Debt settlement means that your creditors agree to reduce the amount you owe. The debt settlement process is one of several methods to get out of debt and comes with some pros - you pay substantially less than you owe - and some cons - your credit score may take a short-term hit.
In this page, we will go into greater detail about debt settlement so that you can decide if it is the best course of action for you. The professional debt experts at Pacific Debt Relief are always willing to chat with you about debt settlement.
Get a FREE consultation today with no obligation.
Debt settlement is a process where you or a debt settlement company negotiates with creditors to decrease the amount that you repay. In general, creditors and debt collectors will only agree to a debt settlement if they believe that you are in a state of financial hardship. It can take some time to convince them that you are serious.
The benefits to having professional debt arbitrators negotiate for you is decreased stress and in many cases, increased success. A good debt settlement company knows which creditors will negotiate and their average settlement.
The quick version of debt settlement is that you quit making even minimum payments to your creditors. While you or a debt negotiation service company like Pacific Debt are negotiating with them, you build up a savings and then use that money to pay off the settled debt one creditor at a time.
When you stop making credit card payments, there can be many repercussions. The first thing that happens when you miss a credit card payment, even by a few days, is that you incur late charges. Most creditors will slap you with a $25 late fee anytime from the day after the payment was due to the 30th day after the due date. Your interest rate may be raised – perhaps dramatically – as a result of becoming more than 60 days late.
Once your payment is 30 days overdue, your card issuer reports it to the credit bureaus, lowering your credit score significantly. After 180 days without payment, the credit card issuer will typically charge off the debt, but you still owe the debt according to the terms of your account. If your balance exceeds your credit limit, with all the interest charges and late fees, you could pay over-limit charges.
Then, you pay more interest on that balance. It’s easy for a credit card balance to double or triple once you stop making payments on it. The collection agency takes a turn at trying to get you to pay, and it may try to get you to settle for a lesser amount​.
Can Pacific Debt help you? Call for a free consultation with a Pacific Debt, Inc certified debt specialist
Not everyone is a good candidate for debt settlement. However, if you have substantial debt (particularly unsecured debts), are struggling to make minimum payments, or are considering bankruptcy, debt settlement may be a solution to your situation.
Most debt settlement services require you to have an outstanding debt of $10,000 in unsecured debt. Unsecured debt includes consumer debt like credit card debt, medical bills, payday loans, utility bills, rent, phone bills, repossessed car payments, child support, lines of credit, student loans, and tax debt.
Not all debt settlement companies handle every type of unsecured debts, so always make certain your debt settlement company does.
Creditors do not like to settle unless they are certain that you can not pay the full amount. If making any monthly payment is impossible for you, you may be an ideal candidate for debt settlement services.
If you are considering bankruptcy as the only way to get out of debt, debt settlement may be a better solution with fewer long term consequences.
If you are considering debt settlement, make certain that you understand the pros and cons of the process.
Always ask a lot of questions no matter what route you decide to take and read your settlement agreement. There is no one perfect solution of becoming debt free so make certain you understand your options, possible outcomes, and the pros and cons for each possible solution.
Call for a free consultation with one of Pacific Debt, Inc' certified debt specialists
Are you struggling with mounting credit card debt? Pacific Debt's debt settlement program can be an effective solution. We specialize in negotiating with credit card companies to significantly reduce the amount you owe, providing you with relief from overwhelming credit card debt.
Check out Pacific Debt Relief's proven results with our debt settlement program.
Our debt specialists understand the intricacies of dealing with credit card companies, and utilize proven negotiation strategies to achieve successful debt settlements. With our expert help, clients have saved thousands on their credit card debts, paving their way to financial freedom.
Remember, the goal of our debt settlement program is not just to relieve you of your current debt, but also to provide you with the tools and knowledge to maintain a debt-free life. As part of our service, we work with you to understand your personal finance concept including budgets and good spending habits. Learn why people are choosing Pacific Debt Relief to get rid of debt.
Don't let credit card debt control your life. With Pacific Debt's debt settlement program, you can take the first step towards financial stability. Contact us today to find out how we can assist you in your journey to becoming debt-free.
We think debt settlement should be transparent, customer centric, and above all else benefits Pacific Debt Inc's customers.
If you choose to work with Pacific Debt, here is a step-by-step guide to what to expect.
Either give us a call at 1-800-909-9893 or fill out a quick enrollment application online.
Once you give Pacific Debt, Inc permission, we will do a soft credit pull to get a clearer picture of your current situation. We will look for:
If you don't meet these criteria for debt settlement services but still need help, give us a call anyway - we will refer you to a trusted partner who can work with your unique situation.
