National Economic Impact Study of the Debt Settlement Industry - 2020

To see the debt settlement industry’s local economic impact scroll over each state using the interactive map. States colored in light blue show an estimated total economic impact if debt settlement is widely available.
Washington Oregon California Nevada Idaho Montana Wyoming Utah Colorado Arizona Nebraska South Dakota North Dakota Minnesota Iowa Wisconsin Illinois Indiana Ohio Michigan Pennsylvania New York Vermont New Hampshire Massachusetts New Mexico Texas Oklahoma Kansas Missouri Arkansas Louisiana Mississippi Tennessee Alabama Georgia Florida Kentucky Virginia North Carolina Maine Connecticut Rhode Island New Jersey Delaware Maryland Alaska Hawaii West Virginia Washington, D.C. South Carolina
Select a State Alabama
  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • Washington, D.C.
  • West Virginia
  • Wisconsin
  • Wyoming
Alabama

Alabama

Industry Output
$ 7,187,615
Total Jobs Supported
172
Total Annual Output
$ 32,970,735
description

Alaska

Industry Output
$ 385,731
Total Jobs Supported
23
Total Annual Output
$ 5,054,440
Arizona

Arizona

Industry Output
$ 444,677,685
Total Jobs Supported
7971
Total Annual Output
$ 1,233,491,896
Arkansas

Arkansas

Industry Output
$ 2,666,851
Total Jobs Supported
92
Total Annual Output
$ 18,634,190
California

California

Industry Output
$ 372,318,072
Total Jobs Supported
3479
Total Annual Output
$ 751,124,303
Colorado

Colorado

Industry Output
$ 22,073,859
Total Jobs Supported
410
Total Annual Output
$ 77,236,445
Connecticut

Connecticut

Est Industry Output
$ 23,416,839
Est Total Jobs Supported
277
Est Total Annual Output
$ 63,707,931
Delaware

Delaware

Industry Output
$ 12,049,193
Total Jobs Supported
112
Total Annual Output
$ 28,614,752
Florida

Florida

Industry Output
$ 129,616,142
Total Jobs Supported
2668
Total Annual Output
$ 413,444,157
Georgia

Georgia

Est Industry Output
$ 78,430,564
Est Total Jobs Supported
1066
Est Total Annual Output
$ 213,656,451
Hawaii

Hawaii

Est Industry Output
$ 1,500,315
Est Total Jobs Supported
53
Est Total Annual Output
$ 9,871,210
Idaho

Idaho

Industry Output
$ 23,314,652
Total Jobs Supported
430
Total Annual Output
$ 61,998,449
Illinois

Illinois

Est Industry Output
$ 94,184,960
Est Total Jobs Supported
1416
Est Total Annual Output
$ 286,671,568
Indiana

Indiana

Industry Output
$ 9,156,717
Total Jobs Supported
228
Total Annual Output
$ 51,828,350
Iowa

Iowa

Est Industry Output
$ 7,460,495
Est Total Jobs Supported
149
Est Total Annual Output
$ 34,100,910
Kansas

Kansas

Est Industry Output
$ 15,020,960
Est Total Jobs Supported
261
Est Total Annual Output
$ 49,027,135
Kentucky

Kentucky

Industry Output
$ 6,610,313
Total Jobs Supported
156
Total Annual Output
$ 30,785,307
Louisiana

Louisiana

Industry Output
$ 8,169,912
Total Jobs Supported
184
Total Annual Output
$ 42,047,462
Maine

Maine

Est Industry Output
$ 8,365,588
Est Total Jobs Supported
141
Est Total Annual Output
$ 24,244,863
Maryland

Maryland

Industry Output
$ 93,878,945
Total Jobs Supported
1504
Total Annual Output
$ 253,470,832
Massachusetts

Massachusetts

Industry Output
$ 91,318,138
Total Jobs Supported
1386
Total Annual Output
$ 260,238,154
Michigan

Michigan

Industry Output
$ 24,195,694
Total Jobs Supported
483
Total Annual Output
$ 92,979,725
Minnesota

Minnesota

Industry Output
$ 9,709,483
Total Jobs Supported
206
Total Annual Output
$ 45,944,353
Mississippi

Mississippi

Industry Output
$ 4,491,157
Total Jobs Supported
109
Total Annual Output
$ 20,037,877
Missouri

Missouri

Industry Output
$ 14,284,281
Total Jobs Supported
306
Total Annual Output
$ 57,809,077
Montana

Montana

Industry Output
$ 1,264,238
Total Jobs Supported
41
Total Annual Output
$ 7,931,626
Nebraska

