Credit card debt relief
Card debt, settled for less than you owe.
If your card payments have stopped working, settlement may cut what you repay1. See it in dollars first: the settled range, the fee and the timeline, before you give anyone your number.
You approve every settlement · Real people in English, Spanish and Hungarian
- No fee until a debt is settled and you have paid under it
- Your savings stay in an account in your own name
- We do not make or sell loans of any kind
- Most programs run 24 to 48 months, one card at a time
How it works
Three cards, settled one by one.
An illustrative $21,500 across three credit cards. The right-hand column is what is still open. Nothing on it moves without your yes.
- Day 1 $21,500.003 cards
A free call
We go through your cards, your balances and your state. If settlement is not right for you, we say so.
- Week 1 $21,500.003 cards
Your account opens
One monthly deposit goes into an account in your name, instead of three minimum payments.
- Month 5 $17,000.001 card settled
The smallest card settles first
The issuer offers to settle the $4,500 card. You see the amount and our fee in dollars before anything is paid.
Your yes, every time - Month 15 $9,800.002 cards settled
The next card settles
Another offer, another approval. Each settlement letter is yours to keep.
- Month 26 $0.00all resolved
The last card settles
The final card comes off the list. Then comes the work of rebuilding credit.
Is it right for you
Who card settlement fits (and who isn’t)
Likely a good fit if
- Your cards add up to $10,000 or more, with at least $500 on each
- You are behind, or about to be, and minimum payments barely touch the balance
- You can put one steady amount aside each month
- A loan to pay the cards off is out of reach, or would not help
Probably not a fit if
- Your credit is good enough for a low-rate loan or a 0% balance transfer
- You could clear the cards in a few years if the interest came down
- You need your credit score for a home or car loan soon
- You live in a state where we are not enrolling yet
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 a percentage of your enrolled debt, set individually, and charged only after a settlement is reached.
- 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 (typical) or 80% (conservative, a 20% reduction), plus an illustrative fee of 20% of enrolled debt. The actual fee is a percentage of enrolled debt, set individually and charged only after a settlement is reached; your written agreement states it. 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.
Straight answers
Credit card settlement, straight answers.
Rather hear it from a person? 866-659-7966
Will settling my credit cards hurt my credit?
Yes. Your score will drop while the cards go unpaid and you save. Each settled card is reported as settled for less than the full balance.
Can my card company sue me?
It can. Card issuers may keep collecting and can sue while you save. If you are served, call us the same day and consider talking to an attorney.
Is settled credit card debt taxable?
It may be. The IRS can treat forgiven debt as income, and the issuer may send you Form 1099-C. A tax professional can tell you how it applies to you.
What does it cost?
The settled amounts plus a fee. The fee is a percentage of your enrolled debt, set individually, and charged only after a settlement is reached. The estimate above shows it as its own line.
Would a consolidation loan or balance transfer be better?
If your credit is still good, a low-rate loan or a 0% balance transfer can cost less and hurt your credit less. We do not sell either, so we will tell you if that is the better road.
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 CFPB What do I need to know if I’m thinking about consolidating my credit card 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)
- 05 NFCC National Foundation for Credit Counseling (opens in a new tab)
Next step
Ready to see your cards settled?
Check your state, see your estimate with the fee in dollars, then decide. 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
Four short steps · estimate before contact
See my estimate
Step 1 of 4