PROS / The fees for this service are lower than most payday loan debt relief services.
CONS / You need $10,000 or more debt to qualify.
VERDICT / While it doesn't have as many accreditations as other payday loan debt relief services, Pacific Debt Inc. is worth considering because of its low fees and good record of debt reduction.
Editor’s Note: Since our last review, the provider has notified us that they have added a mobile management portal, partnered with a debt management provider and gotten accredited with the IAPDA. These will be included in our next update of this site.
Pacific Debt Inc. specializes in debt settlement, which can include payday loan debt relief. It is not a payday loan consolidation service. However, it can help you in getting out of excessive or unmanageable debt and is an alternative to bankruptcy. This service charges between 15 and 22 percent of your total enrolled debt, which is lower than many other services. Because of this and a high average debt-rate reduction, it earns our Top Ten Reviews Bronze Award.
Cost & Fees
This payday loan debt settlement company does not charge upfront fees, which is in compliance with the law. Once it consolidates and settles your payday loan and other debt, it charges a 15 to 22 percent service fee. These rates are among the lowest of payday loan consolidation and debt settlement services on our lineup, and may very well be worth it if you are paying the exorbitant interest rates charged by most payday loans.
Pacific does not get into details about how much it can reduce your debt overall or how it determines the percentage it charges. In general, the percentage varies by how much you owe and how difficult it is to negotiate. Of course, no payday loan agency (or other creditor) is obligated to negotiate.
Eligibility & Application
To be eligible for this debt settlement program, you must have at least $10,000 in qualified debt. That's a lot if all you want to do is consolidate payday loan debts, but you can also include debt from credit cards, medical bills and collections. Also, this amount is the national average for this company; they may be able to make exceptions depending on where you live.
To begin the application process, you can call customer service or fill out an online form for a free evaluation to see if you are a good match for this service. Like most payday loan debt consolidation and settlement services, the program usually runs 24 to 48 months. While Pacific Debt negotiates with your creditors, you need to make monthly payments to a federally insured trust account, the amount of which you work out with your counselor. Then, when a settlement is reached, those funds can pay your creditor and your Pacific Debt Inc. fees.
There's no guarantee of debt reduction. Payday loan creditors and other lenders do not need to negotiate with your Pacific Debt arbitrator. Therefore, it cannot guarantee any debt-reduction amount. However, this service reduces debt by around 30 percent on average, including fees. This is somewhat higher than most of the services in our lineup.
Because creditors do not need to negotiate with services, working with Pacific Debt does not mean you are exempt from loan obligations or fees, nor does this service protect you from creditor phone calls. If you are getting harassing phone calls, you may want to let your arbitrator know so he or she can prioritize their negotiations accordingly.
This service has an excellent score with business rating services and is AFCC accredited. The American Fair Credit Council ensures its members comply with all regulations laid out by the Federal Trade Commission. However, this company does not have accreditations from the International Association of Professional Debt Arbitrators, which trains and certifies professionals in the debt settlement standards and ethics. It's also not certified by the United States Organization for Bankruptcy Alternatives, but its mission is similar to the AFCC's.
Pacific Debt Inc. is not a pure payday loan consolidation service; it's a debt settlement service than can help with payday loan debt relief. It charges low to average fees for its services, and while it cannot promise a specific percentage of savings, this service averages around a 30 percent debt reduction after its fees. It's a good choice if you are looking for an alternative to bankruptcy to manage your debts.