In the fourth quarter of 2024, 497.5 billion U.S. dollars worth of student loans were in forbearance in the United States. This reflects the effects of the coronavirus (COVID-19) pandemic, where the government temporarily paused student loan payments and froze the accumulation of interest. Federal student loan repayments resumed in October 2023, with 599 billion U.S. dollars worth of student loans in repayment as of Q4 2024. During this time period, outstanding student loan debt in the U.S. totaled over 1.77 trillion U.S. dollars.

In April 2024, Americans were asked if they think they will ever fully pay off their student loan debt. According to the survey, almost ** percent of those who owed money toward student loans stated that they would definitely not be able to fully pay their loans off.

Key information about United States Government Debt: % of GDP

• United States Government debt accounted for 124.0 % of the country's Nominal GDP in Dec 2024, compared with the ratio of 123.1 % in the previous quarter.
• US government debt to GDP ratio data is updated quarterly, available from Mar 1969 to Dec 2024.
• The data reached an all-time high of 130.4 % in Mar 2021 and a record low of 31.8 % in Sep 1974.

• In the latest reports, US National Government Debt reached 36,220.2 USD bn in Jan 2025.
• The country's Nominal GDP reached 6,632.4 USD bn in Mar 2023.

The Schedules of Federal Debt dataset provides monthly and fiscal year-to-date changes in federal debt. It shows increases (borrowing) and decreases (repayments) in debt. The data notes whether the debt is debt held by the public or intragovernmental holdings. These two categories are further broken down into principal debt, accrued interest payable, and net unamortized premiums/discounts. All figures are rounded to the nearest million.

Graph and download economic data for Household Debt Service Payments as a Percent of Disposable Personal Income (TDSP) from Q1 1980 to Q1 2025 about disposable, payments, debt, personal income, percent, personal, households, services, income, and USA.

Debt collection agencies have been severely impacted by several macroeconomic events and uneven consumer sentiment, creating large shifts in debt payments and new debt accrual. Following the pandemic, debt collection agencies struggled to find their footing, as a multitude of government assistance through policies such as the American Rescue Plan of March 2021 and student loan freeze bolstered individual consumers’ debt repayment capabilities and resulted in a considerable slowdown in overall debt accrual. However, in recent years, this has reversed, as the interest rate hikes in 2023, which peaked at 5.3% per the Federal Reserve, made it more difficult to finance debt payments. The lifting of the student loan freeze in October 2023 created further repayment stresses for consumers, while businesses were forced to rely on more expensive financing options for their capital needs due to high interest rates. Despite the more recent recovery, the overarching effects of debt repayment freeze and generous federal stimulus resulted in revenue slipping at a CAGR of 2.6% to an estimated $16.4 billion over the past five years, including an estimated 2.3% boost in 2025 alone. Small debt collection agencies face significant pressure from emerging accounts receivable platforms and virtual debt collection companies that aim to replace traditional practices. Prominent debt collectors can invest in new communication methods and data analytics, giving them an edge in outreach techniques such as telephone calling and social media communications. Competitive pressures intensify as new technology enables companies to manage their own debt collection, while out-of-market firms like fintech, e-commerce and payment platforms gain new revenue streams. Prominent companies, such as Alorica Inc., have responded tactically, with the company pursuing an AI cloud partnership with Google in October 2024 which bolstered profitability through more efficient internal workflow and direct-to-consumer services.Moving forward, debt collection agencies face positive prospects amid anticipated slowdown in interest rates and continued growth in medical and student loan debt. Consumers will use less revolving debt and hold larger balances in a higher interest rate environment; according to 2024 data from the New York Fed, outstanding credit card debt exceeded $1.2 trillion last year alone. Nonetheless, continued pressure from in-house alternatives among established financial organizations will force debt collection agencies to remain at the forefront of workflow modernization when procuring debt portfolios. Revenue is expected to accelerate at a CAGR of 2.1% to an estimated $18.3 billion through the end of 2030.

This statistic shows the options considered for repaying student loans among students who had debt in the United States in 2015. In 2015, about 65 percent of respondents developed or considered developing a budget as a method to repay their student loans in the United States.

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Debt Settlement Market Size 2024-2028

The debt settlement market size is forecast to increase by USD 5.07 billion at a CAGR of 10.3% between 2023 and 2028.

