How Katherine in Michigan Was Able to Retire Debt Free

Name: Katherine

Age: 62

Location: Michigan

 

When did you enroll in our debt settlement program and how much debt were you facing?

I had about 23,0000.00 worth of debt with 2 credit cards.

Why did you choose Pacific Debt over the options and companies you researched?

When I was looking for a company, basically, I went thru and saw Pacific Debt, I called and was put in touch with Josh Hallas.  In just speaking to him and his reassurances, I knew this was the company I was supposed to deal with.  Josh explained the company and just what we would have to do and he sent me the paperwork, and that was that.

Tell us about your journey through the Pacific Debt program? Are there any special team members you would like to recognize?

I have had Josh Hallas primarily throughout my whole journey.  There was another gentleman that I was dealing with, but then I was transferred back to Josh.  The last person I dealt with was Bethany R.  She was very helpful, but I was always transferred back to Josh.

How does it feel to be debt free? What are your financial goals moving forward?

It feels like a weight has been lifted off my shoulders and now I can retire knowing that I don’t have any financial debt hanging over my head.  That was and still is my primary goal.  Without the help of Josh and the other folks that had my case, this probably wouldn’t have been possible  – for me to retire without any debt.  I want to thank all the people at PDI who were there for me when i needed that little push to get myself out of a sticky situation.  I would recommend PDI to anyone who was in the situation.

We know we are not perfect. What suggestions or advice would you offer to help us improve our program? All advice is welcome.

I can’t think of anything that you would need to change, all of your people are very kind, courteous and helpful.  I thank them all from the bottom of my heart!!

Meet Christopher – Now Debt Free Thanks to Pacific Debt

Name: Christopher

Age: 35

Location: California

 

When did you enroll in our debt settlement program and how much debt were you facing? How did carrying all of that debt make you feel?

We enrolled March 2016 in Pacific Debt’s program, with $23,176 in debt. Carrying that much debt made it almost impossible to make ends meet. We could make only minimum payments, and would immediately be checking balances and available credit to see which card we could use next. Purchases were for necessities, not fun or frivolous items. We lived credit card limit to credit card limit.

 

Christoper, Debt Free, Pacific Debt

Tell us about your journey through the Pacific Debt program? Are there any special team members you would like to recognize?

Our journey through Pacific Debt’s program was worry free and easy. We were contacted immediately whenever something was needed, and we were informed of every step taken along the way. Brian LoBianco was amazing to work with! He took care of our account and our debts in the fastest way possible, never neglecting quality service, and ended up getting us great settlement agreements with our creditors. He was professional at all times, and we could tell that he cared about us and the assistance he provided.

 

How does it feel to be debt free? What are your financial goals moving forward?

It feels amazing to be debt free! One thing this program allowed us to do is learn how to live without using credit. By not being able to use our cards, and by lightening the load that we carried, we were able to manage our budget in a credit free way, realizing what we really needed, and what we could do without. Our financial goals are to continue to live completely free of revolving debt, not having to worry about paying high interest for what easily could have been the rest of our lives doing what we were doing before.

 

We know we are not perfect. What suggestions or advice would you offer to help us improve our program? All advice is welcome.

I honestly was completely satisfied. I will say, the first 6 months to 1 year of creditor/collector phone calls was nerve racking. Understanding that things had to get worse before they could get better was key, though it was still a time that worried us. Pacific Debt made sure we understood the process, and what to do with those calls and contacts, and that made all the difference. We knew Pacific Debt was in our corner the whole time.

Read Over 1300 Real Pacific Debt Client Reviews

At Pacific Debt we’ve always focused on providing an awesome customer experience and delivering great results. Over the past 15 years, our team has settled over $200 million in consumer credit card debt and helped tens of thousands of individuals and families.

A couple of years, ago, our team started actively asking our customers to share their experiences online, so that others who are struggling with debt could see for themselves the power of our program. In that time, our customers have shared over 1300 online reviews, with an average weighted user score of 9.47 out of 10.

