Credit Counseling Agency Reports 13 Percent Increase In Consumer's Debt

Saturday, February 28, 2009
Credit Counseling Agency Reports 13 Percent Increase In Consumer's Debt



Credit Counseling Agency Reports 13 Percent Increase In Consumer's Debt

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

Orlando, FL (PRWEB) February 28, 2009 -- 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 (www.incharge.org) organization seeking to find solutions with substantially higher individual debt loads than in 2007, likely due to the recession and the credit problems (http://www.incharge.org/Credit_Counseling/Counseling/WhatSessionLike.aspx?bhcp=1) 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.