Debt settlement calculator: price your offer first
You want to settle a debt for less, and you need to know what an offer costs before you send it. On a $6,000 balance, a 40% offer is $2,400, and the other $3,600 would be forgiven if the collector accepts. Put in your own numbers below, then you can have a consumer lawyer check them before the offer goes out.
Want your offer checked before you send it?
You have your balance and your offer for a debt in your state. Once you sign, a settlement is hard to undo, and a consumer lawyer can check the debt and terms first. Send your settlement numbers below, and a consumer lawyer sees them only if you choose.
Sending this costs nothing and commits you to nothing. We keep your answers with the collector's name, and you decide whether a consumer lawyer sees them. Debt Collector Lookup is not a law firm or a debt collector. The form does not schedule a call; to talk, call our debt help line during business hours.
Which numbers matter most?
$600
If more than $600 is forgiven, the creditor sends you a tax form.
So plan for that form before you accept, and keep it with your tax papers.
Have a consumer lawyer check the written terms, and ask a tax professional about the form.
75%
The FTC stopped a company that falsely promised cuts of 75% or more.
So treat any promise of a 75% cut as a warning sign.
Have any settlement deal checked, and get every term in writing before you pay.
Is there a standard settlement percentage?
No law sets a discount. The California courts' guide gives an example: a collector that writes off a $10,000 debt can claim about $3,500 in tax savings. The guide suggests offering more than the collector would get from that write-off.
Start with your own budget. Do not promise a payment that leaves you short for rent or food.
What affects my settlement offer?
- Age of the debt. Check the time limit first, because a payment can restart it in some states.
- Who owns it. The letter tells you whether a debt buyer or the original creditor holds it.
- One payment or a plan. One missed payment on a plan can cancel the deal.
- A lawsuit. If you were sued, the deal should also end the case.
Should I offer one payment or a payment plan?
A lump sum is one payment, and it usually wins the lowest number. A payment plan spreads the amount out, but one missed payment can cancel the deal.
The CFPB says to work out a plan from your own budget before you call. Offer less than your top number, so you have room to go up.
- Example: Zeke owes $2,500 on an old phone bill. A 50% offer is $1,250 in one payment.
- Example: Mabel owes $10,000 on a card and pays over 6 months. A 40% offer is $4,000, or about $666.67 a month for 6 months.
- Example: Augustin owes $800 to a medical collector. A 30% offer is $240 in one payment.
What should I get in writing before paying?
Get the deal and the collector's promises in writing before you pay. The letter should list the amount, the due dates, and that the rest is forgiven once you pay.
Keep the letter and your proof of payment. A collection can stay on a credit report for up to seven years, so you may need both later.
Can a company really cut my debt by 75%?
On July 21, 2025, the FTC halted Accelerated Debt Settlement, which falsely claimed it could cut debt by up to 75% or more. Settle directly with the collector and get the deal in writing. Read the official notice.
Questions people ask
What is a fair amount to settle a debt?
There is no fixed rate. Confirm the debt, work out what you can pay, and ask for written terms before you pay.
Will a debt collector settle for less?
Often, yes, because going to court costs them money. Make the offer in writing and keep it below what you can pay in one go or on a set plan.
Do I pay taxes on a settled debt?
If more than $600 is forgiven, the creditor will send you a tax form. Ask a tax professional how it affects your return before you accept.
Is a lump sum better than payments?
A lump sum usually gets the lower number. Payments are easier, but one missed payment can undo the deal. Get either version in writing first.
Sources
- California courts: negotiate with a collector (selfhelp.courts.ca.gov).
- CFPB: how to settle with a collector (consumerfinance.gov).
- CFPB: how long items stay on a report (consumerfinance.gov).
- FTC: fake debt relief operation halted (ftc.gov).
Last checked October 2026.
What to do now
You have a settlement offer ready for a debt in your state. Before it goes out, a consumer lawyer can check the debt, the time limit and the written terms. Call during business hours to talk through your numbers, or send them with the button below.
Talk to a consumer lawyer about this debt
Call (844) 393-5856Send my settlement numbers- You call during business hours and say which debt it is.
- You answer a few questions about the debt and any court date.
- You decide whether a consumer lawyer sees your details.
Calls go to our debt help line during business hours. The call costs you nothing, and you give up nothing by calling. Debt Collector Lookup matches people with consumer lawyers; we are not a law firm or a debt collector.