Here’s a breakdown of Pacific Debt Relief: what fees they charge, how their costs are structured, and what to watch out for. If you like, I can also compare them with other similar companies so you can see whether it’s a good deal. For more information please visit pacific debt relief
What is Pacific Debt Relief
Pacific Debt Relief (also “Pacific Debt Inc.”) is a U.S.-based debt settlement company. They negotiate with unsecured creditors (credit cards, medical bills, personal loans, etc.) to try to reduce the amount you owe.
Key Fees & Costs
Here are the main charges and cost‐structures that Pacific Debt Relief uses. Knowing these helps you understand what you’d really end up paying.
| Fee / Cost Type | What It Is | How Much / Terms |
|---|---|---|
| Service / Settlement Fee | This is their core fee: what they charge for negotiating your debt and settling with creditors. It is contingent on success (i.e., you pay when there is a settlement). | |
| Percentage of Enrolled or Settled Debt | Their service fee is typically 15% to 25% of your enrolled debt, depending on factors like how much debt you have and which state you live in. | |
| When You Pay the Fee | You do not pay upfront. The fee is rolled into your monthly payments over time, and only kicks in as debts are successfully negotiated and settled. | |
| Program Duration | Usually 24 to 48 months (2 to 4 years) for typical clients who complete the program. Some take longer. | |
| Minimum Debt Requirement | They generally require you to have $10,000 or more in unsecured debt to qualify. |
What You Actually Might Pay
Because of how debt settlement works, the total cost includes more than just their fee:
- You’ll continue accruing interest/late fees on your enrolled accounts until negotiations settle. These can increase what you owe before reduction.
- Once settlements are done, you pay off the negotiated (i.e. reduced) balances, but the service fee is on that debt (or sometimes based on enrolled debt, depending on contract).
- If you fully comply (don’t miss agreed payments into a trust account or monthly deposits), people “often” end up paying about 50% of the enrolled balance before fees, or 65-85% including fees, over the life of the program. That is, you might save ~35-50% off your enrolled debt (or more), when everything is said and done.
Pros and Risks / Trade-offs
Pros:
- No upfront fee: lowers risk as you don’t pay unless they are doing work and getting results.
- Transparent fee range (15-25%) so you can estimate.
- Might significantly reduce the total owed through settlements. For more information please visit check n go
Risks / things to watch out for:
- Credit score impact: During settlement, you often stop or reduce payments to creditors, or let accounts become delinquent, so your credit score tends to be harmed.
- Not all debts qualify: Secured debts (like mortgages, auto loans), IRS debts, judgments, etc., are often excluded.
- You may get sued by creditors: Because of missed payments or collections actions before settlements.
- You still need to have some money to make monthly deposits into a dedicated account so that settlements can be funded. If you don’t manage that, the program might not work as planned.
What You Should Know Before Signing Up
Before you commit, here are practical steps / questions to ask, to make sure you’re not surprised by cost or results:
- Get a written quote that includes the fee percentage, estimated time, projected savings, and what your monthly payment will be.
- Clarify whether fee is on enrolled debt or settled debt. The difference can significantly affect what you pay.
- Check whether your debts are eligible. If much of your debt is from excluded categories, the value of the program drops.
- Ask about state‐specific rules: fee caps, laws about settlements, whether the company is licensed in your state.
- Understand what happens if you don’t complete the program: can you stop the program early? Are there penalties? What if a creditor refuses to settle?
- Tax consequences: Forgiven debt (i.e. the amount the creditor writes off) may be reportable income in many cases.
Bottom Line
Pacific Debt Relief’s fee structure is fairly typical for the industry, especially when compared to other debt-settlement programs. You can possibly save a large chunk of what you owe, but you will trade off in time, credit score, and potentially having to stretch your budget to make monthly deposits.