The market is experiencing significant growth due to the increasing trend of consumers seeking relief from mounting credit card debts. One-time debt settlement has gained popularity as an effective solution for individuals looking to reduce their outstanding debt balances. However, the time-consuming nature of negotiations between debtors and creditors poses a challenge for market expansion. Despite this, the market's strategic landscape remains favorable for companies offering debt settlement services. Key drivers include the rising number of consumers struggling with debt, increasing awareness of debt settlement as a viable debt relief option, and the growing preference for affordable and flexible debt repayment plans.
Companies seeking to capitalize on market opportunities should focus on streamlining the negotiation process, leveraging technology to enhance customer experience, and building trust and transparency with clients. Effective operational planning and strategic partnerships with creditors can also help companies navigate the challenges of a competitive and complex market.

What will be the Size of the Debt Settlement Market during the forecast period?

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The market encompasses a range of companies offering financial wellness programs to help consumers manage and reduce their debt. These programs include medical Debt collection, consumer debt relief, and financial education resources. Online financial resources and debt management software are increasingly popular, providing consumers with affordable debt solutions and debt negotiation strategies. However, it's crucial for consumers to be aware of debt settlement scams and their settlement success rates. Debt consolidation loans and financial planning tools are also viable options for responsible debt management. Furthermore, financial literacy education and workshops are essential for consumers to understand debt reduction calculators and credit reporting errors.
Consumer financial protection agencies offer financial counseling services and financial planning advice to promote financial wellness strategies and responsible borrowing. Student loan forgiveness programs are also gaining traction in the market. Overall, the market for debt settlement and financial wellness solutions continues to evolve, with a focus on providing accessible and effective debt relief options for consumers.

How is this Debt Settlement Industry segmented?

The debt settlement industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Credit card debt
  Student loan debt
  Medical debt
  Auto loan debt
  Unsecured personal loan debt
  Others


End-user

  Individual
  Enterprise
  Government


Distribution Channel

  Online
  Offline
  Hybrid


Service Type

  Debt Settlement
  Debt Consolidation
  Debt Management Plans
  Credit Counseling


Provider Type

  For-profit Debt Settlement Companies
  Non-profit Credit Counseling Agencies
  Law Firms
  Financial Institutions


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa



  APAC

    China
    India
    Japan
    South Korea


  South America



  Rest of World (ROW)

By Type Insights

The credit card debt segment is estimated to witness significant growth during the forecast period.

The market experiences significant activity due to the escalating credit card debt among consumers. In India, for instance, the rising financial hardships faced by borrowers are evident in the increasing credit card defaults. The latest data indicates that credit card defaults in India reached 1.8% in June 2024, a notable increase from 1.7% six months prior and 1.6% in March 2023. This trend underscores the mounting financial pressures on consumers. The outstanding credit card debt in India mirrors this trend, with approximately USD3.25 billion in outstanding balances as of June 2024, a slight increase from the previous year.

Debt elimination and negotiation strategies, such as debt relief programs and debt consolidation, have become increasingly popular among consumers seeking financial relief. Credit reporting agencies play a crucial role in this process, as they maintain and report consumers' credit histories to lenders. Student loan debt, medical debt, tax debt, and payday loans are other significant contributors to the market. Consumers often turn to debt validation, credit repair, and financial coaching for guidance in managing their debts. Online platforms, mobile apps, and budgeting tools have become

The G.19 Statistical Release, Consumer Credit, reports outstanding credit extended to individuals for household, family, and other personal expenditures, excluding loans secured by real estate. Total consumer credit comprises two major types: revolving and nonrevolving. Revolving credit plans may be unsecured or secured by collateral and allow a consumer to borrow up to a prearranged limit and repay the debt in one or more installments. Credit card loans comprise most of revolving consumer credit measured in the G.19, but other types, such as prearranged overdraft plans, are also included. Nonrevolving credit is closed-end credit extended to consumers that is repaid on a prearranged repayment schedule and may be secured or unsecured. To borrow additional funds, the consumer must enter into an additional contract with the lender. Consumer motor vehicle and education loans comprise the majority of nonrevolving credit, but other loan types, such as boat loans, recreational vehicle loans, and personal loans, are also included. This statistical release is designated by OMB as a Principal Federal Economic Indicator (PFEI).

