Pacific Debt Review for 2025

Pacific Debt Inc. is a debt relief and support agency that has been in business since 2002. Debt settlement companies such as Pacific Debt differ from credit counseling services and other types of personal finance companies.

Pacific Debt offers to help you pay off your debt as opposed to rebuilding or raising your credit score in the short term. They don’t just consolidate your debt and lower your interest rate — their goal is to eliminate your debt.

Based in San Diego, Pacific Debt Inc. is an A+ member of the Better Business Bureau with a 4.89 out of 5 rating. They are also accredited with the American Fair Credit Council and the International Association of Professional Debt Arbitrators.

Pacific Debt’s feedback and customer reviews from both are overwhelmingly positive, with customers frequently calling out their counselors by name for praise.

Eligibility Criteria for Pacific Debt’s Services

Debt settlement through Pacific Debt Relief is a long-term commitment, typically lasting 24 to 48 months. To qualify, you must meet the following criteria:

1. Debt Type: Only unsecured debts such as credit card debt, payday loans, medical bills, or personal loans are eligible.
2. Debt Amount: You must owe at least $10,000 in unsecured debt.
3. Location: Pacific Debt Relief currently operates in 36 states and Washington, D.C. While this list includes major states like California, Texas, and Florida, availability may vary, so it’s best to check with Pacific Debt directly for your specific location.

This program is not available for secured debts like mortgages or auto loans. Additionally, clients are assigned a dedicated account manager who will work with them throughout the entire process, providing personalized service instead of relying on call centers.

How Pacific Debt Settles Your Debt

Pacific Debt takes a different approach than consolidation loans or credit counseling services. Instead of bundling your debt for a lower interest rate, they negotiate directly with creditors to reduce the total amount you owe.

The Process:

1. Free Consultation: A certified debt counselor will evaluate your financial situation to see if you’re a good candidate for their program.
2. Special Purpose Account: Once enrolled, you’ll stop making payments to your creditors and start depositing money into an FDIC-insured Special Purpose Account. This fund will be used to negotiate settlements.
3. Negotiation Phase: Once your account reaches a certain balance, Pacific Debt’s specialists will negotiate with creditors to reduce your debt significantly.
4. Client Approval: Before any settlement is finalized, you’ll be consulted to approve the terms.

During this process, it’s common for accounts to go into collections, and creditors may attempt to contact you. However, federal and state laws limit collection agencies’ actions, and Pacific Debt’s team can guide you through handling these situations.

Typical Customers of Pacific Debt and Their Challenges

The average household credit card debt in the U.S. reached $8,871 in 2024, reflecting a steady increase as more families rely on credit to cover living expenses. Pacific Debt Relief typically works with clients who carry significantly higher amounts of debt, often exceeding $10,000. Many clients are facing challenges like struggling to make minimum payments or dealing with multiple creditors.

For instance, Pacific Debt has helped clients reduce debt balances by tens of thousands of dollars, as highlighted in reviews like this one: “Mr. Hallas has been extremely professional and informative throughout the process and has assisted me with reducing over $150,000 in debt.” These successes show how the program can be a game-changer for those with overwhelming financial burdens.

If your goal is to consolidate debt and secure a lower interest rate, a debt consolidation loan might be a better option. However, for clients dealing with substantial unsecured debt, Pacific Debt provides a solution that focuses on eliminating the debt entirely, even if it takes two to four years to complete.

Getting Started with Pacific Debt Relief

Signing up with a debt settlement company of any type is a big decision and should not be taken lightly. The first step of the process is to contact them.

Remember, these are not simply pushy telemarketers trying to make a sale. They’ll put you in touch with a certified debt counselor who can review all of your debt relief options and help you decide if debt settlement services are right for you.

They will help analyze your debt, monthly expenses, and your income. Then, they look at your current budget and determine a payment estimate that works for you. Often this amount will be less than you are currently paying to your creditors.

Additionally, there are no upfront costs associated with their services. You don’t pay any amount until you start seeing results, and their cost is in line with other services of this nature. Pacific Debt Inc. typically charges a monthly fee of 15% to 25% of your enrolled debt. The fee is factored into your monthly program payment.

Once the Process Starts

You should know upfront that once you start working with Pacific Debt, your credit score is likely to go down. As previously stated, their goal is not to improve your credit, that comes later. The goal of a debt relief company is to get you out of debt as quickly as possible.

Because you no longer make monthly payments to your creditors, those accounts are likely to go into collections if they haven’t already. As a result, you may begin to receive phone calls demanding payment from credit collection agencies. Luckily, there are federal and state laws that limit how often these companies can call you.

A member of their customer service team will reach out to you every couple of weeks to make sure you understand the process and answer any questions you may have.

As you pay into and grow your FDIC insured account, your Personal Account Manager will negotiate with your creditors to pay off the entirety of your bill at a lower amount.

Every time an agreement is reached, your account manager will reach out to you to finalize the arrangement and gain your approval. So from start to finish, you are always a part of the process.

Unique Advantages of Choosing Pacific Debt Relief

Pacific Debt’s philosophy is to pay off your debt as quickly and as cheaply as possible. By helping you to save a large portion of money and using that money to negotiate an immediate payment, they can potentially reduce your overall debt by a large percentage.

It probably took years for you to accumulate that much debt, and it’s going to take a few years to pay it off. But with Pacific Debt Inc., you won’t spend the better part of your life saddled with high balances and making interest-only payments.

Pacific Debt Reviews

Third-party reviews provide valuable insights into Pacific Debt’s effectiveness and customer service. These reviews offer firsthand accounts from clients who have completed the debt settlement process, sharing both successes and challenges.

Pacific Debt holds an A+ rating from the Better Business Bureau (BBB), reflecting a strong commitment to resolving customer concerns and delivering quality service. The company also receives positive feedback for its transparency and personalized approach, with relatively few complaints compared to industry averages.

To gain a comprehensive understanding of Pacific Debt’s services, it’s helpful to review feedback across multiple platforms. This approach allows you to evaluate consistent themes in customer experiences and set realistic expectations about the process.

Benefits and Drawbacks of Pacific Debt Relief

Choosing a debt settlement program is a major decision with both potential advantages and challenges. Here’s what to consider before enrolling with Pacific Debt:

Benefits

• Reduced Total Debt: Pacific Debt negotiates with creditors to lower the amount owed, often saving clients a significant percentage of their enrolled debt.
• Single Monthly Payment: Clients pay into a Special Purpose Account instead of juggling multiple creditors, simplifying their financial management.
• No Upfront Fees: You only pay for services once settlements are reached with your creditors, reducing financial pressure upfront.
• Personalized Support: Each client works with a dedicated account manager, offering a more tailored approach compared to larger call-center-based services.

Drawbacks

Program Length: While effective, the process can take two to four years, requiring long-term commitment and financial discipline.

Credit Score Impact: Enrolling in the program will likely lead to a temporary drop in your credit score, as accounts may go into collections.

Debt Collection Risks: Creditors may still pursue collection activities, including phone calls or legal action, until settlements are finalized.

Bottom Line

Pacific Debt Relief is best suited for individuals with significant unsecured debt who are unable to manage minimum payments and are considering bankruptcy as a last resort. The program offers a structured way to reduce your debt burden but comes with tradeoffs, including a temporary impact on your credit score and a lengthy settlement process.

While this solution may not be ideal for everyone, it provides a clear path toward financial recovery for those in serious debt. If you’re ready to take the next step, a free consultation with a Pacific Debt specialist can help determine whether their services are the right fit for your situation.