What First Choice Debt Relief does

First Choice Debt Relief is a privately held consumer debt settlement company founded in 2008 by Chris Salamipour and headquartered in Irvine, California. The company operates a single product — a Comprehensive Debt Relief Program that negotiates lump-sum settlements with creditors on behalf of consumers struggling with unsecured debt, primarily credit card balances, medical bills, and collections. The service employs a Build-Negotiate-Settle process: clients make monthly deposits into a dedicated account they own and control, and the company negotiates with creditors once sufficient funds accumulate, with client approval required before any settlement is executed. Resolution typically takes 24-48 months, with historical average savings of 50-58% off original balances before fees.

The company's core technology is minimal; the offering is a service business built around manual negotiation with creditors, supported by a client portal for progress tracking and a debt calculator for prospect qualification. Operating geographies span the United States (excluding certain states), with a dedicated Spanish-language site and bilingual representatives to serve Hispanic consumers. The go-to-market motion is direct-to-consumer through inbound phone (1-800-631-5573), online application forms, organic and paid search, and an affiliate program managed by VP Shawn Salamipour.

Revenue is generated through a performance-based fee model, charging up to 25% of total enrolled debt only after a settlement is reached, a payment is made to the creditor, and the client approves. The company is registered with the California DFPI (CCFPL 01-CCFPL-2676685-3509684) and BBB accredited. Management is founder-controlled, with no external institutional capital, no parent company, and no acquisition activity disclosed; the firm has enrolled well over $100 million in unsecured debt cumulatively since founding and serves thousands of clients.

Name

First Choice Debt Relief

Legal name

First Choice Debt Relief, Inc.

Website

https://firstchoicedebtrelief.com

Company type

Private

Founded year

2008

Operating status

Operating

Headcount range

11–50 employees

Short description

First Choice Debt Relief is a private Irvine, California-based debt settlement company founded in 2008 that negotiates with creditors on behalf of U.S. consumers struggling with unsecured debt, primarily credit card balances, using a performance-based fee model.

Ownership category

akta.pro rank

Product category

Consumer Debt Settlement Services

NAICS

Activities Related to Credit Intermediation (5223)

SIC

Services-Consumer Credit Reporting, Collection Agencies (7320)

akta.pro primary industry

Debt Settlement / Negotiation Programs (Non-loan) (FSAKAIAK)

akta.pro secondary industries

Collections & Creditor Negotiation Support (Debtor-Side) (FSAEAFAI), Credit Counseling & Debt Management Plans (DMP) (FSAKAJAH)

Keywords

• Debt settlement services
• Credit card debt relief
• Debt negotiation services
• Debt consolidation programs
• Unsecured debt resolution

Headquarters

HQ city

Irvine

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Marketing or Sales, Operations, Technology or R&D

Revenue model

1. Debt Settlement Fees: First Choice Debt Relief charges fees only when settlements are achieved. The fee is charged to the client's Dedicated Account after three conditions are met: (1) receiving a settlement offer from the creditor, (2) getting client approval of the settlement, and (3) making at least one settlement payment to the creditor. The average client pays a fee of up to 25% of the total enrolled debt once debts are settled. No fees are charged until results are achieved.
2. Dedicated Account Management: Clients make monthly deposits into a dedicated account they own and control. These funds are used to build savings that will be used for debt settlements with creditors. The company does not assume consumer debt or make monthly payments to creditors directly.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels7 records

Core offering

First Choice Debt Relief provides a consumer debt resolution service under which clients make monthly deposits into accounts they own and control. The company negotiates with creditors to settle enrolled unsecured debts, including credit card debt, unsecured loans, medical bills, and collections, while obtaining the client's approval before completing a settlement.

Product overview

First Choice Debt Relief offers a single unified debt relief service centered on its Comprehensive Debt Relief Program, which follows a Build-Negotiate-Settle process. Clients deposit funds into dedicated accounts the company uses to negotiate lump-sum settlements with creditors. The offering is supplemented by a Client Portal for progress tracking, a Debt Calculator for estimating payments, and dedicated account management. The company specializes exclusively in unsecured debt (primarily credit card debt) and does not offer secured loans, credit repair, or assume consumer debt.

Differentiator

Problem solved

Functional benefit

Products and services

• Debt Resolution Program A consumer debt settlement service, also described on the website as the Comprehensive Debt Relief Program, for eligible unsecured debts. Clients make monthly deposits into accounts they own and control, the company negotiates with creditors, and the client must approve each settlement before it is completed; resolution typically takes 24-48 months.

Quantifiable outcome

• Average savings of 58% off original balance enrolled
• +3 more outcomes

Named customers4 records

Segments3 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• BBB (Better Business Bureau)minorOthersFirst Choice Debt Relief is BBB Accredited in Orange County, California. The BBB seal is displayed on their website indicating compliance with BBB standards for ethical business practices.

Scale indicators5 records

Recent moves5 records

Expansion highlights8 records

Direct peers

• Pacific Debt Relief: Direct debt settlement competitor specializing in unsecured consumer debt resolution using a similar settlement-vs-creditor-negotiation model. Operates with the same inside-sales and online application acquisition approach as First Choice Debt Relief.
• National Debt Relief: One of the largest U.S. consumer debt settlement companies, offering direct-to-consumer debt resolution services primarily for credit card debt. Directly competes with First Choice Debt Relief on the same customer base, same product (debt settlement), and same paid-search/affiliate acquisition channels, but at meaningfully larger scale.
• New Era Debt Solutions: Mid-sized consumer debt settlement firm serving clients primarily with credit card and unsecured debt. Competes with First Choice Debt Relief on the same product (debt negotiation), same D2C channels, and similar client outcome-oriented value proposition.
• CuraDebt: Debt settlement and debt consolidation provider focused on consumer unsecured debt, operating with a similar inside sales and direct-to-consumer model. Directly comparable in product offering, target customer (credit card and unsecured debt holders), and performance-based pricing structure.
• Freedom Debt Relief: Major U.S. debt settlement firm with a similar performance-based fee model and direct-to-consumer inside sales motion. Competes head-to-head with First Choice Debt Relief on the same consumer segment, same product structure, and same SEO/SEM keywords, with significantly larger brand and TV presence.
• Accredited Debt Relief: Direct competitor offering debt settlement and consolidation to consumers struggling with unsecured debt. Operates the same pay-after-settlement model with phone-based consultation and online application flows, competing directly for the same Hispanic and general consumer segments First Choice targets.

Emerging players

• Money Management International (MMI): Nonprofit credit counseling agency offering debt management plans, counseling, and financial education. Comparable to First Choice's credit counseling component and overlapping in the same financially distressed consumer segment, though structured as a DMP rather than a settlement offering.
• GreenPath Financial Wellness: Nonprofit credit counseling and debt management plan (DMP) provider that overlaps with First Choice Debt Relief's credit counseling and debt consolidation offerings. Comparable in serving consumers struggling with debt, but positioned around counseling/DMP rather than settlement.
• InCharge Debt Solutions: Nonprofit credit counseling and debt management service competing for the same consumer-borrower segment. Comparable to First Choice in serving customers overwhelmed by unsecured debt, but with a counseling/DMP-led product rather than settlement negotiation.
• Centricity (formerly Clearpoint Credit Counseling Solutions): Credit counseling and debt management plan provider adjacent to First Choice Debt Relief's settlement-focused offering. Comparable in targeting the same distressed consumer base and offering debt-related advisory services, but emphasizes counseling/DMP rather than settlement negotiation.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about First Choice Debt Relief