Consumers who are struggling with excessive credit card debt are often unsure where to turn for help. Being an Accredited Debt Relief provider is no longer good enough for consumers who are living in the age of Yelp and Amazon, where real customer feedback and reviews are easy to come by. We’ve found that these first hand experiences, from real customers, really make a big difference for consumers who are weighing their options and evaluating different companies.

While the majority of reviews are overwhelmingly positive and validate our program, we don’t turn a blind eye to opportunities for improvement. Any negative feedback received is used as a customer service opportunity and we follow up with our clients to better understand their situation and see what can be done to turn things around for them.

Read a Recent Review

To highlight the power of our online customer reviews, here is a recent review from Marissa in Pittsburgh, Pennsylvania via BestCompany.com:

“After doing some research and reading online reviews, I decided to reach out to Pacific Debt for help with my credit card and loan debt. I worked first with Rian to go over who they are as a company and how they were going to help. After being setup and starting their program, Kimberly B. became my account manager and main point of contact throughout this program. She’s awesome and keeps me in the loop regarding my account and settlement progress. It is easy to get in contact with anyone at Pacific Debt with questions or concerns. They understand your situation and answered any and all questions that I had.”

Read More of Our Reviews

For consumers interested in reading our online reviews, a compilation of our real client reviews can be found below:

What you're doing wrong with your debt

What You’re Doing Wrong With Your Debt

It’s likely that you only use credit cards to make everyday purchases. People don’t often carry around cash anymore simply because credit cards are more convenient. You might even have several cards for specific stores. You make payments here and there and wonder why all the sudden, you’re thousands of dollars in debt. $40 on gas + $100 on groceries + $5 on coffee + $15 on lunch during the week will definitely add up. I can also bet that you’re not just at the coffee shop or sandwich stand next door once a week. Then take that credit card debt and add it to your car payments, student loans and mortgage and you’re likely drowning in all the numbers next to that dollar sign. There are several ways to pay off your debt, but some methods are more effective than others. If several years have gone by and you’re still making payments on credit cards and loans, you’re probably doing something wrong.

Here are some of the common mistakes people make when paying off debt and how you can get out of that trap as soon as possible:

You don’t have a plan

It’s great that you are putting payments on your credit cards, but without a smart plan, you won’t really see your efforts pay off as much as they can. If you have several credit cards, it’s smart to make a list before you tackle them. Write down the credit card name, balance due, interest rate, minimum payment and due date. Some people have made the mistake of putting the minimum payment on all their cards or focusing on the credit card with the most balance. While this is a plan, it’s not the best one. Instead, focus on the card with the highest interest rate as that the one worth paying off first and the pay the minimum on the rest of your cards until you can solely focus on them. You’ll pay off your debt quicker in the long run when you’re paying off bigger amounts on a single card. Mainly focusing on one balance also makes your debt seem less overwhelming as opposed to throwing $50 here and there on multiple cards at the same time.

You’re missing payments

 

While you’re devising your plan, set up all your accounts to automatically pay by the due date. This will ensure that you’re not hit with late payments. If you know exactly how much will be coming out of your bank account and when, it’ll be easier to make sure you have the right amount of funds for that payment every time. You can even change the payment dates to work around your paychecks. Noting all of your debt information on paper or on a spreadsheet will help you see things in a bigger picture so you’re prepared every month. If you are charged with a late fee, call the credit card company and kindly ask if they will waive it for you. They’ll be more likely to reverse the fee if you tell them you’ll be setting your account to automatic payment, if this is your first late fee or if you’ve been a long time valued customer. It never hurts to ask.

You keep a balance on your cards to build credit

Keeping up your credit score should definitely not be a priority over paying off your debt and it’s likely that your good credit score got you into this debt in the first place. Carrying a balance on your card each month that you’re being charged interest for is actually ruining your credit. Pay off your debt now and stop worrying about hurting your credit score. There are several ways to boost your credit when it’s time, but for now, paying off these cards should be number one on your list. Also keep in mind that just because you have a high limit on your credit card doesn’t mean you should be maxing it out. A $15,000 credit limit does not equate to a shopping spree. In fact, you should be keeping your utilization rate low and your balance should not exceed 30% of your credit limit. For example, a card with a limit of $15,000 should never have more than a $4,500 balance. Doing this will definitely protect your score later.

