Settlement vs payoff estimator
Settlement quotes are usually presented as a percentage off the balance. This puts fees and the potential tax bill back into the comparison, next to what a management plan or your current payments would cost.
Assumptions you can change
| Route | Monthly | Time | Total cost |
|---|---|---|---|
| Keep paying as you are Full balance plus interest at your current rate. | $700 | 7 yr 7 mo | $63,521 |
| Debt management plan Full balance at a reduced rate, plus a typical $40 monthly agency fee. | $700 | 4 yr 3 mo | $37,488 |
| Settlement program 50% settlement plus a 20% fee, plus tax on $15,000 forgiven. | $583 | 3 yr | $24,300 |
Rough estimates for comparison, not quotes. Settlement percentages vary widely by creditor and are never guaranteed, fees are charged per settled account rather than evenly, credit damage is not priced here, and forgiven debt is generally taxable unless you qualify for the insolvency exclusion on IRS Form 982. Debt discharged in bankruptcy is never taxable, which is worth pricing separately with an attorney.