%-60% of the original debt amount. On the other hand, original creditors will usually settle for 20%-70% of the original amount.
Here are some tips and tricks for negotiating your own settlement:
Don't be afraid to negotiate a settlement plan. Communicate with the creditor or collector. Let them know about any financial hardship you might be facing, and offer them a specific amount after crunching some numbers. The more you communicate, the better your chances of settling will be. Avoid payment plans, and offer a lump sum payment.
If you've been sued for debt, you can begin the settlement process by sending a Debt Lawsuit Settlement Letter. To learn more about settling a debt with this letter, check out this video:
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.
>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate
>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
Is your credit card company suing you? Learn how you can beat each one.
Going to Court for Credit Card Debt — Key Tips
How to Negotiate Credit Card Debts
How to Settle a Credit Card Debt Lawsuit — Ultimate Guide
Need more info on statutes of limitations? Read our 50-state guide.
Why do debt collectors block their phone numbers?
How long do debt collectors take to respond to debt validation letters?
What are the biggest debt collector companies in the US?
Is Zombie Debt Still a Problem in 2019?
If a car is repossessed, do I still owe the debt?
Is Portfolio Recovery Associates Legit?
Is There a Judgment Against Me Without my Knowledge?
Should I File Bankruptcy Before or After a Judgment?
What is a default judgment?— What do I do?
Summoned to Court for Medical Bills — What Do I Do?
What Happens If Someone Sues You and You Have No Money?
What Happens If You Never Answer Debt Collectors?
What Happens When a Debt Is Sold to a Collection Agency
What is a Stipulated Judgment?
What is the Deadline for a Defendants Answer to Avoid a Default Judgment?
Can a Judgement Creditor Take my Car?
Can I Settle a Debt After Being Served?
Can You Appeal a Default Judgement?
Do I Need a Debt Collection Defense Attorney?
Do I Need a Payday Loans Lawyer?
Do student loans go away after 7 years? — Student Loan Debt Guide
Am I Responsible for My Spouses Medical Debt?
Should I Marry Someone With Debt?
Can a Debt Collector Leave a Voicemail?
How Does Debt Assignment Work?
What Happens If a Defendant Does Not Pay a Judgment?
How Does Debt Assignment Work?
Can You Serve Someone with a Collections Lawsuit at Their Work?
How Many Times Can a Judgment be Renewed in Oklahoma?
Does Debt Consolidation Have Risks?
What Happens If You Avoid Getting Served Court Papers?
Does Student Debt Die With You?
Can Debt Collectors Call You at Work in Texas?
How Much Do You Have to Be in Debt to File for Chapter 7?
What Is the Statute of Limitations on Debt in Washington?
How Long Does a Judgment Last?
Can Private Disability Payments Be Garnished?
Can Debt Collectors Call From Local Numbers?
Does the Fair Credit Reporting Act Work in Florida?
The Truth: Should You Never Pay a Debt Collection Agency?
Should You Communicate with a Debt Collector in Writing or by Telephone?
What Happens After a Motion for Default Is Filed?
Can a Process Server Leave a Summons Taped to My Door?
Need help managing your finances? Check out these resources.
How to Make a Debt Validation Letter - The Ultimate Guide
How to Make a Motion to Compel Arbitration Without an Attorney
How to Stop Wage Garnishment — Everything You Need to Know
How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
Defending Yourself in Court Against a Debt Collector
Tips on you can to file an FDCPA lawsuit against a debt collection agency
Advice on how to answer a summons for debt collection.
Effective strategies for how to get back on track after a debt lawsuit
New Hampshire Statute of Limitations on Debt
Sample Cease and Desist Letter Against Debt Collectors
The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah
West Virginia Statute of Limitations on Debt
What debt collectors cannot do — FDCPA explained
Defending Yourself in Court Against Debt Collector
Arkansas Statute of Limitations on Debt
Youre Drowning in Debt — Heres How to Swim
Help! Im Being Sued by My Debt Collector
How to Make a Motion to Vacate Judgment
How to Answer Summons for Debt Collection in Vermont
North Dakota Statute of Limitations on Debt
ClearPoint Debt Management Review
Indiana Statute of Limitations on Debt
Oregon Eviction Laws - What They Say
CuraDebt Debt Settlement Review
How to Write a Re-Aging Debt Letter
How to Appear in Court by Phone
How to Use the Doctrine of Unclean Hands
Debt Consolidation in Eugene, Oregon
Summoned to Court for Medical Bills? What to Do Next
How to Make a Debt Settlement Agreement
Received a 3-Day Eviction Notice? Heres What to Do
How to Answer a Lawsuit for Debt Collection
Tips for Leaving the Country With Unpaid Credit Card Debt
Kansas Statute of Limitations on Debt Collection
How to File in Small Claims Court in Iowa
How to File a Civil Answer in Kings County Supreme Court
Roseland Associates Debt Consolidation Review
Do Debt Collectors Ever Give Up?
Can They Garnish Your Wages for Credit Card Debt?
How Often Do Credit Card Companies Sue for Non-Payment?
How Long Does a Judgement Last?
How Long Before a Creditor Can Garnish Wages?
How to Beat a Bill Collector in Court