Credit Counseling Agency Reports 13 Percent Increase In Consumers' Debt

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Nonprofit organization helps clients return $247 million to U.S. economy

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The goods news is that we were able to help our clients repay over $247 million to their creditors last year

In what can be seen as a reflection of today's economy, InCharge Debt Solutions (IDS) found that the "original debt" of its new clients grew by 13% during 2008. That means that new clients came to this nonprofit credit counseling organization seeking to find solutions with substantially higher individual debt loads than in 2007, likely due to the recession and the credit problems facing the United States.

"The goods news is that we were able to help our clients repay over $247 million to their creditors last year," said Etta Money, IDS president and CEO. "We conducted nearly 100,000 counseling sessions during those twelve months, and the numbers document that we are not only providing a very vital service to consumers, but we are a positive force for the American economy."

The IDS data is further evidence that the deterioration of the American economy escalated during the fourth quarter of 2008. Of the nearly 100,000 consumers who received free credit counseling from IDS, the following trends were noted when the average of the first nine months of last year were compared with those of the last three. The number of consumers:

  • reporting reduced income problems increased 10%
  • blaming poor money management habits for their debts dropped 22%
  • choosing bankruptcy over all other solutions grew by 9%
  • feeling as if they could solve their debt problems on their own fell 7%

These findings demonstrate that American consumers are losing confidence in their financial situation, increasingly no longer believe that it is only their fault, are struggling with reduced working hours and layoffs, and are turning to bankruptcy more often as their only recourse.

For more information about InCharge Debt Solutions, credit counseling and credit card debt relief assistance, call 1-888-360-9694 or visit http://www.incharge.org.

About InCharge® Debt Solutions
Headquartered in Orlando, Florida, InChargeDebt Solutions provides professional credit counseling and personal money management education to consumers and is a member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA). IDS is one of the unique organizations to be dually accredited by both ISO 9001-2000 Quality Standards and Council on Accreditation (COA). Consumers can access InCharge Debt Solutions credit counseling services for free by calling 1-888-360-9694 or online at http://www.incharge.org.

The names and logos of other third parties, their products and services names shown herein, may be trademarks and/or service marks of their respective owners.

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