Freedom DR is one of the largest debt consolidation companies in the United States. Their primary service makes it possible for some people to reduce their debt and also lower their monthly payments.
Freedom DR also offers resources and guidance for those looking for more debt solutions, such as debt consolidation. This is a popular financial strategy that allows borrowers the ability to combine multiple sources of debt into a single monthly payment. The unique program Freedom DR manages, FDR, helped many of their clients reduce their debt burden and improve their financial health (study shows).
The idea is to take out a loan with a lower interest rate than what you have on your debt sources and pay those sources off, essentially rolling all debts into one. This also has the benefit of making monthly payments more manageable.
Freedom DR has been in business for more than 15 years. The company’s debt consolidation program involves building credit through an FDIC-insured savings account, negotiating with debtors and creating a plan to pay off all remaining debt.Free Quote
Who is Freedom DR Good For?
Freedom DR specializes in debt consolidation solutions. Speaking with one of their representatives is the best way to review your financial situation to find the best way to tackle your debt.
Most individuals involved with Freedom DR’s programs have debts well above $15,000, high monthly payments, and a poor credit score.
Freedom DR Pros
- A longitudinal study shows that FDR program graduates dramatically reduced their debt burden and improved their financial health.
- Can help lower monthly payments and lower total debt owed
- Willing to work with people who have been turned away or rejected by most other lenders or debt consolidation companies
- Offers consumers more control over their current debt
Freedom DR Cons
- Though debt can be lowered, the service itself can be rather expensive
- Debt consolidation might lower your credit score
Terms & Requirements
To qualify for Freedom DR, you must have at least $20,000 worth of debt, though most people have much more than that. The company’s fee is about 18-25% of enrolled debt as well as a monthly fee of $9.95 for account servicing.
Freedom DR cannot be used for any collateral-based debts, such as a mortgage, and it cannot be used for student loans and other select debts. Additionally, the services are only available in 30 select states.
Privacy & Security
The company has been around for nearly two decades and is relatively reputable among debt consolidation companies, though the industry itself is plagued with risks and problems. While Freedom DR does not have a history of privacy or security concerns, the company was recently forced to pay $25 million in 2019 as a result of a lawsuit conducted by the Consumer Financial Protection Bureau which accused Freedom of deceiving customers.
You can reach Freedom DR customer support via phone or email. They also offer additional resources in their blog page.
Because debt consolidation can destroy your credit score and often cost much more than is initially implied, this process should be avoided whenever possible. Freedom DR has helped individuals with their debt issues and is among the more reputable debt management companies, but the overall process should be considered a last resort.
For those looking for debt consolidation solutions, start comparing lenders and getting quotes to see if you qualify for a debt consolidation loan.
2114 E Rio Salado Parkway, Tempe, Arizona, 85281Free Quote