You’re putting it off until you make more money

“When I make more money, I’ll pay this card off. When I make more money, I’ll clear all my debt. When I make more more money, life will be great.” Well when will that be? The time is now. The longer you procrastinate paying off your debt, the more debt you’ll be in. Simple as that. An emergency might come up. Your company might downsize. You might decide to pursue a different career and end up working a lower paying job until you learn the ropes. Who knows what can happen, but you don’t want to have all this debt acquiring on top of it all. Start paying off as much as you can starting now.

You don’t know your options

Stuck paying a high balance on loans you simply cannot afford right now? Got a balance with high interest rates? You have options and asking what they are is where you can start. If you’re paying off student loans and don’t make enough money to pay the monthly payments, don’t have a job as a recent graduate or recently got laid off, you can request a deferment or forbearance for a certain amount of time. Stopping payments on student loans for now can help you focus on your other debt. Refinance your car to reduce the amount you pay each month, reduce your interest rate and change the length of your loan. Also ask your credit card company if you can reduce the interest charge on your monthly payment. Some companies will grant this request if you’ve been a loyal customer who makes payments on time. It also helps if you have a good credit score or if it has recently improved. These companies want to keep you as a customer so simply request a lower interest rate and hope for the best.

You always give into your friends’ invitations

We’re not telling you to live like a hermit crab until you’ve zeroed out all your cards and loans, but you need to be smart about where you go out and how often. As much as you want to and as hard as it is to break bad habits, don’t accept every invitation your friends throw your way. Lunch here, coffee there, brunch on weekends and happy hour during the game can cost you hundreds of dollars a month when you add it all up. Plan accordingly, choose the events and be ready to decline if it’s something you can’t afford to do. Only try going out to celebrate your friends’ special occasions like birthdays and anniversaries and avoid the random “Wanna grab a drink?” invites. If your colleagues always go out for lunch on Fridays and you don’t want to miss out, vow to eat a packed lunch for the rest of the week and choose an affordable option on the menu. If you’re invited to watch the game at a bar during happy hour, eat at home first and you won’t be tempted to order something at the restaurant. You also don’t need to order a drink to enjoy the game. Be smart and disciplined (almost like you’re on a diet). When you’re on a diet, you watch what you eat, you create a meal plan, resist temptation and create incentives when you achieve your goals, like if you lose 10 lbs. in 2 months, you’ll buy new workout shoes. When you’re on a spending diet, you need to decide what’s a necessity and what’s a splurge. Create incentives the same way and treat yourself without breaking the bank. For example, for every $1,000 you pay off, reward yourself with a Netflix binge, a drive to the beach, a homemade pancake breakfast or a lazy day to sleep in and do absolutely nothing. Having a reward system for your goal to pay off debt can help you achieve it faster.

It’s not a priority

Having large amounts of debt can be extremely detrimental to many factors in your life. It can affect you buying a house, buying a car, going on vacations, changing your career, opening up a business or going to grad school. It can even cost you landing your dream job as a larger percent of employers check your credit along with running a background check. According to a 2012 study from the Society for Human Resource Management, 47% of U.S. companies conduct credit checks and if they see that you have poor credit history, have missed payments, filed bankruptcy or have large amounts of debt, it could cost you the job.

Your life will benefit greatly when you learn how to manage your money, pay off cards in full and on time, and experience what it’s like to live debt-free. It’ll feel like a huge weight has been lifted off your shoulders and you could be a lot closer to it than you think. Just make paying off debt a priority, cut out the bad habits that are costing you money, make a plan, find out your options and be disciplined. This can be hard, but it can be done. You just have to start somewhere. Don’t let debt run your life and the sooner you start paying if off, the sooner you can start living your life to the fullest.