Graph and download economic data for Mortgage Debt Service Payments as a Percent of Disposable Personal Income (MDSP) from Q1 1980 to Q4 2024 about disposable, payments, mortgage, debt, personal income, percent, personal, services, income, and USA.

According to a 2023 survey, 26 percent of Gen Z respondents said that they expect that it will take them between 7 to 10 years to repay their student loans in the United States. A further 21 percent said that they expect it will take them between 4 to 6 years.

The Schedules of Federal Debt dataset provides monthly and fiscal year-to-date changes in federal debt. It shows increases (borrowing) and decreases (repayments) in debt. The data notes whether the debt is debt held by the public or intragovernmental holdings. These two categories are further broken down into principal debt, accrued interest payable, and net unamortized premiums/discounts. All figures are rounded to the nearest million.

New York City Annual Debt Service Expense from FY2000 – FY2020 Dollars in millions SOURCES: IBO; Mayor's Office of Management and Budget (OMB); New York City Comprehensive Annual Financial Report of the Comptroller (various years); Annual Report of the Comptroller on Capital Debt and Obligations (various years); New York City Municipal Water Finance Authority Comprehensive Annual Financial Report (various years). NOTES: (1) Debt service is the cost to New York City of repaying its outstanding debt, including both principal and interest. The figures in the table have been adjusted to reflect debt service that was originally scheduled for payment in each year since 2000. (2) New York City is required to have a balanced annual budget. In years when it runs a surplus, the primary means the city uses to comply with this requirement is to use up some or all of the surplus by prepaying some of the subsequent years' debt service expenses. As a result, the cash outlay for debt service in a given year is not an accurate representation of the true cost of debt service in that year. (3) The defeasance of $536 million of GO bonds in 2007 reduced debt service in 2008, 2009, and 2010. Debt service in the table is presented as if the defeasance had not occurred. (4) The defeasance of $1.986 billion of GO bonds in 2008 reduced debt service in 2010. Debt service in the table is presented as if the defeasance had not occurred. (5) The defeasance of $718 million of TFA bonds in 2007 reduced debt service in 2008, 2009, and 2010. Debt service in the table is presented as if the defeasance had not occurred. (6) The defeasance of $196 million of TFA bonds in 2013 reduced debt service in 2014, 2015, and 2016. Debt service in the table is presented as if the defeasance had not occurred. (7) The defeasance of $637 million of TFA bonds in 2015 with savings from Sales Tax Asset Receivable Corporation (STAR) reduced debt service in 2015, 2016, 2017 and 2018. Debt service in the table is presented as if the defeasance had not occurred. (8) The defeasance of $65 million of Jay Street Development Corporation (JSDC) bonds in 2007 reduced debt service in 2009 and 2010. Debt service in the table is presented as if the defeasance had not occurred. (9) TFA BARBs and TSASC are not included in OMB's or the Comptroller's definitions of New York City outstanding debt. For an explanation of these items, and their inclusion in NYC IBO's definition of New York City outstanding debt, please see New Outstanding Debt. (10) In 2006, TSASC restructured its outstanding indebtedness. This included a one time expense of $161 million for redeeming all bonds issued under a secured loan agreement with the United States Department of Transportation, via the department's Transportation Infrastructure Finance and Innovation Act (TIFIA) program. Additionally, all prior year TSASC bond series were defeased, leaving only series 2006-1 bonds outstanding.

