Pros and Cons Explained

Pros

• Relatively low debt settlement fees: Pacific Debt Relief’s fees are on the low end of the 28 debt settlement services we researched, at a minimum of 15% and a maximum of 25% of the amount of settled debt.
• Excellent customer reviews: Pacific Debt Relief has excellent reviews from clients on both Trustpilot (4.7/5 stars) and the Better Business Bureau (4.94/5). Many debt settlement companies have lower ratings, so its strong customer support makes Pacific Debt Relief stand out from competitors.
• Charges fees based on settled debt: Unlike some other debt settlement companies, Pacific charges fees based on the percentage of settled debt, rather than the initial debt you start the program with. This can save you money compared to a company that charges based on the initial debt (which is a larger amount).

Cons

• Not available in all states: Pacific Debt Relief only serves residents in 48 states and the District of Columbia. It serves residents in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Washington, West Virginia, Wisconsin, and Wyoming.
• Higher-than-usual debt minimum: To qualify for debt settlement with Pacific Debt Relief, you must have $10,000 or more in unsecured debt. Some other companies have lower debt minimums.
• Does not offer other services: As a debt settlement company, Pacific Debt Relief doesn't help with other areas of finance. For example, if you want to meet with a counselor to discuss budgeting, take homeownership classes, or attend workshops on building credit, you'll need to work with a 澳洲幸运5官方开奖结果体彩网:non-profit credit 📖counseling agency instead.

How Pacific Debt Relief Works

Pacific Debt Relief specializes in 澳洲幸运5官方开奖结果体彩网:debt settlement. Debt settlement involves negotiating with creditors to settle an outstanding debt for less than is owed. ꦰDebt settlement companies negotiate with creditors on behalf of their clients.

Depending on your situation and your creditors, debt settlement could slash your outstanding debt by a significant amoꦕunt. 

As with other debt settlement companies, there are no upfront fees. Pacific Debt Relief only makes money once it has negotiated a settlement and th𓃲e first settlement pay✱ment is made. 

Accreditations

Pacific Debt Relief is accredited by the Better Business Bureau (BBB) and the Consumer Debt Relief Initiativeꦦ (CDRI). The International Association of Professional Debt Arbitrators (IAPDA) also certifies it.

How to Enroll With Pacific Debt Relief

To get started with Pacific Debt Reliefꦆ, follow theꦺse steps.

• Set up a free consultation: Contact customer support via phone or email to arrange a free debt consultation. The representative will review your outstanding debt and finances to determine if you're a good candidate for a debt settlement agreement. 
• Sign the agreement: Review the agreement, paying particular attention to the monthly amount you have to deposit in a savings account to build a settlement fund and the fees you'll have to pay Pacific Debt Relief if it successfully negotiates a settlement. If you agree to the terms, sign and return the agreement.
• Pay the monthly amount: You’ll have to stop making your existing creditor payments. Instead, pay the agreed monthly amount into the dedicated debt settlement savings account. Pacific Debt Relief will begin negotiations for debt settlement once the account has grown large enough to entice creditors with a lump-sum payoff.

Types of Debt Addressed

Pacific Debt Relief provides debt settlement services for unsecured debt, like credit card balances. Other forms of debt, such as 澳洲幸运5官方开奖结果体彩网:secured debt like mortღgage🌜s or car loans, aren't eligible for debt settlement.

The following types of debt qualify for Pacific Debt Relief's program.

Unsecured Loans

Unsecured loans, such as personal loans, can qualify for debt settlement since they don't have collateral. 

Credit Card Debt

澳洲幸运5官方开奖结果体彩网:Credit card balances, including the balances on retail cards♐, are eligible for debt settlement.

Medical Bills

Outstanding medical bills from hospitals or clinics are usually eligible for debt settlement, as long as they aren't backed by collateral.

Expected Cost

Fees vary basedꦰ on your enrolled debt and state of registration, bu♋t you can expect to pay 15% to 25% of your settled debt. This fee is factored into your monthly payment amount.

Expected Relief Amount

Pacific Debt Relief cannot guaran꧅tee results, nor can any other debt settlement company. But Pacific claims it can help customers reduce up to 50% of their credit card debt. The amount you save depends on your balances owed, the money in your settlement account, and the willingness of your creditors to accept a settlement.

Expected Time to Complete the Program

According to Pacific Debt Relief, its clients typically complete the program wiꦍthin 24 to 48 months. The program timeline depends on y꧑our enrolled balances and how much you can set aside each month for a settlement fund.

Additional Services

Pacific Debt Relief only provides debt settlement services. If you don't meet its criteria for debt settlement, it may refer you to other companies, such as debt consolidation or 澳洲幸运5官方开奖结果体彩网:credit repair firms.

