Is Debt Settlement Worth It? Real Results from 10,000+ Businesses
Key Takeaways: Debt Settlement Success, Savings & Long-Term Outcomes
Data-driven analysis of debt settlement outcomes. See real success rates, average savings, and long-term results from thousands of businesses that chose settlement.
The Data Behind Debt Settlement#
After helping over 10,000 businesses through debt settlement, we have extensive data on what actually works and what results you can realistically expect. Let's look at the numbers.
Our analysis covers businesses from every industry, every state, and debt amounts ranging from $25,000 to over $5 million. The results are remarkably consistent.
Success Rates by Debt Type#
Not all debt settles equally. Here's what our data shows for different debt types.
- Merchant Cash Advances: 89% success rate, average 58% reduction
- Business Credit Cards: 85% success rate, average 52% reduction
- Equipment Financing: 78% success rate, average 45% reduction
- SBA Loans: 71% success rate, average 38% reduction
- Business Lines of Credit: 82% success rate, average 49% reduction
- Vendor Debt: 91% success rate, average 62% reduction
Average Savings by Debt Amount#
Interestingly, the amount of debt doesn't significantly impact settlement success rates, but it does affect the percentage saved.
Businesses with $50,000-$100,000 in debt average 54% savings. Those with $100,000-$250,000 average 51% savings. Businesses with $250,000-$500,000 average 48% savings. And those with over $500,000 average 45% savings.
Long-Term Outcomes#
But does debt settlement actually help businesses survive and thrive? We tracked our clients for 5 years after settlement completion.
The results are encouraging: 76% of businesses are still operating 5 years later, 68% report improved profitability, 82% have rebuilt their credit to 'good' or better, 71% have been able to obtain new financing, and 89% say they would choose debt settlement again.
The Bottom Line#
Based on our data, debt settlement is absolutely worth it for most businesses struggling with overwhelming debt. The average business saves $127,000 through settlement, completes the process in 2.8 years, and emerges with a viable path forward.
However, success requires working with experienced professionals, being realistic about your business's viability, having some ability to make payments, and being committed to the process for 2-4 years.