If Pacific Debt, Inc's debt settlement program sounds like it may work for you or you have questions, give one of Pacific Debt Inc's debt specialists a call. They can explain all your options and help you to pick the correct choice for your situation.
If Pacific Debt is not the right choice for you, we will refer you to a trusted partner who will more closely fit your needs.
Our award winning debt specialists are available to speak with you at no obligation.
The debt settlement program with Pacific Debt is designed to reduce your debt and pay it off through an affordable monthly program payment. Our debt settlement program is a viable alternative to bankruptcy and is more affordable and flexible than credit counseling.
Debt settlement with Pacific Debt does not require any new loans and there are no credit qualifications. Pacific Debt Inc's program is not appropriate for all consumers and not available in all states.
We take great pride in explaining the Pacific Debt relief program and all of your options to ensure that you make a decision that is appropriate for you.
Call for a free consultation with a Pacific Deb Relief debt specialist. We are an accredited debt settlement company with the Consumer Debt Relief Initiative.
We are located in San Diego but Pacific Debt Relief operates in Alabama, Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Florida, Idaho, Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Mexico, New York, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, Virginia, Wisconsin
In order for a debt to qualify for Pacific Debt Relief's debt settlement program, the debt must be unsecured. Unsecured debt is debt that has no collateral attached, such as credit card debt, personal loans, payday loans, medical bills, and deficiency balances on repossessed vehicles.
Most of the debt we deal with is credit card debt but we have had tremendous success with many other types of unsecured debt.
If all of your accounts are in collections, or you are unsure of the balances, one of Pacific Debt's credit counselors can run a soft credit pull to review your list of accounts and get a snapshot of your financial picture.
Generally speaking, we require $10,000 in unsecured debt to qualify for the debt settlement program.
After reviewing your creditor accounts, Pacific Debt Inc's team will assess your current budget. We go through all of your income and monthly expenses to determine a program payment and estimate that will work for you.
Our goal is to eliminate debt totals or help you pay off your debt as fast as possible with a payment that fits comfortably within your budget.
Quite often the program payment we can offer is significantly less than the sum of your current minimum payments and the Pacific Debt services program length estimate will often be much shorter than a typical credit counseling program.
Once we have you qualified for the Pacific Debt Inc debt relief program, one of our debt counselors will email you a secure enrollment packet. We review all of the information with you to make sure you understand all of the details.
Once the paperwork is completed your Debt Specialist will submit your file to Pacific Debt Inc Client Care team for servicing.
You then start making monthly payments into a savings account. Once these monthly payments add up and your debt is negotiated, the money is applied toward your debt payments.
For more information on the Pacific Debt Inc debt settlement service, please contact us.
Our happy clients recommend Pacific Debt, Inc. Check out these review statistics.
Can Pacific Debt help you? Call for a free consultation.
The debt settlement industry is very competitive and sadly, rife with scams. We may not be one the largest debt settlement companies but we have stellar rating from companies who study businesses. There are many reasons why Pacific Debt Relief is one of the best debt relief companies in the United States.
Always look for an accredited debt settlement company. Pacific Debt is accredited by:
The Federal Trade Commission, a government program, also oversees debt relief companies. Avoid debt relief scams by looking for accredited members of the Consumer Debt Relief Initiative.
There are other debt relief options that you may want to consider.
In debt consolidation, you take out debt consolidation loans or personal loans and use those to pay off existing debt. The secret is to find loans with lower interest rates.
Credit counseling is designed for people just beginning to get into debt and who need some education on how to handle their personal finances.
Credit card debt and student loans are two of the largest sources of debt. Credit card issuers are fairly lenient in handing out credit cards as they make their money off interest rates and fees.
When you stop paying your debt, your actions are reported to the credit bureaus. This action immediately decreases your credit score.
Once your delinquent debt is paid, it is marked 'settled in full.' Paying the outstanding debt helps your score, but the 'settled in full' doesn't look good. Notifications of debt settlement stay on your credit report up to seven years, decreasing your credit score a bit.
We have many blogs on how to improve your credit score.
No, Pacific Debt focuses on settling debts like medical debt, payday loans, credit card debt, and other consumer debt.
Pacific Debt Relief is an accredited debt settlement company recognized by such authorities as the CDRI, the International Association of Professional Debt Arbitrators, and the Better Business Bureau. Pacific Debt Relief is located in San Diego, California 92101.
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.