Estimate what a debt settlement scenario might look like versus paying minimums. Everything runs in your browser — we don't see or store any of the numbers you enter.
These local rules shape your leverage in a settlement — a provider in your
state factors them in; this national estimate can't.
Typical settlement (≈50% of balance)
Estimated program fees (≈20% of debt)
Estimated total in a program
If you only paid minimums instead
Potential difference
Illustrative estimate only — not an offer or a quote. Actual settlements,
fees, timelines, credit impact, and tax consequences vary by creditor, state, and provider. Figures
use industry-typical assumptions; verify everything with a licensed provider.
How to read your estimate
The estimator uses industry-typical assumptions: settlements often land near 50% of the
enrolled balance, and settlement companies typically charge 15–25% of the enrolled
debt in performance-based fees. The "minimum payment" comparison is deliberately rough — it
carries your balance at the APR you entered over the same horizon, to show why high-interest debt is so
expensive to drag out.
Treat the result as a conversation starter, not a quote. Real settlements depend on your creditors,
your state, how far behind you are, and the provider. Forgiven debt can also be taxable, and settlement
can lower your credit score while you're in the program — trade-offs a calculator can't price for you.
What to do with the number
If the gap looks meaningful, the next step is a real, no-obligation estimate from a provider — they
pull your actual balances and creditors and tell you whether you qualify. If the gap is small, you may
be better off with a consolidation loan or a nonprofit debt management plan instead.
Frequently asked questions
How is a debt settlement estimate calculated?
This tool uses industry-typical assumptions — settlements often land near 50% of the enrolled balance, and settlement companies typically charge 15–25% of the enrolled debt in fees. It is an illustration, not an offer or a quote; your actual result depends on your creditors, your state, and the provider.
Does my state change what I can settle?
Your state doesn't change these national assumptions, but it changes your leverage: statutes of limitations and wage-garnishment rules differ by state and affect how creditors negotiate. The tool shows your state's rules with official sources so you can factor them in.
Is forgiven debt taxable?
Often yes. Debt a creditor forgives in a settlement can be reported on a Form 1099-C and treated as taxable income, though the IRS insolvency exclusion can reduce or remove it. Settlement can also lower your credit score while you are in a program — trade-offs a calculator can't price.
Do you collect the numbers I enter?
No. Every calculation runs in your browser. Nothing you type is sent to us or stored, and we never collect your financial information — affiliate links send you directly to the provider's own website.
Turn the estimate into a real plan
Get an actual quote on the provider's site — free and no obligation.
Unsecured debt ≥ $7,500 · not available in CT/OR/VT/WV/WI
