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Debt Consolidation

New Visitor

Debt Consolidation

Ok so a few several months ago we decided to consolidate our debt and signed up with Freedom Debt Relief (FDR). I had the seen the suggestion from the Mint app I use. Now I’m not so sure it was the right move because of the requirement to stop paying on my credit cards. My scores took a hit as well as my wife. The other reason why our scores massive hits was that we had to short sale over homes. I was stationed overseas and our property manager screw us over and everything went downhill. So far FDR has helped us settled one card. Now they’re working on 3 other cards to combine the amount to settle it but we have at least 2 more to pay off. Should I stick with FDR and wait till they combine the 3 and settle with the card company? Then pull out of the program and start paying on the other ones so we can improve our scores? At our current rate with FDR, we will be “debt” free in Nov 2021. If we make additional payments it’ll move our timeline closer. We’ve made mistakes and life happened and we’re trying to find the best way to get out of debt sooner than later.
Message 1 of 7
6 REPLIES
Established Contributor

Re: Debt Consolidation

Stick with them.  You already took the biggest score hits. Dropping out now will just be taking a loss.

 

Unless, you are not confident that they can do what they say. In which case drop out now.

Message 2 of 7
Frequent Contributor

Re: Debt Consolidation

I worked with them and they settled two accounts. I was OK with them, but I got sued despite paying them and extra for legal help. Then, the legal people did not help. By then, I was so far behind from not paying creditors that I had to file bankruptcy. I hope you have better results.
Message 3 of 7
New Visitor

Re: Debt Consolidation

I’m sorry to hear that. I’ve read somewhere that they were forced to repay with clients for either misleading them or failed to settle their debts. I hope I don’t get screwed over by them which is why I’m having 2nd thoughts about them and any debt consolidation companies.
Message 4 of 7
New Visitor

Re: Debt Consolidation

Yeah it’s just frustrating that I’m in this position to begin with.
Message 5 of 7
Regular Contributor

Re: Debt Consolidation


@wrote:
Ok so a few several months ago we decided to consolidate our debt and signed up with Freedom Debt Relief (FDR). I had the seen the suggestion from the Mint app I use. Now I’m not so sure it was the right move because of the requirement to stop paying on my credit cards. My scores took a hit as well as my wife. The other reason why our scores massive hits was that we had to short sale over homes. I was stationed overseas and our property manager screw us over and everything went downhill. So far FDR has helped us settled one card. Now they’re working on 3 other cards to combine the amount to settle it but we have at least 2 more to pay off. Should I stick with FDR and wait till they combine the 3 and settle with the card company? Then pull out of the program and start paying on the other ones so we can improve our scores? At our current rate with FDR, we will be “debt” free in Nov 2021. If we make additional payments it’ll move our timeline closer. We’ve made mistakes and life happened and we’re trying to find the best way to get out of debt sooner than later.

I wish you would have come here asking if you should have signed up with them in the first place. Many including me would have said stay away. They ruin ones score and use shady practices to try and get settlements for less. Often having you stop payments and tank your credit even worse. I’d say stop using them and throwing money away to them. But the damage is already done. I wish you good luck. And there are many articles in here how to fix your credit yourself. All it takes is hard work and time to recover. I’d try and do it yourself but I don’t know if you have the time and patience to tackle it after having this company do it’s thing so far.



Starting Score: 600
Current Score: Exp = 703 Tran = 706 Equ = 710
Goal Score: 800


Take the myFICO Fitness Challenge
AAoA Exp = 12.2 Equ = 7.5 Tra = 7.4
Inquiry Exp = 1 Equ = 0 Tra = 2
Message 6 of 7
Regular Contributor

Re: Debt Consolidation

If you choose a debt settlement company Freedom Debt Relief is the “best” one. That said I don’t recommend using any dsc l. They charge 19-21% of enrolled debt so after their fees you end of saving close to only like 10-15%

The only way to settle with credit card companies is by missing payments. If you have a lot of cards then maybe there is value because they can track your stuff.
Message 7 of 7