2009-11-09 19:48:52 -
Freedom Debt Relief (FDR) has reached – and surpassed – the $500 million mark, settling more than $506 million in consumer debt since settling its first account in 2003.
SAN MATEO, CALIF., Nov. 4, 2009 --
The $500 million milestone comes on the heels of a record-setting month in October, in which the company settled $32.6 million in consumer debt. The October figure bests FDR's September settlement record of $28.6 million by 14 percent. The October settlements represent savings of more than $19 million on 6,102 accounts for FDR's clients.
The results that FDR's settlement team obtained in October represent an average savings rate of 58.5 percent of settled debt (total client debt balances at the time of settlement, before program fees). In other words, FDR clients paid an average of just 41.5 percent of the total debt amount they owed at the time of settlement.
For example, an individual
who had accumulated $30,000 of credit card and other unsecured (i.e., not mortgage or auto) debt paid, on average, just $12,450 of that debt, thanks to FDR professionals' ability to settle with the individual's creditors. In this manner, FDR acts as an independent consumer advocate on behalf of its clients to help them resolve serious debt burdens in a timely manner.
As a debt settlement firm, FDR negotiates directly with creditors on the consumer's behalf to resolve a consumer's debt balance. Offering an alternative to credit counseling, debt consolidation and bankruptcy, FDR's debt settlement programs help qualified clients fully resolve their debts, typically in two to four years. According to Andrew Housser, FDR's co-CEO, debt settlement is best suited for individuals who are carrying serious debt, who are struggling to make required minimum payments, and who would otherwise often be considering bankruptcy or credit counseling.
"We are proud to have surpassed $500 million in resolved debt for our clients," said Housser. The amount of negotiated settlements, and savings rate obtained, are key indicators of a successful debt settlement program, he explained. "Reaching the $500 million mark, with month-after-month records in settled debt, communicates just how successful FDR's negotiation services are. When consumers evaluating debt relief options review these indicators, they can quickly see the value of the services FDR provides."
About Freedom Debt Relief (www.freedomdebtrelief.com)
Freedom Debt Relief provides consumer debt settlement services. Working for the consumer to negotiate with creditors and lower principal balances due, the company has served more than 70,000 clients since 2002. Freedom Debt Relief is a wholly owned subsidiary of Freedom Financial Network, LLC (FFN).
Based in San Mateo, Calif., FFN also operates offices in Sacramento and Tempe, Ariz. The company, with 580 employees, was voted one of the best places to work in both the San Francisco Bay Area and the Phoenix area in 2008. Company co-founders and co-CEOs Andrew Housser and Brad Stroh were named to the Silicon Valley/San Jose Business Journal's "40 Under 40" list in 2008, and are recipients of the Northern California Ernst & Young 2008 Entrepreneur of the Year Award.