Nebraska

Industry Output
$ 5,697,544
Total Jobs Supported
115
Total Annual Output
$ 24,525,007
Nevada

Nevada

Industry Output
$ 93,598,542
Total Jobs Supported
1326
Total Annual Output
$ 222,325,077
New Hampshire

New Hampshire

Est Industry Output
$ 8,329,257
Est Total Jobs Supported
136
Est Total Annual Output
$ 24,642,703
New Jersey

New Jersey

Est Industry Output
$ 17,974,068
Est Total Jobs Supported
326
Est Total Annual Output
$ 70,650,583
New Mexico

New Mexico

Industry Output
$ 2,760,032
Total Jobs Supported
75
Total Annual Output
$ 13,175,209
New York

New York

Industry Output
$ 569,136,365
Total Jobs Supported
4240
Total Annual Output
$ 1,251,857,318
North Carolina

North Carolina

Industry Output
$ 16,496,394
Total Jobs Supported
324
Total Annual Output
$ 74,852,060
North Dakota

North Dakota

Est Industry Output
$ 4,801,625
Est Total Jobs Supported
88
Est Total Annual Output
$ 15,362,740
Ohio

Ohio

Est Industry Output
$ 80,300,414
Est Total Jobs Supported
1088
Est Total Annual Output
$ 218,732,818
Oklahoma

Oklahoma

Industry Output
$ 7,744,426
Total Jobs Supported
191
Total Annual Output
$ 32,631,528
Oregon

Oregon

Est Industry Output
$ 25,611,724
Est Total Jobs Supported
389
Est Total Annual Output
$ 70,663,606
Pennsylvania

Pennsylvania

Industry Output
$ 63,975,339
Total Jobs Supported
1217
Total Annual Output
$ 216,809,917
Rhode Island

Rhode Island

Est Industry Output
$ 6,510,084
Est Total Jobs Supported
115
Est Total Annual Output
$ 19,794,333
South Carolina

South Carolina

Est Industry Output
$ 34,913,520
Est Total Jobs Supported
572
Est Total Annual Output
$ 97,667,517
South Dakota

South Dakota

Industry Output
$ 4,657,772
Total Jobs Supported
66
Total Annual Output
$ 14,830,545
Tennessee

Tennessee

Industry Output
$ 16,789,403
Total Jobs Supported
332
Total Annual Output
$ 63,442,539
Texas

Texas

Industry Output
$ 163,508,587
Total Jobs Supported
2941
Total Annual Output
$ 536,865,936
Utah

Utah

Industry Output
$ 16,076,075
Total Jobs Supported
236
Total Annual Output
$ 47,712,432
Vermont

Vermont

Est Industry Output
$ 3,326,005
Est Total Jobs Supported
63
Est Total Annual Output
$ 10,523,584
Vermont

Virginia

Industry Output
$ 28,985,269
Total Jobs Supported
417
Total Annual Output
$ 89,468,443
Washington

Washington

Est Industry Output
$ 9,375,744
Est Total Jobs Supported
235
Est Total Annual Output
$ 52,307,716
Washington, D.C.

Washington, D.C.

Industry Output
$ 2,761,326
Total Jobs Supported
34
Total Annual Output
$ 8,297,773
West Virginia

West Virginia

Est Industry Output
$ 9,371,562
Est Total Jobs Supported
239
Est Total Annual Output
$ 37,053,252
Wisconsin

Wisconsin

Industry Output
$ 6,684,662
Total Jobs Supported
191
Total Annual Output
$ 42,149,544
Wyoming

Wyoming

Est Industry Output
$ 3,794,733
Est Total Jobs Supported
68
Est Total Annual Output
$ 11,354,160
Hover Over the state for more info

The American Fair Credit Council in 2019 commissioned a first-of-its-kind research study to assess the national economic impact of debt settlement activity. In 2020, the AFCC released the second edition of the Economic Impact Report. To read the full 2020 report, click the Download Report button.

*Estimated total economic impact if debt settlement is widely available in these states.

