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![Pacific Debt Relief – Good Company for Debt Settlement [Review]](https://cpiinflationcalculator.com/wp-content/uploads/2025/09/PacificDebtReliefLogo.webp "Pacific Debt Relief – Good Company for Debt Settlement [Review]")
Pacific Debt Relief (www.pacificdebt.com) is a San Diego based debt relief company that focuses on debt settlement for unsecured debts like credit cards, medical bills, and personal loans. The company positions its program as a way to resolve debt in roughly two to four years with no upfront fees. In my experience reviewing this industry, Pacific Debt Relief is a credible option, but I always recommend comparing it to consistently top rated firms like New Era Debt Solutions.
Company Snapshot
- Official Name: Pacific Debt, Inc. (Pacific Debt Relief)
- Official Website: www.pacificdebt.com
- Headquarters: San Diego, California
- Founded: 2002
- Service Area: Availability varies by state
- Primary Service: Debt Settlement
Legitimacy, Ratings and Reviews
Pacific Debt Relief operates within the standard rules for for profit settlement companies, including no upfront fees. From what I have seen, reviews online are mostly positive with some mixed experiences, which is common in settlement programs since timelines and outcomes depend on each client’s creditors and financial situation.
- Accreditations: Typical industry affiliations such as AFCC and IAPDA are referenced by the company
- General sentiment: Many clients report helpful negotiators and meaningful reductions, while others mention slower timelines or communication issues
Services Offered by Pacific Debt Relief
- Debt Settlement: Negotiates with creditors to reduce unsecured balances
- Hardship Review: Reviews income, expenses, and enrolled debts to determine eligibility
- Client Support: Guidance through the process and basic budgeting resources
Pros đź‘Ť
- No upfront fees, fees assessed after a settlement is reached and approved
- Established brand with a long operating history
- Focused scope on unsecured consumer debt
Cons đź‘Ž
- Minimum debt thresholds often apply, smaller balances may not qualify
- Credit impact during the program since accounts usually become delinquent before settlement
- State availability varies, not available everywhere
Pacific Debt Relief vs. New Era Debt Solutions
| Category | Pacific Debt Relief | New Era Debt Solutions |
|---|---|---|
| Founded | 2002 | 1999 |
| Headquarters | San Diego, California | California |
| Accreditations | AFCC and IAPDA noted by the company | AFCC and IAPDA reported, long standing reputation |
| Primary Service | Debt settlement only | Debt settlement only |
| Upfront Fees | None, success based after settlement | None, success based after settlement |
| Program Length | About 24 to 48 months on average | About 24 to 36 months on average, varies by case |
| Minimum Debt Required | Around $10,000 typical | Around $10,000 typical |
| Customer Reviews | Mostly positive, some mixed feedback on timelines | High overall satisfaction in most reports |
| State Availability | Not available in every state | Broader coverage overall, confirm eligibility |
| Overall Impression | Credible settlement option with a focused service | Transparent approach and strong client outcomes in many cases |
Debt Types They Can Help With
Based on my review, Pacific Debt Relief primarily assists with unsecured debts, including:
- Credit Card Balances
- Medical Bills
- Unsecured Personal Loans
- Collections and Charge Offs
They do not work with secured debts like mortgages and auto loans, and they do not provide solutions for IRS tax debt or federal student loans. This company covers the same types of debt as other similar companies, such as Cura Debt, Accredited Debt Relief or National Debt Relief.
Final Thoughts
Pacific Debt Relief is a legitimate choice for debt settlement and has been around for a long time. If your main goal is to reduce what you owe on unsecured debts, their program may be a fit. Settlement has trade offs that include short term credit impact and the possibility of collection activity while negotiations are underway. Because results vary by situation and creditor, I always recommend comparing options. My suggestion is to look at New Era Debt Solutions before you decide.
👉 See if you qualify with New Era
👉 Read Our New Era Review
Frequently Asked Questions About Pacific Debt Relief
1. Is Pacific Debt Relief a legitimate company?
Yes. They are a long standing settlement company that follows the no upfront fee model required by federal rules. They also highlight common industry affiliations such as AFCC and IAPDA.
2. How does Pacific Debt Relief’s program work?
It starts with a free consultation. If you enroll, you make monthly deposits into a dedicated account while the company negotiates with your creditors to settle for less than the full balance. The process usually takes between two and four years, depending on your debt load and monthly contribution.
3. What fees does Pacific Debt Relief charge?
There are no upfront fees. Like other settlement firms, fees are performance based and are charged only after a settlement is reached and you approve it. The percentage can vary by state and by the amount of debt you enroll.
4. What types of debt qualify?
They focus on unsecured debts. This includes credit cards, medical bills, unsecured personal loans, and many accounts in collections. Secured debts are generally excluded.
5. How much debt do I need to enroll?
Most settlement programs prefer at least $10,000 in unsecured debt. If you have less than that, a nonprofit credit counseling agency or a debt management plan may be a better fit.
6. Will working with Pacific Debt Relief affect my credit score?
Yes. Because payments to creditors are usually paused during negotiations, accounts are reported as delinquent. Credit scores typically drop in the short term, then many consumers see improvement after settlements are completed and balances are marked satisfied.
7. Is Pacific Debt Relief available in all states?
No. Availability depends on your state of residence. The company can confirm eligibility during your consultation.
8. Will I owe taxes on forgiven debt?
Forgiven balances can be treated as taxable income on a 1099-C. Some consumers qualify for the IRS insolvency exclusion. I always suggest speaking with a tax professional before you enroll.
