Last Updated: March 04, 2024
Disclaimer: We are not qualified legal or tax professionals and are not giving advice. Always speak with a qualified professional before making any legal or financial decisions.

Are you feeling overwhelmed by debt? You're not alone. Many people find themselves struggling with high credit card bills, medical expenses, and other types of unsecured debt. But there's good news: debt resolution can offer a way out.
This process allows you to settle your debts for less than what you owe or manage them through affordable monthly payments. It's a step towards financial freedom without having to declare bankruptcy. In this article, we'll explore how debt resolution works and how it can help you regain control of your finances.
For extra help, explore the U.S. Consumer Financial Protection Bureau (CFPB) for debt management resources. Also, the Federal Trade Commission (FTC) provides debt and rights guidance. For approved credit counseling and relief options, visit the U.S. Department of Justice.
If you'd rather speak to a debt specialist now, click here for a
free consultation.
Debt resolution is a way to help someone with debt problems. It can include a number of different solutions, such as credit counseling, personal bankruptcy, debt consolidation, and more.
A debt counselor's job is all about helping you save money by showing you ways to repay your debts more quickly or pay back the minimum due each month. They will work with collectors and creditors on your behalf as well as help educate you about budgeting and saving techniques.
They offer advice for those who need loans, student loans, credit card debt, mortgage assistance, and much more!
With professionals from across the United States to support your family during these tough times because we believe that everyone deserves a fresh start!
Many people believe that, in tough economic times, bankruptcy is the only way to get out of unmanageable debt and get a fresh start. However, for most people bankruptcy is not the solution, and does little more than offer a false sense of security while addressing part of your problem.
If you're ready to take control and take responsibility for your situation there are alternatives to bankruptcy that will provide relief from unmanageable credit card debt- regardless if it's from medical bills or because you weren't able to make ends meet this month.
Debt resolution is an umbrella term for several strategies to address unmanageable debt outside of bankruptcy.
Debt resolution can lower monthly payments, reduce or eliminate interest, and help you become debt-free faster than making minimum payments. However, it may also damage your credit score temporarily.
Debt resolution means coming to an agreement over how much of the debt will be paid.
Debt settlement is when you work with your creditor or other credit grantors to come up with a lump-sum payoff that would result in little-to-no disruption to other financial obligations and less stress for everyone involved.
Bankruptcy falls somewhere in between these two processes. While debt resolution may be less expensive upfront, bankruptcy can protect your assets if any future legal problems arise from missed payments on your part after negotiations have ended and all three options failed.
What this means is that debt resolution is an umbrella term for services that companies offer to help you pay off some or all of your debts by working with your creditors.
Debt settlement refers to the specific service offered by companies that negotiate a reduced amount with your creditors on behalf of consumers who have significant unsecured debt, usually in excess of $5,000.
It's also important to understand the difference between good vs bad credit when it comes to resolving large amounts of debt because people with worse credit ratings are more at risk if they choose bad actors instead of quality providers.
Learn more by reading A Guide to Debt Settlement
Debt resolution companies are typically in charge of negotiating with your creditors on your behalf. They may offer advice ahead of time, or they can also do things like negotiate settlements with your credit card company for you by direct negotiation.
Many debt-resolution companies consider themselves to be more 'holistic' than the traditional bankruptcy process because they will often help people get back on their feet through budgeting and other services so that they can eventually pay down their debts without filing bankruptcy.
A trustee is not involved in this process, so no assets are lost or sold off to repay creditors during the repayment phase of the plan. Similar organizations exist for small business owners who need help repaying debts by asking for extensions and restructuring terms.
You can do a search for companies that have been identified as being the best in their field. The companies with the most positive reviews on Google are often the most reputable. You should find 10-20 references from accredited reporters if they are worthy of your trust.
The process by which debts are resolved involves negotiating with your creditors and coming up with a payment plan that suits your complication.
The Debt Resolution Process is the process through which debts are resolved. One of the most important parts of this process is negotiating with your creditors to see how you can work out a new contract that will provide you with repayment plans that benefit both parties.
Borrowers who take time and care in this part of the resolution process usually end up quickly reaching agreements and settlements for what would otherwise be unmanageable debt, and oftentimes those agreements even come as early as day one.
