Settle Your Debt for Less Than You Owe
When minimum payments stop making a dent, negotiation can change the math.
If you are behind on your bills and the balances keep growing, paying everything in full may not be realistic. A negotiator works with your creditors to agree on a smaller amount that closes the account.
We have settled over $1 billion in debt for more than 200,000 clients.
Start With a Free Evaluation
Speak with a certified debt specialist about your situation and realistic options.
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$1 Billion+
Debt settled by experienced negotiators
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What Is Debt Settlement?
Debt settlement is a negotiated agreement in which a creditor or collector accepts a lump sum that is less than the full balance as payment in full on an account. Creditors agree for a practical reason: a payment today is often worth more than the risk of getting nothing later.
Debt settlement is not a loan, it is not a guarantee, and it is not right for everyone. This page explains how it works so you can decide with full information.
A Simple Example
This example is hypothetical and for illustration only. Your results will differ.
Say you have $30,000 in unsecured debt across four credit cards and one medical bill, and you can afford about $500 a month. With minimum payments at 20%+ interest, you could be paying for many years. With settlement, you deposit a set amount into a dedicated account you own, and your negotiator settles one account at a time — potentially below the full balances. During that time, accounts will likely be delinquent, and that affects your credit.
How Our Debt Settlement Program Works
1. Free Debt Evaluation
A certified specialist reviews your accounts, balances, income, and expenses, then tells you if settlement is realistic.
2. Program Design
We set your monthly deposit and estimated timeline based on what you can actually afford.
3. Build Your Settlement Fund
Deposits go into a dedicated account held in your name. You keep control and can withdraw at any time.
1. Free Debt Evaluation
A certified specialist reviews your accounts, balances, income, and expenses, then tells you if settlement is realistic.
2. Program Design
We set your monthly deposit and estimated timeline based on what you can actually afford.
3. Build Your Settlement Fund
Deposits go into a dedicated account held in your name. You keep control and can withdraw at any time.
4. Negotiation
When enough funds are available, your negotiator contacts the creditor or collector and works toward a settlement offer.
5. You Approve Every Settlement
Nothing is paid until you sign off on the amount and terms.
6. Account Resolved
The settlement is paid from your account. Fees are collected only after the debt is settled and you have made a payment toward it.
Who Debt Settlement May Help
Settlement tends to make the most sense if:
- You owe a significant amount in unsecured debt
- You are behind on payments or cannot keep up with minimums
- You face a hardship such as job loss, medical costs, divorce, or reduced income
- You can make a consistent monthly deposit
- You want to avoid bankruptcy and accept the credit impact
It may not suit you if:
- You are current and could qualify for a lower-rate consolidation loan
- Your debts are mostly secured or non-dischargeable
- Your credit is a top priority right now
- You cannot sustain monthly deposits
Debts We Commonly Negotiate
Debt settlement is used for unsecured debt, including credit cards, store and retail cards, medical bills, personal loans and lines of credit, payday and online loans, and accounts already in collections. Mortgages, auto loans, federal student loans, taxes, and child support generally are not eligible.
The Honest Trade-Offs
We believe you should hear the downsides from us, not discover them later.
- Your credit will likely be affected — payments to creditors are commonly paused, and late payments, charge-offs, and settled accounts can lower your score
- Interest and fees may keep accruing until an account is settled
- Creditors may keep pursuing collection — some may file a lawsuit
- Savings are not guaranteed — settlement amounts depend on the creditor and your situation
- Forgiven debt may be taxable — canceled debt of $600 or more is generally reportable; ask a tax professional
- It is not for every debt — only enrolled, eligible accounts are included
What Happens to Collection Calls and Lawsuits?
Once you are enrolled, we work to route creditor communication through our team, and you can direct collectors to us. That can take a lot of pressure off. However, we cannot promise every call will stop, and some creditors may still contact you or sue. If you receive a summons, do not ignore it — missing a court deadline can lead to a default judgment.
How Our Fees Work
Under federal rules, debt settlement companies cannot charge fees before they have settled a debt and you have made a payment toward that settlement. Fees are charged per account only after that account is resolved, and the total cost is shown in writing before you enroll.
Why Clients Choose ACS Debt Relief
- Negotiation Experience: Over $1 billion in debt settled.
- Clear Costs: Fees and timelines in writing before you commit.
- You Stay in Control: Your funds stay in your account, and you approve every settlement.
- Honest Answers: If settlement is not right for you, we will say so.
- Respect: Needing help with debt does not make you irresponsible, and you will be treated that way.
Debt Settlement FAQs
Understand the process, risks, timelines, and costs before deciding.
Is debt settlement legitimate?
Yes, when done by a reputable company that follows federal and state rules. Be cautious of companies that charge upfront fees, guarantee results, or will not explain the risks.
How much can I expect to save?
It varies by account and creditor, and no company can guarantee a specific amount. After your evaluation, we will explain what is realistic for your debts.
How long does it take?
Most programs run about two to four years, depending on your debt and your monthly deposit.
How much will it hurt my credit?
Expect a meaningful drop while accounts are delinquent or being settled. Recovery depends on your overall credit history after the program.
Do I have to stop paying my creditors?
Many programs involve pausing payments on enrolled accounts while settlement funds build — which is why the credit and collection risks matter. We explain exactly how this applies to you before you enroll.
Can I still use my credit cards?
Enrolled accounts are typically closed or frozen.
Can I settle debt on my own?
Yes, some people do. It takes time, persistence, and comfort negotiating with collectors.
Will I owe taxes on the forgiven amount?
Possibly. See a tax professional about Form 1099-C and exclusions such as insolvency.
What if a creditor sues me?
Contact us immediately. Never ignore court papers.
What if I cannot finish the program?
You can leave at any time and your funds are yours, minus fees already earned for settled accounts.
Does it cost anything to find out if I qualify?
No. The evaluation is free and carries no obligation.
Find Out What Settlement Could Look Like for You
A few minutes with a specialist will show whether settlement is realistic, what it would cost, and what the alternatives are.