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Pacific Debt Inc.

4.5 Stars
Updated: January 23, 2023
By: Jeff Smith
Jeff Smith
Sr. Content Manager
As Retirement Living’s senior content manager, Jeff oversees the product and publishing of all retirement, investing, and consumer wellness content on the site. His extensive expertise in brand messaging and creating data-driven stories helps position Retirement Living as a top authority for senior content and community resources.
Sr. Content Manager
Edited By: Lauren Hamer
Lauren Hamer
Bringing more than a decade of editorial experience to Retirement Living, Lauren focuses on reporting senior-related issues, including retirement planning, finance, consumer protection, and health and wellness. Lauren has edited consumer content for Credible, Angi, Slickdeals, Jobs for the Future, and more.

Pacific Debt offers debt relief services designed to help clients reduce the amount they owe on outstanding bills. Pacific Debt Inc. puts together an affordable payment plan after negotiating with creditors to lower the total debt amount. The company doesn’t make hollow promises and says paying off debt takes time, but a dedicated debt specialist team attempts to make overwhelming amounts of debt affordable.

Pacific Debt Inc

Editorial Breakdown

Costs 4.4 Stars
Services 4.4 Stars
Customer Service 4.7 Stars
Fees 4.6 Stars

Overall Rating 4.5 Stars

Bottom Line

A dedicated Pacific Debt account manager works directly with each client to navigate through each phase of your debt settlement process.

Pacific Debt Review

Founded in 2002, Pacific Debt Inc. has resolved more than $200 million in client debt. The California-based company works with clients in 30 states to negotiate lower settlements with creditors, primarily for credit card and medical bills, repossessions and unsecured personal loans. The company doesn’t work with some types of accounts, but it can refer you to other companies that do. If you need assistance resolving back taxes, see our Best Tax Relief Companies for help.

Pacific Debt’s average debt settlement in 2010 amounted to around 39% of the client’s total balance owed. We included Pacific Debt in our Best Debt Relief Companies lineup because the company offers the best personalized service. The company maintains certification from the International Association of Professional Debt Arbitrators and accreditation by the American Fair Credit Council. Employees complete IAPDA and AFCC training and agree to comply with codes of conduct and Federal Trade Commission rules regarding fair debt settlement fees.


  • High consumer ratings
  • Free consultation
  • Lower fees compared to some debt consolidation companies


  • Only available in 30 states

Qualifying for Debt Relief from Pacific Debt

If you meet a few qualifications, Pacific Debt will work to lower and consolidate your bills, leading to debt resolution.

  • You have outstanding unsecured debt you can’t pay off. Unsecured debts such as credit card debt and payday loans have no lien or collateral associated with them. Pacific Debt does not resolve secured loans, including mortgages or car loans.
  • You have a minimum of $7,500 in debt with at least $500 owed to each creditor.
  • You can make substantial monthly payments to a savings account. The Pacific Debt debt consolidation program requires you to contribute money to a designated account. You stop making payments to creditors and funnel those funds to the account. If you can’t make deposits to the account, the service does not work for your circumstances. Consider talking with a bankruptcy attorney.

How Pacific Debt Relief Programs Work

The process for resolving debt through Pacific Debt Inc. is similar to other debt relief companies:

  1. Start with a free, no-obligation phone consultation with a representative who discusses your financial situation and options.
  2. Sign a contract and stop paying your creditors and taking their phone calls.
  3. Pacific Debt Inc. helps you set up a savings account in your name where you make monthly deposits. The account is FDIC insured.
  4. Save enough money for a settlement offer, and Pacific Debt contacts one creditor to offer the lump sum in exchange for closing out your debt.
  5. If the creditor accepts and you agree to the deal, you pay directly from the savings account. Pacific Debt withdraws its service fee at this time.
  6. Repeat the process for each additional creditor you owe.

Most Pacific Debt clients finish the debt relief process in two to four years. The time required to complete the program depends on the number of creditor accounts and the amount you deposit monthly into the savings account.

Pacific Debt
Sample Debt Settlements
Creditor Debt Owed Settlement Fee Range Total Savings
Chase $8,650.00 $2,076.00 $1,297.50 to $2,162.50 51% to 61%
Citibank $25,757.78 $7,175.50 $3,864 to $6,439.45 47% to 57%
Chase $6,075.78 $2,477.00 $911 to $1,518.95 34% to 44%
Capital One $16,755.69 $8,377.85 $2,513 to $4,199.92 25% to 35%

Pacific Debt Settlement Costs

Pacific Debt’s debt consolidation fee ranges from 15% to 25% of your total enrolled debt. The final fees depend on regulations in your state and the amount of debt owed. Pacific Debt Inc. does not charge any upfront fees. Debt settlement service costs get deducted after successfully negotiating a settlement.

Another cost to debt settlements is income tax. Forgiven debt over $600 is typically subject to taxation by the IRS, which considers this to be passive income.

Pacific Debt Settlements Complaints

Pacific Debt Inc. receives overall high scores from reviewers and rating websites. ConsumerAffairs rates the company 4.5 out of 5 stars. The Better Business Bureau gives the company an A+ grade with 4.5 out of 5 stars from BBB reviewers. Some reviewers complained about the resolution process taking longer than expected and debt collectors repeatedly calling during the settlement process. Pacific Debt receives an 8.6 on a 10-point scale from BestCompany with 4.8 out of 5 stars from consumer reviews on the site.

Pacific Debt Q&A

  • Does Pacific Debt provide debt settlement services in my area?

    Pacific Debt Inc. serves clients in 30 states, including Alabama, Alaska, Arizona, Arkansas, California, District of Columbia, Florida, Iowa, Idaho, Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Mexico, New York, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, Virginia and Wisconsin.

  • Can Pacific Debt stop collection calls?

    It’s typical to experience an increase in collection calls when you start Pacific Debt’s program for debt relief because you stop making payments. Pacific Debt helps you learn your rights and keep calls to a minimum but can’t stop the calls altogether.

  • What can I do to complete Pacific Debt’s debt relief process sooner?

    The more money you place in your dedicated account each month, the faster you complete the debt settlement program. However, creditors that are unwilling to negotiate with Pacific Debt can delay your debt resolution.

  • Can I cancel Pacific Debt’s program if I change my mind about debt settlement?

    Yes, you can stop the debt relief process with Pacific at any time and withdraw all funds from your dedicated savings account.

  • Will my credit score take a hit when I start working with Pacific Debt?

    Your credit score is affected while you’re receiving debt relief services from Pacific Debt. You do not pay your creditors during this time, and your account gets reported as delinquent. Most clients taking advantage of the company’s debt consolidation services already have a very low credit score. A debt relief program with Pacific Debt can take longer to complete than other debt consolidation plans and can have a severe effect on your credit score, often up to seven years after paying off the debt.


Debt relief services should be a last resort before bankruptcy, but the programs are the only way for some individuals to erase their debt. Pacific Debt can help remove the stress of a never-ending pile of bills. The company works out debt consolidation plans so clients can become debt-free. Pacific Debt stands out with high customer ratings and dedicated attention to each client.

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