Client Dashboard

When you enroll in a debt settlement program with Pacific Debt Relief, the company will set you up with an acc🌟ount on its client portal. This will help you track your progress (like the amount of m🍸oney in your settlement account) as Pacific Debt Relief negotiates on your behalf. 

Customer Service

🌜 Customer support is available six days a week via phone or email. 

Customer Satisfaction/Reviews

Pacific Debt Relief has quite a few positive reviews from clients. On Trustpilot, it has a rating of 4.7 out of 5, based on nearly 2,000 reviews. Clients praise the responsive and empathetic customer service representatives.

Pacific Debt Relief is accredited by the Better Business Bureau, where it has an A+ rating and a customer review score of 4.94 out of 5 stars.

Paci🍌fic Debt Relief vs. National Debt Reli♕ef vs. New Era Debt Solutions

Is Debt Settlement Worth It? 

Debt settlement can be expensive, and it can significantly damage your credit. Whether it's worth the drawbacks depends on the type of debt you have, your balance, and the settlement Pacific Debt Relief can negotiate.

The company claims it can reduce your balance by as much as 50%, but there is no guarantee of success. Before contacting Pacific Debt Relief or another company, consider other debt relief options. Depending on your situation, a 澳洲幸运5官方开奖结果体彩网:debt management plan through credit counseling, a repayment strategy like the 澳洲幸运5官方开奖结果体彩网:debt snowball or avalanche, or even 澳洲幸运5官方开奖结果体彩网:bankruptcy may be a better choice. 

Is Debt Relief Through Debt Settlement Taxable?

Yes, debt relief through debt settlement is taxable. If Pacific Debt Relief is successful in negotiating your debt to be repaid to an amount less than you owe, you won't only have to pay the company a fee. You also need to plan for taxes: Canceled or settled debt is 澳洲幸运5官方开奖结果体彩网:taxable as income, and it needs to be reported on your tax return.

The Bottom Line

Pacific Debt Relief may be effective in negotiating a settlement for your outstanding credit card balances or other unsecured debt. But be aware: The company's fees are typically 15% to 25% of your settled debt, and your credit score could decrease drastically during the process. 

Debt set♛tlement should be🥀 considered only after weighing the advantages and drawbacks of other approaches.

Frequently Asked Questions (FAQs)

Is Pacific Debt Relief Legit?

Pacific Debt Relief is a legitimate company based out of San Diego. The debt relief firm ha🔯s been in business since 2002, is accredited by the International Association of Professional Debt Arbitrators,⛎ and has been accredited by the Better Business Bureau since 2010.

How Much Does Pacific Debt Relief Cost?

Pacific Debt Relief charges 15% to 25% of a customer's initial debt, which is typical for the 澳洲幸运5官方开奖结果体彩网:debt relief industry. The cꦿompany’s fees are paid only after a settlement has been successfully reached and paid.

Does Pacific Debt Relief Hurt Your Credit?

With Pacific Debt Relief, as with any debt settlement company, you must stop making any payments to your creditors while the company negotiates on your behalf. Your creditors will report missed payments to credit bureaus. Those late payments and delinquent accounts can significantly harm your 澳洲幸运5官方开奖结果体彩网:credit score, although the money you save through debt s💯ettle꧙ment may be worth the price.

Who Is Eligible for Pacific Debt Relief?

To qualify for Pacific Debt Relief's debt settlement program, you must live in one of the states it operates in and have at least $10,000 of outstanding debt. Pacific Debt Relief only works with 澳洲幸运5官方开奖结果体彩网:unsecured debt, like credit cards and personal signature loans; secured debts, such as car l🐼oans, aren't eligible.ꦉ 

How We Determine the Best Debt Relief Companies

To determine the best debt relief companies, we reviewed various databases, competitive analyses, consumer behavior, and more, ultimately narrowing down the list to 40 companies that offered debt settlement and/or credit counseling services. We developed a quantitative model in which෴ we identified 53 important criteria across five categories. We weighted each category as follows for this article:

• Costs and fees: 41.00%
• Availability: 22.50%
• Reputation and stability: 19.00%
• Customer experience: 9.50%
• Services: 8.00%

We then gathered data for the 53 criteria directly from companies via websites, media 🌱contacts, and existing partnerships. Data was collected between Oct. 19, 2023 and Dec. 18, 2023. This resulted in over 2,000 data points in our rubric, which we used to score and determine the best debt relief companies (including debt settlement and credit counseling services) for people looking to manage and get out of debt.

To learn more about our process for finding the best debt relief companies, read our 澳洲幸运5官方开奖结果体彩网:full methodology.