The 26-year-old, who this week received his first England call-up, ended up joining nearby Tranmere Rovers following his release by the Reds before spending six years at the lower-league club prior to joining Ipswich Town in 2011 and subsequently West Ham United in 2014.
“My dad told me in the car," Cresswell told The Telegraph.
“I couldn't get my head around it at first. They pull the parents to one side and tell them, 'It's not to be but it's not the end'. I was devastated.
“As a kid, you are in a bubble of playing for Liverpool. It was all I had done for two years and I had enjoyed it so much. It wasn't about a job, or thinking, 'I won't make it'. It was about playing for the club I supported.
“Everyone around me was a Liverpool fan. It was just purely for the love of football."