Debt Settlement Success Rates – ZipDebt Has the Industry’s BEST Track Record!

In February 25, 2011

Last July, I published “Debt Settlement Done Right,” which included ZipDebt’s success-tracking statistics for the period 2006-2009. I have now updated the figures to include the pool of clients who enrolled during 2010. The updated stats show that we are getting even better at what we do best – coaching consumers how to settle their debts quickly and safely on their own, with no need for debt settlement companies or the sky-high fees they charge.

Here is the hard data on ZipDebt Success Rates. For the exact methodology employed, please see the July 2010 post.

ZipDebt SUCCESS RATES (Cumulative) 2006-2010

1. Total Number of Clients @ 1,953
2. Number of Refunds @ 53
3. % Refunds/Total @ 2.7%
4. Coaching Not Included (Basic) @ 300
5. Insufficient Contact to Determine @ 640
6. In Progress @ 173
7. Pool of Coached Clients @ 787

9. RESULT B_ 80% Finished @ 238
10. RESULT C_ 50% Finished @ 50
11. RESULT D_At least 1+ Settlements @ 113
12. RESULT E_Filed BK @ 45

14. 50%+ SUCCESS RATE (=A+B+C) @ 80%

BASE SUCCESS RATE – This is the most conservative definition of “SUCCESS” relative to my program. The group of “Completed” plus “80% Finished” clients are all success stories. These are people who made the program work and achieved the desired outcome, or felt they had matters well in hand at the end of their service agreement. I am proud to announce that based on this simple criteria of “getting the job done right,” ZipDebt has a base success rate of 74%. *No other program* can touch it – not traditional debt settlement, not credit counseling, not even Chapter 13 bankruptcy. ZipDebt wins, period, hands down.

50%+ SUCCESS RATE—People often learn enough in their first 6-12 months with me to keep going on their own. Some people choose to renew to extend their coaching service, while others really take the DIY-spirit to heart and finish out on their own. Including clients who were approximately half finished with their settlements upon expiration of the coaching service, the success rate climbs to 80%.

SUBSCRIPTION SUCCESS RATE—Considering that 94% of clients reported at least one successful settlement during their coaching subscription, I am very confident that virtually every one of these customers would agree that they received full value in return for the cost of their subscription fee.

To my competitors: There is no way around it. My results blow the doors off anything else in the debt settlement industry. Can we please stop with the marketing nonsense that consumers are better off using “professional negotiators” to settle their debts? My data clearly shows this often-repeated claim to be FALSE. Consumers do BETTER haggling on their own, period. If you debate this conclusion, put up or shut up. Provide data better than this if you can. Otherwise, quit telling lies to consumers!

To consumers considering debt settlement: It’s not for everyone. It’s imperative that you be a good fit for this approach in terms of your financial situation, and that includes having access to sufficient resources to negotiate your settlements within 6-12 months. ZipDebt clients are so successful because they move FAST – approximately 9 out of 10 of our settlements are negotiated BEFORE CHARGE-OFF at 180 days of delinquency. By contrast, these ratios are reversed in the settlement industry, with the vast majority of settlements taking place AFTER charge-off. This automatically creates much higher LEGAL RISK for the client.

If you think settlement might be the answer for your situation, please read my 32-page report (and the $100,000 report if your debt balances are in the six-figure ballpark). And feel free to request a free 20-minute consultation. We’ll give you a straight yes or no answer on whether this will work for you.



  1. I have $20,000 in unpaid nonsecure debt on my credit report from various credit cards. I received a 1099-C from one of them. I still owe the others even though I am not able to pay them. I am a permanent disability recipient and the charge-off puts me in a category where I owe the IRS $1,000.

    My question relates to what qualifies as a liability, specifically credit card debt, for IRS insolvency purposes. Can I include the remaining credit card debt as liabilities on the insolvency form?

    Thanks, Nel

    • Nel, yes you can include the other unsecured debts in the total of your liabilities. In fact, you can also include the debt balance that was forgiven, since the calculation is a snapshot of your assets and liabilities at the time the debt was canceled. So take your total debt load, less any cash or assets, and that is the amount by which you are insolvent. If the 1099-C is for a lower figure than the total by which you are insolvent, then you can claim the exemption. See Form 982 and instructions from the IRS for further details. There is a lot of further discussion on this subject in my November 2009 blog entry as well.

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