AFSA has released its April State Government Affairs white paper, which draws attention to the increasing trend of non-housing consumer debt. The paper discusses debt settlement companies as a notable option for consumers facing financial difficulties. However, it warns that these companies can be misleading.
According to the white paper, debt settlement companies often charge high fees, negatively impact credit scores, and have low success rates in debt reduction. Consequently, consumers might encounter further financial challenges.
The white paper also provides an overview of current legislative proposals about debt settlement services. It notes that the information is subject to change, as the field is continually evolving.
The paper, along with other white papers from the State Government Affairs, is accessible in the SGA resources section of AFSA’s website.