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NewswireToday - /newswire/ -
Columbia, MD, United States, 02/17/2009 - Statistics confirm that credit counseling cannot help many consumers with overwhelming debt. Debt settlement company CEO alerts consumers to the restrictions and limitations of credit counseling.
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Phil Fewster, CEO of Debt Shield, an award-winning debt settlement company, is alerting consumers about a recent report revealing that at least one third of people looking for credit counseling assistance could not afford to repay their credit card debt through a debt management plan.
"If over 30 percent of people turning to credit counseling are turned away, this confirms what experts in our industry already knew – that there is a large number of consumers who are simply unable to repay all of their debts, but are trying their best to avoid bankruptcy," said Fewster.
Fewster explained that many people need more assistance than the reduced interest rates and payment organization that debt management plans provide. He said debt settlement is an alternative for people who want to avoid bankruptcy but can only afford to partially repay their debts.
The National Foundation for Credit Counseling acknowledges they cannot help about one third of people who seek their services, which is nearly one million consumers in 2008 alone. These people are typically referred to bankruptcy, even though debt settlement may help them avoid bankruptcy.
Fewster and other Debt Shield executives are not shocked by the statistics and claim that the economic downturn is revealing credit counseling limitations.
"More and more people are turning to debt settlement because, unlike credit counseling, debt settlement helps consumers pay off debts for less than they owe in consideration of their inability to fully repay their debts," said Fewster. "Consumer credit counseling is a great option for people with high debt and adequate income who need a hand organizing their finances, but debt settlement may be the answer for people who need more help than just reducing APRs and organizing payments."
Debt settlement is an option that lets consumers struggling with hardships repay less than they owe to satisfy their financial obligations.
About Debt Shield
Debt Shield, Inc. (debtshield.com), is an award-winning debt settlement company helping consumers resolve their unsecured debt through mutually agreeable, discounted settlements in consideration of the consumers’ legitimate financial hardships. By helping consumers avoid bankruptcy, Debt Shield provides a service for both debtors and creditors.
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mbeetz[.]debtshield.com 