The global student loan market, valued at approximately $XX million in 2025, is projected to experience robust growth, exhibiting a compound annual growth rate (CAGR) of 9.20% from 2025 to 2033. This expansion is fueled by several key factors. Rising higher education costs globally necessitate increased borrowing by students, driving market demand. Furthermore, the increasing availability of diverse loan options, including federal, private, and income-based repayment plans (IBR, REPAYE, etc.), caters to a wider range of student needs and financial situations. Technological advancements, such as online lending platforms and streamlined application processes, also contribute to market growth by enhancing accessibility and efficiency. The market is segmented by loan type (federal/government, private), repayment plan (standard, graduated, IBR, REPAYE), age group (24 or younger, 25-34, above 35), and end-user (graduate students, high school students). The increasing number of graduate students globally and a growing awareness of higher education's importance are significant contributors to market expansion. North America, particularly the United States, is expected to dominate the market due to high tuition fees and a well-established student loan system. However, the market faces certain constraints. Concerns regarding student loan debt burdens and potential defaults pose challenges to market growth. Stringent regulatory frameworks and evolving government policies surrounding student loan programs can also impact market dynamics. Competitive pressures among lending institutions and fluctuations in interest rates further influence the market landscape. Despite these challenges, the long-term outlook remains positive, driven by the persistent demand for higher education and the continuing evolution of financial aid solutions. Key players such as Earnest, Juno, Credible, Citizens Bank, Discover, Mpower, Prodigy, Federal Student Aid, Sallie Mae, and College Ave are actively competing in this dynamic market, continually innovating to capture market share. Geographical expansion into emerging markets with growing middle classes and increasing access to higher education is another significant growth opportunity. Recent developments include: October 2023: Discover unveiled its latest national brand campaign, titled "Especially for Everyone," featuring the acclaimed actress Jennifer Coolidge. In a groundbreaking move, Coolidge will take center stage in nationwide advertising efforts, spotlighting Discover's array of benefits and products. Of notable significance, this campaign marks the company's inaugural foray into promoting a deposit product, specifically highlighting Discover's Cashback Debit Checking Account., July 2023: Earnest, a fintech company dedicated to enhancing accessibility and affordability in higher education, joined forces with Nova Credit, a cutting-edge credit bureau with a global reach. Together, they have introduced International Private Student Loans, opening up new opportunities for students around the world to pursue their educational dreams.. Key drivers for this market are: Government Initiatives are Driving the Market, Growing Aspirations for International Education is Driving the Market. Potential restraints include: Government Initiatives are Driving the Market, Growing Aspirations for International Education is Driving the Market. Notable trends are: High Education Costs is Driving the Market.

AFCC Debt Settlement Market Outlook

The AFCC Debt Settlement Market is poised for substantial growth, with a current market size of approximately $5.8 billion in 2023 and a projected market size of $11.2 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.5%. This growth is largely attributed to the increasing financial awareness among consumers and businesses seeking alternative solutions to manage debts effectively. The mounting global debt levels and the economic uncertainties precipitated by events such as pandemics and geopolitical tensions are driving the demand for debt settlement services. Consumers are becoming more proactive about managing their debt burdens, thus propelling the market forward.

Several factors contribute to the burgeoning growth of the AFCC Debt Settlement Market. Firstly, the increasing debt burden on individuals and enterprises worldwide necessitates alternative financial solutions that are both effective and accessible. With the global economy facing periodic downturns and uncertainties, many are finding themselves unable to meet conventional loan repayments. Debt settlement offers a viable solution by negotiating directly with creditors to reduce the owed amount, thus providing a lifeline to debtors. Additionally, the proliferation of financial literacy programs has raised awareness about debt management strategies, further fueling the market's expansion.

Technological advancements play a crucial role in revolutionizing the AFCC Debt Settlement Market. The adoption of fintech solutions has made debt settlement services more efficient and user-friendly, providing personalized experiences to clients. The use of data analytics and AI in creating customized debt management plans has significantly improved the success rates of these services. Moreover, the integration of digital platforms allows for seamless and rapid negotiations with creditors, thereby enhancing customer satisfaction and retention. The convenience of accessing these services online further boosts their popularity, especially among tech-savvy consumers looking for hassle-free debt solutions.

Another significant growth factor is the regulatory environment that increasingly favors debt settlement solutions. Governments and financial regulatory bodies are implementing policies that encourage ethical debt resolution practices, providing a structured approach to debt settlement and ensuring transparent operations. This has led to increased consumer trust in these services, encouraging more individuals to opt for debt settlement as opposed to traditional bankruptcy. As a result, service providers adhering to these regulations find a stable platform for growth, with potential expansions in various regions due to favorable governmental attitudes.

Debt Management Solutions have become increasingly crucial in today's financial landscape, as individuals and businesses alike strive to navigate the complexities of managing their financial obligations. These solutions encompass a range of strategies designed to help debtors regain control over their finances, from negotiating with creditors to consolidating multiple debts into a single, more manageable payment. As economic uncertainties persist, the demand for comprehensive debt management solutions continues to rise, providing consumers with the tools they need to achieve financial stability. By offering tailored approaches that address the unique circumstances of each debtor, these solutions play a vital role in alleviating financial stress and fostering long-term financial health.

