Some Fine Print on Debt Relief Programs


Wanted to provide some detail on one of the many debt relief programs one sees on TV these days. The ad you see below is being aired by Freedom Debt Relief on NBATV. The advertisement began with what appeared to be a regular guy with 17000 dollars in debt on 7 different credit cards. The fine print claims it is an actual testimonial portrayed by an actor.

The cost is 50% of the $17000 balance plus fees which push it up to 71% and you have to pay it off within 24 to 48 months. The actual wording is 50% of the enrolled balance which is a little confusing.

It is very likely that your consolidated monthly payment would be more than all the monthly payments of the 7 credit  cards combined. This is because you effectively had forever to pay down your outstanding balances on all seven cards by making only the minimum monthly payment. You would pay more in the long run, but there would be no deadline.

Credit Card Condolidation ad
Actor advertising credit card consolidation

3 comments on “Some Fine Print on Debt Relief ProgramsAdd yours →

  1. When I enrolled in Freedom Debt Relief, I felt the world had been lifted off my shoulders and I would within two years be debt-free. WAS I EVER WRONG!! Early into the program, I was sued by a creditor and after being told when I signed up the FDR would pay for my attorney to represent me in court, they told me that was MY responsibility. So in a panic to attempt a lawsuit, I withdrew my retirement to pay toward the debt program to expedite settlements. After providing them an additional 10,000.00 on top of the 6,000.00 that I had already paid in, and being told on four different occasions that all my accounts had been settled and I would be receiving about 70.00 in return/overage that I had paid in, when I called to cancel FDR and get out of the program, they now tell me I owe them 3000.00 more dollars!!

    Not only can they not explain why I have been told different things from different people, they cannot provide me with a break down of where all this money I paid in went and how it was spent. I see no end in sight. First I would be done in October, then it was November, now it May….I don’t understand how people can be so irresponsible in their jobs and not have documentation to show what they do, but yet turn it around on the customer saying it is their fault and one customer service rep even said “You should have never run your debt up and you should have been more responsible.” Enrolling in FDR has made things worse and led to unbearable stress.Please help this is not fair and I am sure if it is happening to me it has happened to millions of others!

    1. What “happened to you” is you irresponsibly overspent and now you are whining about FDR trying to collect the money you owe. It is not fair that hard working people who eat at home and don’t go out have to support unaccountable people like you when you file personal bankruptcy. The flip side is that the website glassdoor lets FDR senior account executives write fake posts about the great working conditions there.

  2. Beware that many companies like Freedom Debt Relief(despite what Mark Cappel says) are charging high fees for helping enroll college grads with high student loan debt in borrower assistance programs that are actually free federal programs, available to anyone who qualifies. Some of the programs include federal income-based repayment plans and loan consolidation.

    UNDERSTAND that you can enroll in these debt relief programs for free! Do not pay a cent to a rip off company when you can do it yourself. My daughter had $29600 in student loan debt after she graduated from Penn State. Three years later, she still owes $28700! You get slammed with fees and FDR does not care if you only make minimum monthly payment. The are as bad as Visa credit card about keeping you in debt for the rest if your life.

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