Top 5 causes of debt

Top 5 Causes of Debt & How To Fix Them

They say it’s smart to have between 3-6 months worth of expenses saved up incase of an emergency. To give you an idea, if your monthly expenses round up to $5,000, there should be $30,000 sitting your saving account right now. But in this age of consumerism, people are likely swimming in debt instead of in a comfortable amount of hundred dollar bills. As of May 2016, 38.1% of all households carry some sort of credit card debt and according to the most recent survey from the U.S. Federal Reserve, the average credit card debt of U.S. households is about $5,700. That’s a lot of money to be sitting on credit cards that likely comes with an interest rate that will boost that debt even higher.

Sometimes, debt is accumulated from massive charges that are typically unexpected such as a medical emergency, a broken car or a divorce, but usually, debt is accrued over a longer period of time by charging common expenses like gas and groceries. These “small” charges here and there look unthreatening at first, but then it spirals out of control where you end up only paying the minimum balance each month, leaving you with more interest to pay in the future.

Here are the top 5 causes of debt and some suggestions for how you can get address the problem.

1. Divorce

The leading cause of arguments among couples revolves around money more than any other causes of typical domestic disputes. It’s likely that one or both parties had accrued debt prior to getting married and “what’s yours is mine” unfortunately applies to the bills too. Although it’s recommended to discuss money and spending habits before tying the knot, if couples don’t create a reasonable plan to paying off debt and spending money, it will lead to marital strife that can turn into divorce. The average percent of divorce in the United States is between 40-50% and the cost of getting divorced is $15,000-$20,000. Also going from a two-income household back to one can take a significant toll on your bank account.

2. Unemployment & Underemployment

No one expects to lose their job and it never comes at a good time. Unless you have the recommended 6 months worth of expenses stored in your savings account, you’re going to accrue a lot of debt sooner than later just to pay off your current bills and it’s possible that it’ll take longer than 6 months to get another job. There’s also the unfortunate occurrence of taking a pay cut when having to suddenly work part-time either due to having a child, a medical issue, or getting fewer shifts at work. We’re creatures of habit, so although our employment status might have changed, it’s very likely that our spending habits haven’t. People are typically spending more than they earn and recent studies have shown that although income is decreasing, the rate of spending is still climbing up, which leads to the next reason for debt.

3. Poor Money Management

Related to financial illiteracy, not many people have a good grasp of managing the money they earn likely because they were never taught the simple rules of spending and saving growing up. These people rely on credit cards for expenses and the idea of instant gratification is a major factor. It’s so appealing for us to buy something and have it now, but pay for it later. If you don’t pay off your credit card balance in full, you’ll end up paying a good chunk of it in interests. Most credit cards today have an interest rate ranging between 15-20%, making anything you buy cost a whole lot more than what you paid for. This also ties in with impulse spending and making poor financial decisions. Having a monthly game plan to tackle your common expenses will keep you from spending more than you make. It’ll also be a good idea to educate yourself on the rules of the bank, loans and credit cards to see if you can reduce your fees, avoid late charges and have 0% APR for a set period of time.

4. Minimum Payment Trap

So you racked up a credit card and can’t pay the full balance. You know you have to pay something on it so you set up your account to automatically pay the minimum every month and brush it off, feeling assured that payments are being made. Months later, you check your account and wonder why you still owe so much. Well, that’s interest for you! Here’s an example to give you an idea: If you owe $10,000 on a credit card and pay a minimum of $250 per month and your interest is 15%, you’re going to be paying $3,950 in interest in the 56 months it’ll take you to pay it off. That $10,000 easily turns into nearly $14,000 before you know it. If your interest rate is 20%, that payment towards interest becomes $6,617 and it’ll take you 67 months to pay it all off! That’s over 5 years of your life spent paying off this credit card while you’re stuck paying off your typical expenses too, such as food, gas, rent or mortgage and a car. Bottom line is that you should always pay the balance in full, but if you can’t, pay as much as you can as fast as you can.

