What Percentage of Debt is Typically Accepted in a Credit Card Settlement

What Percentage of Debt is Typically Accepted in Settlement?

What percentage of debt is typically accepted in a settlement? One of the most common questions people have as they investigate settlement options is how much they will pay on each unsecured loan. There is no set answer but there are expected percentages.

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Several factors play into typical debt settlement percentages.

  • How Much debt you owe
  • Who the creditor is
  • What your payment history is
  • How old the debt is


How Much Debt Do You Owe?

To qualify for Pacific Debt’s settlement program, you generally need to have in excess of $10,000 in unsecured debt, particularly credit card debt.

Once enrolled in Pacific Debt’s settlement program, you make monthly payments into a dedicated account. If you make these payments, our statistics indicate that you may pay off your debt at between 65% and 85% (including fees) over 24 to 48 months. That means that on a $10,000 debt, you can expect to pay $6,500 to $8,500. However, each situation is unique. Settlement percentages vary based on the individual creditor, your hardship, and available funds.

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Who is the Creditor?

Every creditor is different and has different policies. How aggressive they are may depend on your state of residence, homeownership status, and employment.

Pacific Debt has an excellent track record in working with most creditors in many states. We will do our best to get you the best settlement possible. However, for more aggressive creditors, settlement percentages may be higher or they may be less inclined to accept settlement funds in installment payments.

Contact us today to enroll in our debt settlement program. Our debt experts can explain to you exactly how our program works.

What is Your Payment History?

Your payment history has a big effect on your credit score. It also has an effect on how willing the creditor will be to settle. The more current you are, the less willing the creditor will be to settle.

In order to settle, you must be behind on all or most of your unsecured debts over $500. Otherwise, the creditor will see that you are paying off loans at 100% plus interest and may not be willing to settle.

Unfortunately, being behind on payments has a big effect on your credit score. Entering into a settlement program may also damage your credit score initially, as accounts go into delinquency but you may begin to see improvements as you pay off your debt.

How Old is your Debt?

As your debt ages, the creditor is less interested in holding it. They will “charge off” the debt after 180 to 210 days by selling or assigning it to a debt collector. In general, you’ll have more success in settling once the debt has gone to collections.

As you approach the 180-day mark, the creditor may be willing to settle, especially if you have a lump sum to pay off the debt.

Once the debt has gone into collections, you will most likely be eligible for a settlement. Creditors may be more lenient on settlement terms.

Depending on your state’s statute of limitations, once your debt ages past the cutoff, it is no longer collectible. Most states have a statute of limitations between 3 and 10 years.

Pacific Debt’s Proven Results

Trustpilot Pacific Debt Reviews customer review

Take a look at some of our proven results and past debt settlements with the creditors listed.

The following percentages reflect our settlement successes from our Debt Relief Program. Remember that each situation is unique and percentages vary. We have long-term working relationships with all of the creditors listed below. As a result, you’ll most likely get a better settlement when using Pacific Debt. These 2018 YTD percentages are based on the current balance at the time of settlement.

Creditor Name Settlement Percentage
Bank of America 47%
Capital One 51%  Read actual case study here
Chase 33%  Read actual case study here
Citibank 46%
Discover 59%
Kohl’s 47%
Lending Club 46%
Nordstroms 45%  Read actual case study here
Paypal 46%
PNC Bank 31%
Synchrony Bank 51%
USAA $45%
Wells Fargo 45%

click here to read our client testimonials.

Real People, Real Settlements

Kelvin, a San Diego insurance worker, owed $82,120.59 to seven different credit cards. Because he works on commission, his income varies every month. With Pacific Debt’s help, Kelvin was able to settle all seven accounts for $28,823.26. His payoff averaged 35% overall seven, with the highest percentage at 50%.

Filippo, from Los Angeles, recently divorced. He wanted to use the proceeds from the sale of the marriage home to settle two debts totaling $21,422.12. Pacific Debt helped him settle for $9,482.00 or an average 44% payoff. His highest percentage payoff was 64%.

Leslee, a self-employed San Franciscan, was out of work for medical issues. She owed $9,840.54 on two debts. After working with Pacific Debt. she was able to settle both debts for 60% or $5,922.55. The highest payoff was 80%.

Click here to see Pacific Debt reviews from our clients.

Each debt settlement case is unique.

Our Debt Specialists can help you explore your alternatives to bankruptcy, including debt consolidation and debt settlement options.


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.

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.

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