Freedom Debt Relief - Videos

Freedom Debt Relief [(800) 973-1230] negotiates on behalf of indebted consumers who are experiencing a financial hardship with the goal of avoiding bankruptcy by settling their unsecured debt at a discount to the principal owed. For many consumers who cannot afford monthly payments and have significant (typically, greater than $10,000) high interest credit card debt or medical debt burdens, this is the only alternative outside of bankruptcy.

The average consumer of Freedom Debt Relief enters the debt resolution program with $30,000 in credit card debt spread over seven different unsecured accounts (this ranges broadly depending on the individual consumer situation). 80% of consumers are delinquent, or unable to make the next monthly minimum payments, at the point of initial consultation.

Before founding FDR, the founders performed extensive research into the credit card collection process and found that the traditional solutions available to consumers experiencing debt problems left a large segment of the population under-served. The primary solutions available to consumers were:

1. Refinancing to take equity out of their home to pay off credit cards.
2. Making minimum payments to creditors (typically 3% - 4% of balance per month, or $900 to $1,200 monthly on $30,000 of debt) while incurring very high interest rates.
3. Enrolling in a Credit Counseling / Debt Management Program (2.0% - 2.5% of outstanding balance per month).
4. Declaring Bankruptcy (Chapter 7 or 13).

FDR's research indicated that there is a large population of consumers that do not have any equity in their homes, and cannot afford either the minimum payments on their credit cards or the minimum payment required in a Credit Counseling program. Many of these consumers have the willingness to resolve their debts and the means to save some amount towards payments of their debts - however, because of the limited options available, they are faced with only one option that could work for them - filing bankruptcy.

Since FDR's founding, the population of Americans under-served by traditional solutions has increased dramatically. As of January 2009, the amount of outstanding credit card debt totaled roughly $1 trillion (compared to just $70.5 billion in 1982 -- the last time unemployment rates approached those we are currently experiencing). Today, 90% of credit-card users revolve a balance (i.e., don't pay it off in full) at least once a year, and over 45% of credit-card users revolve every month. The situation will unfortunately get worse before it gets better. Unemployment rates, widely viewed as the most reliable indicator of consumers inability to service their debt, climbed to 10% in November 2009. economists expect the unemployment rate to remain around current levels for the rest of 2010.

Furthermore, after the Bankruptcy Reform Act of 2005 and the financial crisis of 2008/2009, the options for consumers significantly decreased (with both bankruptcy and mortgage refinance much harder to qualify for), at the same time that demand for debt resolution is higher than ever.

As a result of these macroeconomic and policy driven issues, the American consumer is in dire need of assistance in working out their debt. Now more than ever there is an urgent need for properly regulated and well run Debt Settlement companies. Debt Settlement companies serve the crucial role of a consumer friendly advocate. Debt Settlement companies allow overly indebted American consumers to deleverage while remaining a productive participant in the US economy and repaying as much as possible to the creditors.

To see videos and written reviews from Freedom Debt Relief clients visit http://freedomdebtreliefreviews.com/.

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