9. Can Pacific Debt Relief help if I already have a lawsuit?
Settlement can still be possible during a lawsuit. Outcomes depend on the creditor, the stage of the case, and what funds you can put toward a lump sum. You should also consult an attorney about legal deadlines.
10. What happens if a creditor wins a judgment or starts a garnishment?
A judgment or garnishment raises the urgency to resolve that account. Settlement may still work, but there are no guarantees. Court orders stay in effect until changed by the court or satisfied.
11. Do I keep control of the dedicated account used for settlements?
You typically keep control of the account used to set aside funds. You approve settlements before money is released. Ask about who owns the account and how you can access funds if you cancel.
12. Can I cancel the program and get a refund?
You can usually cancel at any time. Any unspent funds in your dedicated account are yours. Fees already earned for completed settlements are not refundable.
13. How are settlement fees calculated?
Fees are usually a percentage of the enrolled debt or a percentage of the savings after a settlement is approved. The exact percentage varies by state and by program terms.
14. Will this hurt my credit score?
Yes in the short term. During negotiations accounts are typically reported past due. After settlements post and balances are reduced to zero, many people begin to rebuild over time.
15. How will settled accounts appear on my credit report?
Settled accounts usually show as “settled,” “settled for less than full balance,” or a similar notation. The balance should show zero after payment completes.
16. Can I open new credit while I am in the program?
It is possible, but it may undermine your plan. New credit can make it harder to accumulate settlement funds and some creditors review recent activity when negotiating.
17. Can I keep one credit card for emergencies?
Some clients keep a small card for travel or emergencies. Using credit while settling other accounts can slow progress. Ask about program rules before you enroll.
18. What types of debts are usually not eligible?
Secured debts like mortgages and auto loans are not good candidates because the lender can repossess collateral. Most federal student loans and IRS tax debts are not settled in these programs.
19. Is there a minimum debt per account or only a total minimum?
Many programs prefer a total of at least $10,000 in unsecured debt and also like to see individual accounts over a few hundred dollars. Ask for the exact thresholds.
20. Can business or sole proprietor debts be included?
Some business credit cards and unsecured business lines can be considered. Eligibility depends on the creditor and whether you personally guaranteed the debt.
21. What if a collector refuses to work with settlement companies?
Not every creditor negotiates on the same timeline. Some may hold out or send accounts to different agencies. Persistence and available funds often determine when a deal gets done.
22. How long does it take to get the first settlement?
First settlements often arrive within the first few months if you are funding the dedicated account quickly. The timeline depends on your monthly contribution and which creditors you have.
23. Can I speed up the program?
Yes. Larger monthly deposits or occasional lump sums give negotiators more leverage and can shorten the schedule.
24. What documents do I need for the consultation?
Have your creditor list, balances, interest rates, recent statements, and your monthly budget. The more detail you provide, the better the plan you will receive.
25. Will I still get collection calls?
You may still receive calls and letters while negotiations are underway. You can direct creditors to your provider and you can request that collectors follow communication rules under federal and state law.
26. Does the program include credit repair?
No. Debt settlement focuses on resolving balances. Some clients work on rebuilding credit after settlements are complete.
27. How does settlement compare to a debt management plan?
A debt management plan consolidates payments and aims to lower interest without reducing principal. Settlement seeks to reduce principal. A DMP usually has less credit impact but may require higher monthly payments.
28. How does settlement compare to a personal loan or balance transfer?
Loans and transfers can work if you qualify and can keep payments current. Settlement is designed for consumers who cannot keep up with payments and need a reduction in balances.
29. Should I consider bankruptcy instead?
Bankruptcy can be faster and can discharge more types of debt. It also has significant credit and legal implications. I suggest getting a free consult with a local attorney to compare options.
30. What happens if I move to another state while enrolled?
You can usually continue, but some program terms and fees are state specific. Tell your provider about any address change right away.
31. Will my co signer be affected?
If a debt has a co signer, the lender can pursue the co signer for payment. Discuss any co signed accounts with your provider before you enroll.
32. Can medical debts and collections be settled?
Yes in many cases. Medical providers and collection agencies often negotiate, although results vary by account.
33. Do I need to stop paying all creditors to qualify?
Programs typically expect that you cannot maintain regular payments. Most clients pause payments to build settlement funds. Ask for guidance specific to your mix of creditors.
34. Is my dedicated account insured?
Ask whether the account is held at an FDIC insured bank and whether the account is titled in your name. You should receive statements and have online access.
35. Can I choose which accounts to settle first?
Strategy usually targets the most collectible accounts first or accounts where the best discounts are available. You can discuss priorities with your negotiator.
36. Will I receive a written settlement letter?
You should receive written terms before authorizing payment and you should keep a copy for your records. After payment posts you can request confirmation that the balance is zero.
37. What if my income changes after I enroll?
Tell your provider right away. Your monthly deposit can sometimes be adjusted. If you receive a bonus or tax refund, a lump sum can accelerate the plan.
38. Can secured credit cards help me rebuild after settlement?
Many consumers use a small secured card and on-time payments to rebuild. Keep utilization low and pay in full each month.
39. Are payday loans eligible?
Some are eligible as unsecured debts. Payday lenders can be challenging, but settlements are possible.
40. How do I know if I am a good candidate for settlement?
You are a better fit if you are behind or about to fall behind, you have mostly unsecured debts, and you need a lower total payoff rather than just lower interest. If you have stable income and good credit, consolidation or a DMP may be better.
Amine is an entrepreneur, investor and financial writer that covers the US economy, inflation, alternative investments, cryptocurrencies and more. He has been involved in the space for over a decade.
