Tools
Debt settlement savings estimator
Enter what you owe and see an illustrative estimate1: the settled range, the fee as its own line, the program length and the monthly deposit. No email, no phone number, nothing saved.
Illustrative account timeline
Your debt split into typical accounts, smallest first. Each settles in the month shown, for the low to high end of the common settlement range. Your real order depends on your creditors.
| Account | Balance | Settles | Settled for |
|---|---|---|---|
| Personal loan | $3,750 | Month 10 | $1,688 to $2,250 |
| Medical bill | $5,000 | Month 15 | $2,250 to $3,000 |
| Card B | $6,750 | Month 21 | $3,038 to $4,050 |
| Card A | $9,500 | Month 26 | $4,275 to $5,700 |
Illustrative estimate. Results vary; not all debts settle. Your credit score will drop, creditors may sue, and forgiven debt may be taxable.
Assumptions
Every assumption, in plain sight.
An estimate is only as honest as its inputs. These are all of them, where each one comes from, and what the estimate leaves out.
| Input | What the estimate uses | Basis |
|---|---|---|
| Settlement | Creditors settle for 45 to 60% of the enrolled balance. The estimate uses 45% for its low end and 60% for its high end. | Stated by us. The range we commonly see, with program statistics on file; not a promise. Results vary and not all debts settle. |
| Fee | 20% to 29% of enrolled debt, shown as its own line. The low end of the estimate uses 20%, the high end 29%. | Stated by us. Your percentage depends on your situation and how you enroll, and your written agreement states it. |
| Program length | 24 months at $10,000 of debt, rising evenly to 48 months at $100,000 and above. | Stated by us. Most programs run 24 to 48 months; yours depends on your deposit and your creditors. |
| Monthly deposit | The total with fee divided by the program months, from the low-end total to the high-end total. | Arithmetic on the lines above. Your real deposit is set with you, around what you can afford. |
| Minimum debt | $10,000 of unsecured debt in total, and at least $500 per creditor. The slider runs from $10,000 to $150,000. | Stated by us. Below the minimum, the estimate uses the minimum. |
Not in the estimate
- Interest and late fees that keep adding to your balances until each account settles.
- Income tax that may be due on forgiven debt (IRS Form 1099-C).
- The dedicated account provider’s own fees: a $9.95 setup fee and a fee on each payment to a creditor.
- Accounts that do not settle, or that a creditor takes to court.
What is the formula behind the estimate?
Seven steps, in this order. The same math runs on our homepage and in the four-step estimate, so every number on this site agrees. D is the enrolled debt you enter. Each line is a range: the low end pairs the lower settlement with the lower fee, the high end the higher settlement with the higher fee.
- Enrolled debt D: the amount you enter, kept between $10,000 and $150,000.
- Settled amount = D × 45% to D × 60%, the range creditors commonly settle for.
- Fee = D × 20% to D × 29%, our fee range, shown as its own line.
- Total with fee = settled amount + fee, at the low end and at the high end.
- Program months = 24 + (D minus $10,000) ÷ ($100,000 minus $10,000) × (48 minus 24), rounded, never below 24 or above 48.
- Monthly deposit = total with fee ÷ program months.
Walk one through. At $25,000, the low end is $11,250 settled (45%) plus a $5,000 fee (20%), a total of $16,250. The high end is $15,000 settled (60%) plus a $7,250 fee (29%), a total of $22,250. Over about 28 months, that is $580 to $795 a month.
| Line | At $10,000 | At $25,000 | At $100,000 |
|---|---|---|---|
| Settled for | $4,500 to $6,000 | $11,250 to $15,000 | $45,000 to $60,000 |
| Fee | $2,000 to $2,900 | $5,000 to $7,250 | $20,000 to $29,000 |
| Total with fee | $6,500 to $8,900 | $16,250 to $22,250 | $65,000 to $89,000 |
| Program length | About 24 months | About 28 months | About 48 months |
| Monthly deposit | $271 to $371 | $580 to $795 | $1,354 to $1,854 |
| Less than you owe | $1,100 to $3,500 | $2,750 to $8,750 | $11,000 to $35,000 |
At the high end the saving is small: 11% of the debt before account fees, interest and tax. We show that, because it can happen1.
