How Is Your Freedom Debt Relief Pricing Calculated?

Freedom Debt Relief calculates its fee as a percentage of the total amount of debt you enroll in the program, multiplied by the portion of that debt you'll actually settle for. In other words, the fee equals the agreed‑upon settlement discount (the amount the creditor agrees to accept as full payment) times the company's percentage rate, which varies based on factors such as the type of debt, the creditor, and your state's regulations.

The percentage rate is not a flat number for every case; it can differ depending on the lender's policies, the category of debt (for example, credit cards versus medical bills), and any state‑specific caps that may apply. Because of these variables, the exact fee amount is only finalized after Freedom Debt Relief has negotiated the settlement terms with each creditor and can provide you with a detailed fee breakdown before you sign any agreement. Verify the percentage rate and any applicable caps in your state's consumer protection statutes or your contract documents before proceeding.

Your total outstanding balance is the main factor Freedom Debt Relief uses to set its fee because the company ties the charge to a percentage of the debt it helps you settle. The larger the sum you owe, the higher the absolute fee will be, even though the percentage rate may stay the same.

That said, the final amount can also shift if you enroll only a portion of your balances or if your monthly payment plan changes, topics we'll explore in the next sections. Always verify the fee calculation in your enrollment agreement before signing.

Your pricing changes only for the debt types that Freedom includes in the settlement calculation; everything else either doesn't count or is handled separately.

• Credit card balances - Full balances on revolving cards are added to the total debt figure that determines your fee percentage. Partial balances or cards you exclude will not affect the calculation.
• Personal loans - Unsecured personal loans from banks, online lenders, or credit unions are treated like credit cards and raise the total debt used for pricing.
• Medical bills - Charged‑off medical expenses are included in the debt pool, so higher medical balances increase your fee tier.
• Student loans - Federal and private student loans are excluded from the fee calculation; they are settled separately or left untouched.
• Auto loans - Secured vehicle loans are generally not counted toward pricing because they involve collateral; they may be excluded or handled as a separate program.
• Tax debts and government obligations - These are excluded from the fee calculation and must be paid directly by you.

Check your enrollment documents to confirm which of your debts are being counted and which are excluded before you finalize the agreement.

Your monthly payment doesn't change the fee itself; it only determines how quickly you reach the point where the fee is applied. Freedom Debt Relief calculates the fee as a percentage of the total enrolled debt, then spreads that cost over the months you'll be making payments. Because the fee amount is fixed once your enrollment is set, a larger monthly payment just shortens the time you'll see the fee on your statement.

1. Fee is set up front - When you enroll, Freedom adds a percentage‑based fee to the total debt you've selected. This fee is locked in for the life of the program.
2. Monthly payment schedule is created - Based on your chosen payment amount, Freedom builds a schedule that shows how many months you'll need to pay down the enrolled debt.
3. Fee appears when payments begin - The fee is billed at the start of the payment schedule, not before. You'll see it on the first statement that reflects a monthly payment.
4. Higher payment = fewer statements with the fee - Because the fee is a one‑time charge, a larger payment simply means you reach the end of the schedule sooner, so the fee shows up on fewer monthly statements.
5. Lower payment = fee spread over more months - If you choose a smaller payment, the same fee is divided across a longer timeline, so it appears on more statements.
6. Fee amount stays the same regardless of payment size - Changing your monthly payment after enrollment does not adjust the fee; it only reshapes the timeline. If you want a different fee, you would need to re‑enroll with a new debt total.
7. Check your agreement - Verify the exact fee percentage and payment schedule in your enrollment documents, as they can vary by state and lender.

Keep in mind that the fee is independent of the payment amount; it's the debt total and enrollment structure that set it.

You'll pay a few small items before any settlement negotiations actually begin, and they're separate from the percentage‑based fee you'll owe on the debt that gets settled. These pre‑settlement charges cover the administrative work of setting up your account and getting your case ready for the negotiation phase.

