(1888PressRelease)
December 22, 2009 - A recent study conducted by Dr. Richard Briesch of the Southern Methodist University Cox School of Business found that debt settlement programs "create the greatest consumer welfare of any approach." Americans for Consumer Credit Choice (ACCC), an organization that advocates for greater free market solutions in the credit industry, requested the study as part of an industry-wide push to provide consumers with more varied and more successful solutions to their credit struggles.
Explains Jill Warren, Executive Director of ACCC, "Given the rising default credit card rates, high unemployment, defaults on mortgages and the changes and proposed changes in the banking and the credit card industry, we believe a study was in order examining the value of the debt settlement industry to consumers."
As more and more Americans face these pay cuts, lay offs, and foreclosures in unanticipated numbers, many feel like they have nowhere to turn. They may try to seek guidance from their creditors, only to find themselves in a worse situation by having opened their mouths. As Gary LaRue, Director of Marketing for Debt Settlement America relates,"The simple fact is that most people have already attempted a dialogue with their creditors.
The only reason they now find themselves entertaining the idea of debt settlement is because they got the same answer or treatment from their creditors as millions of Americans before them: stonewalling, lame excuses, and outright rudeness; and an unwilling and unrealistic approach to keep these people as customers. In fact, if you contact your creditors, and communicate your circumstances honestly to them, they are just as likely to use that very information against you, and make your situation worse, by raising your interest rates, lowering your limits, and charging more penalties, insuring your bad situation just became worse.
If the creditors truly had a policy that allowed and encouraged compromise, and real help, why is it millions of Americans don't participate in this so called assistance?" As writer Chuck Palahniuk (Fight Club) states, "When did the future switch from being a promise to being a threat?"
The debt settlement industry began as a way of providing a brighter future for those who find themselves in a financial bind and are looking for a way out. In a debt settlement program, consumers save money instead of putting themselves further and further into debt. Experienced negotiators work with the consumer's creditors to negotiate their debt balances down using the savings the consumer has accumulated.
This way, the consumer begins not only saving but paying off their debt at a reduced rate. As Chris Kesterson, President of TASC states, "Dr. Briesch's research affirms solidly what we have already known, that debt settlement is a viable and appropriate method of helping today's financially strapped consumers receive the much needed help they deserve."
Debt settlement is certainly not the only means by which consumers can rid themselves of debt. Consumer credit counseling, home equity loans, and bankruptcy are all viable options for debt relief. Individuals should research their options and interview companies to find out what is best suited for their unique circumstances.
To learn more about Debt Settlement America, or to receive a consultation free of charge, go to www.debt-settlement-america.com or call 866-433-7461.
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