How should you read the result?
Read it as a range, not a quote. The low end is what a program could cost if creditors settle at the bottom of their common range and your fee is at the bottom of ours. The high end pairs the top of both.
Your real numbers depend on your creditors, how far behind the accounts are, how much you can deposit each month, and where your fee falls in our range. Most programs run 24 to 48 months, and most plans are set up for about 36 months.
If the estimate shows little or no saving for you, settlement may not be your best option. The FTC (FTC, opens in a new tab) and the CFPB (CFPB, opens in a new tab) both explain the alternatives, and nonprofit credit counseling is free to try.
Why does the estimator not ask for your email?
Because you should see the numbers before anyone sees you. The estimator runs in your browser and saves nothing. If you want a copy and a call, the four-step estimate asks for contact details only at the very end, and only if you choose to send them.
Things you should know
The downsides, stated plainly.
Read these before you enroll anywhere, including with us. They apply to every debt settlement program.
- Your credit score will drop during the program, and late payments stay on your credit report.
- Creditors may keep collecting while you save, and they can sue. The program does not stop legal action.
- Interest and late fees can keep adding to your balances until each account settles.
- Forgiven debt may be taxable income. A creditor may send you IRS Form 1099-C.
- Fees apply. The fee is 20 to 29% of your enrolled debt, depending on your situation and how you enroll, charged only after a settlement is agreed and the first payment to the creditor is made.
- Not all creditors agree to settle, and not everyone completes the program.
- We do not guarantee any amount, percentage or timeline.
- Debt settlement is not available in all states. We are not a nonprofit or a credit counseling service, and we do not lend money.
- We do not give legal or tax advice. Talk to an attorney or a tax professional about your situation.
Notes on the figures and claims above
- 1Figures on this site are illustrations, not offers or guarantees. Results vary; not all debts settle. Estimates assume creditors settle for 45 to 60% of enrolled balances, plus our fee of 20 to 29% of enrolled debt. Your fee percentage depends on your situation and how you enroll, is charged only after a settlement is agreed and a payment is made, and is stated in your written agreement. Estimates leave out the account provider's own fees, interest, late fees and taxes. Your credit score will drop during the program. Creditors may continue collection activity and can sue. Forgiven debt may be taxable income (IRS Form 1099-C). Fees apply. Not all creditors agree to settle. Most programs run 24 to 48 months, and most plans are set up for about 36 months.
How accurate is this estimate?
It is an illustration, not an offer. It uses the range creditors commonly settle for and our fee range of 20 to 29%. Your written agreement sets your real fee and terms.
Why is the high end so close to my whole debt?
The high end pairs the top of the settlement range with the top of our fee range: together about 89% of the debt, before account fees, interest and tax. If balances grow while you save, the saving shrinks further. The estimate shows that end too.
Does using the estimator affect my credit?
No. It does not ask for your name, your Social Security number or your credit report, and it saves nothing.
How can I pay off $30,000 of debt in a year?
Paying $30,000 in 12 months takes about $2,500 a month before any interest, more than most budgets can carry. A lower-rate consolidation loan or a nonprofit debt management plan can cut the cost; the FTC notes a plan can take 48 months or more. Settlement is slower too: at $30,000 this illustrative estimate runs about 29 months.
Does it include taxes or interest?
No. Interest and late fees can keep growing until each account settles, and forgiven debt may be taxable. Both are listed above under what the estimate leaves out.
Sources
Where the facts on this page come from. Each link opens the original in a new tab.
- 01 CFPB What is a debt relief program and how do I know if I should use one? (opens in a new tab)
- 02 FTC How To Get Out of Debt (opens in a new tab)
- 03 eCFR 16 CFR 310.4: Abusive telemarketing acts or practices (the advance-fee ban) (opens in a new tab)
- 04 IRS Topic no. 431, Canceled debt: Is it taxable or not? (opens in a new tab)
Next step
Want a person to check your numbers?
Take your estimate into the four short steps, or call. Nothing is signed until you say yes.
Four short steps
Your estimate first. Contact details last.
- 1How much you owea close guess is fine
- 2What kinds of debtpick all that apply
- 3Which state you live inchecked before anything else
- 4Your estimate, then a real person if you want one