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Should We Use Freedom Debt Relief or an Attorney to Help Us With Debt Settlement? – Debbie

“Dear Steve,

We are drowning in unsecured debt and cannot get our heads above water.

We are trying to decide whether to go with a debt settlement company (we are leaning toward Freedom Debt Relief) or contact an attorney. Not sure if the fees would be comparable- or if the attorney would be able to help us in the same way?

Debbie”

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The Answer

 

Dear Debbie,

I’m a bit worried about you approaching debt settlement through anyone unless you have a lump sum of cash on hand right now to use to settle your debts in one fell swoop. If you do then I think that if the debt settlement company has more experience in doing this than the lawyer, they may be the better way to go.

However, if the attorney is familiar with the current offers you creditors are accepting to pay off with debt settlements than make your choice based on price and your gut level. Both entities are going to charge you fees for offering you a professional service.

If you are just getting by now and don’t have the cash on hand to settle the debts right now then I would advise you against going for a monthly payment debt settlement approach. In that plan people send monthly payments to the entity they are working with, lawyer or debt settlement company, and those funds are saved up until there is enough cash on hand to make an offer to a creditor.

During this time when the creditors are not getting paid and the settlement group is saving up the monthly payments, many people get sued by their creditors. It’s not worth the risk of getting sued to try the monthly payment method. I think you’d be better off considering bankruptcy instead. In bankruptcy you are either going to get all of your debt wiped out or on a monthly payment plan that creditors must accept. I’d suggest that you meet with a local bankruptcy attorney and get a free bankruptcy consultation before deciding on the monthly payment debt settlement path.

Big Hug!

Should We Use Freedom Debt Relief or an Attorney to Help Us With Debt Settlement?   Debbie
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Steve Rhode

    I don’t have any affiliate agreements with debt settlement companies. You can see all my relationships in the site terms.

    Steve

  • Joe Griffith

    I see you have afilliate links on your website, I have found another site curadebt that pays $450 per sign up with on going monthly residuals if you are interested in adding it to your site to add revenue.

    http://www.commercialdebtcouns

  • Joe Griffith

    I see you have afilliate links on your website, I have found another site curadebt that pays $450 per sign up with on going monthly residuals if you are interested in adding it to your site to add revenue.

    • http://GetOutOfDebt.org Steve Rhode

      I don’t have any affiliate agreements with debt settlement companies. You can see all my relationships in the site terms.

      Steve

  • Not a Freedom Financial Fan

    Dear Debbie, Under no circumstances should you go with Freedom Debt Relief/Freedom Financial Network!!!!!! I just terminated there services earlier this year and they have scammed me out of over $9,000.00. Not trying to scare you but I plead with you do not go with them. You will be in worse shape than what you started with. Get a consult with a bankruptcy attorney (check your state bar association and state attorney generals office for leads to a reputable attorney)or call National Credit Card Counseling. What happened to us with Freedom Financial is the following: We were sued by chase, they did not make a payment with chase and put us into final judgement, they settled two of our accounts for higher balances than what we started with. Our credit report is a complete disaster. Another idea for you is to go to Oprah.com and look at the debt diet series she just did. It is wonderful. Check the internet for all the lawsuits and complaints against Freedom Financial. It is unbelieveable and check with your state attorney’s office. Best of Luck to You!!

  • http://www.assistafinancial.com Ryan

    Debbie,

    Definately do NOT go with Freedom debt. They collect most of their fees upfront before your debts will be settled. If this appears to be your best option you need to find a settlement company that collects their fees based on performance and after they actually settle your debts. This will allow you to save your money faster and settle your debts quicker.

    Assista Financial, http://www.assistafinancial.com, uses a performance based model where we are able to save up your money faster so we can settle your debts because we collect most of our fees after we settle your debts and based of what we actually save you.

    Also please see this abc news article about freedom debt and other companies like them that collect fees upfront.

    http://abcnews.go.com/GMA/ConsumerNews/undercover-investigation-debt-settlement-companies/story?id=10453587&page=2

    Please call me:

    Ryan McDonald
    Assista Financial
    888 800 0154 x4264

  • http://www.nithin.net Nithin

    Debbie, Steve is right. In order to successfully negotiate with your creditors for a settlement, you will need lumpsum money in hand. Now we all know that if you had money lying around you would not be in this predicament in the first place. The success of a settlement program depends on your ability to save funds on a monthly basis.

    A company such as Freedom Debt Relief will probably have historical information on how to negotiate with different creditors, whereas an attorney would be starting from scratch. An atorney will also end up costing way more that the fees that a setlement company may charge. Most settlement companies calculate their fees in the beginning of your program, and the fees do not change afterwards. An attorney would charge you based on billable hours.

    I did some research on Freedom Debt Relief. They have been in business for more than 6 years, they are TASC certified (www.tascsite.org) and are managed by Stanford business school graduates. They currently have more than 40000 clients enrolled in their program.

    I would definitely go with Freedom Debt Relief.

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