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 typical to conservative amount. Your real order depends on your creditors.
| Account | Balance | Settles | Settled for |
|---|---|---|---|
| Personal loan | $3,750 | Month 10 | $1,688 to $3,000 |
| Medical bill | $5,000 | Month 15 | $2,250 to $4,000 |
| Card B | $6,750 | Month 21 | $3,038 to $5,400 |
| Card A | $9,500 | Month 26 | $4,275 to $7,600 |
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 |
|---|---|---|
| Typical settlement | Creditors settle for 45 to 60% of the enrolled balance. The estimate uses 45% for its low end. | Illustrative, pending confirmation. Our experience of common outcomes, not a promise; results vary and not all debts settle. |
| Conservative case | A 20% reduction: creditors settle for 80% of the balance. This is the high end of the range. | Illustrative, pending confirmation. A deliberately cautious case. With the illustrative fee it can mean no saving at all, and the estimate shows that. |
| Fee | 20% of enrolled debt, shown as its own line. | Illustrative. The real fee is a percentage of your enrolled debt, set individually, and charged only after a settlement is reached. Your written agreement states it. |
| Program length | 24 months at $10,000 of debt, rising evenly to 48 months at $100,000 and above. | Illustrative, pending confirmation. 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 typical total to the conservative 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. | Illustrative, pending confirmation. 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).
- Any fees the dedicated account provider charges.
- Accounts that do not settle, or that a creditor takes to court.
How is the estimate calculated?
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.
- Enrolled debt is the amount you enter, between $10,000 and $150,000.
- Typical settled amount: enrolled debt times 45%.
- Conservative settled amount: enrolled debt times 80%.
- Fee: enrolled debt times 20%, an illustrative figure shown as its own line.
- Total with fee: each settled amount plus the fee, from typical to conservative.
- Program length: 24 months at $10,000, rising evenly to 48 months at $100,000 and above.
- Monthly deposit: the total with fee divided by the program months.
| Line | At $25,000 |
|---|---|
| Settled for | $11,250 to $20,000 |
| Illustrative fee | $5,000 |
| Total with fee | $16,250 to $25,000 |
| Program length | About 28 months |
| Monthly deposit | $580 to $893 |
At the conservative end, the total with fee equals the debt itself: no saving. We show that, because it can happen.
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 the way they commonly do. The high end is a cautious case where they settle for much less of a discount.
Your real numbers depend on your creditors, how far behind the accounts are, and how much you can deposit each month. Most programs run 24 to 48 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 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.
How accurate is this estimate?
It is an illustration, not an offer. It uses common outcomes and an illustrative fee. Your written agreement sets your real fee and terms.
Why can the high end equal my whole debt?
Because the conservative case assumes creditors settle for 80% of the balance, and the fee is added on top. At that end there may be no saving, and we would rather show that than hide it.
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.
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