Norwalk, CT (PRWEB) July 1, 2010
According to The U.S. Consumer Study on Debt*, 45% of Americans claim they are in debt, and 5% of those in debt say they are working with a debt consolidation/management/settlement program to get out of debt. The results indicate that 5,134,000 Americans may be choosing methods to get out of debt that could result in lower credit ratings -- or even lead to bankruptcy. The results are from The U.S. Consumer Study on Debt commissioned by DebtPlan.com and fielded by Survey Sampling International, which queried 1,000 U.S. consumers, ages 18+.
Consumers in debt were asked: "Which Best Describes Your Plan To Get Out Of Debt?"
Results are as follows:
Working with a financial advisor on the best way to get out of debt. 3%
Enrolled in a program that sets up a plan to get out of debt. 6%
Created a household budget myself and have built a plan to get out of debt. 34%
Working with a debt consolidation/management/settlement program
to get out of debt. 5%
Don't have any current plan as to how I am going to get out of debt. 53%
According to Carrie Coghill, Director of Consumer Education for DebtPlan.com, "Although 53% of respondents have no plan to get out of debt, they may actually end up better off than those that use debt consolidation or settlement. In debt consolidation, you might pay fees and still end up with a tarnished credit rating for years. At least with bankruptcy, you don't have the fees. But if a consumer can just make minimum payments on a credit card, they're always better off to have a well-thought-out plan to pay down debt over time."
Debt consolidation could be considered for people who can't afford to fully repay debts and don't want to file for bankruptcy.
A Chapter 7 bankruptcy filing remains on your credit record for 10 years, making it difficult to get credit.
However, having a plan won't necessarily take away the worry. The U.S. Consumer Study on Debt also asked: "On average, how many hours per day do you spend worrying about debt?" The results are as follows:
10 hours or more 10%
4-10 hours 11%
1-3 hours 54%
Zero hours 25%
Consumers deep in debt or on the verge of bankruptcy can contact the following agency for help:
Federal Trade Comission Website: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre19.shtm
National Foundation for Credit Counseling: http://www.nfcc.org/
DebtPlan.com is a secure, personalized online debt management tool to help you manage and reduce debt. With DebtPlan.com, you control debt rather than debt controlling you. It is the first service in the debt management industry that guarantees you at least $1,000 savings in interest payments** while paying down debt. DebtPlan’s Personal Debt Wizard℠ creates a custom plan in minutes to shorten payoff time, reduce interest paid, and start tracking progress as you pay down debt. DebtPlan.com shows you how to become debt-free with your current income. Unlike other debt options, DebtPlan.com does not damage credit. DebtPlan.com is a service of FreeScore LLC. For more information, go to http://www.DebtPlan.com, or call toll-free at 1-800-211-3096.
*The data for The U.S. Consumer Study on Debt were collected and analyzed in April/May 2010 through Survey Sampling International in Shelton, Connecticut. Results have a margin of error +/- 5%.
**Terms and conditions of the DebtPlan.com $1,000 guarantee:
At the point of enrollment, you must have at least $2,500 of credit card debt at an interest rate of a minimum 14.5%, and you must be making only minimum monthly payments. In order to qualify for the refund, you must have created your debt plan within 10 days of enrolling in the service and must have followed to completion the original personalized debt plan that was established at enrollment. In addition, you must not have incurred any additional credit card debt while using DebtPlan.com and must still be a DebtPlan.com user when you request the refund. You must also fill out all required forms to verify that you followed the debt plan that was established when enrolled in the service. DebtPlan.com will then verify that you followed all rules that have been established as part of this guarantee.