Has Anyone Used FreedomDebt.com?

The ONLY place you should work with is Consumer Credit Counseling. But even they can have issues. We dealt w/one years ago, and the person suggested we file bankruptcy. Not a good idea, and it wasn't really necessary. Fortunately, I am sure other ones can be better. There are a LOT of complaints about these companies. They will take your info and money, and tell you not to make any payments (one company wanted $400 up front. We asked where they expected us to get the money - if we had $400 we'd use it for creditors, you know? - their response? Put it on your credit card - we'll get it charged off. Yeah, right. Debt Free America. By the way, they were put out of business by the feds. Unfortunately, it's like that in too many places. Not one payment will go to the creditor, or they will make a few payments to garner your trust, then stop making payments. You won't know until collection calls come or there's wage garnishment. Check this out on Dave Ramsey, author of Total Money Makeover. In fact, I'd recommend Total Money Makeover (many libraries have it, as do your bookstores and Amazon, along w/his website) to ANYONE who wants to break the debt cycle.

Be aware that contrary to what these companies tout, they don't have an "in" w/these creditors. It still shows up on your credit report that you've involved one of these companies. However, they know the laws and how to negotiate. You can do any of this on your own by calling your creditors, ask for a lower interest rate and let them know what you can afford. They'd rather lower your payments than have you as a charge off or file bankruptcy. Yes, there will be some that are jerks about it and refuse to do anything. Document EVERYTHING. The companies that won't do anything won't do anything for these debt companies either. Again, Dave Ramsey (you can google him - it may be DaveRamsey.com, but I'm not sure and my internet connection is woozy tonight.) can help walk you through these negotiations.

If, after all this info, you still want to pay the exhorbitant fees, be sure to google them with the word "scam" or "complaint" and check them out w/the Better Business Bureau. You can do most of this online.

Oh, and by the way, some of these claim to be "non-profit". Don't let that fool you. One reason the feds were able to prosecute Debt Free America is they claimed to be non-profit. I can't remember if they had legal status (to avoid taxes), but it made it easier for them to be shut down. CCC (consumer credit counseling) is non-profit.

Be aware, though, that no matter whether you do this yourself, or an agency/company does it, you will have to stop spending/using your cards. That will be the conditions put out by the creditor. And you can't get new credit (they keep tabs on your credit report), plus, they report you as in a reduced payment agreement, which is a red flag.

Also, I've said this before on here, but I am a member of Mommysavers.com, a forum about saving money. Check out the "Forget the Joneses" area from Kim, the founder of the board. LOTS of great info there, including some of the stuff I've shared here.

Good luck to you! It's so very tough to have to deal w/this stuff, but remember, it's a temporary situation, and you can pull yourself out of it. I just can't recommend Dave Ramsey enough. He gives you hope and is practical and even funny ("We work hard to buy things we don't need to impress those we don't care about.". American Express is "American Excess".) Easy read. He actually sounds like an infomercial at times (he's been broke, too); he's so passionate about his work. But he's not really "selling" anything. (There are CD's other books, including a workbook, but I found that the main book is all I need. It's very motivating. He even states that you don't NEED to buy his other products, but some feel comfortable with the extra help. I found his other books a bit redundant (which he admits), but others need the extra reinforcement. He puts your power and future into your own hands.

Someone mentioned his Financial Peace University. A great idea, and they are held in various churches. However, it does cost money (not too much, though), and it works better if you both attend. I'd read his Total Money Makeover first.

Once again, Good Luck to you.

I wonder if it is similar to nodebtandfree.com

We used them to help us out and they are amazing. They advertised on 960AM. It is not debt consolidation or any scam like that. They have this techinque on managing your money and how to pay your bills that is really different. We somehow paid off our truck in 6 months and two credit cards in 2 months. Our Mortgage will be paid off in 4 years....I still don't really understand how it happened ...Anyways...highly recommend checking them out.

T., there are so few of these programs that are useful and legitimate. There's a reason they're called "CONsolidations". I'd do a whole lot of research before signing anything with any such company! Dave Ramsey, who helped us through the process of getting out of debt, which we have recently accomplished - woohoo, the car drives different now that we own it! - says be extremely wary. It's better to sit down and come up with a personalized plan, with the help of a financial planner, if possible. You might even know someone personally who can help. The vital stuff comes first, the "four walls", so to speak: housing, transportation, utilities, food. You'd be surprised how many people put their credit card payments ahead of basic necessities.

