Settling your debt can not only get you back in better financial standing but can help the economy as well. This is the finding of a study performed by John Dunham and Associates for the American Fair Credit Council (AFCC).
What is Debt Settlement?
Debt settlement is a service that Pacific Debt, Inc offers to consumers who find themselves unable to pay even the minimum amounts on their unsecured loans. A debt settlement company negotiates with your creditors on your behalf in order to substantially lower the amount you owe. Currently, throughout the US, almost 400,000 consumers and $12 billion of debt are enrolled in debt settlement. This debt represents 2.9 million separate accounts.
How Does Debt Settlement Help the Economy?
In 2018, there were 28,000 jobs in the debt settlement industry that accounted for over $700 million paid in taxes, which deems it vital for the economy. Debt settlement also helps people get over their financial crisis by providing a proven path to get back on their feet.
“Debt settlement truly helps consumers in need by offering a private sector alternative to bankruptcy. AFCC members help consumers make the best of a bad financial situation and – judging by these numbers – achieve outstanding results,” said AFCC President Robby Birnbaum
How Much Does Debt Settlement Help the Economy?
Adding all three of these factors together shows an annual economic impact of $4.9 billion or 0.02% of the GDP (gross domestic product). That is a surprisingly large percent of the GDP, the sum total of all the goods and services that make up the economy.
In 2018, about 902,450 accounts were settled. These were valued at $5.1 billion and settled for $2.5 billion. Settling allowed the debtors to put money back into savings. Most importantly, it allows them to buy other goods and services instead of just paying on past services, late fees and interest.
The Census of Consumer Finances reports that 11.5% of American families have filed for bankruptcy at some point. Since this is a complicated and expensive process, imagine the economic benefits if those families had been able to successfully complete a debt settlement program.
Not All States Allow Debt Settlement
Not all states allow debt settlement and according to the report, these states are missing out on a huge economic windfall. The study reports that, if all states were included, the economic impact would be an additional $1.4 billion in revenue. Employment would increase by 9,167 jobs. Debtors would save a $422.2 million in savings through debt settlements. Even creditors show a huge impact, collecting $629.9 million in payments that may never have been collected.
The following states do not allow or severely limit access to debt settlement options include Connecticut, Georgia, Hawaii, Illinois, Iowa, Kansas, Maine, New Hampshire, New Jersey, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, Vermont, Washington, West Virginia, and Wyoming. If you live in one of these states, consider contacting your state representatives and sending them a copy of the linked report. It could have a huge positive impact on your state’s economy and residents.
Can Debt Settlement Help You?
Absolutely! If you have more than $10,000 in credit card debt, contact Pacific Debt, Inc. We may be able to help you become debt free in 2 to 4 years. We have settled over $250 million in debt for our customers since 2002.
Pacific Debt, Inc is accredited with the American Fair Credit Council and is an A+ member of the Better Business Bureau. We rate very highly in Top Consumer Reviews, Top Ten Reviews, Consumers Advocate, Consumer Affairs, Trust Pilot, and US News and World Report.
Pacific Debt is currently providing debt relief coverage in the following states:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Florida, Idaho, Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Mexico, New York, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, Virginia, Wisconsin
For more information, contact one of our debt specialists today. The initial consultation is free, and our debt experts will give you all your options.