5. Military Status

A recent study revealed that members of the military accrue debt at a higher rate than civilians and there are a number of reasons why. First of all, military members may be receiving a steady paycheck but it isn’t large enough to support their means, especially if they’re supporting a family, making them resort to credit cards to compensate. Next, frequently moving can add to the debt if an active military personnel is forced to sell their home and they can’t get an immediate buyer. They end up paying two mortgages until they receive an offer on their old home. It may also be difficult for the spouse to find a good-paying job right away during relocation. And finally, when military members find themselves in debt, they end up staying in debt because they don’t want their superiors finding out. They don’t seek out help due to their fear of losing their security clearance, ruining their chances of a career advancement or being discharged. This just makes their debt continually increase.

If you’re currently in one of these situations, there are a number of routes to take to reduce your debt, but the first step should be to come up with a spending plan and stick to it. Review your spending habits and see where you can cut down. Your daily cup of Joe at the local coffee shop can definitely add up in the bills. Pay your balances in full as often as you can and use cash if you’ve got it. People tend to spend less when they only use real money to pay. And most importantly, if you’re married, make sure you keep all lines of communication open and ask for help if you need it. In a perfect world, both parties of the couple will be savers but that’s an unlikely story. If you’re the spender, it might be a good idea to have your spouse manage the money until you’ve got a good grasp on saving more money each month.

If you feel like you’ve tried it all on your own and need professional help, one of our professional and friendly counselors here at Pacific Debt can talk you through your options. Our consultations are free and it’s our goal to get you out of debt for less than you currently owe.

Couple struggling with bills

Not All Debt Consolidation Companies are Equal – 5 Important Questions to Ask Before You Sign Up

Whether you are looking for help with debt consolidation, credit counseling or debt settlement, it is important to know that not all debt consolidation companies are created equal.

What separates one company from another? Here are 5 important questions to ask when evaluating a debt consolidation company:

  • How long have you been in business? Let’s face it, you don’t want to trust your money to an overnight start up and be some company’s Guinea pig.  At Pacific Debt, we have been helping consumers since 2002 and have settled thousands of debts representing hundreds of millions of dollars.
  • Is the company highly rated by the Better Business Bureau? Do you really want to trust a company with an F rating and loads of complaints? Companies that are Accredited Members of the BBB make a commitment to marketplace ethics and are required to resolve consumer complaints to maintain their memberships. Remember, all companies get complaints, it is how a company responds and addresses those that separates the good from the bad. We are proud to say that Pacific Debt is an Accredited Member of the BBB of San Diego with an A+ rating.
  • Is the Company a member of any Industry Trade Associations? Trade associations often set many of the standards in the industry and their members are required to meet minimum requirements to maintain membership. For instance, in the debt settlement space, the American Fair Credit Council (AFCC) requires that each Accredited Member company undergo an audit once per year to ensure that member companies are not charging upfront fees and are complying with all AFCC standards. At Pacific Debt, we are one of only 13 Accredited Members of the AFCC.
  • Will you receive personal service? Some companies treat you like a number and basically have huge call centers designed to answer your calls, but rarely offer you any personal dedicated service. At Pacific Debt, we created a system where all of our clients get a dedicated Personal Account Manager who is there to guide them through the process from the first settlement until completion. Our Account Managers get to know our clients on a personal level so that you don’t have to deal with the aggravation of explaining your situation over and over again to a different call center representative each time you call.
  • What are others saying? If you scour the Internet you can find all sorts of review sites and comments on social media. If clients have a good experience, or a bad one, they like to talk about it online. In fact, due largely to our great client reviews, Pacific Debt is the #1 Ranked Company on BestDebtCompanys.com .  Our average user score of 9.7 on the BestDebtCompanys site is a direct reflection of our commitment to customer service and delivering value to our clients.

The bottom line is that you have a lot of choices when it comes to selecting the right debt consolidation company and the reality is that not all debt relief companies are equal. However, by asking the right questions and doing your homework, you can find the right option and company for you.

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