Debt Settlement Gains Awareness and Approval
SOURCE Debt.com
Debt.com research shows debt settlement becoming a popular solution in today’s economy.
FORT LAUDERDALE, Fla., Jan. 27, 2025 /PRNewswire-HISPANIC PR WIRE/ Debt settlement is gaining ground as a preferred option for debt relief, according to a Debt.com survey.
The survey of 1,144 Americans found that 89% of respondents are aware of debt settlement and 58% consider it an effective solution, outpacing the 49% who believe bankruptcy is helpful.
“Thanks to new regulations and industry standards, reputable companies have transformed debt settlement into a sought-after solution,” said Howard Dvorkin, CPA and president of Debt.com. “It is now powerful and reputable.”
The survey results reveal a shift in attitudes toward debt settlement. Thirty percent of respondents used debt settlement to resolve debt, compared to 44% who filed for bankruptcy and 20% who opted for a debt management program. This research highlights that many consumers prefer debt settlement because it allows them to negotiate with creditors to pay a portion of what they owe, often without an attorney or legal filing.
“These critical findings emphasize that debt resolution is becoming a go-to option for consumers overwhelmed by debt,” said Denise Dunckel Morse, CEO of the American Debt Resolution Association. “As many continue to struggle under the weight of inflation and other pervasive economic factors, our industry is prioritizing their well-being, with strong and transparent standards for providers.”
Key Findings:
49% of all respondents know that debt settlement can reduce their debt by 30% to 50%, including 52% of millennials and 50% of Gen Z
79% believe bankruptcy will hurt their credit history more than debt settlement
44% know credit scores do not affect ability to pursue debt settlement
“Consumers are looking for relief that doesn’t involve the complexity and long-term impact of bankruptcy,” said Don Silvestri, president of Debt.com. “In regions like the Mid-Atlantic, where high home prices stretch budgets, debt settlement becomes a go-to option.”
Silvestri noted that Mid-Atlantic States, which have some of the highest costs of living in the nation, account for the majority of debt settlement inquiries. “When expenses are high, more people are turning to options like debt settlement to keep their financial situation manageable,” he said.
Silvestri added that Debt.com has seen an increase in consumer interest in debt settlement over the past decade. “When we started 11 years ago, we had to explain what debt settlement was and why it might be a good option,” he said. “Today, people come to us already informed and ask for help.”
Morse of the American Debt Resolution Association notes, “Consumers across the country should have access to the right tools for their unique financial position, which have proven to be effective solutions.”
The expectation is that the popularity of debt settlement will grow as more Americans look for alternatives to managing mounting personal debt. Debt.com’s debt settlement white paper, released this month, further explores trends and evolving attitudes toward debt settlement as a practical solution in today’s economic environment.
About Debt.com
Debt.com is a leading provider of financial education and debt relief solutions, helping Americans find a path to financial stability. Through expert guidance, educational resources, and personalized advice, Debt.com empowers people to tackle debt challenges and build brighter futures.
