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One of the most popular forms of debt relief has become debt settlement. Debt settlement is the process in which you (or a third party on your behalf) negotiate a lower total repayment amount with your creditor for the debt that you owe. For example, if you owed a creditor $5,000, there is a chance that you could negotiate that total payment down to $3,000 to fully satisfy your total debt. There is a catch though. Typically, you have to intentionally let your account go into default by missing multiple consecutive payments. This can potentially lead to lawsuits and will definitely lead to a lowered credit score. Because of this, some people opt to work with a debt settlement company to try and avoid excessive risk and negotiations. One of the most well-known companies to offer debt settlement is Freedom Debt Relief

But what happens if you start the debt settlement process with Freedom Debt Relief and decide it’s not what you actually want to do? Do you have the ability to cancel the contract? Luckily, you do, but there are some other things you need to keep in mind. This article will go over those things, as well as your other options when it comes to debt relief. 

Why Might You Cancel Your Debt Settlement Contract?

There are a couple of reasons you might consider canceling your debt settlement contract. One of the most common reasons a debt settlement contract is ended is because the individual decides that debt settlement isn’t the right option for them. There are several debt relief options to choose from, and debt settlement can be one of the more precarious options. It opens you up to lawsuits, can have a huge negative impact on your credit, and is a generally stressful process. Because of this, many people realize they would prefer to go a safer and more reliable route. They might cancel their contract in favor of doing something else.

Others cancel their contract because they feel as though the cost of the company is not worth the money they could potentially save. There are dozens (if not hundreds) of debt settlement companies, each offering similar services at varying prices. One reason you may cancel is that you realized you could work with a different company at a lower cost. 

While these are only two reasons why you may want to cancel your Freedom Debt Relief Contract, there are many other reasons, all of which are valid. Regardless of why you want to cancel your contract, you need to know the how. Keep reading to find out how you can cancel your contract. 

Freedom Debt Relief Cancellation Policy

According to the Freedom Debt Relief website, you can absolutely cancel your contract with them. However, there is a pretty strict time frame. You can cancel without penalty “at any time before midnight of the third business day after,” the day you sign the contract. This means you have three full days to cancel your contract without penalty. 

If you decide after three days that you wish to cancel your contract, Freedom Debt Relief may have the right to keep anything that you have paid into them. 


This information is more than likely going to be found in your service agreement contract, so look there for more specific information. However, this is the general process:

  1. Locate the Notice of Right of Cancellation Form that is found in your initial contract. According to the contract that is available online, this would be found of page 36 of the contract. 
  2. Sign and date the Notice of Right of Cancellation Form. 
  3. Mail it off to Freedom Debt Relief, LLC ATTN: TERMINATIONS PO Box 2330 Phoenix, AZ 85002-2330
  4. Follow up with an email to

Alternatively, the contract does state that you can directly email to request a cancellation. 

Doing this will cancel your contract, however, it will also end any debt relief process that may have been started. 

What Happens To The Money You’ve Already Paid Into Escrow?

While it is illegal for a debt settlement company to charge you for their services before they have finalized their negotiations, you will still be making payments into an Escrow account that will be used to settle your debts. Because of this, there may be some other charges that are non-refundable. These charges include any fees to set up your bank account and any processing charges. These charges you will not get back. However, you are entitled to get any other payments you made into the Escrow account. Make sure you have those funds secured before you close out any communication with Freedom Debt Relief. 

It’s important to realize that you will still be responsible for the debt payments that you owe once you cancel your contract. So, if you were already a few weeks or months into the process and had missed any payments, you will still be liable for the missed payments as well as the recurring payments. 

What Are Your Other Options Once You Cancel?

As stated above, once you cancel your contract, you are still on the hook for the money that you owe your creditors. So, what should you do once you cancel? Luckily, you have a few options! Here are just a couple of options to consider if you decided that debt settlement is not right for you. 

Debt Consolidation

One way that you can begin tackling your debt is by consolidating your various debts into one and making one lump sum payment each month. If your biggest issue is keeping up with the various payments you have, this can help you get and stay organized. 


If you have realized that you cannot keep up with any payments, you cannot save up enough to settle, and your options are running out, bankruptcy may be the next best step for you. Bankruptcy can help discharge some of your debts either through liquidation or a structured, extended pay off schedule. 

Debt Management

If your biggest struggle is just understanding how your debt is structured and what the best moves forward are, you may want to look into debt management. This is where you work with a counselor who can help organize your finances and show you how you can flow your money into your debt to help you get debt free as fast and as efficiently as possible. 

Contact Us

Regardless of what you decide to do, give our team a call! We can help you analyze your current situation and decide what might work best for you. We love giving unbiased advice. Be sure to reach out!

Post Author: LincolnE

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