Debt relief industry sees surge as credit card balances swell
Debt.com chairman says business is up 'substantially' from a year ago
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Month after month of high inflation has pushed Americans to increasingly rely on credit cards to make ends meet, pushing balances to an all-time high. Now, the debt relief industry is experiencing a boom as more consumers seek help.
Debt.com chairman Howard Dvorkin, who has been in the debt relief business for 30 years, says demand is up substantially across the industry from a year ago.
U.S. household debt has ballooned, resulting in more consumers flocking to debt relief agencies. (iStock / iStock)
"All of a sudden, somebody flipped a switch in June," Dvorkin told FOX Business. "The demand came and it's not stopping."
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Dvorkin said he has hired 40 more people to answer incoming calls just over the past two months to handle the surge in volume. He says consumers are stressed, and he expects the pain to last throughout the year and possibly into 2024 due to the state of the economy.
"I don't think it's going to be as bad as the Great Recession," Dvorkin said, "but it'll definitely hit home."
Americans are increasingly relying on credit as inflation puts the squeeze on household budgets. (Simon Dawson/Bloomberg via Getty Images / Getty Images)
Dvorkin says the U.S. is already in a recession now that will start showing its teeth, soon. The CPA by trade advises anyone overwhelmed by debt to seek help early before it gets out of control.
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The debt relief veteran warns that as demand continues to increase in the industry, the number of scammers seeking to take advantage of people in desperate situations will increase, too. He urges consumers to do their homework and be sure to work with a credible service.
A surge in consumer debt has caused the debt relief industry to boom. (iStock / iStock)
Some folks, he says, are strong enough to tackle their debt on their own without assistance, but the first step for anyone is assessing where they are at and making a plan. Ignoring the problem will only make it worse as debt continues to build.
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"People are going to be hurting — they're hurting now. The smart ones are reaching out for help," Dvorkin told FOX Business. "People can get help, but… the noose is getting tighter and people are going to start to choke. Do I think it'll be dire? No, but are people gonna choke? Yes, I do believe that."