A clearer view of the cost of debt settlementOur purpose & ownership ↗
Debt Settlement Cost.
01

The full cost, in plain sight

U.S. consumer debt / A practical field guide

The settlement offer
isn’t the whole bill.

What reaches your creditor is one number. What leaves your pocket can be another.

Understand the fees, follow the money, and check the full cost before you commit.

Put your quote on the table
An illustrative cost statementStarting debt $20,000
Known cost / before possible tax$15,300Under these example terms

The creditor payment. This is the amount the creditor would receive under the invented agreement. It does not include the company’s separate service fee.

Amount paid, including stated fees $15,300Difference from starting debt $4,700

Worked example, not a quote, typical result or prediction. Assumes all listed debt is resolved, no setup or other charges, and all terms are completed. Tax is not calculated. Select a line above to see what it means.

A lower debt balance does not, by itself, tell you the cost.

Read the complete cost guide ↗
02 / The quote worksheet

Make the numbers
show their work.

Enter the terms from one written quote—or put two side by side. See the dollars behind the percentages and the questions a quote leaves unanswered.

Check a written quote

No email. No sign-up. Your entries stay in this page.

QUOTE REVIEW01 / 02
Fee baseEnrolled debt
Company feeIn dollars, not just %
Account durationNeeds an answer
Possible taxNot calculated

Missing information stays missing.
It never quietly becomes $0.

03

Read the terms before you choose

Five things
worth knowing.

A focused guide to the money side of settlement. Start with the total, then follow the fee and payment trail.

Take the before-you-sign checklist ↗

PRIMARY SOURCES
FTC · CFPB · IRS · Federal regulations

01
Cost fundamentals

The total cost

Put creditor payments, company fees and account charges in one total.

7 min 02
Fee timing

When fees are earned

Trace the agreement and payment that come before an earned service fee.

6 min 03
Quote comparison

Compare two quotes

Compare equal debts. Translate percentages into dollars.

7 min 04
Payment choices

Lump sum or installments

Read the total, the deadlines and the missed-payment clause.

6 min 05
Follow your money

Inside the dedicated account

See where deposits go, what is withdrawn and what remains yours.

6 min
04

Timing matters as much as the amount

“No upfront fee”
doesn’t mean no fee.

For debt-relief services covered by the FTC’s Telemarketing Sales Rule, the company’s service fee follows these events. Enrollment and deposits alone do not qualify.

  1. 1

    A debt is resolved

    The service achieves a change to the debt’s terms.

  2. 2

    You accept the agreement

    The creditor’s terms are in writing and you approve them.

  3. 3

    A creditor payment is made

    At least one payment is made under that agreement.

Fees must also be properly allocated when multiple debts are handled individually. State law can add requirements.

Understand the rule and its scope ↗

Source: Federal Trade Commission; Electronic Code of Federal Regulations

After the numbers

A clearer quote.
A more informed next step.

The lowest figure is only one part of the decision. Compare settlement with a direct creditor arrangement, nonprofit counseling and, when appropriate, legal advice.

Explore the options at SettleADebt ↗

SettleADebt is our commonly owned debt-options and referral site. Following this link does not send your worksheet entries or create an application. Any future provider introduction requires a separate choice.

Read the ownership disclosure