There are a few key debt relief options for people seeking to settle their obligation. These include bankruptcy, debt settlement, using a credit counseling service, and refinancing one's mortgage loan with a monthly payment based on income.
Bankruptcy is the process of filing for personal bankruptcy which will wipe out all or some of your debts (depending on what you list as your assets) and then work out how you're going to pay those debts over several years, usually five years.
The caveat of this method is that it can't be used by everyone, most people have too many so-called "chattel" items such as a house or a car which they could lose in the event they filed for bankruptcy, so it has limited application to some.
Learn more by reading Pacific Debt Rated One Of The Best Debt Settlement Companies Of 2020
Debt resolution typically works for unsecured debts like credit cards, medical bills, personal loans, and other flexible debts. Secured debts like mortgages and auto loans are not usually eligible.
Savings vary, but many people save 40-60% off their enrolled debt through negotiated settlements.
Your accounts are reported as settled to the credit bureaus after the negotiated settlement payment successfully goes through.
The process usually takes around 2-4 years depending on your financial situation. The more money you can dedicate to settlements each month, the faster you can become debt-free.
Your score may temporarily drop when accounts are closed and settled, but it will improve faster than continuing minimum payments.
If you settle a debt for less than you owe, the IRS may count the forgiven debt as taxable income. Some exceptions apply.
It is possible but very difficult to negotiate favorable settlements without professional guidance. Debt resolution companies have the experience and relationships to get the best deals.
If you cannot afford basic living expenses and debt payments, cannot negotiate with creditors, or have assets to protect, bankruptcy may become necessary.
It's important to know your debt relief options and the benefits of each. We recommend a consultation with a professional who can help you figure out which option is best for you.
Remember, you're not alone in this debt journey. It's a path many of us are walking together. Finding your way out might seem daunting, but with strategies like debt resolution and a little help from trusted places yes, even those government websites we mentioned you've got this. Start small, take it one step at a time, and don't be afraid to reach out for help when you need it. Your financial freedom isn't just a dream; it's a destination you can reach. Let's take that first step forward, together.
This may not be as simple, but it could end up saving you from bankruptcy or other more serious issues down the road! Contact us for more information on the best way to apply for debt relief in your state. We are here to help!
*Disclaimer: Pacific Debt Relief explicitly states that it is not a credit repair organization, and its program does not aim to improve individuals' credit scores. The information provided here is intended solely for educational purposes, aiding consumers in making informed decisions regarding credit and debt matters. The content does not constitute legal or financial advice. Pacific Debt Relief strongly advises individuals to seek the counsel of qualified professionals before undertaking any legal or financial actions.
750 B Street Suite 1700
San Diego, CA 92101
Mon-Thurs: 6am - 7pm PST
Friday: 6am - 4:30pm PST
Saturday: 7:30am - 4:30pm PST
Phone: (877) 722-3328
Fax: (619) 238-6709
Email: cs@pacificdebt.com
Phone: (833) 865-2028
Fax: (619) 238-6709
Email: inquiries@pacificdebt.com
© 2024 Pacific Debt Inc. dba Pacific Debt Relief, all rights reserved.
California Privacy Policy | Do Not Sell My Personal Information
GLBA Privacy Notice | CDRI Accredited Member
*We do not discriminate on the basis of race, color, religion, sex, marital status, national origin or ancestry.
*Please note that all calls with the company may be recorded or monitored for quality assurance and training purposes.
*Your visit to our website may be monitored and recorded from essential 3rd party scripts.
*Clients who make all their monthly program deposits pay approximately 50% of their enrolled balance before fees, or 65% to 85% including fees, over 24 to 48 months (some programs lengths can go higher). Not all clients are able to complete our program for various reasons, including their ability to save sufficient funds. Our estimates are based on prior results, which will vary depending on your specific circumstances. We do not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Pacific Debt is not a credit repair firm nor do we offer credit repair services. Our service is not available in all states and our fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. Read and understand all program materials prior to enrollment. The use of debt settlement services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements we obtain on your behalf resolve the entire account, including all accrued fees and interest. C.P.D. Reg. No. T.S. 12-03825.