They work directly for the consumer, and do not receive any compensation from the creditor (which is how many alternative credit counseling firms work, where they get kick-backs from the credit card companies to get you to pay your debts back).

They are members of the Better Business Bureau, and have been members for many years. One of the founders, Andrew Housser, is on the board of The Association of Settlement Companies - TASC ( ).

The Founders have appeared in the press and news as consumer finance resources in places like the New York Times, LA Times, CNN, Stanford Business School Magazine, La Opinion and many others.

They are saving millions in credit card and other unsecured debt for their clients every month.

The program that they use lists three primary benefits: a lower monthly contribution than what a client’s old minimum payments were; cutting debts and the amount of principal owed; and getting their clients debt-free in a short amount of time.

When Freedom Debt Relief negotiates down credit card debt, it allows their clients to save a smaller amount each month that is saved in an FDIC insured bank account in the client’s name – resulting in those lower payments. Overall, it looks like a solid company for consumers who want low payments and to get debt free quickly.

It is important, however, to evaluate any program on its merits and on its downside. With a negotiated debt settlement program, the benefits come at the cost of a low credit rating during the program (don’t expect to get a loan or mortgage during a debt settlement program, and likely for at least a year after you graduate). And yes, it is definitely an alternative to Bankruptcy.

1. Order your credit reports from the 3 bureaus
If you’re ordering for the first time, get your score (for a fee) from Equifax as their scoring matters most.

2. Make copies of your report and put the originals in a binder. On the photocopied reports use a highlighter and check for any incorrect, outdate, false, etc…info

3. Download a dispute letter(s) from the credit bureaus website and list anything that is wrong. Mail them to their office(s). They have 30 days to reply.

4. If they will not remove something that is not yours or too old (> 7 years) as them for a debt validation. This may take an additional 30 days.

5. Once the ‘baddies’ come off, take care not to let any of your other accounts fall into that predicament.

6. If you haven’t already make sure your existing accounts are current and paid on time ALWAYS.

7. Get a secured credit card with or for like $500-1000 or more if you can and use it sparingly. Charge like $50 on the card each month and pay it in FULL and on TIME. Make sure you do this for a minimum of 6 months so that you estabish a positive repayment history.

8. Problem with just letting them ‘fall off’ is that they may never. You may get sued before that…that’s where you suddenly get a summons to appear in court and a judgment for collection against you.
For the 2 collection items…pay them but get a ‘pay for delete’ from the collectin agency in WRITING…they’ll delete it after you pay and it will help your credit score

There are various plans and programs available to consolidate your credit card debts. Mainly there are credit card debt consolidation loan, credit card debt settlement plan and credit card debt management plan. Your credit counselor after contacting and negotiating with your creditors will provide you various debt management plan from which you have to choose the best for you.

I actually own a credit/debt settlement company myself. If you would like some advice or for me to look into your situation a bit deeper before you sign up with one of these companies email me at

After all I do do this for a living.

Aaron

If you are current on your accounts, this process will ruin your credit rating as your accounts will all go into default. Your creditors are under no obligation whatsoever to accept settlements from any debt settlement firm you hire. Their response might be to serve you papers and take you to court.

You don’t have to pay any firm to attempt settlements. You can try this own your own. Just remember, if you currently have good credit, this process will ruin your credit and there’s no guarantee that your creditors will accept settlements. If you are currently in default on your credit cards, you can make your own settlement offers. You don’t need to pay anyone to do this for you.