Debt Settlement Benefits Consumers, According To Industry Study
DALLAS-(Business Wire)-August 25, 2009 - An objective research paper by a recognized academic expert who examined the debt management industry found debt settlement is a better debt-relief option for many consumers than declaring bankruptcy or seeking credit counseling.
“There is no question the multitude of people currently in financial distress needs programs that reduce the principal of their debt to stave off bankruptcy,” writes the study’s author, Dr. Richard A. Briesch, Ph.D., Assistant Professor of Marketing at the Southern Methodist University Cox School of Business.
Titled “Economic Factors and the Debt Management Industry,” the industry white paper spells out the overall benefits of debt settlement programs (DSPs) vs. consumer credit counseling services (CCCS) and bankruptcy.
According to the professor, “the consumer welfare analysis suggests debt settlement plans create the greatest consumer welfare of any approach.” Such programs that reduce consumers’ debt principal “may be the only means to keep a growing number of consumers out of bankruptcy,” Dr. Briesch writes.
Multiple industry groups – including Americans for Consumer Credit Choice, the U.S. Organizations for Bankruptcy Alternatives (USOBA) and The Association of Settlement Companies – support the paper’s recommendations, which are being made available to state legislators, members of Congress and the Federal Trade Commission.
Given today’s economic turbulence, Credit Solutions is calling for additional academic studies regarding debt-relief options for consumers.
About the Author
Having written extensively on consumer marketing, Dr. Briesch’s primary area of research is the general area of modeling consumer decision-making. His articles have appeared in journals such as Marketing Science, Journal of Marketing Research, Journal of the American Statistical Association, Journal of Consumer Research, Journal of Retailing, Marketing Letters and Journal of Business and Economic Statistics. He earned his Ph.D. at Northwestern University and won a William R. Davidson Award for the best paper in the Journal of Retailing (2002), a 2007 SMU outstanding teaching award and the Cox School's 2009 Research Excellence Award. To download Dr. Briesch’s white paper in its entirety, visit www.consumercreditchoice.org.
About Credit Solutions
The nation’s debt settlement industry innovator, Credit Solutions is recognized by the American Business Awards for the "Best Customer Services Department in Financial Services" and won a 2009 Red Herring 100 North America Award for its custom online technology. A USOBA charter policy partner, Credit Solutions is certified by BSI Management Systems for USOBA best-practice compliance. For more information, visit www.creditsolutions.com.
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