Regionally, North America is currently the dominant market for AFCC debt settlement services, with a significant share attributed to the high consumer debt levels prevalent in the United States and Canada. The presence of a mature financial services sector and a robust regulatory framework enhances the market's growth in this region. Meanwhile, Asia-Pacific is projected to exhibit the highest growth rate over the forecast period, driven by rising consumer debt and increasing financial literacy among the population. The region's expanding middle class and growing inclination towards digital financial services further contribute to this upward trend. Europe, while experiencing a steadier growth rate, benefits from the stringent regulatory environment and a growing demand for debt relief solutions amid economic uncertainties.

Service Type Analysis

The service type segment in the AFCC Debt Settleme

A survey of U.S. adults from July 2020 found that around 28 percent of adults with an annual household income of 40,000 U.S. dollars or less stated they themselves or someone in their household currently had medical debt they will be unable to repay in the next 12 months. This statistic shows the percentage of U.S. adults who stated they or someone in their household currently had medical debt they will be unable to repay in the next 12 months as of 2020, by annual household income.

Consumers in the United States had over **** trillion dollars in debt as of the first quarter of 2025. The majority of that debt were home mortgages, amounting to approximately **** trillion U.S. dollars. Student and car loans were the second and third largest component of household debt. Why is consumer debt important? Debt influences the Consumer Sentiment Index, which is an important indicator assessing the state of the U.S. economy. The U.S. housing market is also seen a bellwether of the economic conditions in the country. The housing industry employs a large number of people, and mortgages are large investments that consumers will pay off over the course of years, sometimes decades. Because of this, financial analysts closely watch consumer debt and its effects on the demand for housing. Attitudes towards debt Consumer perception of debt differed, depending on the kind of debt in question. While most saw a home mortgage as a positive investment, they increasingly looked at student loan debt as a negative debt. With education costs increasing, people are incurring more student loan debt in the United States. Credit card debt also had negative connotations.

In 2018, almost 8.5 billion U.S. dollars of debt was returned to the original creditor in Texas, while Vermont debt collectors returned only 29 million U.S. dollars. Overall, the total debt returned in the United States in that year reached 90 billion U.S. dollars.

Vietnam VN: External Debt: AMT: Principal Repayments: Long-Term data was reported at 11.238 USD bn in 2017. This records an increase from the previous number of 5.732 USD bn for 2016. Vietnam VN: External Debt: AMT: Principal Repayments: Long-Term data is updated yearly, averaging 205.713 USD mn from Dec 1970 (Median) to 2017, with 48 observations. The data reached an all-time high of 11.238 USD bn in 2017 and a record low of 0.000 USD mn in 1982. Vietnam VN: External Debt: AMT: Principal Repayments: Long-Term data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Vietnam – Table VN.World Bank.WDI: External Debt: Amortization. Principal repayments on long-term debt are actual amounts of principal (amortization) paid by the borrower in currency, goods, or services in the year specified. Long-term external debt is defined as debt that has an original or extended maturity of more than one year and that is owed to nonresidents by residents of an economy and repayable in currency, goods, or services. Data are in current U.S. dollars.; ; World Bank, International Debt Statistics.; Sum;

In 2023, the gross federal debt in the United States amounted to around ****** U.S. dollars per capita. This is a moderate increase from the previous year, when the per capita national debt amounted to about ****** U.S. dollars. The total debt accrued by the U.S. annually can be accessed here. Federal debt of the United States The level of national debt held by the United States government has risen sharply in the years following the Great Recession. Federal debt is the amount of debt the federal government owes to creditors who hold assets in the form of debt securities. As with individuals and consumers, there is a common consensus among economists that holding debt is not necessarily problematic for government so long as the public debt is held at a sustainable level. Although there is no agreed upon ratio of debt to gross domestic product, the increasing debt held by the Federal Reserve has become a major part of the political discourse in the United States. Politics and the national debt In recent years, debate over the debt ceiling has been of concern to domestic politicians, the owners of federal debt, and global economy as a whole. The debt ceiling is a legislated maximum amount that national debt can reach intended to impose a degree of fiscal prudence on incumbent governments. However, as national debt has grown the debt ceiling has been reached, thus forcing legislative action by Congress. In both 2011 and 2013, new legislation was passed by Congress allowing the debt ceiling to be raised. The Budget Control Act of 2011 and the No Budget, No Pay Act of 2013 successively allowed the government to avoid defaulting on national debt and therefore avert a potential economic crisis.