Report: Debt Settlement a Viable Path to Economic Recovery Over Bankruptcy
(MADISON, Wis.)—A recent analysis found the number of Americans filing for bankruptcy continues to rise. The Association of Settlement Companies (TASC) today reminds consumers who are struggling to pay off their unsecured debt that debt settlement remains a reliable tool for relief, especially when compared to taking the dramatic step of filing for bankruptcy.
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According to a report from Automated Access to Court Electronic Records, bankruptcy filings in the United States now exceed 6,000 per day. Reputable debt settlement companies such as those that are a part of TASC—a non-profit watchdog for the industry—can help consumers avoid being a part of that statistic. One reason is that debt settlement companies can often negotiate with creditors to settle for less than the full amount owed.
“Every day the debt settlement industry assists consumers in navigating through their financial straits,” Chris Kesterson, president of TASC, said. “Our staff members are knowledgeable and experienced in working with creditors, who are willing to take a settlement over getting nothing with bankruptcy.”
Debt settlement provides consumers with a three-year plan to get out of debt without the 10-year stain of bankruptcy on their credit report. Bankruptcy also is time-intensive and can be difficult to apply for, if a consumer even qualifies, Kesterson added.
To illustrate debt settlement as a growing choice over bankruptcy, TASC revealed recently that the industry returned more than $2.2 billion in consumer debt last year. In addition, TASC’s research shows more than $500 million in settlement funds saved by consumers are available to credit card companies today.
About The Association of Settlement Companies
The Association of Settlement Companies (TASC) promotes fair business practices, consumer protection and industry standards for the debt settlement industry. TASC, founded in 2005, serves to protect consumers through an organization seal that represents best practices and standards of reputable companies. The organization also protects its member companies through lobbying efforts at the state and national levels, as well as awareness initiatives to educate consumers on debt settlement as a financial solution. All TASC member companies pledge compliance to strict association bylaws governing business practices and ethics. For more information, visit www.tascsite.org.
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Comments
Comment from Collection Veteran Since 1964 on September 17, 2009 at 11:57AM EST
Somehow how does a 'non profit' become a watch dog over for profit debt settlement companies? The training must be extensive, possibly taking a long time to become knowledgeble and experienced in working with creditors since some hiring qualifications from web sites start with requirements to have a high school or GED education. Kindly post from what sources you obtained that bankruptcy filing can be difficult to apply for, if a consumer even qualifies. Also, where is the data research and if available that suggests more than $500M in settlement funds for credit card companies. I checked the national filing data and seem to be confused that filing rate per day is 6000.
Comment from Steve Rogers on September 17, 2009 at 4:56PM EST
Debt settlement is a viable option for anyone trying to pay back their debt, even if it is at a lower percentage of what they owe. However, I don't recommend using a settlement company. It's too difficult to tell what debt settlement companies may be legitimate from those that are not. There is no government regulation, the BBB has virtually stopped reporting on the debt settlement industry and TASC is made up of a lot of those unethical companies. My suggestion is to attempt to settle yourself. Creditors are starting to authorize front line customer service agents to offer opening settlements. With a little effort and record keeping you can accomplish the same settlement percentage as a professional settlement company. We have set up a website to help those looking to settle debt on their own. At iSettledit.com we have put together the largest FREE collection of research, tips, tools and consumer feedback for the debt settlement industry. If you are in the market and considering debt settlement stop by iSettledit.com and see if we can help you.
Comment from Anonymous on September 17, 2009 at 10:57PM EST
The entire industry is currently under scrutiny and rightfully so. However, the entire industry does not consist of scam artists. One needs to do their due diligence prior to joining a debt settlement program as with any other major decision. Remember, a settlement can be obtained by the debtor with the creditor. However, will the terms of that settlement be better than if a professional negotiated? That is a question that is answered every day. People in debt do not have the objective view that is necessary during negotiations. That is why lawyers hire other lawyers to do their person work and doctors do not treat/diagnose themselves. Objectivity is key when dealing with something as sensitive as debt negotiations, and the people that negotiate every day, have that. Look for the right company. Once you found one, let them help you. www.debtsettlement2day.com
Comment from Steve Rogers on September 18, 2009 at 9:29AM EST
You bring up doctors and lawyers, but those professions require years of schooling and licensing through a regulatory agency. How does anyone with a pulse and a few bucks having the ability to open their own debt settlement company compare with that? You also mention objectivity that the debt negotiations requires objectivity, how much objectivity do you think a negotiator is going to have when their paycheck is based on getting a settlement offer regardless of the percentage? It sounds to me as though you are selling the same stuff, just in a different package.
iSettledit.com