Study: Freedom Debt Relief Helps Clients Reduce Stress
- UpdatedOct 31, 2024
- Researchers at Arizona State University found that Freedom Debt Relief program graduates had less financial stress than consumers who qualified to enroll but chose not to.
- Graduates were more likely to report better sleep, healthier relationships and improved quality of life.
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The Freedom Debt Relief program may reduce stress
When you’re dealing with debt, you may feel stressed and out of control—both financially and emotionally. But what if there was a way to curb that stress and start feeling better about your situation? A recent study from the L. William Seidman Research Institute at Arizona State University suggests that Freedom Debt Relief may have the answer for your debt stress.
Wish you could feel less stressed?
As you may know, Freedom Debt Relief negotiates with creditors to get you out of debt faster and for less than you . But it turns out that folks who sign up and complete our debt settlement program feel less stressed than people who are struggling with debt and could have signed up, but didn’t.
In fact, the study found that compared to those who never enrolled in Freedom Debt Relief, clients who graduated from the program:
Believe they are more in control of important things in their lives
Think things are going their way
Feel less overall stress than people who never signed up
Using an assessment called Perceived Stress Scale, the research institute concluded that Freedom Debt Relief graduates reported feeling 21% less stressed than those who never enrolled.
Looking for a sense of empowerment and well-being?
If you have ever shouldered the weight of overwhelming debt, you know that debt stress carries over into other aspects of your life. It affects your personal relationships, worsens your emotional state, and makes it harder to sleep at night.
However, Freedom Debt Relief graduates say that once this weight is lifted off of them, they see an improvement to their overall emotional and physical wellbeing. In fact, compared to folks who didn’t sign up:
6% more Freedom Debt Relief graduates feel more empowered to make changes to their lives
7% more Freedom Debt Relief graduates said they had strong and healthy personal relationships
11% more Freedom Debt Relief graduates feel they can take steps to improve their quality of life
6% more Freedom Debt Relief graduates stated that they sleep well at night
Being in debt can feel like a hopeless situation, like you’re trapped and there’s no way out. But our program could help guide you out of debt and back on the path to a brighter financial future. Not only could it help reduce your stress, it could lead to a better outlook on life in general.
Take the first steps toward reducing your debt stress
If your debts are adding to your stress or you’re worried about falling behind on payments, it might be time to take action. Freedom Debt Relief is here to help you understand your options for dealing with your debt, including our debt settlement program. Our Certified Debt Consultants can help you find a solution that will lead you to less stress and a better financial future. Find out if you qualify right now.
Debt relief stats and trends
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during September 2024. The data uncovers various trends and statistics about people seeking debt help.
Debt relief seekers: A quick look at credit cards and FICO scores
Credit card usage varies significantly across different age groups, reflecting diverse financial needs and habits.
In September 2024, the average FICO score for people seeking debt relief programs was 577.
Here's a snapshot by age group among debt relief seekers:
| Age group | Average FICO 9 credit score | Average Credit Utilization |
|---|---|---|
| 18-25 | 566 | 90% |
| 26-35 | 572 | 84% |
| 35-50 | 572 | 84% |
| 51-65 | 579 | 82% |
| Over 65 | 595 | 81% |
| All | 577 | 83% |
Use this data to evaluate your own credit habits, set financial goals, and ensure a balanced approach to managing credit throughout your life.
Collection accounts balances – average debt by selected states.
Collection debt is one example of consumers struggling to pay their bills. According to 2023, data from the Urban Institute, 26% of people had a debt in collection.
In September 2024, 30% of debt relief seekers had a collection balance. The average amount of open collection account debt was $3,203.
Here is a quick look at the top five states by average collection debt balance.
| State | % with collection balance | Avg. collection balance |
|---|---|---|
| District of Columbia | 23 | $4,899 |
| Montana | 24 | $4,481 |
| Kansas | 32 | $4,468 |
| Nevada | 32 | $4,328 |
| Idaho | 27 | $4,305 |
The statistics are based on all debt relief seekers with a collection account balance over $0.
If you’re facing similar challenges, remember you’re not alone. Seeking help is a good first step to managing your debt.
Support for a Brighter Future
No matter your age, FICO score, or debt level, seeking debt relief can provide the support you need. Take control of your financial future by taking the first step today.
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