Survey results highlights the confusion surrounding the debt industry
San Francisco, CA -- (SBWIRE) -- 07/21/2015 -- BestDebtCompanys.com (BDC) released a new survey identifying what services debt settlement companies provide. It focused on clarifying what settlement companies services provide and overall how confusing the debt industry can be.
"We want to better understand the debt knowledge base of consumers," BDC PR Director Kate Ward said. "If we can better understand what they know or don't know, we can create more informative content for them."
The survey, which collected 1,000 responses, asked the question: "What does a debt settlement company do?"
Here are the following responses and their percentages:
- Negotiates with creditors to lower your debt: 41.4 percent
- None of these: 34.2 percent
- Combines debt into one monthly payment: 15.2 percent
- Works with the IRS on behalf of your debt: 5.8 percent
- Lowers your overall interest rate: 3.4 percent
The highest number of respondents, 41.4 percent, chose the correct response of "Negotiate with creditors to lower debt." Of those 41.4 percent of respondents, 53.2 percent were 65 years or older.
This is interesting because it shows that age does affect who picked the correct response. It could have something to do with the fact that they have been around longer and understand how the debt resolution process works, or have a better understanding of their finances in general.
The next highest answer response, with 34.2 percent, chose "None of these." After knowing what debt settlement companies do, the next highest response was not understanding what these companies do.
It is interesting that people seem to know exactly what settlement companies do or have no idea how settlement companies help them. This misunderstanding can cause serious confusion when it comes to looking for debt resolutions.
The BDC review team felt this survey brings up a bigger issue around the debt industry as a whole. It seems that people either know exactly what they are looking for or have no idea what they need.
"This survey sheds light on the current knowledge of our consumers of the debt industry," Ward said. "It provides insight to better help our consumers make informed decisions."
This survey is a stepping point towards helping people to understand what settlement companies do and the difference between the types of debt resolutions.
BestDebtCompanys.com strives to provide customers with unbiased reviews and allows users to have a voice.
For more information about this survey, please visit BestDebtCompanys.com