Debt relief industry sees surge as credit card balances swell

Each month higher inflation has pushed Americans to rely more on credit cards to make ends meet, pushing balances to record highs. Today, the debt relief industry is experiencing a boom as more and more consumers seek help.

Debt.com President Howard Dvorkin, who has been in the debt relief business for 30 years, said demand across the industry has risen sharply since last year.

“All of a sudden, somebody flipped in June,” Dvorkin told FOX Business. “The demand is coming and it’s not stopping.”

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Dvorkin said he has hired 40 more people to answer incoming calls in the past two months to handle the increase in volume. He said consumers are worried, and he expects it to last through the year and possibly into 2024 because of the economy.

“I don’t think it’s going to be as bad as the Great Recession,” Dvorkin said, “but it’s definitely going to hit home.”

Dvorkin says the United States is now in a recession that will begin to show its teeth soon. A CPA by trade advises anyone in debt to seek help early before it gets out of control.

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Debt relief veterans warn that as demand in the industry continues to grow, so will the number of scammers looking to take advantage of people in desperate situations. He urges customers to do their homework and be sure to work with a reliable service provider.

Some people, he says, are strong enough to handle their debt on their own without help, but the first step for everyone is to assess where they are and make a plan. Ignoring the problem will only make it worse if the debt continues.

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“People are going to suffer – they’re hurting now. The smart ones are reaching out for help,” Dvorkin told FOX Business. “People can get help, ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ but the rope tightens and people start choking. Do I think it will be a disaster? No, but will people choke? Yes, I believe so.”

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