Debt Blue review—Is it legit? Costs, services, pros & cons
Debt Blue is a Texas-based debt settlement company that assists clients with substantial unsecured debt, such as unpaid medical bills.
It’s been in business for over 20 years and, according to its statements, has relieved its clients of more than $130 million worth of obligations.
Much like other debt settlement companies, they work directly with creditors on your behalf—aiming to resolve your debt for less than you currently owe or on better terms.
The company has exceptional reviews across Google, TrustPilot, and other platforms. But do those reviews reflect reality? Can this company truly help you get out of debt?
And most important, when is it best to approach a company like Debt Blue? (Considering direct and indirect costs such as an effect on your credit score.)
Read on to find out.
What exactly is debt settlement?
For a start, let’s get our terms straight.
Debt settlement, also known as debt resolution, debt negotiation, debt arbitration, or debt forgiveness, is where a debtor negotiates with their creditor or creditors to lower their outstanding balance/s.
Often, companies like Debt Blue will represent the debtor in the negotiations.
Here’s a simple example:
Imagine Tanya from Colorado who required urgent, emergency surgery. Fortunately, the operation was successful. Unfortunately, it left Tanya with $30,000 in medical bills.
After reviewing her finances, Tanya determines she can’t cover the monthly payments on this newly acquired medical debt. She decides to consult a debt settlement company to assist her.
- Consultation: Tanya meets with a representative from a debt settlement company to assess her financial situation. At this stage, the company reviews her income and expenses, including the debt owed and the representative determines if a debt settlement plan is suitable.
- Planning: The debt settlement company determines they can likely negotiate the outstanding amount down to $22,000 from $30,000—a substantial savings. Tanya is happy with the determination and agrees to pay a specified monthly amount into a newly created account. This account will be used later to settle with the creditor.
- Negotiation: The debt settlement company initiates negotiations, offering the hospital a $22,000 lump sum payment. The hospital reluctantly agrees to the offer, fearing Tanya might default on payments or declare bankruptcy if they don’t.
- Save: Tanya continues to make monthly contributions to the separate account. After 18 months, she reaches the $22,000 savings goal.
- Settlement: Once the amount has been saved, the debt settlement company facilitates the payment to the creditor (hospital). The hospital marks the debt as “settled.”
- Resolution: Because the debt is marked “settled,” this implies it was not paid in full as per the initial agreement. Tanya is now free of medical debt, but due to the negotiation, her credit score may be negatively impacted.
When is debt settlement useful?
There are numerous scenarios where debt settlement services can be valuable. Here are some of the most common reasons people turn to the service:
- High interest rates: Your interest rate may be higher than you can reasonably handle, making it difficult, if not impossible, to reduce your outstanding debt balance.
- Financial hardship: An unexpected job loss can mean you don’t have sufficient income to cover monthly debt payments. Alternatively, a medical emergency can balloon your debt obligations beyond a level you can cover.
- Bankruptcy avoidance: For some people, utilizing debt settlement services means avoiding bankruptcy. While both bankruptcy and debt arbitration can adversely affect your credit score, bankruptcy is typically more severe.
Why use a debt settlement company like Debt Blue?
Debt arbitration companies like Debt Blue will negotiate directly with your creditors to obtain a lower outstanding balance.
Assuming the negotiation is successful, the debt settlement company pays off your creditors, and you then pay off the new loan amount to the debt settlement company itself.
Surely, however, you can negotiate debt reduction yourself? Why even use a debt settlement company like Debt Blue in the first place?
Debt services companies typically possess expert knowledge of settlement procedures. Not only that, they often specialize in particular types of debt settlement. In the case of Debt Blue, unsecured personal debt.
|Debt Settlement Company
|Do It Yourself (DIY)
|Obtain professional assistance from experts.
|No dedicated expert to help you navigate debt negotiations.
|Debt settlement companies can charge steep fees for their services.
|No fees are paid.
|Less time commitment compared to DIY. The debt settlement company will handle the sometimes-lengthy negotiation process with the creditor.
|Greater time commitment compared to using a debt settlement company.
