Columbia, MD, December 24, 2009 --(PR.com
)-- Executives at Debt Shield, a Maryland-based debt settlement company, are alerting their clients and consumers everywhere about a recent survey demonstrating the growing success of debt settlement.
About half of all collections agencies surveyed (54 percent) responded that "more settlement-in-full offers" were being extended to debtors, according to the recent Credit & Debt Collection Industry Confidence Survey. The survey also found that 44.1 percent of debt buyers were also accepting more settlement offers.
According to Debt Shield CEO Phil Fewster, these results show that more and more collectors realize debt settlement is a smart business decision.
"Due to our country’s huge economic downslide, an increasing number of collectors have become much more open to exploring alternative solutions to recapture delinquent monies," said Fewster.
But it isn’t internal red tape that can make the collection process slow and arduous.
"Unfortunately, the recent surge in the number of debt settlement companies to meet this growing demand by consumers for our assistance was filled by many of the same persons who helped bring down the mortgage industry," said Fewster. "Naturally this has a lot of creditors nervous."
Fewster explained that some new and disreputable debt settlement companies have tried to take advantage of current circumstances by enrolling consumers who could legitimately pay their bills.
"Fortunately, companies such as Debt Shield, who have been in the industry well before the boom hit, forged a great reputation and working relationship with many of these collectors," said Fewster. "Because they know we only enroll consumers who truly cannot afford to keep up with their minimum monthly payments and likewise cannot afford a credit counseling program, the collectors can forego much of the time-consuming, high-cost research and collection tactics they would otherwise need to invest."
Because Debt Shield can improve the profit margins and reputations of creditors, creditors in turn are more likely to offer concessions when debt settlement clients need them most.
"In essence, we are slowly converting our business from one that engages in a confrontational negotiation with our client’s creditors to one in which we can sit side-by-side with collectors to work towards a common goal, which is to return to them as much money as the consumer can legitimately afford," said Fewster.
The survey also found that more than 85 percent of collection agencies are eager to try new collection strategies in light of declining recoveries.
To see the full survey, visit: http://www.insidearm.com/go/confidence-survey/fall09.
About Debt Shield:
Debt Shield, Inc., is an award-winning debt settlement company helping consumers resolve their unsecured debt through mutually agreeable settlements in consideration of the consumers’ legitimate financial hardships. As an alternative to bankruptcy, Debt Shield provides a service for both debtors and creditors. For more information about Debt Shield, call 1-888-397-7546 or visit the website at www.debtshield.com.