Overview

Pacific Debt Relief offers an alternative to debt consolidation and bankruptcy by negotiating with creditors on your behalf. It works to reduce your interest rates and cut your unsecured debt by up to 50%, claiming it helps you get out of debt up to five times faster than if you tried to repay your loans independently.

With over 20 years in business, Pacific Debt Relief says it has successfully helped customers eliminate over $500 million in debt. The company is accredited by the Better Business Bureau with an A+ rating and is a member of the Consumer Debt Relief Initiative. On Trustpilot, Pacific Debt Relief holds a 4.8-star rating and has thousands of positive reviews online. The company is also accredited by the International Association of Professional Debt Arbitrators.

You should note that working with Pacific Debt Relief can lower your credit score while you are enrolled in the program, and creditors can continue to pursue you through calls and even legal action while your accounts remain delinquent. Your creditors can also continue to charge you interest and late fees. While Pacific Debt Relief can’t stop collection calls, your debt specialist can help you understand your rights and discuss how you can handle communication from creditors.

However, unlike consolidation loans and other solutions, debt relief programs like this can reduce what you owe without requiring bankruptcy. While the program may impact your credit score in the short term, it can help you address your debts more quickly and work toward rebuilding your financial health. Additionally, unlike a bankruptcy, which can stay on your credit report for up to 10 years, settled debts typically remain on your credit report for up to 7 years from the date of first delinquency.

The company charges a fee of 15%-25% of your total debt. The exact fee depends on the state you live in and your debt amount, and it’s rolled into your monthly payments. There are no upfront fees; you only pay once you are enrolled in the program and your debt (and potentially your interest rate) has been reduced.

Eligibility and Application Process

Pacific Debt Relief requires you to have a minimum of $10,000 in unsecured debt to qualify for their program. If you have secured debt, Pacific Debt Relief may refer you to another provider. Currently, Pacific Debt Relief does not offer help to Oregon residents.

The application process is simple and can take just a few minutes:

• Free consultation. Start with a free phone consultation with a certified debt specialist. You’ll learn if you qualify and how much your debt could be reduced. You can also ask any questions you have about the process.
• Create a plan. The debt specialist will work with you to assess your debts and budget and will then develop a customized monthly payment plan you can afford.
• Enroll in the program. Should you choose to proceed, you’ll sign an agreement to enter the program. Pacific Debt Relief will then negotiate with your creditors and possibly reduce your debt and interest rates. Once enrolled, you’ll make monthly payments to Pacific Debt Relief, which will distribute the funds to your creditors once you’ve saved up enough.

Pacific Debt Relief is best for individuals who are having trouble meeting their monthly debt payments or can only pay the minimum. This may be a good fit if your debt amount is simply too high for you to repay, even with your best efforts, and your credit score is negatively affected.

Pacific Debt Relief may not be the right fit for you if you want to improve your credit score or lower your interest rates. Since this can impact your creditworthiness in the short term, it may also not be the right solution if you can make the minimum monthly payments on your debts or if you have good credit. To enroll with Pacific Debt Relief, you must be able to make monthly payments, so you need a source of income.

Debt Services

Pacific Debt Relief does not offer debt consolidation, loans, or bankruptcy support. The one debt service the company offers is a program that negotiates your debt amount down.

As part of the program, you’ll work with a certified debt counselor and account manager to determine a manageable monthly payment. Your payments will go into an FDIC-insured savings account, so your money is protected in case the bank fails. Once enough money has accumulated, Pacific Debt Relief will use it to pay your creditors. The goal is to help you become debt-free within two to four years.

You’ll have 24/7 access to the savings account where your money is accumulating, so you can see how much you’ve saved towards your debts. You’ll also get calls every few weeks from your account manager, in case you have questions.

While Pacific Debt Relief does not offer any other debt services, if you decide the program is not right for you, your debt specialist may be able to refer you to a company offering more appropriate services.

Types of Debt Covered

Pacific Debt Relief can assist with most unsecured debts, including:

• Credit card balances, including store cards
• Personal loans
• Hospital and medical bills
• Unsecured lines of credit
• Payday loans
• Unsecured business debts, including business loans, credit cards, and lines of credit
• Repossessions

You can qualify with a mix of unsecured debts, whether your accounts are up to date or in collections, as long as your total debt is at least $10,000. Pacific Debt Relief cannot assist with secured debts, home loans, IRS debts, auto loans, government loans, or utility bills. Should you have these kinds of debts, your debt relief specialist may be able to recommend another company that might be able to help you.

Customer Support

Customer support is available by phone, email, or fax during the following hours:

• Monday-Thursday: 6am-7pm (PT)
• Friday: 6am-4:30pm (PT)
• Saturday: 7:30am-4:30pm (PT)

I also like the many options you can explore to learn more. For example, you can visit the Pacific Debt Relief website, which offers a blog, a YouTube channel with program explanations, and an Educational Resource Center with articles on personal finance, budgeting, credit scores, and different types of debt. Pacific Debt Relief also has active social media accounts on X (formerly Twitter), Facebook, and LinkedIn.