DALLAS–(BUSINESS WIRE)–An objective research paper by a recognized academic expert who examined the debt management industry found debt settlement is a better debt-relief option for many consumers than declaring bankruptcy or seeking credit counseling.

“There is no question the multitude of people currently in financial distress needs programs that reduce the principal of their debt to stave off bankruptcy,” writes the study’s author, Dr. Richard A. Briesch, Ph.D., Assistant Professor of Marketing at the Southern Methodist University Cox School of Business.

Titled “Economic Factors and the Debt Management Industry,” the industry white paper spells out the overall benefits of debt settlement programs (DSPs) vs. consumer credit counseling services (CCCS) and bankruptcy.

According to the professor, “the consumer welfare analysis suggests debt settlement plans create the greatest consumer welfare of any approach.” Such programs that reduce consumers’ debt principal “may be the only means to keep a growing number of consumers out of bankruptcy,” Dr. Briesch writes.

Multiple industry groups – including Americans for Consumer Credit Choice, the U.S. Organizations for Bankruptcy Alternatives (USOBA) and The Association of Settlement Companies – support the paper’s recommendations, which are being made available to state legislators, members of Congress and the Federal Trade Commission.

Given today’s economic turbulence, Credit Solutions is calling for additional academic studies regarding debt-relief options for consumers

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