• Enrollment fee: a one‑time charge applied when you sign up, often a fixed dollar amount that varies by provider.
• Initial assessment fee: covers the credit‑review and debt‑analysis performed by the company; it's usually a set fee or a modest percentage of the total debt you disclose.
• Account‑setup charge: a small cost for creating your client portal, processing your personal information, and establishing the legal representation needed to start negotiations.

Make sure you ask the firm for a written breakdown of these items before you sign so you know exactly what you'll owe up front.

You'll see any fees on your Freedom Debt Relief statement the moment the pre‑settlement fee is charged - usually within the first billing cycle after you enroll, and again each month when a monthly‑payment fee is applied.

If your plan includes a one‑time setup charge, it appears alongside the initial payment; ongoing fees show up at the same time as your regular settlement‑payment posting.

On the statement, fees are labeled clearly, often as 'Freedom Debt Relief Service Fee' or 'Monthly Management Fee,' and they are listed as a separate line item from the amount applied to your creditors. Check that the description matches what was disclosed in your enrollment agreement, and verify the date aligns with the billing cycle you expect. If anything looks off, contact Freedom's support team promptly.

Here are three side‑by‑side illustrations of how Freedom might calculate its fee, each built on a clear set of assumptions so you can see what changes drive the final amount.

Example 1 - Moderate debt, steady payment

• Assumptions: $8,000 total enrolled debt, 12‑month repayment plan, $400 monthly payment.
• Fee calculation: Freedom charges a percentage of the total debt (e.g., 15 %). Fee = $8,000 × 15 % = $1,200.
• What you see: The $1,200 fee is disclosed up front and appears on your first statement as a single line item.

Example 2 - Higher debt, larger payment

• Assumptions: $15,000 total enrolled debt, 18‑month repayment plan, $900 monthly payment.
• Fee calculation: Using the same percentage‑of‑debt model (15 %), Fee = $15,000 × 15 % = $2,250.
• What you see: The fee is split across the first two statements (e.g., $1,125 each) but the total remains $2,250.

Example 3 - Smaller debt, shorter plan

• Assumptions: $3,500 total enrolled debt, 6‑month repayment plan, $600 monthly payment.
• Fee calculation: Applying the 15 % rate, Fee = $3,500 × 15 % = $525.
• What you see: The entire $525 shows on the initial statement as the ""Freedom fee.""

*Note: The percentage rate and how the fee is distributed can vary by issuer and state, so always verify the exact terms in your agreement before enrolling.

If you enroll fewer debts, your Freedom Debt Relief fee and monthly payment will be calculated on the smaller 'enrolled‑debt' amount, which can lower both the percentage fee and the amount you owe each month

Enrolling more debts (or all eligible accounts) increases the total enrolled‑debt figure. Because Freedom's fee is a percentage of that amount, a larger pool generally means a higher overall fee and a larger monthly payment, even though the percentage rate stays the same

Enrolling fewer debts does the opposite: the fee percentage remains unchanged, but it applies to a reduced principal balance. That usually results in a smaller total fee and a lower monthly payment, but it also means any debts you leave out won't be part of the settlement process and will remain your responsibility

Check the 'total‑debt vs. enrolled‑debt' sections of your agreement to see exactly how your chosen enrollment scope will affect the numbers before you finalize the plan

You should double‑check these key points before you sign any Freedom Debt Relief agreement.

• What exact fee percentage will be applied to my total enrolled debt, and how does it change if my debt amount increases or decreases?
• How will my monthly payment amount affect the final fee, and is there a minimum payment required to keep the program active?
• When will I be required to pay any upfront fees, and are those amounts refundable if I decide to cancel early?
• Where on my monthly statements will the fees appear, and will they be listed as a separate charge or bundled with the settlement amount?
• Which types of debts (e.g., credit cards, medical, personal loans) are included in the fee calculation, and are any excluded or priced differently?
• What happens to my fee if I enroll fewer debts than originally planned or add new debts after the program starts?
• Who can I contact to get a written breakdown of all fees before I commit, and what documentation should I keep for my records?

If anything feels unclear, ask for the information in writing before you sign.