Which Is Better: Accredited Debt Relief or Freedom Debt Relief?

If you’re dealing with a large amount of credit card debt, medical bills, or other unsecured loans, companies like Accredited Debt Relief and Freedom Debt Relief can often help you settle your accounts for much less than you owe. Other than debt settlement, both companies also offer debt consolidation loans from their network of lenders.

Before you reach out to either one of these companies for debt relief assistance, it’s important to understand how they work, the services they offer, and the key differences between Accredited Debt Relief vs. Freedom Debt Relief.

What Is Accredited Debt Relief?

Accredited Debt Relief is a California-based company that offers debt settlement and debt consolidation services. The company is accredited by the Better Business Bureau (BBB).

Following a free consultation, you can enroll your debts into the company’s debt settlement program. You’ll stop making payments to your creditors and will instead make monthly deposits into a separate savings account to accumulate a lump-sum amount that you’ll pay to your creditor(s) as part of your pre-arranged settlement agreement with them. When borrowers sign up for their program, they are assigned a debt negotiator who will work with your creditor(s) on your behalf.

Your debt negotiator will work with your lenders to reach a settlement amount that you’ll pay, in return for relieving you of any further payments. Most clients can settle their accounts for 55% of the balance they owe, and the program can usually be completed in 24 to 48 months. However, Accredited Debt Relief doesn’t offer any guarantee.

What Is Freedom Debt Relief?

Freedom Debt Relief has been helping borrowers manage their unsecured debts since 2002. They offer customized debt relief programs like debt settlement and debt consolidation. The firm is accredited by the International Association of Professional Debt Arbitrators (IAPDA), the American Association for Debt Resolution (AADR), and the Better Business Bureau.

The company’s debt relief programs are available in 42 states (it does not operate in D.C., Colorado, North Dakota, Oregon, Rhode Island, Vermont, West Virginia, Wisconsin, and Wyoming).

Freedom Debt Relief also offers a guarantee that if your settlement cost is higher than the initial balance enrolled, you can get a refund for the difference.

Pros and Cons of Accredited Debt Relief

Accredited Debt Relief has great online reviews, but it isn’t available in every state. Consider these pros and cons.

Pros

• You may be able to settle your account for 55% of the balance you owe.
• A+ rating on the BBB’s website
• Free consultations
• No upfront fees

Cons

• Minimum debt requirement of $10,000
• Only available in 34 states
• You’ll pay 25% of the total settled debt as fees for negotiating your lump-sum payoff amount

Pros and Cons of Freedom Debt Relief

Freedom Debt Relief is accredited and offers a program results guarantee. However, the company’s debt relief programs also come with a few drawbacks.

Pros

• Multiple accreditations from a variety of debt relief organizations
• Offers a program guarantee
• Free consultations
• Intuitive client dashboard to track your progress once you sign up

Cons

• Settlement fee is based on the amount of initial debt enrolled
• A monthly fee and a $9.95 setup fee are required for setting up the savings account you’ll contribute to.

Accredited Debt Relief vs. Freedom Debt Relief: Key Differences

Understanding the key differences between Accredited Debt Relief vs. Freedom Debt Relief is a good way to determine which debt relief company is the most suitable for your financial needs.

Services

Both companies offer debt settlement and debt consolidation loans to help you pay off your unsecured debts.

With debt settlement, the company will negotiate with your lenders to get them to agree to settle your account(s) for a lump-sum payment that is substantially less than you currently owe them. You’ll need to make a lump sum payment to your lender once they agree to the settlement, but in return, any remaining amount will be waived or forgiven by your lender(s). The debt settlement company can only charge its settlement fee if it successfully negotiates a settlement that is agreeable to both you and your lender.

It’s important to note that Accredited Debt Relief and Freedom Debt Relief are not lenders, but they do offer debt consolidation loans through their lending partners. With debt consolidation, you can take out a loan to consolidate multiple small- to medium-sized debts into one single monthly payment.

Fees and Costs

It’s illegal for debt settlement companies to charge upfront fees. They can only charge a fee once they’ve resolved your debt or reached a settlement with your lenders that is acceptable to you, given the amount of your debt and the interest rates and other fees you’re currently being charged on them.

Accredited Debt Relief usually charges 25% of your settled debt, while with Freedom Debt Relief, the fee varies from 15% to 25%, based on the initial amount of debt enrolled in their program when you sign up.  

Eligibility Requirements

Most debt relief companies require that their clients have a minimum debt threshold to enroll in their programs. You may qualify for Accredited Debt Relief’s debt settlement services if you have at least $10,000 in unsecured debts.

Freedom Debt Relief’s minimum debt requirement is considerably lower, at $7,500. Keep in mind that these companies can only help you with certain types of debts (unsecured debts). Secured debts like auto loans, mortgage loans, and secured personal loans don’t qualify for this kind of debt relief.

Customer Reviews

Freedom Debt Relief and Accredited Debt Relief have great customer reviews and ratings on platforms like Trustpilot and the Better Business Bureau. Accredited Debt Relief also has great reviews on its Google Business page, while Freedom Debt Relief doesn’t have a Google page for users to leave reviews. On the other hand, Freedom Debt Relief has a higher number of debt relief reviews on Trustpilot and their company’s page on the BBB’s website.

We also want to point out that Freedom Debt Relief has faced legal and regulatory issues in the past. In 2019, the company agreed to pay $25 million in response to a lawsuit from the Consumer Financial Protection Bureau (CFPB) for charging consumers fees without settling their debts.

Freedom Debt Relief also had to pay $9.75 million in 2023 to settle a class-action lawsuit for violating the Telephone Consumer Protection Act.

For a more in-depth understanding of your debt relief options, be sure to check out our detailed reviews on Freedom and Accredited Debt Relief. These assessments can provide you with valuable insights into their services.

Accredited Debt Relief vs. Freedom Debt Relief: Which One Should You Choose?

Accredited Debt Relief and Freedom Debt Relief can both help you settle credit card balances, medical debt, private student loan debt, and other unsecured loans for less than you owe. While this may allow you to save a considerable amount of money and become debt-free sooner, you may have to pay up to 25% of your enrolled debt as fees, which reduces the net amount of savings you’ll realize from this method of debt relief.

Both companies are accredited and have a generally good track record of customer satisfaction and many positive reviews. They also offer debt consolidation loans, though it may be best to borrow from direct lenders for lower interest rates if you have a good credit score. Keep in mind that these companies do not offer their services in all states, so picking between the two options may depend on state availability.

Keep in mind that there are other debt relief options that may be a better fit for your needs, such as nonprofit-based credit counseling, debt management plans, and of course, filing for bankruptcy protection. You may also want to check how these two companies compare to the best debt relief companies in the country.