Orange County, CA (1888PressRelease)
September 19, 2009 - Nationwide Debt Center, a California –based debt settlement company announced the latest study published by Southern Methodist University which indicated that debt settlement programs “create the greatest consumer welfare of any approach,” especially when compared to consumer credit counseling. This serves as good news for consumers as it proves that debt settlement companies benefit consumers who are facing serious financial debt.
Among the interesting findings from the was that almost “30% of the cancellations are due to the consumers either directly paying off the debt or being forced into bankruptcy” and that “debt settlement company has an increasing higher value to customers with higher amount balances and higher total debt, but lower number of accounts, which was what Tony Sabri, CEO of Nationwide Debt Center has been explaining for years.
According to the report's author, Richard Briesch, PhD and Associate Professor of Southern Methodist University's Cox School of Business, the aim of the study was to understand different approaches to debt relief and analyze consumer benefits for each approach.
“Debt settlement companies like Nationwide Debt Center caters to consumers with overwhelming credit card debt,” said Tony. “It gives consumers an alternative that they can work with, and it fills a debt relief void between credit counseling, which many consumers cannot afford, and bankruptcy.”
Tony explained that even though credit counseling is a valid way of getting out of debt for some people, debt settlement is specially designed to assist people to overcome their overwhelming debt. This is especially important given that the long-term unemployment rate in May 2009 was triple the number at the start of the recession, according to the U.S. Bureau of Labor Statistics.
The report, which also analyzed the current economic climate, states that "many consumers are barely able to pay their debts and are one emergency away from financial hardship."
The report made several suggestions to be used in the debt settlement industry. It suggested that debt settlement programs should require “consumers to save money every month as one condition of making “satisfactory progress” in the program. DSPs should have the ability to monitor, but not control (or make disbursements from) these funds.”The report also encourages sufficient industry regulation for the debt settlement industry, a suggestion Nationwide Debt Center embraces. As a member of TASC (The Association of Settlement Companies), Nationwide Debt Center is committed to promoting good industry practices and uniform legislation.
“Many people fail to realize that the credit counseling industry is primarily controlled by creditors who do not always look out for their clients’ best interest and as a result, most Americans who enter into a debt management program through credit counseling do not complete it,” explained Tony. "In actuality, debt settlement is the only model that works exclusively for its clients, and debt settlement firms don't get kicked back monies from the creditors like credit counselors do”. He feels that both the credit counseling industry and debt settlement industry should work together to work towards the common goal of helping the American people get out of their debt.
Prior to Briesch's report, some of the benefits of debt settlement were also discussed in a multi-year study by the National Conference of Commissioners on Uniform State Laws.
To read the report in full, visit http://www.consumercreditchoice.org/.
About Nationwide Debt Center
Nationwide Debt Center, headquartered in Brea, California, helps individuals and families experiencing financial distress to take positive action towards reestablishing their fiscal footing by offering services that is affordable and realistic. Those who qualify for their services will receive several benefits such as having negotiators to lower their debts of their behalf and having affordable monthly payments depending on the circumstance. Nationwide Debt Center’s team comprises of highly trained experts that negotiates with creditors and establishes a feasible, practical way for clients to pay off not just their interest rates, but also their balances.
For more information on their debt settlement program, visit http://nationwidedebtcenter.org
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