There's more help at daveramsey.com. He's funny and compassionate, yet no-nonsense, and his plan is such common sense you're going to kick yourself at one time or another for making a decision you've made. We certainly did! And by the grace of God, in 2.5 years the debt we were drowning in is gone.

Happy debt-killing!

~ R.

T.:

I have tried to use some other forms of these Debt Recovery places; they said they would help me. NADA! They now have my social security number etc. All the personal information of my identity. I could not get it back if I tried.

They did not help me; refused to talk to me after they have my identiy info.

If you do find out if FreedomDebt.com and they are legit, then please let me know.

Be cautious of these debt counseling people. They may just want you, your husbands, and your childrens identity.

Life is not fair, I was hit head on coming home from work/Hospital and an off-duty cop hit me. He was on Cocaine and drunk. He almost shot me with the gun on his seat. If not for the other cop who appeared on the seen exactly 1 minute after the accident. I stuggle, but I have God; I am trying to graduate again from another major.

Be Safe,
S.

Hi T.,
I do not know about freedomdebt.com either but we used Take Charge America which is free for AZ residents (at least when we used them) and they are very helpful. Regardless of what company you use, make sure to do your research (do they have a monthly charge or any charges at all) and check out their record with the better business bureau www.bbb.org. Good luck!

I am so glad you posted this question. My husband and I are in debt becasue I was unable to work when I was pregnant with our son and we are desperate to pay off the credit cards. We have been looking into http://www.christiandebtconsolidation.org/ I am just not sure what the right questions are to ask so that I am not messing our family up even more buy settling our debt. Evertyhing the guy said sounded great but there has to be a catch or something. Let me know what you decide and how it goes. L.

I don't know anything about this company, but many years ago I went through Consumer Credit Counseling Service of AZ and they were wonderful. I got out of debt with out it hurting my credit. The best part is that it is free. Check out their web site: http://www.cccssouthwest.org

Hi T.,

I too used Consumer Credit Counseling many years ago. It did help me get rid of my credit card debt but it does put a small ding on your credit report. When we went to qualify for a house a few years later, it did not stop us from qualifying but it was a concern to the bank. It was just me, my husband had perfect credit so I think that is why they were okay with it. You can also try to negotiate lower interest rates with your creditors or even ask them to stop the interest accrual for a period of time to allow you to pay down some of the debt. That is essentially what the credit counseling services will do for you.

I also highly recommend taking the course Financial Peace University by Dave Ramsey. You can check out his website and find a location. www.daveramsey.com I took it through my church and it is a really great class. We are currently debt free but I learned so much about saving for college, budgeting, and retirement savings. I am also the wife of a pilot and so I know we can't rely on the airlines to provide for our retirement anymore. Good luck with getting rid of that debt!

I hadn't heard of FreedomDebt.com before your question so I went to their website to check them out. I'm extremely interested in this field (finances and getting people out of debt) and getting involved more.

They sound good, but I'm very hesitant to say go ahead and use them. I scrolled down their page that compares the different ways to get out of debt and was not impressed. I do like their promise to not charge you if they don't save you money, but they should give you an idea of how much they would charge you & I don't see that anywhere.

Call your creditors yourself. Ask them to lower the interest rates. If things are really tough, ask them to lower the balance. Remember to ask "Is that the best you can do?" Hospitals, personal loans, things like that are more likely to actually lower the principal than credit card companies. If you have a variable rate ask to be put on a fixed rate (you will probably need to stop using the card, if you haven't already).

FreedomDebt pointed out how ridiculous it is to only pay the minimum payment. So figure out which debt will be paid off first (either smaller balance or biggest interest rate--I haven't noticed a big difference between the two options), pay as much as you can afford on that one and only the minimum on the others. When it's paid roll that amount to the next card. (Dave Ramsey calls it snowballing.)

We did this a few years ago and paid off about $20,000 in 3 yrs with a yearly income somewhere around $30,000 while raising 4, then 5 children. We had it paid off in time to get a new van to fit our 6th child; & had the $20,000 for the van paid off in just under 2 yrs because our income had gone up.

Good luck. I'd like to know how things go for you.
--R. J.
mother of 7