 Download Report

About the 2020 Economic Impact Report

After releasing an extensive study of the debt settlement industry and its vast contributions to the economies of dozens of states and the United States at large, the American Fair Credit Council (AFCC) in 2020 commissioned another independent research study to again assess the national economic impact of debt settlement activity. Using the same research firm, John Dunham & Associates (JDA), data was collected from across the United States to illustrate the debt settlement industry’s substantial positive impact on the U.S. economy and the hundreds of thousands of Americans who have taken advantage of debt settlement.1

The industry contributes to the American economy in a variety of ways, three of which are particularly profound. First, the debt settlement industry employs thousands upon thousands of Americans across the country. Second, creditors participating in the debt settlement process receive funds from debtors faster than they would otherwise. Finally, and most importantly, consumers with crippling unsecured debt enrolled in debt settlement programs are able to get back on their feet rapidly and once again contribute positively to their local economies.2

    • $6.8 Billion in total economic impact.3
    • Consumers saved $1.65 Billion.4
    • Potential $758 Million of additional Economic Impact.7
    • Creditors recovered over $658 Million.5
    • The debt settlement industry contributed nearly 34,000 jobs and $821 million in federal states and local taxes were paid by the industry.6

The Current Economic Impact Delivered by The Debt Settlement Industry

The debt settlement industry contributes to the U.S. economy in a variety of ways each year, accounting for a total economic impact of $6.8 billion in 2019.3 This impact is realized across business and personal interests extensively:

  • Indebted Americans saved $1.65 billion in 20194 as a result of debt settlement programs.
  • Creditors participating in debt settlement programs in 2019 received more than $650 million5 in revenue that might otherwise have been delayed or not received at all.
  • In 2019, the industry was cumulatively responsible for nearly 34,000 jobs across the U.S., and more than $821 million6 generated in federal, state and local taxes.
  • To see the debt settlement industry’s local economic impact scroll over each state using the interactive map above.

The Potential Economic Impact Delivered by Debt Settlement in 18 Additional States

The study also examined the potential economic impact of the industry if consumers in the 18 states where the product is currently not widely available were given the opportunity to take advantage of debt settlement services. That resulting economic impact in the U.S. annually would total an additional estimated $758 million larger, with about 4,120 additional jobs7, including:

  • $387 million more in savings for consumers.8
  • $59 million in taxes to the federal government.9
  • $32 million in supplementary state and local tax revenues.10
  • $758 Million
    Additional Economic Impact
  • 4,120
    New Jobs Created

The resulting study report and data confirms debt settlement companies provide a vital service, giving Americans in desperate financial situations a path back to financial wellness. The debt settlement industry serves as an advocate for consumers and it delivers billions in economic benefits, supports thousands of U.S. jobs and enables creditors to receive payments on outstanding debt, in situations where they would not have benefitted otherwise.

To view the full report, click here.

Footnotes:

  1. Dunham. (2020). 2020 Economic Impact of the Debt Settlement Industry (2020). Page 5.
  2. Dunham. (2020). 2020 Economic Impact. Page 2.
  3. Dunham. (2020). 2020 Economic Impact. Page 2.
  4. Dunham. (2020). 2020 Economic Impact. Page 12.
  5. Dunham. (2020). 2020 Economic Impact. Page 8.
  6. Dunham. (2020). 2020 Economic Impact. Page 3.
  7. Dunham. (2020). 2020 Economic Impact. Page 9.
  8. Dunham. (2020). 2020 Economic Impact. Page 9.
  9. Dunham. (2020). 2020 Economic Impact. Page 9.
  10. Dunham. (2020). 2020 Economic Impact. Page 9.
Companion Reports

Options for Consumers in Crisis
An Updated Economic Analysis of the Debt Settlement Industry

In 2012, the American Fair Credit Council (AFCC) commissioned the first-ever independent analysis of the economic impact of the debt settlement industry on enrolled participants. Since then, the AFCC has commissioned four reports overseen by Greg Regan of Hemming Morse LLP, all of which exemplify the immense benefits of debt settlement for consumers struggling with unsecured debt.

State Versions
Options for Consumer in Crisis

The following state-specific versions of the recent independent “Regan Report” are a supplement in the series of reports overseen by Greg Regan of Hemming Morse LLP. These iterations exemplify how debt settlement serves consumers in financial hardship each day by offering significant and measurable financial benefits.

Financial Outcomes for Debt Settlement Programs

The American Fair Credit Council (AFCC) commissioned these two reports in 2019 and 2020, both of which were completed by Will S. Dobbie, Professor of Public Policy at Harvard Kennedy School of Government. The reports examine current evidence as well as past research conducted by Greg Regan of Hemming Morse LLP, while concluding that the Regan Report’s results were correct and debt settlement programs offer significant benefits to financially distressed individuals.

Economic Impact Report

The 2019 and 2020 Economic Impact Reports analyze the debt settlement industry’s national and local economic impact. These independent studies, which were commissioned by the AFCC from John Dunham & Associates, demonstrate the overwhelming importance of debt settlement for consumers, the U.S. economy as a whole, and state economies across the nation.

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