Understanding Debt Relief: What It Is and How It Works

Published: Oct 21, 2024 5 min read
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Feeling overwhelmed by high-interest debt? It may seem difficult to get ahead, but there’s always a way forward. With the right debt relief plan, you can regain control and start working on other goals—whether that’s building up an emergency fund, saving for retirement or strengthening your financial future.

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What is debt relief?

A debt relief program provides expert support, tools and resources to help people manage overwhelming debt. Done right, it could reduce the amount of money you owe and get rid of your debt faster than with minimum monthly payments, providing you with a fresh financial start.

Here are three steps to debt relief and how Freedom Debt Relief could help you every step of the way.

Step 1: Start with a free debt evaluation

Talk to one of Freedom Debt Relief’s Certified Debt Consultants to see if their debt relief program is right for you. During that free debt evaluation, your consultant will discuss your finances and goals, and together, you’ll come up with debt relief options that make sense. Find out how much time and money you could save by working with Freedom Debt Relief to resolve your debt.

Click here to get started with your free debt evaluation today >>

Step 2: Make one low monthly deposit

Instead of struggling to make individual payments to a lengthy list of creditors, you make one affordable program deposit into an FDIC-insured account. This is a dedicated account you control, designed to help you build up funds that will be used to settle your debts with creditors.

Step 3: Approve your settlement offers

Freedom Debt Relief’s team of experts work with your creditors on your behalf to negotiate settlements. You’ll receive notifications, both online and on your phone, each time they have reached an agreement with a creditor. They’ll reach out to you to approve each settlement offer before finalizing the deal, ensuring you're in control of the process, and that you get the best possible savings. Once you approve, the creditor is paid out of the funds in your dedicated account—and that debt is settled.*

After successfully paying off all the debts in your debt relief plan, you’ll be debt-free and ready to pursue new financial goals.

Get started today

For over 20 years, Freedom Debt Relief has been helping people create personalized debt relief plans that work. With more than 1 million clients enrolled and over $19 billion in debt resolved, you’ll no longer have to face creditors alone.*

Click here to get started with your free evaluation today >>

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If you owe over $25,000 in debt, a Debt Relief Program may be able to help get you back on your feet more quickly.
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Sponsored by Freedom Financial Network, LLC doing business as Freedom Debt Relief

*Freedom Debt Relief’s disclosures: Freedom Financial Network, LLC, offers various financial products and services through its wholly owned subsidiary, FDR, and affiliates (collectively, "Freedom"), which may be provided by Freedom or other unaffiliated third parties. All estimates for FDR’s services are based on prior results, which will vary depending on your specific enrolled creditors and your individual program terms. Not all clients are able to complete their program for various reasons, including their ability to save sufficient funds. FDR does not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. Nor will it assume your debts, make monthly payments to creditors or provide tax, accounting, legal advice or services. FDR’s service is not available in all states, including New Jersey, and its fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. Read and understand all program materials prior to enrollment. The use of FDR’s services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated results FDR obtains on your behalf resolve the entire account, including all accrued fees and interest. C.P.D. Reg. No. T.S.12-03825. By proceeding, you acknowledge that you may be contacted by one or more representatives of Freedom to discuss options.

The information provided on this page is for educational purposes only and is not intended as financial advice.