Sarah Edwards | July 21, 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.
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