Debt Shield President Points to 1 Million Foreclosures, Predicts More Debt

Debt Shield President John Gourdin is warning consumers and legislators that the record level of foreclosures reported by Realty Trac Filings for the first half of 2007 is a clear sign that personal debt is crippling American consumers.

Nearly 1 million foreclosure notices were filed between January and June of this year. Filings in June were up 87 percent compared to June 2006. Risky, subprime mortgages are to blame for the majority of foreclosures.

“These results prove the personal financial situations of millions of Americans will continue to deteriorate without consumer awareness and increased mortgage industry regulation,” said Gourdin. “Regulators are making some moves to improve the situation, but progress is slow and a little too late for many homeowners.”

Federal banking regulators issued a Statement on Subprime Mortgage Lending June 29 that outlines industry standards for ensuring borrowers only obtain loans they can repay. On July 16, mortgage financers Fannie Mae and Freddie Mac announced plans to implement tougher standards and programs to address subprime mortgages. House Financial Services Committee member Rep. Spencer Bachus introduced a bill July 12 aimed at increasing transparency in the mortgage industry and protect consumers from predatory loans. Non-profit consumer credit counseling agency Money Management International announced July 18 that a recent $1 million grant will go toward homeowners in danger of foreclosing.

Gourdin says that tougher bankruptcy laws and unfamiliarity with debt relief options only add to the financial stress of struggling Americans.

“The new bankruptcy law is discouraging many homeowners from seeking debt relief, and this hurts their ability to keep up with mortgage payments," said Gourdin. “People need to be made aware of their options when faced with financial hardships so they don’t lose everything they’ve worked so hard to gain.”

Gourdin says that debt settlement is a viable option for many homeowners struggling with debt and other bills. He stresses that anyone looking for professional debt settlement services needs to thoroughly research prospective debt settlement companies to make sure they are legitimate, respond to customer concerns and maintain high ethical standards. Several online resources, such as the Better Business Bureau website, can help consumers investigate different debt settlement companies.

About Debt Shield:

Debt Shield, Inc., is a debt settlement company dedicated to helping consumers resolve their unsecured debt through mutually agreeable and discounted lump sum settlements in consideration of legitimate financial hardships. By helping consumers avoid bankruptcy, Debt Shield provides a service for both debtors and creditors. For more information about Debt Shield, call 1-888-397-7546 or visit the website at www.debtshield.com.