If you’re like most people, you have little or no debt arbitration expertise.
Leveraging the services of industry experts can provide you with a fighting chance to obtain the best resolution possible.
With over two decades of experience and thousands of positive reviews, Debt Blue has earned its reputation as an effective debt resolution services provider.
Still, for others, the DIY approach is preferred. While it requires more time and effort, it doesn’t entail fees. Moreover, some borrowers value the direct control that comes with the DIY approach.
DIY vs. debt settlement companies: pros and cons
“Do it yourself” debt settlement:
|Direct communication with the creditor.
|Saves money on fees.
|A lack of knowledge may be detrimental to the negotiation process.
|Complete control of the negotiation.
|Potentially less successful than leveraging the expertise of a dedicated debt settlement company.
Debt settlement company:
|Professional assistance with the settlement process.
|Debt settlement company charges fees for its service.
|Structured payment plan into a dedicated account.
|No guaranteed result.
|Saves borrower time and effort.
|The potential risk for a lawsuit when you stop making payments on your debts.
What are customers saying? - Debt Blue personal loan reviews
“I have to say that Jennifer has the patience of a saint. the many things that were going wrong at the time of the call would have sent anyone screaming from the room. She was extremely helpful and patient. You have wonderful, caring and down to earth people working for you and it’s a pleasure speaking to them.” Gail Couture (Google review)
While lacking Better Business Bureau accreditation, Debt Blue enjoys overwhelmingly positive reviews across all major rating platforms.
A common theme among the reviews? Representatives are knowledgeable and exceptionally courteous—critical qualities when dealing with the anxiety and stress challenging debt produces.
|Number of Reviews
|Better Business Bureau
|A+ (not BBB accredited)
|4.8 out of 5
|4.8 out of 5
|4.7 out of 5
|4.9 out of 5
“Jason was so excellent, patient, and caring. I was very very upset when I called him. He spent a lot of time on the phone with me, went through my entire process, one thing at a time, and explained as he went. He made so much sense and helped me understand the process and what was coming. I was absolutely amazed at how good he was. He made me feel so much better and I understood much better. Thank you, Jason.” - Susan Faulk (Google review)
Of course, not all reviews are as positive as Susan and Gail’s. What about Debt Blue complaints? What do the one-star reviews say?
While the company is often praised for its exceptional customer service, some of the lowest reviews point to unresponsive callbacks. Of course, these represent only a tiny fraction of the mostly positive feedback.
How much does Debt Blue cost?
Debt Blue fees average 25% of your outstanding debt balance at enrollment. They also charge $10 per month for the required deposit account.
In addition, Debt Blue charges $39.95 for its optional legal plans (CLG Plus Plan, Veritas Legal Plan, or Fortress Legal Plan). These plans can help clients in the unlikely scenario that a creditor takes aggressive legal action.
Regardless, no fees are collected upfront. Debt Blue only charges a fee for resolved accounts; initial consultations are free.
Should you consider Debt Blue?
If you’ve accumulated at least $10,000 of unsecured debt (i.e., credit card debt, department store bills, medical bills, and others) and are struggling to make monthly payments, consider consulting with a debt settlement company like Debt Blue.
The company isn’t for everyone, nor should it be. Debt Blue focuses on personal unsecured debt. It’s their bread and butter.
If you’re drowning in monthly payments, try talking with a Debt Blue representative to see if their services suit your unique needs.
This brings us back to our main question: is Debt Blue legit? Are the Debt Blue reviews honest and accurate?
Yes, Debt Blue is a legitimate company offering life-changing services for the right clients.
If you’re struggling to make payments and owe over $10,000 in debt, consider taking their brief 10-minute consultation to understand whether Debt Blue can help you achieve financial freedom faster.