Posted: Kate Ward | July 21, 2015

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Do You Know What a Debt Settlement Company Does?

BDC settlement graph
Paying back your debt is not an easy task, let alone trying to understand which debt solution is right for you. Debt resolution companies seem to be everywhere and are constantly bombarding you to get your business. But how can you pick a the right debt resolution company if you can't figure out what type of resolution is right for your needs?

The BestDebtCompanys.com team created a survey to get a better understanding of how users' knowledge about debt resolutions companies, specifically debt settlement companies.

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 that settlement companies "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 knowing at all what these companies. 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.

This survey regarding what settlement companies do, 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. TheBestDebtCompanys.com have created various articles that break down the differences between debt solutions and are continuing to look for ways to enhance the user experience to help user pick the right solution for them. This survey is a stepping point towards helping people to understand what settlement companies do and the difference between the types of debt resolutions.

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Written by Kate Ward

Kate has a degree in communications and enjoys being outdoors.

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