Last Updated: September 29, 2023
Facing unmanageable debt can be an overwhelming and stressful situation. When bills pile up and creditors come calling, it's natural to want to find a fast solution. However, impulsive decisions often lead consumers to shady debt settlement companies promising miraculous debt elimination.
At Pacific Debt Relief, we understand how difficult it is to dig yourself out of debt. Our goal is to educate and empower you to make the best choices for your financial situation. We believe in taking a thoughtful, strategic approach to debt relief. To learn more about the facts you need to know when considering debt relief, check out this helpful resource: Debt Relief Facts You Should Know.
In this guide, we'll walk you through the debt settlement process, what to watch out for, key questions to ask potential debt relief firms, and provide information about alternative debt solutions. Our aim is to provide the facts and resources you need to overcome debt in a safe and effective manner. For an in-depth look at the pros and cons of different debt relief strategies, see The Little Known Secrets of Debt Relief.
Take control of your financial future with confidence by becoming an informed consumer. Before diving into the specifics of debt settlement, you may want to start by reviewing your options at a high level. This guide can help you decide which debt relief solution is right for you: The Best Debt Relief Options - A Complete Guide.
If you are considering debt settlement as an option for debt relief help, it is important that you work with a company that does not charge you any upfront fees.
A recent FTC ruling has made it illegal for most debt relief providers to charge consumers a fee until they begin to see results.
Despite these changes, there are several companies out there attempting to circumvent the rules. Some of these companies are landing in hot water with state regulators and could be at risk of facing further sanctions.
Please note that Pacific Debt is in full compliance with the new FTC rules. What this means to you is that we do not charge any upfront fees, you must authorize all settlements and PDI does not get paid until you see results.
With no upfront fees, the benefits to consumers are numerous, including reduced financial risk, faster time till the first settlement, and a simple easy to easy-to-understand fee structure.
While most debt settlement companies are reputable, there are some bad actors to watch out for.
If you encounter any of these signs, avoid signing up with the company and report them to the FTC. A legitimate debt settlement firm will be upfront about fees, provide written contracts, and make realistic assessments of your situation.
While debt settlement can be an effective solution, it's not necessarily the best choice for everyone.
Carefully weigh the pros and cons of each option for your unique financial situation. Our debt specialists can walk you through the alternatives to find the right debt relief strategy.
The debt settlement process typically takes 2-4 years depending on your financial situation. It takes time to save up enough funds to make viable settlement offers. With persistence and following the program, many of our clients become debt-free within 3 years.
Debt settlement may negatively impact your credit score initially when accounts become delinquent. However, once debts are settled, your credit score can start to rebound. Paying off debt through settlement can improve your credit over the long run.
We work with you to set up an affordable monthly payment plan. The payment amount is based on a percentage of your disposable income after essential expenses. Debt settlement saves you money compared to paying debts in full.
In general, unsecured debts like credit cards, medical bills, and personal loans can be settled. Student loans and secured debts usually cannot be settled through debt settlement. Your debt specialist will review your accounts to determine eligibility.
Yes, your dedicated escrow account is FDIC-insured for your protection. You have peace of mind knowing your funds are secure as you save up for settlements.
We hope this guide has helped you better understand how strategic debt settlement works and how to avoid risky debt relief scams. Debt settlement can be a viable route to becoming debt-free faster and for less than you owe.

With the right provider, it is a safe process that gives you control over your financial future.
While debt settlement is an effective option for many, it’s not the only path to financial freedom. We encourage you to thoroughly research alternatives like debt management plans, balance transfer cards, and debt consolidation loans.
If you are struggling with overwhelming debt and want to explore your debt relief options, Pacific Debt Relief offers a
free consultation to assess your financial situation. Our debt specialists can provide objective guidance to help find the right debt relief solution.
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
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*We do not discriminate on the basis of race, color, religion, sex, marital status, national origin or ancestry.
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*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.