Credit and Debt Management of America Endorses Groundbreaking Study Analyzing Debt Settlement Industry

Study provides a clear and detailed debt settlement consumer welfare analysis.

Dallas, TX, March 08, 2010 --( Credit & Debt Management of America (, a leader in helping people avoid bankruptcy, today announced that it is endorsing a groundbreaking study examining the industry of debt settlement.

Dr. Briesch, noted for his studies on consumer decision-making, makes a case for the need for debt settlement. “This economic climate implies that many consumers are only one emergency away from financial hardship. There is no question that the multitude of people currently in financial distress, need programs that reduce the principal of their debt to stave off bankruptcy.”

Dr. Briesch went on to add, “One of the most important findings of this research is how a debt settlement program can help consumers by increasing their economic welfare as compared to paying off the debt under the original conditions." Dr. Briesch also issued findings on banning up-front fees, a position the Federal Trade Commission has supported recently. “Finally, we find that charging consumers reasonable “up-front fees,” i.e., fees before settlement, is consistent with practices in other industries…and can be justified based on value provided to consumers as well as expenses incurred generating this value. Any attempt to ban these fees would have a chilling effect on the industry and is inappropriate for this industry,” Briesch concluded.

Debt settlement is a relatively new industry. Settlement companies act on behalf of consumers, negotiating directly with creditors to facilitate repayment of consumer debts at a reduced percentage of the total amount owed. In return, consumers generally pay a percentage of the total amount owed as a service fee. Upon completing a debt settlement program, consumers’ debts included in the program are “settled,” or resolved with zero balances.

Chuck Stephenson, Managing Partner of, commented on the study, “Education about our industry to all parties involved is critical.

The paper can be found at

About Dr. Richard Briesch
Dr Briesch is Associate Professor of Marketing at Cox Business School at SMU. He received his BS degree in Applied Mathematics from Carnegie Mellon University, MBA from Rice University and PhD from Northwestern University. 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 has won the Davidson award, the Cox School's research excellence award, and outstanding teaching award.

About Credit and Debt Management of America (
CDMA only works with the best debt settlement companies in the USA and will match you with the best debt settlement group that can best serve the clients’ needs in order to avoid bankruptcy. This is done through personalized and proven services. CDMA's Service Division helps consumers settle over $400,000 in debt each week with their creditors. CDMA is headquartered in Dallas, TX and is a privately held company. For more information about CDMA, please visit

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